On the 13th of this month, the Association of Public Administration Employees announced an open strike until their demands are met, primarily correcting wages, transportation allowances, and health and educational benefits. The decision is still in effect to this day across various administrations, with the exception of the Directorate of Disbursements in the Ministry of Finance, where employees resumed work today to process salaries for July and social assistance for March and April.
The halt of work in public administrations, despite its legitimacy, has had negative repercussions on various sectors and the economic activity, as it has disrupted thousands of transactions and the operations of institutions, companies, and individuals. Some goods are stuck in customs and cannot be imported, many transactions for citizens and traders remain incomplete, the real estate departments are also halted, along with mechanical inspections and real estate dealings, and even export doors are closed... Consequently, the country is paralyzed, the private sector has become a victim, revenue to the treasury is stalled, and more critically, the strike threatens the already fragile food security, as importing flour is impossible while the country suffers from a bread crisis. Additionally, the Food Security Committee at the Economic Bodies warned of the strike's repercussions "due to the halt of processing hundreds of containers filled with foodstuffs and raw materials imported for food factories in Lebanon, which are stacked in the Beirut port due to unprocessed transactions in the relevant ministries." Furthermore, the syndicate of food importers, led by Hani Bahsali, issued a plea urging "responsible parties to take the necessary measures to facilitate the exit of the imported food containers piled up at the port."
Bahsali confirmed in a press interview that "not processing merchandise transactions at the port incurs additional expenses for traders, including daily storage fees for containers ranging from $50 to $200, aside from the fact that some goods are at risk of spoilage."
Regarding the economic results in numbers, researcher at "International Information" Mohamed Shamseddine clarified to "the central" that "losses are estimated at 12 billion Lebanese pounds daily due to the cessation of economic activity and the decline in revenues that the state will not be able to collect. The longer the strike lasts, the greater the negative implications on the overall situation," noting that "these certain damages from a strike involving around 300,000 employees, while the greater damages are impossible to estimate."
Ghibril: For his part, Dr. Nacibe Ghibril, head of the economic and financial research department at "Byblos Bank," stated through "the central" that "this situation is not new; for over a year, public administration employees have been coming to work once a week, meaning that transactions are already delayed. This complete strike exacerbates the disruption in various sectors and prolongs the delays in administrative transactions, which are a source of income for the state treasury. Revenue will be affected, which delays the executive authority's ability to meet the demands of public administration employees and the public sector, knowing that they are justified and that improving their purchasing power is urgent."
Regarding possible solutions, he explained that "the argument of insufficient resources to meet employees' demands is inaccurate and can be achieved without increasing taxes and fees," recalling "the outcome of the 2017 tax law, during which treasury revenues did not increase relative to GDP, which at that time equated to 15% of the GDP. After the chaotic law was enacted and implemented in early 2018, the revenue percentage remained the same." Ghibril pointed out that "increasing the printing of the Lebanese pound is not the solution; many options are available in this context, yet successive governments and political authorities have neglected several procedures and revenue sources even before the crisis, which is also one of its causes, leading to the widening budget deficit. These procedures include combating tax evasion, enhancing tax collection, halting customs evasion, and combating illegal smuggling at the borders... The pursuit of immediate revenues is very simple and can also be achieved by imposing a 60% tax on the profits of anyone who hoarded and smuggled subsidized materials and goods, as the citizen did not benefit from the subsidy but rather these entities that made massive profits during very short periods..."
He continues, "Public sector productive employees should raise a fundamental demand to address fictitious jobs as one of the necessary solutions, and here we are not talking about employee surplus but rather about thousands of fictitious jobs that authorities must abolish. Therefore, instead of wasting money on them, it should be reallocated to support productive employees," concluding, "All these procedures and solutions are possible, but they require political will to implement them."
