“Labor Protests: The Market Anarchy & The Role of Unions”

      This report discusses the workers’ conditions in Egypt during the second half of the year 2000, discussing the “Privatization” policies and the role played by trade unions in a number of factories. It is divided into four sections:

First: “Privatization and Market Forces in Egypt”:

This section exposes the so-called “IMF Prescriptions”, including structural adjustment and reform policies, the role of the Private Sector, and the mechanisms of market motivation. It also discusses the reasons why the neo-liberals defend the ideas of raising efficiency and quality, as well as more concentration on the infrastructure projects. In addition, it exposes the views of the Social Democratic thinkers, who advocate the notion of  “The Third Way”.

The report goes on to display the three stages of the Egyptian experience of privatization and market orientation, from the 1970s onwards:

I. Preparing the public opinion and the development of a pro-privatization and liberal economic and administrative thinking. This stage, initiated in the mid-1970s and continued to the early 1980s, was mainly featured with ultimate chaos in the Egyptian market.

II. Restructuring the Public Sector that extended precisely from 1982 until 1992. The main steps towards applying this policy included:

-  Supporting the public sector units & improving the infrastructure, which embraced more than 70% of the total investments (the total investments at the time exceeded 80 billion Egyptian pounds),

 - Reorganizing the administrative and legislative aspects of the Public Sector units. To implement this step, the Business Sector law no. 203/1991 was issued,

- Liberalizing the Public Sector units from their restrictive internal regulations,

- Adapting and restructuring the Business Sector (BS) companies. (i.e. repaying the debts of the losing companies, laying off workers through early retirement (paid redundancies), etc…

The third stage is that of the harvest. The report introduces the effects of the privatization policies on local & international markets, on the investors and on the economic and social rights, especially those of the laborers. For instance, 71,000 laborers were laid off through early retirement by the end of 1998, 122 companies were sold completely with 38 in the stock exchange, 24 in the form of assets and shares to a major investor, 30 in the form of assets to Workers Associations. Other companies were either sold partly or were rented with the total number of companies sold reaching 165 companies at a cost of LE15,622 billion. Tracing the issue historically, from 1992 till 1998, we can see the magnitude of losses and damages of the majority of these sold companies.

That raises a question: Why in the first place did the state improve and reform these companies if they intend to privatize them? The answer of this question is an evidence of the chaotic, unregulated application of these policies from the state, which causes more deterioration to the Egyptian economic system.

Second: “The Role of Trade Union Committees":

      This section is devoted to the attitude that some unions assume towards workers, whose rights are violated due to early retirement, reduction in wages and firing with no legal cause. The chapter points out the different stands taken by the unions in various companies, taking six companies from the public sector as case study to examine the role of unions. The companies are:

Misr-Helwan Textile Company.

The Egyptian Iron & Steel company.

The Nile for ready-made garments.

“Sigorat”

Nasr Chemicals Company.

Thermals Company in Tebbin.

For instance, in the Thermals Company, the trade union committee took stood against the arbitrary practices performed to apply privatization. It reached the extent that the head of the union committee of that company refused to sign the application form to have his early retirement money unless when he was sure that all the workers took theirs.

Meanwhile, the union committee in Sigorat became a tool in the hands of the arbitrary administration, to the extent of helping the administration to implement these practices upon the poor laborers.

Third: “The Workers' Protests"

This section discusses the forms of protest that the laborers made in the Public Sector, Private Sector and the Business Sector. The report shows that these protests are no longer limited to the laborers, but it extended to employees, teachers, doctors, etc… In addition, these protests took different forms including, 66 protests, 42 strikes and 24 demonstrations. Many lawsuits were filed, and 6000 complaints were presented before governmental administrations. The report attributes the recent rise in the number of protests to the current economic crisis and the liquidity crunch that Egypt undergoes with other legislative factors that restrict the right to protest.

      This section emphasized the great role of the Private Sector laborers, which started to strengthen in spite of the lack of struggle experience. The report recorded 26 protests, including 16 strikes and 10 demonstrations. The reason behind these protests was mainly mass layoffs.

      Throughout the second half of the year 2000, the laborers’ protests of the Business Sector mounted to 18 strikes and 8 demonstrations. The reasons were mainly low wages. Yet, there are expectations that protests will rise in this sector due to the application of the Unified Labor Law as well as the privatization program.

      The case in the Public Sector shows a remarkable decrease in collective struggles despite the rise in individual reactions. During the second half of the year 2000, there were 8 strikes and 6 demonstrations in this sector. There is a rise in the movement of the laborers’ protests, which reflects the extent of daily violations.

Fourth: Recommendations:

The report concludes with the following recommendations:

             The need to discuss the privatization program on the widest scale possible from all the bodies concerned to find an Egyptian economic alternative that matches the international development.

           Public information on the problems facing the application of privatization, as well as the future objectives, so that all concerned parties can realize the true situation and to encourage all the political forces and the laborers’ leaders to participate.

           Economic alternatives, such as giving more consideration to small-scale industries that might contribute to a solution of the economic problems of the laborers, who were forced out by early retirements.

            Reconsidering the privatization of state-owned companies, as well as monitoring the enforced by-laws to protect the rights of the laborers.

            Liberalizing trade unions from the tight grip of the state-controlled General Federation.

           Asserting the guarantees stated in the recent legislation in the three sectors, especially after issuing the unified labor law.

               Permitting the right to strike and protest.

We address this report to all the political parties, forces and trade unions to fight against this assault launched on the laborers’ rights.

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