Media coverage
Noon Post · 2017-04
The report examines the National Consensus Government’s decision, backed by President Mahmoud Abbas, to impose 30% salary cuts on Palestinian Authority employees in the Gaza Strip only, triggering widespread anger and accusations that the move is a prelude to separating Gaza politically and economically from the rest of the homeland. It also presents reactions from Palestinian factions, rights bodies, and economists who warned of the decision’s serious legal, political, and economic consequences for tens of thousands of families and for Gaza’s already besieged economy, alongside the start of protest actions by affected employees.
The report examines the National Consensus Government’s decision, backed by President Mahmoud Abbas, to impose 30% salary cuts on Palestinian Authority employees in the Gaza Strip only, triggering widespread anger and accusations that the move is a prelude to separating Gaza politically and economi…
It seems that Palestinian President Mahmoud Abbas has effectively begun implementing a plan to separate the Gaza Strip, which is controlled by Hamas, from the rest of occupied Palestine, by taking the first step of cutting the salaries of thousands of civilian and military employees affiliated with the Palestinian Authority and based in Gaza.
This sudden step sparked very angry Palestinian reactions, to the point of demonstrations, people taking to the streets, and explicit calls for the departure of President Abbas and his Prime Minister Dr. Rami Hamdallah, amid direct accusations against the Authority of colluding against Gaza in preparation for fully isolating it politically and economically.
The National Consensus Government said in a statement that it had decided to impose deductions on the salaries of employees in Gaza only, affecting allowances and part of the nature-of-work allowance without touching the basic salary, due to reasons related to the suffocating financial siege on Palestine, the repercussions of the black division, and the horrific siege and measures of the occupation.
## Palestinian anger... and Abbas the prime accused
It should be noted here that the deductions affected the salaries of Authority employees in Gaza only two days after Abbas threatened the Gaza Strip and Hamas with taking what he described as “unprecedented” steps following its formation of a governmental administrative committee in the Strip.
“The policy of discrimination in the disbursement of salaries is completely unacceptable; the one who bears full responsibility for it is Prime Minister Rami Hamdallah, whose resignation has become a demand of all citizens and employees, especially in the Gaza Strip.”
The salaries of Authority employees in Ramallah represent a fundamental pillar of Gaza’s economy, especially as the Strip is subjected to a severe financial and economic siege, while public employees in the Strip whose salaries Hamas is responsible for paying receive no more than 40% of their salaries.
A member of Fatah’s Central Committee in the occupied West Bank confirmed that the decision issued by the Consensus Government to impose major deductions on the salaries of employees in the southern governorates (the Gaza Strip) is invalid and carries extremely dangerous political dimensions.
He said in an exclusive statement to “Noon Post”: “If a decision on deductions is to be issued, then it should include all Palestinian Authority employees in Gaza, the West Bank, as well as abroad. But limiting the decision to Gaza employees is an ominous sign and confirms the existence of plans to separate Gaza from the rest of the homeland.”
The Fatah leader added: “The policy of discrimination in the disbursement of salaries is completely unacceptable; the one who bears full responsibility for it is Prime Minister Rami Hamdallah, whose resignation has become a demand of all citizens and employees, especially in the Gaza Strip.”
He revealed that the Fatah leadership in the West Bank would not remain silent in the face of this “illegal” step, and that there would be angry and major reactions in the coming hours, confirming that the movement’s leadership had called for an urgent meeting with President Abbas to discuss the danger of this step.
In the same context, Palestinian factions and international bodies denounced the decision on the deductions taken by Hamdallah’s government and President Mahmoud Abbas from the salaries of Palestinian Authority employees in the Gaza Strip, by 30%.
Hamas called on the government to fulfill its duty toward the Gaza Strip in all its segments and components and to resolve the outstanding issues, foremost among them the issue of employees. The movement’s spokesman Fawzi Barhoum considered this decision arbitrary and irresponsible, and said its aim is to entrench the Strip’s crises and target the factors of its steadfastness in facing challenges.
Barhoum announced the movement’s solidarity with the demands of all employees without exception, calling for an immediate reversal of these absurd and irresponsible measures, and for the government to stop discriminating between our people in the West Bank and the Strip.
It is inconceivable that the Palestinian government would impose deductions on the salaries of employees in Gaza but not in the West Bank, under claims of the existence of a financial siege
The Islamic Jihad Movement also said, through its spokesman Daoud Shehab: “We condemn the decision on salary deductions imposed by the government in Ramallah against employees of the Gaza Strip, which is considered political in order to plunge the Strip into crises, and we call for ways to be sought to address these crises created by the Authority through its policies and agenda.” For its part, the Democratic Front for the Liberation of Palestine said: “The deductions from the salaries of Palestinian Authority employees in Gaza are catastrophic in light of the difficult economic conditions resulting from the Zionist siege.”
Ziyad Jargoun, a member of the Democratic Front’s Political Bureau, confirmed that this measure is illegal and contravenes the Civil Service Law, since it comes without prior warning and is applied to one geographical area and not another.
He stressed that it is inconceivable that the Palestinian government would impose deductions on the salaries of employees in Gaza without the West Bank, under allegations of a financial siege, confirming that this measure is a prelude to implementing the early retirement clause on all Gaza employees, and calling on the government to immediately reverse this unjust measure that affects Authority employees in Gaza and deepens the division between the two parts of the homeland.
For his part, Fatah Legislative Council deputy Majed Abu Shamala warned of the political danger carried by this decision, confirming that it came in response to “Arab pressure” and not to a national need or interest, and without regard for the local political environment or a real study of the repercussions of this decision on the Palestinian citizen in general, who will be affected by it, especially employees in the southern governorates.
Deputy Abu Shamala pointed out that this decision, which came in response to external pressures, is not permissible from a legal standpoint, as it “violates the Security Forces Law No. (8) of 2005, which President Mahmoud Abbas ratified after its approval by the Legislative Council,” and there is currently no body that has the authority to repeal this legislation and enact a new law.
The International Commission to Support Palestinian People’s Rights (Hashd) also called on President Mahmoud Abbas and the Palestinian government to immediately reverse the illegal deductions decision and work to restore the full payment of employees’ salaries, in implementation of the rule of law and in pursuit of justice.
Warnings emerged of impending economic disasters in Gaza as a result of this decision
The commission indicated that it fears this decision may be part of a strategy aimed at the government abdicating its legal and moral responsibilities toward the Gaza Strip and its employees, especially since it is not the first of its kind, but was preceded by the illegal deprivation of these employees of allowances and benefits.
In the context of the angry reactions to the government’s latest step against employees, warnings emerged of impending economic disasters in Gaza as a result of this decision. Palestinian economist Omar Shaban confirmed that the Authority’s decision to deduct 30% from the salaries of Gaza employees suddenly and without prior clarification places the decision under serious doubt regarding its credibility and reasons, explaining that the Authority’s decision on these deductions has dangerous repercussions for the relationship between the Authority and its executive, legislative, and political structures with the Gaza Strip.
He said: “This decision will reinforce the growing feeling that the Gaza Strip is no longer on the priority list of the National Authority despite all the statements claiming otherwise.” Shaban points out that this decision affects tens of thousands of families who rely on salaries as a source of income to meet the requirements of living amid the very harsh economic conditions suffered by the Strip, including unemployment, siege, and the slow pace of reconstruction.
He asks: “Why does the government rush to penalize its employees and apply austerity plans to them while leaving other spending items that fall within recreational and unnecessary expenditures?”
Loans deprived the Palestinian market in Gaza of more than 50% of the transferred cash liquidity, which remained trapped in bank vaults in the form of installments collected in the banks’ favor
Meanwhile, another economic expert, Mohammad Abu Jayyab, revealed financial attacks being waged by the Authority against the Gaza Strip. He stated that the Authority transfers nearly $50 million monthly as the payroll bill for employees in Gaza, and said: “The banks, by a political decision, opened the door to banking facilities in consumer sectors, bringing the number of borrowers to more than 85% of employees, with a monthly installment deducted from the employee reaching 50%.”
In another attack, Abu Jayyab confirms that loans deprived the Palestinian market in Gaza of more than 50% of the transferred cash liquidity, which remained trapped in bank vaults in the form of installments collected in the banks’ favor, and that the new attack represented by deductions from employees’ salaries was not and will not be the last, which will cause dangerous repercussions for the components of the social and economic system in Gaza.
## Gaza grows angry and the ball of flame ignites
In the context of angry reactions, a number of Palestinian Authority employees announced the start of a hunger strike in protest against the government’s deduction of 30% from their salaries for last March. The employees confirmed that they were preparing to escalate their protest activities by setting up a sit-in tent starting Thursday in al-Jundi al-Majhoul Square in central Gaza City, calling on all civilian and military employees affected by the deduction to unite in order to restore the salaries that were deducted, stressing the independence of their protest activities and that they were not subject to any party.
Some 58,000 employees, both military and civilian, stayed in their homes while continuing to receive their salaries since 2007 by decision of President Mahmoud Abbas and the Palestinian government headed by Dr. Salam Fayyad, following the events that led to the Palestinian split
The protesters considered the salary deductions to have dangerous implications for them and their families, calling on President Mahmoud Abbas and Prime Minister Rami Hamdallah to look into what they described as the tragedy that had befallen them, in light of the siege and the division between the two parts of the homeland.
In a statement issued after a meeting at the beginning of last January, the Hamdallah government projected a total deficit of $1.07 billion in the 2017 budget, and that external financing to support the budget would not exceed $500 million. It also projected an increase in public revenues in 2017 by 6% over 2016, reaching $3.566 billion.
It should be noted that around 58,000 employees, both military and civilian, stayed in their homes while continuing to receive their salaries since 2007 by decision of President Mahmoud Abbas and the Palestinian government headed by Dr. Salam Fayyad, following the events that led to the Palestinian split.
Text © Noon Post — archived here with attribution to the source. — Machine translation for archival reference. — Original source