Labor unions in Lebanon on Tuesday warned of a new crisis looming after reports that the finance ministry might not be able to pay the June salaries for public sector employees.
On Friday, the Finance Ministry’s media office made a statement announcing that it “will not be able to disburse salaries, compensations, wages, and the prescribed increase due at the end of June, before Eid Al-Adha, because of the lack of financial appropriations until the aforementioned date.”
General Labor Union's President Bechara Al-Asmar expressed concern over the matter, saying it would impact around 300 thousand government employees.
In remarks to Arab News Agency, Asmar said the country’s finance ministry took that decision over lack of state budget reserves, amid an unapproved 2023 state budget and a vacuum at the country’s top state post.
He said the parliament must first pass legislation in order for the government to disburse the salaries of civil servants.
Asmar said the matter must be addressed as soon as possible “otherwise we could resort to a general strike and street protests”.
Nawal Nasr, head of the Public Administration Employee’s Union, told the news agency that not all segments of the public sector suffer the same.
“Some segments of the public sector have won the State’s attention. Judges, lawmakers, ministers, the telecommunication and electricity sector employees have all won the State’s attention only because they (officials) have shares in that,” she said.
She said the privileged ones got a raise and health benefits while the rest of the employees, mainly low-income ones, still suffer despite a monthly financial aid amounting to $100 to each personnel, provided by the International Monetary fund. “But what can it add to their purchasing power”? she asked.
Lebanon is grappling with a deep economic crisis since 2019, amid vacuum at the post of presidency and political and institutional paralysis which is stoking fears of a broader breakdown.