Controversial New Pay Hike Hits Rock Bottom as Consultations Reach Impasse

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The controversial new pay hike for public employees reached an impasse on Friday despite staunch consultations among parliamentary blocs to reach a breakthrough and end the lingering crisis.

Local newspapers reported that a meeting was held on Thursday night between head of al-Mustaqbal parliamentary bloc MP Fouad Saniora, Finance Minister Ali Hassan Khalil, Health Minister Wael Abou Faour and Lebanese Forces lawmaker George Adwan.

Sources told al-Joumhouria newspaper that the one-hour meeting addressed the points of contention, but discussions didn't lead to a breakthrough.

“The matter is not as easy as it seems... Rivals didn't agree on any disputed issue as solutions require more consultations in order to bridge the gap,” the sources said.

Abou Faour, who is loyal to Progressive Socialist Party leader Walid Jumblat, expressed pessimism after the meeting, but stressed that serious discussions are ongoing to reach adequate solutions.

“Al-Mustaqbal parliamentary bloc insists on adopting a comprehensive new wage scale draft-law,” Saniora said in comments published in al-Liwaa newspaper on Friday.

For his part, Education Minister Elias Bou Saab slammed the ongoing disputes between al-Mustaqbal and their rivals, in particular over the possibility of increasing the value added tax from 10 to 11 percent.

Bou Saab expressed reservations over the political disputes that are hindering the rights of the teachers.

Parliamentary blocs have continuously expressed their support for the employees' rights, but have warned that Lebanon's ailing economy would suffer if the total funding was not reduced from LL2.8 trillion ($1.9 billion) to LL1.8 trillion ($1.2 billion).

They have also disagreed on how to raise taxes to fund the scale over fears of inflation and its affect on the poor.

Their differences have been exacerbated by the boycott of the March 14 alliance's MPs of the sessions aimed at discussing the draft-law under the excuse that parliament should not legislate in the absence of a president.

Speaker Nabih Berri however criticized the 1 percent increase on the VAT, saying: “The new salary scale should be paid over installments... The increase should be imposed on luxury goods.”

He pointed out that based on the results of the meetings between Saniora and Khalil, who is Berri's adviser, a decision will be taken to determine the upcoming endeavors.

On Thursday, Bou Saab announced that he is ready to adopt a solution that does not necessarily please the Syndicate Coordination Committee, explaining that he was keen on students' rights.

Nevertheless, he reiterated that he won't oblige any teacher to correct exams.

The announcement prompted SCC official Hanna Gharib to declare that a strike will take place in public institutions on August 6, to push for the long-awaited new wage scale's adoption.

H.K.

M.T.

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