Lebanon Businessnews News

Private sector rejects burden of salary scale
Searching for new sources of funding
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The Economic Bodies refused to bear the financial burden engendered by a proposed salary scale for public employees.

The Beirut Traders Association (BTA) presented a document adopted by the Economic Bodies. It called for finding new sources to fund the proposed salary scale in ways that do not impair the economy.

Nicolas Chammas, Chairman of BTA, said: “The government and Parliament are not taking into consideration the unstable situation and its negative impacts on the society and economy.”

“The government promised the public sector a pay raise, at a time when economic, financial, and security indicators are dropping,” said Chammas.

The joint Parliamentary commissions discussed the salary scale draft law that had been studied for months by a subcommittee.

The Economic Bodies stated the main reasons behind refusing the proposed sources to fund the salary scale. They said that the subcommittee disregarded the recommendations of local and financial institutions. The draft law is based, according to Chammas, on wrong growth numbers and wrong revenue expectations.

The Economic Bodies said that the subcommittee disregarded the risks of an unbalanced financial situation. They promised a public sector pay raise knowing that the economy cannot afford it.
They said that filling vacancies in the public administration will exacerbate the problem, especially with the lack of appropriate reforms. Chammas said: “Increasing the salaries will surely not increase the employees’ productivity.”

Chammas said: “A public sector pay raise will put pressure on the private sector, due to the economic recession. It will also lead to unfair distribution of the national wealth”. He said that the country will lose its competitive capabilities, and the public sector will become a burden on the economy.

“Taxes will be imposed on most economic sectors, including trade and real estate, which are already inrecession. Increasing Customs duty on clothing and shoes will further weaken these sectors,” said Chammas.
Reported by Rania Ghanem
Date Posted: Apr 01, 2014
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