Govt. May Approve Funding of New Wages Scale during Wednesday Session

Preparations are underway among the government forces to approve the funding of the new wages scale, which will likely take place during a cabinet session on Wednesday, reported the daily An Nahar on Saturday.

A meeting to that end was held recently between Prime Minister Najib Miqati, concerned ministers, and Central Bank Governor Riyad Salameh at the Grand Serail.

In addition, the daily revealed that Finance Minister Mohammed al-Safadi had presented new ideas on the funding of the new wages scales.

For his part, Salameh highlighted during the meeting the dangers of introducing new burdens on Lebanon's economy.

The Central Bank governor has also been invited to attend Wednesday's cabinet session.

He will present a new study on the wages scale after assessing Safadi's suggestions, added the daily.

Ministerial sources meanwhile revealed to An Nahar that the government is “seriously considering approving the funding of the new wages scale,” but ruled out the possibility of approving it on Wednesday in order to allow ministers to present their views on the matter.

Earlier this year, the cabinet approved the new salaries scale for public employees ending a long dispute that had prompted the Syndicate Coordination Commitee, a coalition of private and public school teachers and public sector employees, to hold several sit-ins and strikes.

The wages increase will be retroactive from July 1, 2012, but the salary adjustments would be paid in installments over a period of five years.

However, the cabinet is delaying discussion on plans to boost the treasury’s revenue to cover the expenses of the salaries boost. The state treasury will have more than $1.2 billion to cover as there are over 180,000 public sector employees including military personnel.

The Economic Committees, a grouping of the country's businessmen and owners of major firms recently said they would reject any decision taken by cabinet on the new wage scale, warning that the government's plan would "inflict major losses on the public and private sectors."