Lebanon’s Minimum Wage Standoff: Employers Offer $300, Workers Push for $550

Lebanon's ongoing discussions over raising the minimum wage were temporarily halted on Monday as a scheduled meeting of the Index Committee was postponed by Minister of Labor Mohammad Haydar. According to Haydar, the delay was necessary to allow for additional consultations and productive discussions between the key stakeholders involved.

In a statement, Haydar emphasized that the goal of the talks was to find a fair and sustainable solution to the pressing issue of wage increases and worker compensation, while also taking into account Lebanon’s challenging economic and social conditions. He reiterated the government’s commitment to resolving the matter in a way that balances workers' rights with the interests of employers, with a clear focus on the public good.

"We aim to continue dialogue and consultation to ensure a proper balance between the rights of workers and the needs of employers," Haydar said. "The objective is to approve the necessary adjustments that will safeguard the national interest."

However, a source close to the labor movement told Annahar that there has been considerable resistance from Lebanon’s economic bodies regarding the proposed wage increase. Mohammad Chukri, President of the Economic Associations, responded to these claims, asserting that rumors of economic bodies failing to honor their commitments were inaccurate.

Chukri explained that an agreement had been reached during a meeting of the Economic and Social Council to raise the minimum wage to 27 million Lebanese pounds, approximately 300 dollars, along with a two-and-a-half-fold increase in scholarship allocations. While he praised Minister Haydar’s handling of the situation, Chukri also pointed out the severe financial strain facing businesses, particularly in regions such as the south, southern suburbs, and Bekaa, which have been heavily impacted by recent conflicts.

"Businesses in these areas have been struggling due to the war, and they cannot bear unreasonable wage increases," Chukri said.

On the other hand, Beshara Asmar, President of the General Confederation of Lebanese Workers, voiced frustration over the delay, attributing it to the significant gap between the figures proposed by the two sides. Asmar noted that while the economic associations suggested a minimum wage of 27 million Lebanese pounds, or 300 dollars, the labor unions were pushing for a figure closer to 550 dollars.

"Their rejection of the 550-dollar proposal is disappointing," Asmar said, adding that a study conducted by the union found that the minimum wage in Lebanon’s regions should be 900 dollars, while in Beirut it should not be less than 1,200 dollars.

Asmar noted that the opposing argument focused on Lebanon’s stagnant economy and the financial burden that wage increases would impose on businesses.

"They argue that the economy has not seen significant growth, and that the new wages would require substantial settlement amounts at the end of service," he said. "We also emphasized the importance of moving forward with the pension law, which the Minister of Labor is already working on, as it is crucial for addressing workers’ long-term welfare."