The board of the Jewish National Fund decided yesterday on an efficiency drive intended to bring about an immediate reduction of NIS 45 million in the organizations expenditures
In the second stage of the program which will begin in a few months the JNF is expected to cut 300 jobs and lower the wages of senior executives by 16 percent in order to reduce its 2004 expenditure by a further NIS 105 million compared with the previous year
All told the JNF plans to cut expenditures by NIS 150 million to NIS 450 million down from NIS 600 million last year and NIS 730 million in 2002
Among the measures decided upon by the board for immediate implementation are 
annulment of overtime
unification of offices in order to cut rent expenditures
reduction of electricity bills via a policy of lights out after 1700 and on weekends
a ceiling on all employee phone calls
a cut in the number of employees entitled to receive company cellular phones
a reduction in the organizations vehicle fleet 
an end to the activities of the fund that provides loans to employees
Negotiations over the second stage in particular the planned axing of 300 jobs have run into difficulties after the JNF employees union chaired by Gil Fenner is demanding in exchange for its agreement to the job cuts that the board deposit a NIS 250 million guarantee either a real estate asset or a bankers draft to ensure the employees pension payments
JNF board chairman Yehiel Leket has so far refused to meet the employees demand claiming the employees pensions are not in danger and called the unions demand a tactical ploy
The JNF board decided on the efficiency drive after a drastic drop in the organizations revenues as a result of record low revenues registered by the Israel Lands Administration due to the ongoing recession in the real estate sector
The ILA administers the land owned by the JNF and provides the JNF some 75 percent of its revenues
Sources at the JNF said yesterday that the organization will receive only NIS 300 million from the ILA this year down from NIS 450 million projected for 2004
Another reason for the organizations declining revenues is the decline in donations from overseas Jewry
As a result sources say the JNF was now forced to adjust its 2004 budget to NIS 450 million down from its original budget of NIS 600 million
