Minimum Wage Hike Faces Controversial Debate, GLC Rejects Proposal by Nahhas

The controversial increase on the minimum wage hasn’t reached a safe haven yet, as the package proposed by Labor Minister Charbel Nahhas was rejected by the General Labor Confederation with a reluctant flexibility by the private sector.

“Prime Minister (Najib Miqati) is seeking to take this matter forward to reach common grounds,” the premier’s sources told As Safir newspaper on Friday.

The Grand Serail is witnessing consecutive meetings between Miqati, the GLC representatives and the economic associations, during which the PM is stressing on the importance of “wrapping up the issue swiftly.”

Minister Nahhas is expected to return from Geneva on Monday to establish a final deal on the issue with the concerned parties, As Safir newspaper reported.

Nahhas proposed adding transportation allowances to basic salaries, providing health care coverage for all Lebanese residents by adding taxes on real estate transactions and a 16.3 percent wage hike to all salaries without specifying a certain ceiling for the increase.

The GLC argues that Nahhas has disregarded the National Social Security Fund, which completely contrasts the workers aim.

A source told the daily that “the timeframe for dialogue is not open; the Labor Minister had obliged himself to accomplish this deal before the end of November.”

Head of GLC Ghassan Ghosn reiterated to As Safir newspaper the demands of increasing the wages from LL500,000 to LL700,000, and an additional LL300,000 for all the other salaries which constitutes %40 for salaries under LL1 million and %20 for salaries above LL1million with the increase of transportation fees and schools subsidies.

In October, the Shura Council rejected the decision taken by the Cabinet to increase minimum wages by LL200,000 for salaries under LL1 million and by LL300,000 for salaries between LL1 million and LL1.8 million.

The minimum wage in Lebanon has twice been increased since the end of the 1975-1990 civil war, most recently in 2008.

The country witnessed record growth rates in recent years, but projections for 2011 have dropped following a protracted government crisis earlier this year and amid political unrest in neighboring Syria.