Private sector lauds salary scale delay
The Daily Star
BEIRUT:
The private sector hailed Thursday Parliament Speaker Nabih Berri’s
decision to send the controversial draft wage hike law back to joint
committees, saying that this move had spared the country dire
consequences.
“It was the right decision and it saved the country from negative repercussions,” said Nicolas Chammas, the President of Beirut Traders Association. “The draft law has been taken off the floor of the Parliament and that’s what counts for me. It was the right thing to do.”
Parliament decided Wednesday to delay yet again a controversial wage hike for public-sector workers that has prompted numerous strikes and protests in recent months.
Berri sent the draft wage hike law back to joint committees after some parliamentary blocs made several remarks about the bill.
Some ministers insisted it was necessary to include military personnel in the new salary increase, while others called for the inclusion of the private school teachers.
“Many lawmakers and ministers were not pleased with the bill,” Berri told lawmakers at the start of the parliamentary session.
“That’s why I ask for the return of the draft law to the joint parliamentary committees for further study,” he added.
Chammas’ remarks were echoed by the President of the Chamber of Commerce, Industry and Agriculture Mohammad Choucair, who said this decision had saved the country’s economy while sparing it from a possible social disaster.
“We want to thank Parliament Speaker Nabih Berri for this very wise decision,” he said.
Choucair argued that the salary scale approval would have increased the minimum wage in the public sector to LL872,000 which would, in turn, have prompted private-sector employees to ask for a similar rise.
“Such a hike in the minimum wage for the private sector would definitely result in the layoff of thousands of Lebanese, who would be replaced with employees from other nationalities,” he said. “The negative repercussions of such a measure are not being well evaluated.”
Choucair said that the approval of the salary scale would improve the living conditions of around 230,000 employees working in the public sector but it would, on the other hand, “open the door to hell” for the private sector.
“We are not much worried about protests by public workers because they are getting paid regularly and they are benefitting from social security and health insurance,” he said, adding that what would be really disturbing was the private sector taking to the street to protest layoffs and the steep hike in prices as a result of the new pay scale.
Choucair called upon officials to end the discussions on the salary scale and to hold the presidential and parliamentary elections soon, while resolving the security situation in the country. He said this would help in finding a solution to the financial woes of all the segments of the population.
Meanwhile, Chammas argued that two out of four conditions must be met before the salary scale could be implemented.
“We need to restore our 8-percent growth rate witnessed in previous years in order to increase the treasury’s revenues and to be capable of financing the salary scale,” he said.
“[This] should be done in parallel with other measures, including eliminating the deficit of Electricite du Liban through the Private-Public Partnership.”
Chammas said that the two other measures that would make the private sector more likely to support the salary scale were a reduction in the number of public sector employees, especially in the public education sector, and the development of the oil and gas sector.
“The first measure is not impossible. If security is restored then we can reach a good rate of growth,” he said, adding that the other measures might require more time.”
“Until two out of these four conditions are met, it is impossible to introduce the salary scale.”
“It was the right decision and it saved the country from negative repercussions,” said Nicolas Chammas, the President of Beirut Traders Association. “The draft law has been taken off the floor of the Parliament and that’s what counts for me. It was the right thing to do.”
Parliament decided Wednesday to delay yet again a controversial wage hike for public-sector workers that has prompted numerous strikes and protests in recent months.
Berri sent the draft wage hike law back to joint committees after some parliamentary blocs made several remarks about the bill.
Some ministers insisted it was necessary to include military personnel in the new salary increase, while others called for the inclusion of the private school teachers.
“Many lawmakers and ministers were not pleased with the bill,” Berri told lawmakers at the start of the parliamentary session.
“That’s why I ask for the return of the draft law to the joint parliamentary committees for further study,” he added.
Chammas’ remarks were echoed by the President of the Chamber of Commerce, Industry and Agriculture Mohammad Choucair, who said this decision had saved the country’s economy while sparing it from a possible social disaster.
“We want to thank Parliament Speaker Nabih Berri for this very wise decision,” he said.
Choucair argued that the salary scale approval would have increased the minimum wage in the public sector to LL872,000 which would, in turn, have prompted private-sector employees to ask for a similar rise.
“Such a hike in the minimum wage for the private sector would definitely result in the layoff of thousands of Lebanese, who would be replaced with employees from other nationalities,” he said. “The negative repercussions of such a measure are not being well evaluated.”
Choucair said that the approval of the salary scale would improve the living conditions of around 230,000 employees working in the public sector but it would, on the other hand, “open the door to hell” for the private sector.
“We are not much worried about protests by public workers because they are getting paid regularly and they are benefitting from social security and health insurance,” he said, adding that what would be really disturbing was the private sector taking to the street to protest layoffs and the steep hike in prices as a result of the new pay scale.
Choucair called upon officials to end the discussions on the salary scale and to hold the presidential and parliamentary elections soon, while resolving the security situation in the country. He said this would help in finding a solution to the financial woes of all the segments of the population.
Meanwhile, Chammas argued that two out of four conditions must be met before the salary scale could be implemented.
“We need to restore our 8-percent growth rate witnessed in previous years in order to increase the treasury’s revenues and to be capable of financing the salary scale,” he said.
“[This] should be done in parallel with other measures, including eliminating the deficit of Electricite du Liban through the Private-Public Partnership.”
Chammas said that the two other measures that would make the private sector more likely to support the salary scale were a reduction in the number of public sector employees, especially in the public education sector, and the development of the oil and gas sector.
“The first measure is not impossible. If security is restored then we can reach a good rate of growth,” he said, adding that the other measures might require more time.”
“Until two out of these four conditions are met, it is impossible to introduce the salary scale.”
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