Shura Council Still Mum as Economic Committees Urge Private Sector to Implement Deal with GLC

A wage hike made by the cabinet last week will most likely not be published in the official gazette this year as the Shura Council failed to issue its stance on the decision ahead of the last government session for 2011.

The cabinet convened at Baabda palace at noon Wednesday to discuss 37 items placed on its agenda. President Michel Suleiman and Premier Najib Miqati held closed-door talks ahead of the session.

Ministerial sources had told As Safir newspaper that there was a very slim chance for the Council to announce its decision on the salary boost ahead of the session.

Last week’s cabinet decision called for raising the minimum wage to LL868,000 from the current LL500,000 – a sum that includes a LL236,000 transportation allowance.

Workers earning less than LL1.5 million receive an 18 percent increase while salaries between LL1.5 million and LL2.5 million receive an additional 10 percent on the second salary bracket. Wages above LL2.5 million will not earn an additional increase.

The raise is effective as of December 1, 2011.

But the Economic Committees that include owners of major firms have rejected the formula. A delegation headed by former Minister Adnan Kassar told Suleiman during a meeting at Baabda palace on Tuesday that he should “help them solve the problem and resort to the agreement” reached between them and the General Labor Confederation.

The Committees and the GLC had reached a deal to set the minimum wage at LL 675,000 without the transportation allowance. However, their agreement was dealt a blow when the cabinet approved Nahhas’ proposal of LL868,000.

A member of the delegation that visited Suleiman, Mohammed Shuqair, told An Nahar in remarks published Wednesday that he asked the president not to sign the new wage decree if it was Okayed by the Shura Council “because he would be signing the decree of the collapse of Lebanon’s economy.”

Shuqair said the Economic Committees will inform both Miqati and Speaker Nabih Berri about their stance to “fix the mistake of the last decree.”

Owners of businesses are claiming that Nahhas’ proposal would cause lay-offs and would shut down major companies because of the economic burdens.

Shuqair stressed that the Economic Committees have asked the private sector to go ahead with the deal reached between them and the GLC, saying the agreement would be effective as of January.

When asked to comment about the issue, Miqati told reporters at the Grand Serail before heading to Baabda palace that the Economic Committees have already begun implementing the deal.

He reiterated that the wage hike is not in Lebanon’s national interest.

Meanwhile, Suleiman, Berri, Miqati and the members of the cabinet stayed at the presidential palace for lunch after the cabinet session.

The president is expected to deliver a speech on the occasion of the end of the year, presidential sources told As Safir. They said Suleiman will spend the New Year with his family abroad.