Cabinet Settles Wage Hike Row, Approves ‘Legal’ Version of Baabda Deal

The cabinet ended on Wednesday an enduring debate over the wage hike by adopting the Baabda Palace deal that was sponsored by Prime Minister Najib Miqati in December and turning down Labor Minister Charbel Nahhas’ plan, which was approved by the Shura Council.

During a session held at the Grand Serail, the dispute over the “legality” of the transportation allowance remained the contention point as Nahhas put the issue to vote. But his proposal won the support of 10 ministers while 19 voted against it, according to newspapers published on Thursday.

Nahhas argues that the transportation allowance should be included in the salary, saying the Shura council will turn down any plan that puts the allowance outside the minimum wage because such a move contradicts the labor law.

However, the cabinet tasked Nahhas to prepare a draft law and refer it to the parliament for adoption, allowing the government to set the minimum rates for transportation and education allowances, thus “legalizing” them.

The cabinet adopted the deal between the Economic Committees and the General Labor Confederation which was sponsored by Miqati in December at the Baabda Palace, which sets the minimum wage to LL675,000.

The plan which was modified by the cabinet to include the increase on brackets sets the raise on the first bracket up to LL400,000 to 100 percent , a sum that wouldn’t be less than LL375,000 while the increase on the second bracket – up to LL1.5 million- would include the first LL400,000 plus 9 percent excluding LL200,000.

The LL200,000 salary increase was approved by the government on 1/1/2010.

According to newspapers, the Prime Minister told Nahhas that the cabinet “adopted the legal form that he proposed by legalizing (the Baabda Palace deal).”

“We don’t intend to undermine your role… We are all cooperating for the public’s benefit,” Miqati told Nahhas.

Energy Minister Jebran Bassil told As Safir newspaper that the government as a whole is the winner, “especially minister Nahhas, on the contrary to what many think.”

“The minister’s determination fixed a chronic disease which had hit the mechanism of wage boosts since 1995.”

For his part, Minister of State for Administrative Reform Mohammed Fneish said that Hizbullah’s decision to vote in favor of Nahhas’ transportation allowance suggestion was in harmony with the Labor Minister’s position.

“This is an accomplishment done by Nahhas,” Fneish told As Safir newspaper.

If Nahhas, who is loyal to Free Patriotic Movement leader MP Michel Aoun, refuses to sign the decision approved by the cabinet, he would be contradicting the agreement between Aoun and Miqati.

Media reports said that the two men had agreed for Nahhas to comply with any decision endorsed by the cabinet over the matter.