Economic Committees: Govt. Wage Hike is Major Blow to Economy
The Economic Committees condemned on Thursday the government’s approval of Labor Minister Charbel Nahhas’ proposals over the wage hike in Lebanon, deeming it “a major blow to the economy.”
The head of the authorities Adnan Kassar said: “We hope the Shura Council will reject the decision.”
He noted after an emergency meeting for the Committees: “The industrial, commercial, and tourist institutions cannot support the government decision because of the political crisis.”
He also hoped that the government would retract the decision as it is “a blow to the most important basis of stability in Lebanon.”
“This was a purely political decision as it did not take into account any economic considerations,” added Kassar.
He renewed his commitment to the previous agreement that was reached with Prime Minister Najib Miqati, calling on parties and civil organizations to mobilize to pressure the government to retract its decision.
“The repercussions of the decision will not only affect the employers, but the employees as well,” warned Kassar.
On Wednesday, the Free Patriotic Movement, Hizbullah and Amal dealt a blow to Miqati after they voted in favor of a wage boost decree proposed by Nahhas hours after the Economic Committees and the General Labor Confederation agreed with minor changes on a previous proposal made by the PM.
Fifteen ministers voted in favor of Nahhas’ wage hike decree while 11 voted against it.
Minister Wael Abou Faour abstained from voting while Ministers Salim Karam, Faisal Karami and Nazem al-Khoury did not attend the session that was held at Baabda palace.
The new cabinet decision calls for raising the minimum wage to LL868,000 from the current LL500,000 – a sum that includes a LL236,000 transportation allowance.
Workers earning less than LL1.5 million receive an 18 percent increase while salaries between LL1.5 million and LL2.5 million receive an additional 10 percent on the second salary bracket. Wages above LL2.5 million will not earn an additional increase.
The raise is effective as of December 1, 2011.
The GLC and the Economic Committees, which had been bickering on Miqati’s proposal in the past week, made a last-minute deal ahead of Thursday’s cabinet session by agreeing on a LL675,000 minimum wage.
Miqati’s original proposal that was approved by the cabinet on Dec. 7 called for increasing the minimum wage to LL600,000. The PM had made his suggestion despite a decree proposed by Nahhas, who on Thursday retaliated by pushing ahead his proposal.
Source: Naharnet
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