News updates

Data Investment Consult Lebanon organized a seminar in Beirut yesterday on the situation of small and medium enterprises during which a road map was presented including recommendation regarding the operations of such enterprises amidst global competition.  The seminar also discussed the recommendations of concerned institutions and ministries involved in supporting the economy.  Fouad Zmokhol, the President of the Lebanese Businessmen Associations (RDCL), spoke in the first session of the seminar in addition to Peter Mussally, the Deputy Director of the World Bank - Beirut Office, who insisted on the importance of finding good work opportunities in the region.  He noted that the statistics of the World Bank show that more than 20% prefer to work in the public sector.  He also spoke of the importance of evaluating loans in a comprehensive way, and the need to rely, increasingly, on the KAFALAT system.  He added that the Lebanese government and the World Bank have agreed on spending USD 30 million to facilitate financing through loans.  Zmokhol called for a transformation and reform of present systems particularly at the level of supporting investment and consumption.  He also called for moving away from political divisions and insisted on the importance of supporting the growth of the national economy as well as limiting unemployment particularly amongst the youth.  Finally, Zmokhol also called for rescheduling the debts of small institutions, as much as possible, with the help of the banking sector as well as attracting investors and diversifying the base of their capital stakeholders.
Source: Al-Safir, Al-Diyar 28 March 2014

The external relations officer of the Federation of Unions of Banks' Employees, Faten Faqih, noted that the implementation of the collective contract scheme is still not respected by some of the banks namely in terms of applying annual increments as well as school and social benefits.  She clarified that even though the Federation is extending efforts to ensure that employees’ rights are guaranteed, there is nevertheless a marked regression in the number of adherents to the  trade union  namely amongst youth and women, where the latter represent 49% of those working in the banking sector.

Faqih was speaking yesterday at the annual regional meeting of banking sector trade unions at the UNI Finance in Middle East and North Africa held in Beirut with the participation of the Federation as well as representatives of bank employees’ syndicates from France, Italy, Jordan, Tunisia, Morocco and Algeria.  Faqih pointed out to the important role of banks and financial institutions in terms of contributing to addressing economic regression especially that, according to her, unemployment and poor culture are major cases of this deterioration.  She added that the Federation, following a tough negotiation period last year, was able to preserve employees’ rights as well as create a solidarity fund which provides health care for the employees of the sector in 2014-15.  She also noted that the Federation is now working to increase the capacities of the pension fund.  The president of the Federation of Unions of Banks’ Employees, Georges Hajj noted that the realities of trade unionism in Lebanon is marred by political dissension as the General Confederation of Lebanese Workers is being dominated over the past years by political forces which have co-opted its decision and which led to schisms within the movement thus affecting its role as a defender of workers right.  He acknowledged however that the Federation of Unions of Banks' Employees succeeded in remaining autonomous and free from that abysmal situation.
Source: Al-Diyar 28 March 2014

The Minister of Labor, Sejaan Azzi, expressed his concern with the high unemployment rate in Lebanon.  He also highlighted the contradictions and poor quality of existing statistics.  Azzi was speaking with Al Moustakbal newspaper during the meeting of the High Cost of Living Committee which agreed on putting a halt on the unnecessary foreign labour in Lebanon as well as the need to study and review the existing statistics.
Azzi compared unemployment in Lebanon which reached 11% according to some sources with 11.7% in France and 23% in Spain.  He doubted the veracity of the Lebanese figures whilst confirming that unemployment is high amongst the youth.  According to him, unemployment rate ranges between is 22 – 23% and rises to 33% amongst the youth.  He added that these figures are very alarming.  He also insisted on the importance of reviewing the present very centralized structure of the state and moving into widespread decentralization.
With regards to estimates of high cost of living, the president of the General Confederation of Lebanese Workers (CGTL) noted in an interview with An Nahar that an agreement was reached to review the figures of the Central Administration for Statistics with the CGTL, the economic institutions and other statistical institutions in order to determine accordingly the needed adjustments to salary scales in accordance with clause 6 of the high cost of living decree.
On the other hand, Azzi revealed that he has signed a project document which introduces “first jobs for youth”.  The project is implemented by the National Employment Agency and the ILO with a LBP 10 billion funding from the World Bank and ILO.  Within this project, any employer can hire young people between 18 to 25 years of age with the Ministry reimbursing the employer 10% of the salary.  The employer will also receive a one year waiver of NSSF fees as well as a waiver on VAT related to that same employee.
Source: Al-Mustaqbal, Al-Nahar, Al-Safir 28 March 2014

The president of the Parliamentary Commission for public health, labor and social affairs, Atef Majdalani, spoke yesterday during his commission meeting about the use of natamycin in dairy production.  He noted that factories which have used this product in dairy production (namely Labneh production) are in violation of the law in case they do not mention this on its list of ingredients on the Labneh containers.  To be noted that the only product permitted in the manufacture of Labneh is ascorbic acid according to the technical specifications issued by the Lebanese Standards Institution (LIBNOR) and even though natamycin is scientifically proven to be a natural product which prevents the formation of moulds and is deemed harmless.  Majdalani also revealed that there are some 450 food processing enterprises which are not registered and therefore not controlled.  He further hoped that the “Bassel Fuleyhan Law for Food Safety” and which has been in the pipeline for 11 years will soon become a reality even though many ministers are failing to do their duties in approving it so not to give away some of their current responsibilities.
The Minister of Industry, Hussein Hajj Hassan, noted that using natamycin in Labneh manufacture is a mistake no matter what the scientific justification are and manufacturers should stop using this immediately and withdraw their products from the market as well as apologize from consumers.  He added that LIBNOR will meet next Friday to review this matter and decide on a course of action based on available scientific evidence and so as to ensure that local Labneh manufacture is in conformity with the regional food safety protocol.
Source: Al-Akhbar, Al-Mustaqbal, Al-Nahar 27 March 2014

Daily Star interviewed the Bangladeshi Ambassador to Lebanon, who spoke about the size of Bangladeshi labor in Lebanon and which is estimated at 60000 women and men.  The ambassador noted that Bangladeshi workers reside in different suburbs of the cities with most involved in domestic work.  According to the ambassador, men tend to work in shops, restaurants, hotels, gas stations and cleaning companies whilst women are exclusively in domestic work.  He highlighted the various types of abuses to which Bangladeshis are subjected namely working extra hours as well as other issues that the Embassy tries to solve with the Lebanese authorities.  He referred to the work of human rights organizations concerned with the right s of women migrant workers and the fact that they are acting to stop exploitation and abuse. He also noted the absence of a law to protect workers and the persistence of the overwhelming sponsorship system which leaves workers at the mercy of employers and employment agencies.  In addition, the ambassador highlighted various forms of exploitation during the different stages of recruitment starting at selection in the home country while insisting on the need to set up a standard protocol of employment which will secure the rights of all workers.
Source: The Daily Star 26 March 2014

The committee of migrant domestic workers, which is affiliated to the National Federation of Trade Unions and employees in Lebanon, celebrated women and mother’s day yesterday at the UNESCO palace in collaboration with the ILO.  This activity was organized within the framework of the project entitled “Strengthening laws to protect migrant domestic workers rights” and which is funded by the European Union.  
Gemma Gusto spoke on behalf of the Committee and called for raising awareness of migrant workers and providing them with protection in addition to equality and justice.  She added that their demands are about the basic rights as in the international charter for human rights.  Emmeh Wobandalin also intervened on behalf of the workers and called on the Lebanese state to codify their profession and allow them to have democratic unions as well as abolish the sponsorship system and treat them with dignity upon arrival at the airport as well as exercising justice in cases of disease or death.  She also asked the countries of origin to organize training workshops to migrant workers in order to introduce them to bilateral agreements with Lebanon as well as regulating employment and pressure for legal protection in Lebanon.  Both speakers called on employers to define working hours, as well as recognize right to rest namely the right to annual holidays and one day off per well as well as a halt of all forms of physical, verbal and sexual violence and protect them from dangerous tasks.  The event also included speeches delivered by Frank Hagemann, ILO Deputy Regional Director, Castro Abdallah, the head of the Federation of Workers and Employees Unions in Lebanon (FENASOL), Mounir Deek, the councilor of Sejaan Azzi the Minister of Labor, who all reiterated their support to the demand of the Committee and their endorsement of the importance of the law.
In a related vein, the current Minister of Labor, Sejaan Azzi, met last week with a joint Consular delegation from African countries with which he discussed the entry of their respective migrant workers to Lebanon.  The delegation which included representatives of a number of countries, namely: Benin, Burkina Faso, Cameroon, Ivory Coast, Ghana, Kenya, Madagascar, Senegal, Chad, Togo, and called for the signing of  protocols between Lebanon and sending countries as well as for registering contracts at the workers’ respective embassies and specifying their rights and responsibilities.  Azzi warned against the existing mafias in both Lebanon and countries of origin and promised to review the demands and of the Delegation.  He invited the Consuls to present their demands in a memo so that these can be duly addressed.
On the other hand, the judicial detachment of Tripoli received a complaint on March 17th lodged by an Ethiopian worker accusing a staff of an employment agency in Kusba, with rape.  The defendant was arrested along with his secretary after subjecting the plaintiff to a medical exam which revealed bruises in various parts of her body and comparing her description with that of the defendant.
Source: Al-Mustaqbal, Al-Akhbar, Al-Nahar, Al-Akhbar, Al-Safir 24 March 2014

The Minister of Economy and Trade Alain Hakim, represented by the Ministry’s head of external relations, Rafif Berro, inaugurated yesterday the Conference for the employment promotional campaign “Euro Business Opportunities” in Beirut. Emmanuel Nutary, the director of ANIMA Investment Network kicked off the event with a speech highlighting the projects which are of interest to the European Union in a number of countries namely Egypt, Lebanon, Morocco and Tunisia as they provide opportunities for job creation.  These include agriculture, energy, environment and tourism.  The president of Berytech, Marun Chammas, pointed out to the success of the projects undertaken by the Berytech Fund 1 and which benefited more than 15 companies thus creating in turn 60 new employment opportunities in the ICT sector.  He announced the launch of the Berytech Fund 2 which will be operational during the coming two months, adding that the Central Bank has allocated via memorandum 331 a sum of some USD 600 million for emerging companies, and which will be allocated via various investment funds including Berytech.

The EU representative, Marcelo Mura, noted that the EU is supporting innovation and is contributing to the development of small and medium enterprises as well as emerging and expatriates companies which should help improving Euro-Mediterranean relations.  He confirmed that the size of the current project agreements between Lebanon and the EU total some Euros 150 million most of which are invested in the private sector.  Berro reiterated that the Ministry of Industry and Trade gives particular consideration to strengthen small and medium enterprises through the creation of business holders such as Berytech and others.  He added that the government is working on creating a number of systems which would provide incentives and a conducive environment for businesses and ICT especially through developing a related five year strategy.
Source: Al-Safir, Al-Mustaqbal 24 March 2014

As Safir newspaper published a report about the challenges facing livestock breeders in Koura as they are trying to secure feed and vaccines from their own resources given the absence of any support from the part of the state, and amidst the greed of traders who buy milk at less than the production cost.  According to Tony Youssef, owner of a cows’ farm in Kura, assistance for this sector is distributed to farmers selectively and to some areas and not others.  He adds that some areas have received milk refrigerators, milking machines and pasteurization vessels while Kura received none.  The president of the agricultural centre in Kura, agronomist Marwa Hammud noted that there are projects and campaigns funded by international organizations and which cover feeds and vaccines and these are implemented by the Ministry of Agriculture according to the available means.  Hammud also noted that some vaccination campaigns are not carried continuously thus forcing livestock breeders to buy their own vaccines when they need them during periods when these are not covered by campaigns.  She added that the new vaccination campaign will kick off again in a month.  With regards to animal feeds, she noted that distribution is often faced with the problem of the limited capacities of warehouses which are not able to receive all donations in kind.

The report also relays other challenges which prevent the Ministry of Agriculture from implementing all its projects namely the fact that the Ministry’s technical team comprises only one technician covering the entire North Lebanon area whereas the normal institutional structure entails having one veterinary doctor and one veterinary technician for each area.  She added that post for Becharri area is still presently vacant and is covered by Hammud for the moment in addition to her work in Koura and whilst awaiting the official memo to fill vacant posts with those who have successfully completed the civil service exams.

As Safir newspaper also noted in a separate report that fodder crops is harshly suffering from climate change and low level of precipitation according to agronomist and head of Terbol municipality Fadi Khoury.  Khoury noted a drastic decrease in the total surface area planted with fodder crops which will undoubtedly have a sever impact on production.  This is bound to lead to large importations of fodder crops at higher costs thus increasing the cost of local dairy products.  According to Khoury, low level of rains is expected to cause a 50% drop in the total surface area of cultivated fodders thus decreasing the total area under production to 50000 dunums this year.  
Source: Al-Safir 22, Al-Safir 24 March 2014

For more information about the seminars held by MoAg last week, please refer to the news piece published previously on WEEPortal:
The Ministry of Agriculture organises two extension seminars in Koura and Akkar on livestock and olives protection, on 17/3/2014

African Koaci website reported that six African migrant women workers are being subjected to physical abuse in Nabatyeh and are being detained against their will.  TV station LBCI had also reported from the same source information about calls received from two of the six workers who indicated that they were beaten after attempting to flee the houses where they work.  The same sources confirmed that one of the workers was beaten more than once by the employment agency run by an individual called Safi Kamal whom, according to the women workers, "runs a mafia".  LBCI noted that Safi beat one of the workers twice after she asked to leave her employers' house who abuses her and after he found a cell phone in her possession.  She also added that Safi forbids her from traveling.
In an interview with LBCI, Safi refuted the allegations that migrant workers were beaten but noted that this is simply to teach women to be "polite" before they are sent to their employers' houses to work.  He also denied that the work conditions were harsh or that migrant women workers are forbidden to move outside their employers' houses or make phone calls.
LBCI conducted a call to Safi on the next day with the caller pretending to be an African worker asking about some of her entitlements and whereby he responded that "there are no holidays, no outings and no phone calls".  He also confirmed that the worker should be completely submissive and totally scared from being "returned" to the employment office.  To be noted that the Public Prosecution has now initiated an investigation on this matter.
On another vein, the committees of women migrant workers affiliated to the National Federation of Trade Unions and employees in Lebanon will be celebrating next Sunday international women's day and mothers' day with the slogan "for equality for all women... for equality for all workers". The group will organise a cultural event at the UNESCO palace which will include dancing, handicrafts, and preparation of traditional cuisine.
Source: Al-Mustaqbal, Al-Akhbar 21 March 2014

As Safir newspaper published a report last week on global traditional nutritional patterns versus industrial patterns which follow market rules and the interest of industrialists and traders.  The latter patterns have resulted in major shifts away from natural nutritional patterns which are in harmony with the land, climate and environment according to the author of the report.  The report notes that climate change and nutritionally related diseases have prompted experts in environment, climate and health to research traditional modes of livelihoods and nutrition.  The author adds that new nutrition studies and researches confirm that traditional non processed food consumed by rural communities are rich on nutritional ingredients which cannot be found in industrially processed food which are mostly consumed in middle to high income countries.

The report points out to the traditional nutritional pattern in Lebanon and the Mediterranean area which is based essentially on grains notably whole-wheat used for producing bread in addition to olives, olive oil, natural and dried fruits as well meat which is consumed occasionally and in relatively small quantities.  The author adds that these are all arable agricultural products which do not need much water for irrigation and have been selected after years of trial and experimentation as they are in harmony with the climate, soil and overall environment.  As such, the whole system is harmonious with the environment.  However, traditional living patterns have been distorted with the introduction of processed food and hydrogenated oils as well as carbohydrates which have had a negative impact on health and facilitated the spread of diseases such as obesity, high blood pressure, cholesterol and arteriosclerosis.
 The report further highlights the increased awareness amongst communities in developing countries on the merits of traditional grains which used to be planted by original communities and which are loosing ground in favor of industrial and commercial agriculture.  This poses a serious problematic namely: why are communities worldwide encouraged to follow the western nutritional pattern which has devastating effects when many nutritional experts advise that it is better to follow traditional nutritional patterns?

The report conclude by advising that going back to traditional nutrition has the merit of improving health and protecting the environment although there is a problem of non availability of markets for such products. According to the same article, Lebanon has regretfully also abandoned its traditional nutritional pattern and favored industrial and commercial food which provide poor nutrition but favor profits from drug and fertilizer companies which have polluted the soil and brought in vulnerability to diseases.
Source: Al-Safir 17 March 2014