Egypt's SCZONE posts EGP 6.25 bln revenue in FY2025/26    Egypt's Cabinet approves plan to increase Arab Monetary Fund's capital    Egypt launches joint venture to expand rooftop solar operations nationwide    Housing Minister reviews progress at alternative site for Samla, Alam Al-Roum    FRA launches first register for tech-based risk assessment firms in non-banking finance    Egypt's Health Ministry, Philips to study local manufacturing of CT scan machines    African World Heritage Fund registers four new sites as Egypt hosts board meetings    Turkish firm Eroglu Moda Tekstil to invest $5.6m in Egypt garment factory    Maduro faces New York court as world leaders demand explanation and Trump threatens strikes    Egypt, Saudi Arabia reaffirm ties, pledge coordination on regional crises    Al-Sisi pledges full support for UN desertification chief in Cairo meeting    Al-Sisi highlights Egypt's sporting readiness during 2026 World Cup trophy tour    Egypt opens Braille-accessible library in Cairo under presidential directive    Abdelatty urges calm in Yemen in high-level calls with Turkey, Pakistan, Gulf states    Madbouly highlights "love and closeness" between Egyptians during Christmas visit    Egypt confirms safety of citizens in Venezuela after US strikes, capture of Maduro    US forces capture Maduro in "Midnight Hammer" raid; Trump pledges US governance of Venezuela    From Niche to National Asset: Inside the Egyptian Golf Federation's Institutional Rebirth    5th-century BC industrial hub, Roman burials discovered in Egypt's West Delta    Egyptian-Italian team uncovers ancient workshops, Roman cemetery in Western Nile Delta    Egypt, Viatris sign MoU to expand presidential mental health initiative    Egypt's PM reviews rollout of second phase of universal health insurance scheme    Egypt sends medical convoy, supplies to Sudan to support healthcare sector    Egypt sends 15th urgent aid convoy to Gaza in cooperation with Catholic Relief Services    Al-Sisi: Egypt seeks binding Nile agreement with Ethiopia    Egyptian-built dam in Tanzania is model for Nile cooperation, says Foreign Minister    Al-Sisi affirms support for Sudan's sovereignty and calls for accountability over conflict crimes    Egyptian Golf Federation appoints Stuart Clayton as technical director    4th Egyptian Women Summit kicks off with focus on STEM, AI    UNESCO adds Egyptian Koshari to intangible cultural heritage list    Egypt recovers two ancient artefacts from Belgium    Egypt warns of erratic Ethiopian dam operations after sharp swings in Blue Nile flows    Sisi expands national support fund to include diplomats who died on duty    Egypt's PM reviews efforts to remove Nile River encroachments    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Germany among EU's priciest labour markets – official data    Russia says it's in sync with US, China, Pakistan on Taliban    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Shoukry reviews with Guterres Egypt's efforts to achieve SDGs, promote human rights    Sudan says countries must cooperate on vaccines    Johnson & Johnson: Second shot boosts antibodies and protection against COVID-19    Egypt to tax bloggers, YouTubers    Egypt's FM asserts importance of stability in Libya, holding elections as scheduled    We mustn't lose touch: Muller after Bayern win in Bundesliga    Egypt records 36 new deaths from Covid-19, highest since mid June    Egypt sells $3 bln US-dollar dominated eurobonds    Gamal Hanafy's ceramic exhibition at Gezira Arts Centre is a must go    Italian Institute Director Davide Scalmani presents activities of the Cairo Institute for ITALIANA.IT platform    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



Privatisation faces a hot summer
Published in Al-Ahram Weekly on 13 - 08 - 1998


By Fatemah Farag
As various disjointed forms of labour unrest continue to plague major industrial centres, the government and the General Egyptian Federation of Trade Unions (GEFTU) remain locked in a behind-the-scenes tug-of-war. Sayed Rashed, head of GEFTU, has announced that the two sides will open direct talks soon. GEFTU officials told Al-Ahram Weekly that they will stress, in the course of the negotiations, the need to push the draft Unified Labour Law through parliament as quickly as possible. They will also underline the need to allocate the necessary resources to adequately fund the upcoming stages of the early retirement programme.
On the ground, expressions of discontent with privatisation policies are voiced by workers. "The only way to understand the wave of strikes that have taken place in the past few weeks is to note that they have a common theme; they are targeting -- at least in part -- the measures taken within the framework of privatisation," said Kamal Abbas of the Centre for Trade Union and Workers Services. To prove his point, he cited the strikes which took place on 15 and 16 July at the Egypt-Helwan Textiles Factory and the Nasr Pharmaceutical plant where the payment of financial incentives was delayed while suspicions of sale or rental were rampant.
Moreover, textile workers in the Nile Delta town of Kafr El-Dawwar withdrew their support for the labour representatives elected to the board of directors because of disputes regarding the implementation of the early retirement programme. At the Iron and Steel complex in Helwan, workers rejected the early retirement plan in its entirety.
This followed the distribution of a leaflet in mid-July, which showed that the early retirement programme would result in a loss of financial benefits, and gave detailed calculations to prove that recipients would suffer a severe drop in retirement payments.
Anger was so widespread at the factory that the minister of manpower, Ahmed El-Ammawi, addressed the issue publicly during his opening of a clinic in the area on 20 July. His address, however, failed to make workers change their position.
The government has advocated the early retirement programme as a means of getting rid of "excess" labour -- a necessary move to make factories more profitable and thus attractive to potential private buyers. A 45-year-old worker at the Iron and Steel factory explains: "I don't get a good package if I leave now and I won't get another job either because I am too old; even younger men are not finding jobs. So why should I take it?"
According to specialists, the hitches in the implementation of the first phase of the early retirement plan is undercutting the potential for the smooth implementation of the second phase. "The first phase has cast a shadow over the entire programme," said Rahma Rifaat, a Helwan-based lawyer specialising in labour disputes. "The indications are that what was implemented peacefully previously will now face resistance. This is exacerbated by the fact that the Social Fund for Development is withdrawing as a major financier of the programme. Consequently, out of 1,800 workers who applied for the programme at the Egypt-Helwan Spinning Factory, only 200 were actually paid. Funds were lacking and the remaining workers are scheduled for payment in September and December."
According to labour activists, the importance of the Iron and Steel episode is that it has done away with the belief that privatisation is a fait accompli as far as workers are concerned. "People can now see that there is a choice, that they can say no," Abbas said.
In the absence of a workable early retirement programme, formidable obstacles are bound to confront the sale and rental of major factories. Following last month's strike at the Misr-Helwan Spinning and Weaving Factory, workers were given a three-week holiday during which the administration announced that only 2,080 out of 8,700 workers should report for work on Saturday. This coincided with rumours that the factory was to be rented to the private sector. "Only those operating specific lines are to return to work. The rest will be given their basic salary only, which means a 50 per cent drop in wages. We do not know how some 6,000 workers will react to this," said Abbas.
Will the upcoming negotiations between the government and GEFTU provide a solution to the problem? "We don't think the negotiations are going to happen and, even if they do, we don't know if they will lead to a solution," said a GEFTU official, who spoke on condition of anonymity.
A complaint voiced by GEFTU officials constantly is that the government does not give them sufficient scope to play their role of defusing worker discontent. As Mohamed Afifi, a member of the union for chemical industries, put it, "We could stand by the workers and be adamant but we are still trying to do our job. It is getting rather difficult, though."
Back in Helwan, the trucks of Central Security Forces can be seen around the Spinning and Weaving Factory and the hot summer air hangs heavy.


Clic here to read the story from its source.