Change and Reform Bloc Divided over Wage Hike Decree, Hizbullah Supports Miqati

The controversial wage hike proposal, which was approved by the majority of the cabinet on Wednesday, had the support of Industry Minister Vrej Sabounjian, a member of the Change and Reform bloc led by MP Michel Aoun, and Hizbullah ministers Mohammed Fneish and Hussein Hajj Hassan.

“The data introduced by (Premier Najib) Miqati were convincing,” Tashnag party minister Sabounjian told As Safir newspaper on Thursday to justify his support for the PM’s proposal rather than the decree introduced by Change and Reform’s Labor Minister Charbel Nahhas.

The Lebanese economic situation makes it difficult for the cabinet to implement Nahhas’ proposed package, he said.

Sixteen ministers favored Miqati’s proposal during Wednesday’s cabinet session with only seven out of ten ministers loyal to Aoun voting against it.

“I did it according to my convictions,” Sabounjian stressed.

The cabinet approved a wage hike where minimum wage increased by LL100,000 to LL600,000, salaries under LL1 million by 30% up to a LL200,000 increase, and salaries above LL1 million by a 20% increase up to LL275,000.

“The trade associations had previously warned of any uncalculated increase that will affect the industry sector,” Sabounjian said.

For his part, state minister Fneish told As Safir that “Hizbullah ministers didn’t vote against Nahhas’ proposal because it wasn’t put up to vote in the first place.”

He said the party’s ministers didn’t object Miqati’s proposal, noting “Nahhas’ package includes a number of basic social projects… that need discussions.”

“Approving Nahhas’ proposal requires the amendment of (some) current laws,” Fneish stated.

He remarked that the article concerning the correction of wages in Nahhas’ proposal is already rejected by the workers and business owners.

Nahhas’ proposal included the increase of the monthly minimum wage to LL860,000, a 17 percent raise for salaries up to LL1 million and an increase of LL170,000 for those earning more than LL1 million.