SCC Goes on Strike as Salameh Questions Feasibility of Funding New Wage Scale from Taxes

The Syndicate Coordination Committee staged a general strike on Wednesday at public institutions, ministries, and public and private schools in protest against the failure to refer the new wage scale to parliament for approval as Central Bank Governor Riad Salameh questioned the feasibility of funding the scale through new taxes.

Salameh asked: “The proposed taxes encompass four percent of the gross domestic product. Given the current circumstances, can the state realistically reap an additional four percent?”

“I do not oppose the new wage scale, but I am concerned that the government may become bound to ensuring the spending linked to it and in return fail to provide the wages,” he explained to al-Joumhouria newspaper on Wednesday.

“We are keen that the approval of the wage scale will not lead to a rise in the financial deficit, which will in turn lead to a rise in benefits and lead the country to economic stagnation,” added Salameh.

“We are also keen to avoid imposing additional taxes in light of the slow economic growth, which will only serve to weaken Lebanon's competitive edge,” said the Central Bank governor.

A tax raise that is not accompanied by a rise in productivity will lead to inflation, he warned.

“As a result, we believe that the approval of the wage scale should be accompanied by reforms that create financial surplus,” he stated to al-Joumhouria.

“If these reforms are not possible, then implementing the new wage scale in installments will be the appropriate solution to this issue,” continued Salameh.

The SCC meanwhile held its central sit-in in front of the parliament building in downtown Beirut, with head of the Private School Teachers Association Nehme Mahfoud declaring before the crowd: “We pledge before you that the new wage scale will be approved by parliament.”

The new scale should be approved to avert the further deterioration of the social situation in Lebanon, he remarked.

He revealed that the SCC will convene on Friday afternoon in order to assess the performance of the joint parliamentary committees that are tackling the wage scale ahead of referring it to parliament.

Head of Public Secondary School Education Teachers Association Hanna Gharib meanwhile said during the sit-in: “The funding of the wage scale can be found in the corruption and illegal deals.”

The ball is now in the court of the lawmakers and the Lebanese people will await what action they will take on Friday should the approve the wage scale, he added.

“We will hold the MPs responsible for any escalation we carry out throughout Lebanon, which may even lead to an open-ended strike and the boycott of official exams if the scale is not approved,” he warned.

The SCC will hold a meeting later on Wednesday at the Public Secondary School Education Teachers Association at UNESCO at 4:00 p.m.

On Saturday, the SCC accused officials of yielding to pressure from the Economic Committees when it failed to refer the wage scale to parliament.

The SCC warned that it may hold an open-ended strike starting April 7 should the joint parliamentary committees fail to approve the wage scale.

Former Prime Minister Najib Miqati's cabinet endorsed in 2012 a new salary scale for public employees ending a long dispute that had prompted the SCC to hold several sit-ins and strikes.

President Michel Suleiman signed the decree mid-June 2013 and it was referred to the joint parliamentary committees for further scrutiny.

The wage increase will be retroactive from July 1, 2012.

The state treasury will have more than $1.2 billion to cover as there are over 180,000 public sector employees including military personnel.

M.T.

G.K.