On June 13, public sector employees went on strike in Lebanon, leading to the shutdown of the public administration. They requested a salary adjustment and an increase in benefits, to offset their loss of purchasing power caused by hyperinflation.

Individuals that earn a fixed income, denominated in Lebanese pounds, have been hit hard by hyperinflation and currency devaluation, LIMS explained. Those workers belong to the public and private sector. However, giving a wage increase for public sector employees will not resolve their problem, as the raise can only be financed through more inflation and currency devaluation. In fact, they might end up losing more purchasing power, than the raise they would get. Lebanon is already running a large fiscal deficit and unable to borrow from the markets, given the sovereign default on the payment of debt. Public sector employees are asking for money from a government that has none to give.

LIMS suggested allowing a voluntary resignation of public sector employees given their excessive number. They were mostly hired for clientelistic reasons by political leaders in exchange for their vote and the vote of their families in a way that exceeded the needs of admiration. Already, many civil servants picked up a second job. Soldiers and police officers would love to take job opportunities in the private sector if they were allowed to do so. Resulting financial savings coming could then be used to finance a proportional salary increase. 

• Open Strike Cripples Troubled Public Sector And No Effective Solutions On The Horizon, June 23,2022: Lebanese Observatory For Workers’ And Employees’ Rights, Article AR
• “Increasing The Minimum Wage Leads To More Unemployment”… Can The Lebanese Regain Their Purchasing Power? June 20,2022: Al-Nahar, Article AR