Differences Force Cabinet to Postpone Discussions on New Wage Scale to Thursday

Cabinet postponed to Thursday discussions on the new wage scale due to the emergence of differences between Prime Minister Najib Miqati and Change and Reform ministers.

Miqati had requested at the meeting that the funding of the new scale be derived from increased taxes on construction and other sources.

Acting Information Minister Wael Abou Faour said after the meeting that the premier had proposed several options besides the increased taxes and the various blocs presented their views on then.

Cabinet will convene again on Thursday morning in order to continue the discussions on the wage scale.

He revealed that Finance Minister Mohammed al-Safadi’s team will meet with Miqati ahead of the session to present its figures to cabinet.

In addition, Abou Faour said that the government addressed the suggestions of the ministerial committee and syndicates over the wage scale,

On President Michel Suleiman’s recent visit to Iran, the minister said that the president had stated at the beginning of the cabinet session that his meeting with Iranian supreme leader Ayatollah Ali Khamenei and President Mahmoud Ahmadinejad “was an opportunity to affirm ties between the two countries.”

They also stressed the need to respect international resolutions, especially those linked to the bank sector.

Commenting on Lebanon’s chairing of the Arab League Ministerial Council, the president stated that it should serve as an opportunity for Lebanon to demonstrate its disassociation policy.

Cabinet also agreed to renew for 12 years the exclusivity of Lebanon’s flag carrier Middle East Airlines.

Head of the private schools teachers association Nehme Mahfoud told An Nahar newspaper Wednesday that his meeting with Miqati on Tuesday was “on edge” as the premier said many officials fear that approving the new wages scale would have negative economic repercussions.

According to As Safir newspaper Wednesday, 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.

Safadi suggested paying the employees’ wages in installments, however, the Syndicate Coordination Committee rejected his proposal.

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.

Economy and Trade Minister Nicolas Nahhas told As Safir that the cabinet will tackle the matter based on the three main principles of achieving balance between the salaries of employees, providing new revenues and safeguarding the economy.

“The cabinet will approve the new wages scale but we have to decide on new sources to fund the increase,” Nahhas said.

The daily reported that al-Mustaqbal bloc leader MP Fouad Saniora rejects the hike on salaries which will have “negative impacts if it wasn’t thoroughly discussed.”

“Miqati’s proposal contradicts all the financial standards,” sources close to the lawmaker told As Safir, a sign that the opposition the Mustaqbal bloc will reject the bill if it was transferred to parliament.

A ministerial source told al-Liwaa newspaper that the dispute is centers on the ways to finance the wages hike as some officials suggested halting new employments in the public sector, referring several employees to retirement, decreasing the surpluses in public schools and shortening the summer vacation and judicial vacation to one month.

The SCC, a coalition of private and public school teachers and public sector employees, has staged several strikes in the past months to pressure the government into adopting the new wages scale.

The government decided to increase the salaries of the public employees after a wage raise was granted to the private sector in January.