AMAL, Hizbullah Hold on to Deal with SCC as Divisions Loom

Sharp differences among cabinet members over the new wages scale forced the postponement of the controversial issue as ministers were divided between those holding onto a deal agreed with the public sector and others arguing that the percentage hike should be decreased as the state treasury can’t endure it, local newspapers reported on Thursday.

The cabinet session on Wednesday witnessed sharp debate between Hizbullah and AMAL Movement ministers and President Michel Suleiman, Prime Minister Najib Miqati and National Struggle Front ministers, who are loyal to Progressive Socialist Party leader MP Walid Jumblat, over the percentage of the new salaries increase for the public sector employees.

Ministers met on Thursday again to tackle the matter at the Baabda Palace at 10:00 a.m. to settle the debates.

In an attempt to resolve divisions, a meeting was held on Wednesday night at the Grand Serail between Miqati, Economy and Trade Minister Nicolas Nahhas, AMAL’s Health Minister Ali Hassan Khalil and Hizbullah’s Minister of Administrative Development Mohammed Fneish.

An Nahar newspaper reported that gatherers failed to reach an agreement.

Nahhas denied in comments published in As Safir that the cabinet will renege on the deal held with the Syndicate Coordination Committee.

“The final word is for the government that takes into consideration all the factors,” he noted.

AMAL and Hizbullah are holding onto a deal struck between the SCC, the ministerial committee tasked with studying the new scale for the public sector and Miqati.

However, Suleiman, Miqati and Jumblat ministers are arguing that such an increase would be a financial risk.

“I am keen to reach a reasonable settlement that would achieve harmony between the rights of the employees and the abilities of the government,” Miqati told As Safir newspaper.

The Hizbullah-led March 8 alliance sources described discussions at the cabinet session on Wednesday as a “coup on the negotiations with the SCC.”

“The ministers loyal to Suleiman and Jumblat brought back discussions to the starting point when they suggested decreasing the percentage of the hike,” the sources pointed out.

Khalil told As Safir newspaper that AMAL’s stance is based on “carrying out the deal that was held with the SCC… We are flexible to any suggestion concerning the funding mechanism.”

Labor Minister Salim Jreissati, who is loyal to Free Patriotic Movement leader MP Michel Aoun, told al-Liwaa newspaper that “the division is over the treasury revenue and some technical terms that require discussions.”

The state’s treasury will have more than $1billion and 200 million to cover as there are over 180,000 public sector employees including military personnel.

The government plans to boost the treasury’s revenue to cover the expenses of the salaries boost through several proposals including the implementation of a hike on taxes on land parcels and sea properties.