GLC Suspends Talks with Government, Blasts Safadi over Budget Tax

Head of the General Labor Confederation Ghassan Ghosn announced on Thursday that the GLC was suspending its negotiations with the government over its demand for a salary boost after the state budget proposed by Finance Minister Mohammed Safadi called for a value added tax hike.

“This boycott is a warning message to the government ahead of studying the budget,” Ghosn told al-Jadid TV.

In remarks to As Safir newspaper, Ghosn had warned that the GLC would go ahead with its planned nationwide strike on Oct. 12 if its demand to raise the minimum wage to LL1,250,000 was not met.

Ghosn told the daily that the meeting of the price index committee on Friday “will be decisive on the basis that they would either meet our demands or we would mourn dialogue.”

But later in the day, Ghosn announced that the GLC will no longer participate in the committee meetings and will go ahead with its strike plan.

His announcement was a blow to Labor Minister Charbel Nahhas who informed the cabinet on Wednesday about the dialogue with the labor unions. He stressed that the negotiations to solve the wage dispute would continue in the next few days.

Premier Najib Miqati also told the ministers during a session held at Baabda palace that efforts are underway to boost wages taking into consideration the state’s financial situation.

However, Ghosn told As Safir: “The gap between what we are requesting and what Premier Najib Miqati and business leaders are proposing is huge.”

He challenged the prime minister “to close the gap through a bold decision.”

The GLC chief also criticized Safadi over his draft budget for 2012. “It is a scandal for what it includes from tax hikes,” he said.

The budget has proposed increasing the value added tax from 10 to 12 percent. But it is yet to be approved by the cabinet and parliament.

“The Oct. 12 strike will be held to protest this budget and its taxes in addition to confronting the policy to reject the adjustment of wages in a just way,” Ghosn said.