Agreement on Nahhas’ Wage Hike Aimed at Weakening Miqati

Prime Minister Najib Miqati is reportedly upset with the government’s decision to approve Labor Minister Charbel Nahhas’ proposals on the wage hike, sources close to the premier told the Kuwaiti al-Seyassah newspaper in remarks published on Monday.

They said that cabinet decision, which was led by the alliance between Hizbullah, AMAL, and the Free Patriotic Movement ministers, sought to send a message that this alliance is the true controller of the government and not Miqati.

They expected the Shura Council to reject the government wage hike decree and therefore cause the crisis over the matter to return to square one seeing as the Hizbullah, AMAL, and FPM ministers sought to approve Nahhas’ suggestions “at the expense of cabinet and its unity”.

The government is expected to convene on Wednesday in order to tackle the wage hike dispute.

Last week, the FPM, Hizbullah, and AMAL dealt a blow to Miqati after they voted in favor of a wage boost decree proposed by Nahhas hours after the Economic Committees and the General Labor Confederation agreed with minor changes on a previous proposal made by the PM.

The new cabinet decision calls 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.

Miqati’s original proposal that was approved by the cabinet on December 7 called for increasing the minimum wage to LL600,000. The PM had made his suggestion despite a decree proposed by Nahhas, who retaliated by pushing ahead his proposal.