Lebanon boosts transport and family allowances as labor tensions persist

Report by Bassam Abou Zeid, English adaptation by Yasmine Jaroudi

Indications are positive, but no decision has yet been issued to postpone a planned street protest by transport unions on Wednesday, as talks continue over workers' demands and measures to address rising living costs.

The Index Committee approved an increase in the transportation allowance for private-sector workers based on the cost of five liters of gasoline per day, equivalent to one 20-liter can every four days. Under the new proposal, the daily transportation allowance would range between a maximum of LBP 800,000 and a minimum of LBP 500,000.

A second positive step was an increase in family allowances paid by Lebanon’s Social Security Fund. With the latest increase, the value of the allowances would reach 86% of their pre-crisis level in October 2019.

An agreement has not yet been reached on raising the minimum wage; however, discussions are expected to continue. While employers and workers remain divided over the issue, both sides have agreed on one question: the role of the state in addressing the situation.

The Index Committee meeting also failed to resolve the demand of taxi drivers for financial compensation to offset rising fuel prices while maintaining a fixed transportation fare. Discussions on the issue are expected to continue in the coming hours with the Finance Ministry to determine how the funds can be secured.

The Cabinet approved the compensation in February, and the ministerial emergency committee reaffirmed it Friday at LBP 12 million per month for each eligible driver.

The positive measures and immediate solutions being discussed come against the backdrop of efforts to prevent street protests while addressing some of workers’ demands. But they do not necessarily signal an end to the broader dispute, instead potentially postponing the underlying problem and the tensions surrounding it.