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Cloudy skies again
Published in Al-Ahram Weekly on 14 - 07 - 2005

This week the Central Bank of Egypt succeeded in downsizing, while strengthening, Egypt's banking sector, Niveen Wahish reports
Law suits and fears of another air controller work slow-down are threatening to complicate the skies once again, reports Amirah Ibrahim.
After trying and failing twice, Egypt's air traffic controllers seem to have decided to continue to pursue their labour-related demands, which include a 100 per cent increase in salaries and greater job security. They also want their bosses to make up for an estimated LE2.5 million in pension fund shortfalls.
Air controllers used work slow- downs in March and May to press for these demands, but were harshly rebuffed. The May crisis ended with five controllers being dismissed, and eight receiving salary cuts. The slow- down also resulted in $40 million in losses for national carrier EgyptAir, and hefty compensations being requested by other airlines.
Over the past two weeks, meanwhile, a number of airlines have sent complaints to aviation authorities about air navigation service delays at Egyptian airports. A top aviation authority official told Al-Ahram Weekly that the complaints were being investigated at present, in an attempt to find out if the delays were deliberate.
The two senior air controllers who were fired in May have also threatened to file a lawsuit against Aviation Minister Ahmed Shafiq demanding their jobs back. "We will go to court to protect our rights and defend ourselves against our unfair dismissal," said Magdi Abdel-Hadi, the Air Controllers Union chief dismissed for allegedly masterminding the slow- down.
Abdel-Hadi said the controllers were only "demanding what we believe was our right. The company brought in LE300 million in revenues this year; the controllers were the main tools allowing that revenue to be brought in. We only wanted the administration to consider our demands. We did not make pre- conditions. The administration, meanwhile, has been making promises for four years, but has never kept them."
Abdel-Hadi said, "three years ago, our monthly salaries averaged the equivalent of $1000, which was the minimum compared to controllers in neighbouring countries. But then, when the Egyptian pound lost 40 per cent of its value, our salaries ended up being closer to $600. Less qualified air controllers in countries like Sudan that are much poorer than Egypt earn much more than us."
In Lebanon, Jordan and Tunisia, controllers are paid an average of $4,000 a month, Abdel-Hadi said. "Since the company collects fees and sells its services according to international prices estimations, why not pay us according to international wages paid to air controllers every where?"
Air Navigation Company Chairman Ahmed Said told the Weekly that even though the number of employees had remained the same, their collective salaries had gone up from LE46 million in 2002 to LE83 million today. Said argued that Egyptian aviation industry's transition from a slow moving public sector entity to a more profit-focussed structure had resulted in some improvements, but that it would take time to develop and upgrade air navigation systems to meet global standards. Only then could salaries reach the levels being demanded by the employees.
Instead, he called on the employees to consider the remarkable improvements in their work environment that had been implemented over the past three years. He mentioned the LE180 million being invested in modernising navigation systems every year, as well as the overall impact of upgrading radar systems, navigation aids and communication systems, all of which would eventually generate the increase in air transport movement which might then allow the company room to move when it came to compensation.
The controllers' demands also centre on their medical insurance plans. Abdel-Hadi said the union asked to contract a private medical insurance company to provide appropriate services for controllers across the country, instead of just being forced to use the Cairo-based EgyptAir Hospital. Said countered that in addition to the EgyptAir Hospital, the company has contracted two more hospitals in Alexandria and Luxor to provide medical services for the air controllers. He also said the company readily pays for treatment in private hospitals in case of emergencies.
In fact, other than the salary increases, aviation authorities appear to be finally responding to some of the controllers' demands. A few days ago they also agreed to allow the controllers to establish their own medical insurance plan.


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