Egypt to provide EGP 90bn in financing facilities for key sectors at interest rates below 15% this fiscal year    Fragile Gaza ceasefire tested as humanitarian crisis deepens    Egypt explores cooperation with Chinese firms to advance robotic surgery    Avrio Gold to launch new jewellery, bullion factory in early 2026    Egypt approves Temsah offshore concession reassignment to EGPC, Ieoc, BP    CBE, China's National Financial Regulatory sign MoU to strengthen joint cooperation    AUC makes history as 1st global host of IMMAA 2025    Al Ismaelia launches award-winning 'TamaraHaus' in Downtown Cairo revival    Al-Sisi, Burhan discuss efforts to end Sudan war, address Nile Dam dispute in Cairo talks    Egypt's Sisi, Sudan's Al-Burhan renew opposition to Ethiopia's unilateral Blue Nile moves    Egyptian pound edges up slightly against US dollar in early Wednesday trade    Egypt starts October Takaful and Karama payments worth over EGP 4b to 4.7m families    Egypt's Cabinet hails Sharm El-Sheikh peace summit as turning point for Middle East peace    Gaza's fragile ceasefire tested as aid, reconstruction struggle to gain ground    Egypt's human rights committee reviews national strategy, UNHRC membership bid    Trump-Xi meeting still on track    Al-Sisi, world leaders meet in Sharm El-Sheikh to coordinate Gaza ceasefire implementation    Egypt's Sisi warns against unilateral Nile actions, calls for global water cooperation    Egypt unearths one of largest New Kingdom Fortresses in North Sinai    Egypt unearths New Kingdom military fortress on Horus's Way in Sinai    Egypt Writes Calm Anew: How Cairo Engineered the Ceasefire in Gaza    Egypt's acting environment minister heads to Abu Dhabi for IUCN Global Nature Summit    Egyptian Open Amateur Golf Championship 2025 to see record participation    Cairo's Al-Fustat Hills Park nears completion as Middle East's largest green hub – PM    Egypt's Cabinet approves decree featuring Queen Margaret, Edinburgh Napier campuses    El-Sisi boosts teachers' pay, pushes for AI, digital learning overhaul in Egypt's schools    Egypt's Sisi congratulates Khaled El-Enany on landslide UNESCO director-general election win    Syria releases preliminary results of first post-Assad parliament vote    Karnak's hidden origins: Study reveals Egypt's great temple rose from ancient Nile island    Egypt resolves dispute between top African sports bodies ahead of 2027 African Games    Egypt reviews Nile water inflows as minister warns of impact of encroachments on Rosetta Branch    Egypt's ministry of housing hails Arab Contractors for 5 ENR global project awards    Egypt aims to reclaim global golf standing with new major tournaments: Omar Hisham    Egypt to host men's, juniors' and ladies' open golf championships in October    Germany among EU's priciest labour markets – official data    Paris Olympic gold '24 medals hit record value    It's a bit frustrating to draw at home: Real Madrid keeper after Villarreal game    Russia says it's in sync with US, China, Pakistan on Taliban    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.



Fight for factories: Egypt's textile workers challenge privatization
Published in Bikya Masr on 20 - 04 - 2011

SHEBEEN AL-KOM, Egypt: Dozens of angry workers gathered yesterday in front of the court building in Shebeen el-Kom where a case on the re-nationalization of the factory took place. They were heard chanting, “With our spirit and with our blood we will fight for our factory!”
The factory had been privatized in 2007 and sold to the Indonesian Investment Group Indorama. Since then, approximately 50 percent of the companies more than 4,000 workers have been laid off while production increased. Last month, the workers in Shebeen el-Kom held a 35-day long sit-in strike in order to demand that the workers that have been laid off would be rehired, higher wages tied to the rising inflation and the discharge of five NDP-affiliated managers accused of corruption and intimidation.
During these protests, the workers have been intimidated by the army, which threatened to fire live ammunition on them. Nevertheless, the workers remained and managed to get concessions on parts of their demands such as a payment increase.
Yesterday's case has been another step to challenge the corruption involved in the privatization process of state-owned factories. Since the early 1990's, the Mubarak government had pursued a policy of increased economic liberalization, pressured by the International Monetary Fund (IMF). Hundreds of formerly state-owned companies have been privatized, with devastating consequences for the country's economy.
Ahmad El-Sayed El Naggar, an economist at the Al-Ahram Center for Political and Strategic Studies, describes how American rating agencies have grossly undervalued public companies. For example, the formerly state-owned Egyptian Bottling Company was sold in 1994. The American rating agency Coopers & Lybrand estimated its value at 76 million Egyptian pounds. In the same year, Pepsi Cola International bought 77 percent of the company from the new owners for 1.340 billion Egyptian pounds.
This is just one example of the corruption involved in the privatization process. The new owners made massive profits from their sale to Pepsi. The main victims of these privatization processes have been the workers employed in these factories. The privatization of the Shebeen el-Kom textile factory had devastating consequences for the entire village, the livelihoods of hundreds of families being threatened.
However, the Shebeen el-Kom workers refuse to accept their fate and are challenging the decision to privatize the Shebeen el-Kom company in court. They are supported and encouraged by textile workers from other cities such as from Mahalla el-Kubra.
‘The workers from Mahalla and Shebeen-el Kom are united!' is one of the slogans chanted by the crowd in front of the court building. Minutes before the beginning of the court-case, dozens of workers stormed the entrance of the building in order to attend the case. A group of about officers tried unsuccessfully to restrict the entrance to the court-room, being overrun by the angry crowds. The atmosphere in the courtroom was emotional, an older woman had tears in her eyes, men were arguing angrily with the soldiers.
At that moment, a decision would be taken that could save the livelihood of hundreds of citizens of Shebeen el-Kom. However, the hearing ended before it began, and the judge decided to postpone the decision due to lack of adequate information until May 10.
While this leaves the people of Shebeen el-Kom with uncertainty for at least another month, there was a sense of relief. The audience in the courtroom was well aware of the importance of the coming decision. The re-nationalization of Shebeen el-Kom could have crucial consequences for the economic policies in post-Mubarak Egypt.
“There are many more movements for re-nationalization,” explained Ahmed Shalaby, member of the Democratic Workers party. “The re-nationalization of Shebeen el-Kom would be an important precedent for other companies.”
The Democratic Workers Party has been following the case of Shebeen el-Kom actively. Re-nationalization of privatized factories is one of its key demands. This raises a critical question about the economic policy after Mubarak. Under the Nasser's rule, Egypt had been dominated by a largely state-owned economy, which is often perceived as the root of the current corruption. How could re-nationalization be achieved without falling again the corruption-trap?
For Kamal Khalil, representative of the Democratic Workers Party, the key difference with Nasser's economic policy should be the democratic control over state-owned companies. Whereas Nasser appointed the heads of factories, making it effectively a state-capitalist regime, the new management of state-owned factories should be appointed by the workers of these factories. So far these visions of economic democracy remain only one of the countless ideas raised in post-Mubarak Egypt. While the fate of Shebeen el-Kom remains uncertain, the workers outside the court are shouting ambitious slogans towards the factory owners: “You want us to kiss our shoes, tomorrow you will be under our shoes.”
BM


Clic here to read the story from its source.