BEIRUT: The Cabinet finally passed another salary increase package Wednesday, despite the strong reservations of Labor Minister Charbel Nahhas, who threatened at one point not to sign the new agreement. The new agreement, which won the support of 19 ministers, stipulates that the minimum wage would rise from the current LL500,000 to LL675,000 and keeps the transportation and education allowances unchanged until a new draft law on these issues is approved by the Parliament.

The newly approved legislation means that the Cabinet has given its seal of approval to an earlier agreement reached between the private sector and the General Labor Confederation (GLC) and sponsored and orchestrated by Prime Minister Najib Mikati.

According to the plan, employees earning between LL500,000 and LL1 million would receive a maximum salary increase of LL200,000, while wages ranging between LL1 million and LL1.5 million would be increased by LL250,000 and salaries exceeding LL1.5 million would rise by LL300,000.

The Cabinet also authorized Nahhas to prepare a draft law that would allow the government to set the minimum rates for daily transportation and education allowances.

Nahhas had insisted on adding the transportation allowance to the basic salary, but this proposal won the support of just 10 out of the 29 ministers who attended the session.

The minister had argued that transportation and education allowances run contrary to the labor law, reiterating his view that the Shura Council had backed his position in its last verdict issued two weeks ago.

Political sources told The Daily Star that Nahhas remained adamant in his position during the discussions, despite confirmed reports that MP Michel Aoun and Mikati had agreed during a dinner Tuesday night not to block any agreement reached by the ministers.

The sources added that Nahhas risks putting himself in an awkward position with his bloc, which is headed by Aoun, if the minister refuses to sign the Cabinet decision.

However, the sources added that Nahhas may not have been aware that Aoun and Mikati had held a dinner Tuesday in which the subject of wages was high on their menu.

Mikati assured Nahhas during the Cabinet discussions that he has no intention of overstepping the prerogatives of the labor minister.

The prime minister stressed that he would push aggressively for the agreement reached by the Cabinet and expects Nahhas to fully cooperate with the government for the sake of the country, employees and workers.

In theory, Nahhas should sign the Cabinet decision and then send it to the president, prime minister and finance minister for approval.

It is unclear, however, whether Nahhas will urge the Shura Council to revoke the new agreement on wages.

The Cabinet has passed four previous wage plans, all of which were rejected by the Shura Council for failing to conform with labor laws.

Concerns are mounting that independent labor unions and teachers may call for a general strike and demonstrations across the country if the Cabinet tries to enforce a wage agreement that they view as unfair.

Some labor unions feel that GLC has betrayed the workers by compromising their demands.

After emerging from Wednesday’s Cabinet session, Nahhas refused to answer reporters’ questions on whether he would refrain from signing the new salary deal.

Apart from the salaries, the Cabinet agreed to provide advance payments for the Finance Ministry, Telecoms Ministry, Higher Relief Committee and Council for Development and Reconstruction. The government also approved a donation from the United States to the Lebanese Army.

Telecoms Minister Nicolas Sehnaoui said the Cabinet has provided him with funds to buy and install 7,000 landlines to meet growing demand.