The demands of striking Mehalla workers have been met, reports Karim El-Khashab Although protests have become common in Egypt, this week's demonstration in Al-Mehalla Al-Kobra -- Egypt's industrial heartland -- took the public by surprise as much as the government. Night-shift workers, infuriated over a decision made by the board of the state- owned Al-Mehalla Textile Company (Ghazl Al-Mehalla) not to pay a two- month salary bonus -- part of a package promised by Prime Minister Ahmed Nazif to increase bonuses for workers in state- run factories -- decided to strike on Friday, bringing production to a stand still. On Saturday and Sunday they were joined by day-shift workers who occupied the factory and the adjacent Taalat Harb Street in Al-Mehalla. Security services quickly surrounded the area but made no attempt to forcibly disperse the protesters. Instead they decided to cut off electricity to the factories to try and end the standoff. Workers lay the blame squarely on Mahmoud El-Gibaly, the newly- appointed chairman of the company, alleging he has squandered company assets in corrupt deals. One worker told Al-Ahram Weekly that El-Gibaly "has appointed only his close associates to high- ranking positions, disregarding other more qualified people in an attempt to cover up his corruption". Protesting workers carried coffins labelled "El-Gibaly is dead" and hung an effigy of the chairman in anger. El-Gibaly has stayed out of the spotlight during the protests though the company has released statements saying production levels are lower than expected and the company is in too much debt to pay bonuses amounting to LE26 million. Union leaders dispute this, saying that according to the company's own records it is expected to make a profit of LE70 million. Profits, says Fathi Naamatallah, general-secretary of the Textile Union, have been growing steadily. Initially the government refused all the workers' demands, denying the allegations of corruption, as well as the financial figures quoted in leaflets distributed by the union. But as the number of striking workers reached 27,000, MPs from Al-Mehalla demanded the intervention of both Minister of Manpower Aisha Abdel-Hady and Minister of Investment Mahmoud Mohieddin. Late on Saturday a possible compromise emerged when Abdel-Hady announced that the payment of a 21-day bonus had been agreed. Striking workers refused the offer and escalated their action. Workers complain they are dependent on the withheld bonuses, especially with the advent of Eid Al-Adha. Some 4,000 of the striking workers are women, who say they are standing up for their children. "How are we supposed to manage month after month when we do not receive what we are owed?" asked one. Workers dismiss official claims that the Muslim Brotherhood is behind the protests. "We are here for our families and kids and that is it," said Khaled Montasser, a protestor who has been camping in the factory since Friday. As pressure increased to resolve the three-day strike the Ministry of Investment announced that in addition to the 21-day bonus workers would be paid LE89 each, as well as bonuses of a month and a half's salary in January. The ministry also announced it was writing off LE900 million of the company's debt to state banks. Following the announcement workers agreed to call off their strike though some expressed regret that no senior officials from the company had been dismissed. In light of this incident and other recent actions by workers many question the future of public sector factories. The chief executive of the state owned Al-Ghazl Wal-Naseeg Company points out that the impact of such interruptions in production are potentially catastrophic. "We have 120,000 workers here overall and the conditions facing state-run industries, which have accumulated debts of LE18 billion, are deteriorating," he says.
