Economy Minister Says State Treasury Can’t Afford New Wage Hike Plan

Economy and Trade Minister Nicolas Nahhas said on Friday that the economic institutions will not be able to implement the cabinet’s approval of the wage hike decision, hinting that bankruptcy will hit many sectors.

The decision will put on the state treasury additional burdens than a previous decision approved by the cabinet, Nahhas told As Safir newspaper.

On Wednesday, Labor Minister Charbel Nahhas pushed his proposal on wage hike to vote during the cabinet session dealing a blow to Prime Minister Najib Miqati’s agreement with the Economic Committees and the General Labor Confederation on another wage hike proposal.

The Labor Minister’s plan calls for raising the minimum wage to LL868,000 while Miqati’s agreement with the Business leaders and the GLC suggested it reaches LL675,000.

The Economy and Trade Minister stressed that Miqati’s plan states on boosting the minimum wage to LL675,000 with LL240,000 transportation fees, so the minimum wage would reach LL925,000 while the Labor Minister’s proposal calls for raising the minimum wage to LL868,000 including the transportation allowance.

Nahhas, who is a minister loyal to Miqati, said that the Shura Council will have to take its decision in accordance with the Council of the National Social Security Fund over the possibility of implementing such a decision.

Sources close to Miqati told An Nahar newspaper on Friday that he is committed to the constitution and the law, stressing that the wage hike issue should be dealt with according to the developments and principles “not according to the rules that some (parties) are trying to impose.”

The sources said that the wage hike should’ve been dealt with in another way in order to preserve economic stability.

They wondered how the members of the cabinet refuse imposing new taxes when Nahhas’ proposal forces additional costs on the states’ treasury.

Miqati left Lebanon on Thursday on a five-day private visit. He will return to head the cabinet session on Wednesday at the Grand Serail.

The premier’s sources told As Safir newspaper that Miqati insists on activating the government’s work as “what happened shouldn’t affect the productivity of the cabinet.”

“The Shura Council might issue its verdict before Wednesday’s cabinet session… It might reject (Nahhas’ proposal), or demand major changes on it,” ministerial sources told the daily.