Written by Joseph Farah
Translated by Lina Yahya
Will Social Protection and Retirement law draft see light after Labor Minister Boutros Harb promised to endorse it before the end of this summer? Minister Harb promise came after he launched a dialogue among social contract parties; employees, employers and government.
Meetings amongst said parties are still going on in order to reach a final solution. Although each party is doing its best to have law draft final version serve its interests, the biggest winner is going to be workers/employees, mainly when they reache retirement age.
General Labor Union held a series of meetings in which it refused the actuarial study that 'Mhanna Company' presented to Labor Ministry and Social Security National Fund Administration. General Labor Union head, Ghassan Ghosn justified their rejection by saying that contribution percentages of government, employee and institutions are not based on practical facts. He added that Union and Syndicate Movement have been asking for this Social Protection and Retirement law draft since the establishment of Social Security National Fund in 1964; especially that the law has mentioned replacing end-of-service compensation system by retirement system.
Ghosn added, "This law does not fulfill our ambitious mainly in light of inflation percentages which have reached 7 and 8 percent. Many attempts were made to replace it but they did not succeed in providing workers subscribed in Social Security National Fund with Social Protection and kept them without health protection after they reach retirement age (64 years) at a time which they most need it."
Ghosn pointed out that the General Labor Union has presented its remarks after realizing that most of the items of the discussed law draft are based on discretion and that relying on complete financial actuarial economic studies will give solid results that will not jeopardize the Fund's work.
Ghosn confirmed that Labor Union started preparing for a study that deals with said law draft and that aims at fulfilling the needs of people subscribed in the Fund through 'Global Study' for Investments Organization headed by Bshara Hanna. Ghosn emphasized that the project should be based on two points, one for distribution and the other for distribution and providing capital. He added that the Union will not accept any draft that will be cursed by coming generations.
On the other hand as for economic bodies, head of Commerce, Industry and Agriculture Chambers, Mohammad Shoukeir, emphasized the necessity of activating old age and end-of-service pension "but through an independent Fund managed by private sector and controlled by Banque du Liban or the government."
In his turn, Labor Minister, Boutros Harb, confirms that the law draft will soon see light.
As for the workshop to reform Social Security National Fund, Harb said that the project which is now understudy is immense, important and critical. He added that as many as it has advantages if endorsed well the opposite is true if not.
Harb added that the dialogue was very successful and that they are still working slowly but surely to endorse the draft.
He stressed that he can gladly announce to Lebanese people that the Social Security Project has reached an advanced stage. He pointed out that project constitutes of two parts: the first is retirement salary which the employee starts to get when he/she reaches the age of 64 and until his/her death and the death of his wife. The second is not less important than the first and tackles health care after retirement.
Harb went on that they so far agreed on principles and still have to agree on some other points. He hoped that they will be able before the end of the summer to put the said draft on the parliament's table for studying.
He added that the issue is dealt with high responsibility despite remarks and different stances among the parties; especially that the motive to pursue dialogue has been national interest and knowledge that endorsing this draft will be in the interest of everybody. Although Harb refused to mention numbers concerning the project cost, he mentioned, "it's not little and we have all to cooperate in this framework."
However, Harb assured that project will "no doubt succeed" because it's a social need and everybody wants it to.
Concerning determining a deadline for private sector to raise rate of subscription to the maximum, Harb hoped that the response will be positive "especially that Hospitals' Syndicate has raised many complaints because Social Security Fund old rate is still used. We are working on fixing financial deficit so that Social Security Fund can proceed with its work."
