TE settles dispute with workers MORE than 90 per cent of Telecom Egypt's (TE) employees' demands have already been met, said Mohamed Abdel-Rehim, the company's CEO, adding that TE reduced the number of advisers and special-skill employees from 20 to seven. Abdel-Rehim, who was held hostage by the striking employees for 20 hours last week, said the company will also begin the first phase of the wage restructuring programme in January 2012, while the second and final phase will be completed in March 2012. TE employees entered an open strike last week with demands ranging between changing the management team of the company and increasing the employees' salaries. Local press quoted unidentified sources from the company as saying that TE has made peace with its striking employees after the lawyers already signed an agreement whereby TE will drop all charges against the five detained employees. On a different note, TE decided to pay a bonus equivalent to a month and a half's salary for all employees on the occasion of Eid Al-Adha. Some 50,000 of TE's staff will get the bonus which will mount to LE51 million compared to LE31 million last year. State appeals nationalisation of privatised companies THE EGYPTIAN government is considering appealing a court decision that ordered the return of three privatised companies to the state, said Deputy Prime Minister and Finance Minister Hazem El-Beblawi. The three companies are Al-Nasr Steam Boilers, which was one of the first Egyptian companies to be privatised in the early 1990s, Tanata Flax and Oil sold in 2005, and Misr Shebin Al-Kom Spinning and Weaving sold in 2006. El-Beblawi's statements ignited the anger of workers who want their companies back in public hands. The appeal decision aims at proving that Egypt adheres to investment contracts and thus is considered to safeguard the investment climate. El-Beblawi added that there are difficulties concerning the return of these companies to the state as they were sold to more than one investor after the original sale. Sawiris resigns from OT's board EGYPT'S IT tycoon Naguib Sawiris has resigned from the board of Orascom Telecom (OT). "Naguib Sawiris has resigned from the company's board of directors and has no direct or indirect relationship to the company," OT said in a statement posted on the Egyptian stock market's website. Naguib Sawiris founded and owns 51.7 per cent of OT through his Wind Telecom vehicle. Sawiris has become more involved in the political meanderings of Egyptian life since the 25 January uprising. He started a new political party called the Free Egyptians. The move comes as the company is about to be divided into two entities as a part of the deal through which Russia's VimpleCom bought OT. Coupons on schedule "THE COUPON system for the distribution of butane gas cylinders is on track," assured Minister of Social Solidarity Gouda Abdel-Khalek this week. He said that as had been scheduled, the coupon system is being tried out on a small scale in October and November and will applied starting December. Some LE3 billion in savings are expected to accrue from the new system. The coupon system would replace the existing one whereby all butane gas cylinders are sold at a subsidised price leading to waste and misuse. The new system would guarantee that the cylinders are distributed to households rather than sold to establishments such as brick furnaces or restraints. Currently, a cylinder that cost LE55 is sold officially at LE2.5. New gas deals EGYPT'S government is expected to sign a new gas exporting agreement with Jordan next week. According to the Ministry of Petroleum, the new prices will be double the existing agreement's prices and will yield in annually about $1.2 billion additional profits. The new export price will be set at $5-5.5 per million British thermal units (MBtu) for a daily flow of 22 million cubic metres. The agreement states that prices will be revised every two years in order to match international variations in the value. The government has reached preliminary agreements with England, France and Spain to increase gas export prices. Negotiations with Israel have not been finalised yet. Moreover, Egypt has resumed exporting natural gas to Israel after an attack on the pipeline that halted the flow for more than three months. Investing in river transport WADI Group, the leading agri-business company and Medsofts, the commodity supply chain management company, signed a LE86 million agreement with the Commercial International Bank (CIB) to finance the establishment of their joint venture the Nile Stevedoring and Storage Company (NSSC) which specialises in river transport. The loan will finance the needed equipment for transporting and storing goods. The project would cost LE212 million and is expected to handle two million tonnes of goods annually. Mobinil profits drop THE EGYPTIAN Company for Mobile Services (Mobinil) reported a 97 per cent decline in its third quarter profits compared to the same quarter of last year to reach LE10 million on the back of five per cent lower revenues. The drop is the result of higher effective tax rate, the effect of boycotting the company's network after its founder, business tycoon Naguib Sawiris, posted a cartoon on his Twitter account that was viewed by many as anti-Islamic. Subscribers have reached 31.576 million, implying net subscriber additions of 1.035 million in the quarter. Mobile revenues saw an eight per cent decline due to Ramadan promotions, while broadband revenues jumped by 18 per cent, helped by a double digit growth in ADSL customers. Investors demand tax raise THE FEDERATION for Investor Associations is suggesting the increase of income tax from the current 25 per cent to 30 per cent. The federation also proposed replacing the sales tax by the value added tax, according to press statements released by Minister of Finance Hazem El-Beblawi on Tuesday. The proposals come in line with a new fiscal approach presented in the fiscal year 2011/2012 budget focussing on post-revolution social demands. These include raising the minimum wage level and introducing a new tax scheme. Already, a progressive tax scheme with a new tax tier of 25 per cent for earnings above LE10 million -- applicable to both individuals and companies -- had been announced. The proposals also included a suggested 10 per cent increase on cigarettes sales tax.
