Lebanon

12 Billion Lira: Losses from the Public Sector Strike in Lebanon

12 Billion Lira: Losses from the Public Sector Strike in Lebanon

The ongoing strike by public administration employees in Lebanon, which is entering its third week, has exacerbated the crises and daily challenges faced by the Lebanese people, threatening food security, communications, and internet services, in addition to hindering individuals' ability to complete their official paperwork. The strike began on June 13 in protest against the state's failure to meet their demands, chiefly the adjustment of their wages, increased transportation allowances, and health benefits, as their salaries have plummeted to their lowest levels.

Recently, information circulated that "Ogero," which serves as the executive arm of the Ministry of Communications, has started shutting down its exchange services one by one after running out of diesel fuel and being unable to purchase it due to the public sector strike, which prevented the Ministry of Finance from disbursing treasury advances approved by the Cabinet. While Ogero sources refused to provide additional details on the matter, Minister of Communications Johnny Qorm stated to Asharq Al-Awsat: "We faced a problem in this area due to not receiving the necessary funds from the Ministry of Finance because of the employees' strike. The matter has since been addressed, but the crisis will recur if the strike is not resolved."

According to researcher Mohammed Shams Al-Din from "International Information," the losses from this strike are estimated at 12 billion Lebanese pounds per day due to the halt in economic activity and the decline in revenues that the state will not be able to collect. Perhaps the most dangerous consequence of the strike lies in its threat to food security, as hundreds of containers filled with food and raw materials for food factories in Lebanon remain stuck at the Port of Beirut due to the failure to complete their transactions with the relevant ministries.

Hani Bahsali, head of the Food Importers Syndicate, warned that "the crisis is very severe," noting the accumulation of food goods for three weeks, leading to an estimated number of containers ranging between 1,000 to 1,500 filled with food products. He added to Asharq Al-Awsat: "The numbers are increasing continuously, and daily storage costs between 100,000 and 150,000 dollars, which is a loss that importers and consumers will both incur." Bahsali explained that the problem lies in striking employees responsible for inspecting goods and taking samples, mentioning that "24 hours ago, it was decided that Employees of the Ministry of Economy in this department would return to work two days out of five weekly, meaning that operations will resume at 30% capacity despite the accumulation of goods and other shipments arriving continuously." He further stated: "What is happening is a catastrophe that warrants an emergency situation, as we are talking about people's food security. Even after the port blast, work in the container section resumed after four days. Today, however, work has been halted for weeks."

For their part, ministerial sources told Asharq Al-Awsat that "finding quick solutions to this crisis has become necessary as we are in a tourist season and soon there will be Eid al-Adha, hence the need for food supplies, additionally, much of it is at risk of spoiling." The sources added: "This crisis is linked to public finances, and the matter is with the Prime Minister and the Ministry of Finance."

Beshara Asmar, President of the General Confederation of Lebanese Workers, who has been attempting for weeks to find solutions to the crisis in coordination with the striking employees and the Prime Minister, stated that "all proposed solutions require laws, decrees, and legislative sessions, making them deferred and long-term solutions, while practical and quick solutions to the crisis are necessary." He noted in a statement to Asharq Al-Awsat that "after approving the payment of an additional half salary and increasing the transportation allowance a few months ago for public sector employees, it is imperative to expedite the budget's approval, which will result in these employees receiving a full salary in addition to their regular pay." Asmar indicates that efforts are focused on urging public administration employees to work at least one day a week to complete citizens' transactions; otherwise, people will find themselves in direct confrontation with each other—striking workers and citizens needing their transactions processed.

The government has taken actions over the past months to facilitate public sector operations, including providing financial assistance, raising the transportation allowance to 64,000 Lebanese pounds per day (equivalent to 2.3 US dollars), and reducing official working days in departments that operate with minimal staff, but assistance is not consistently disbursed due to a liquidity crisis facing state institutions.

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