Wage Boost Awaits Political Consensus as Transportation Allowance Remains Main Dispute

The cabinet has so far not included the wage hike on the agenda of a session on Tuesday as it is expected to postpone the matter to next week amid reports of consensus between parties to resolve the issue.

“A settlement emerged as (Free Patriotic Movement MP) Michel Aoun agreed on Monday to find a deal that satisfies employers, employees and Labor Minister Charbel Nahhas,” sources told An Nahar newspaper on Tuesday.

According to the sources, Prime Minister Najib Miqati, President Michel Suleiman and Aoun are keen to finding a solution as a formula is being drafted to legalize the deal made between the General Labor Confederation and the Economic Committees at Baabda Palace last month.

The Committees and the GLC had agreed to set the minimum wage at LL675,000 – a sum that excludes the transportation allowance.

However, the sources noted that the “new formula” requires a meeting between Nahhas and representatives from the Economic Committees and the GLC.

As Safir newspaper said on Tuesday that the meeting held between Aoun and the joint delegation between the GLC and the Economic Committees was “positive.”

On Monday, a joint delegation from the GLC and the Economic Committees held separate meetings with Aoun and Miqati in order to find a solution to the wage hike dispute.

Sources close to Aoun told the daily that he refuses to agree on an “illegal deal,” noting that the transportation allowance dilemma must be resolved to restrain any institution from depriving workers from this right.

As Aoun insists that the transportation allowance should be included in any wage boost proposal.

Head of GLC Ghassan Ghosn told As Safir that discussions with Aoun were “important,” noting that the delegation urged Aoun to approve the agreement formulated at Baabda Palace.

“Aoun agreed to any deal (between the production parties) as long as it’s legal…” he stressed.

Asked about the timing of a social-economic conference that PM Miqati had said it would be held, Ghosn told al-Joumhouria newspaper that the date isn’t scheduled pending the approval of the wage hike.

Sources close to Minister Nahhas said in remarks published in the daily that there’s an attempt to avoid the minister’s latest plan that is awaiting the Shura Council’s verdict.

The new proposal of Nahhas, who is loyal to Aoun, suggests a 100 percent increase on the first bracket under LL1 million and 25 percent on the second bracket above LL1 million. But LL200,000 will be deducted from the wages due to the raise approved by the government in 2008, which indicates that the new minimum wage will be LL800,000.

The sources said that the labor minister refuses to hold any deal excluding the Syndicate Coordination Committee, as he stresses that any agreement between the GLC and the Economic Committees should include the transportation allowance.