Raising the minimum wage raises controversy, and warnings of exacerbation of popular anger

Lebanon today

The President of the General Federation of Lebanese Trade Unions, Maroun El -Khouly, expressed his categorical rejection of the proposal submitted by the Minister of Labor and related to raising the minimum wage to 28 million Lebanese pounds, considering that this increase, which amounts to about 10 million pounds, does not represent more than a symbolic step that lacks any actual impact in the face of the worsening living and economic burdens of Lebanese workers.

In a statement, Al -Khouli stressed that this proposal was submitted outside the approved legal framework, i.e. the index committee, which is supposed to be based on scientific and methodological foundations based on the study of inflation indicators and the high cost of living in the country. He pointed out that ignoring this committee loses its credibility and keeps it away from the sound economic standards.

Al -Khouli considered that the proposal does not reflect the reality of the stifling financial crisis that Lebanon is going through, especially in light of the major collapse of the value of the national currency, which lost more than 95% of its value to foreign currencies. Accordingly, Al -Khouli considered that what was offered is nothing more than a “financial aid” that does not have any strategic horizon or the ability to address the real living crises, especially those related to electricity, water, fuel, and education, which exceeds the monthly cost of the thousand dollars per family.

He pointed out that this increase, instead of being a step towards social justice, is considered an explicit “insult” of the working class, which is under sufficient economic pressure, without any clear plan to protect its rights or improve its living conditions.

Al -Khouli strongly criticized what he described as “structural injustice” inherent in economic policies that devote the interests of employers and economic bodies at the expense of workers’ rights, noting that Lebanon ranks first in terms of high cost of living at the level of Arab countries, and the 23rd rank in the world regarding the cost of tourism living, while wages in Lebanon are still largely low compared to the countries of the region and the world, which leads to high rates of poverty and lack of social security.

Al -Khouli warned that the dismissal of wages from the price index and inflation would lead to a dangerous economic recession, due to the erosion of the purchasing power of workers, which reflects negatively on several sectors such as the auto sector and household items, and increases the liquidity crisis in the country. He stressed that the only way to ensure social justice is to link the minimum wage directly to market prices periodically.

In this context, Al -Khouli announced the solidarity of the General Federation of Lebanese Trade Unions with the position expressed by the General Labor Union, confirming the support of any union or popular moves aimed at rejecting this unfair proposal.

Al -Khouli concluded his speech with an explicit invitation to reshape the index committee away from political influences and narrow economic pressures, calling for a minimum wage at least 800 dollars per month, provided that it periodically links to inflation indicators and the high cost of living, in addition to adopting serious steps to protect workers from arbitrary exchange and securing fair compensation for the end of service, in a way that guarantees the dignity of the Lebanese worker and his basic rights.