Re: [Fwd: Labour on the Fence]

[Xxxx Xxxxx Xxxxxx <xxxxxxxx@xxxxxxxxxxxxxxx>]

>
> >
> > http://www.allnewspapers.com/middeast/
> > Al-Ahram Weekly
> > 11 - 17 May 2000
> > Issue No. 481
> >
> > Labour on the fence
> >
> >      By Fatemah Farag
> >
> >           "My brothers, the workers:
> >
> >           From the first day in the 23 July, 1952 Revolution, it was
> > clear that this
> >           revolution was undertaken for the working people, for
> > dissolving differences
> >           between classes, for establishing social justice, for the
> > establishment of a healthy
> >           democratic life, for abolishing feudalism, for abolishing the
> > monopoly and
> >           control of capital over government and for abolishing
> > colonialism."
> >
> >           Gamal Abdel-Nasser, May Day Speech, 1963
> >
> >      With these words the late President Gamal Abdel-Nasser summed up,
> > in his first-ever May
> >      Day speech, the revolutionary élan of his era. It is a spirit whose
> > time has now passed.
> >      Although some of the rhetoric once used to espouse the merits of
> > his socialist experiment
> >      remain within the lexicon of the Egypt of today, the context is
> > much changed. The dynamics
> >      of capitalist development have considerably altered the economic
> > landscape. The
> >      relationship between the state and labour is governed by a new
> > agenda.
> >
> >      The populist regime of Nasser considered the working class to be a
> > corner stone within the
> >      "Alliance of Popular Working Forces" in the struggle to achieve
> > economic independence
> >      and build an Arab brand of socialism. Wage improvements, job
> > security measures and
> >      social benefits were implemented as part of a greater national
> > project. Workers' status as social actors was
> >      enshrined in a new constitution that guaranteed that 50 per cent of
> > parliament would be held by "workers and
> >      peasants."
> >
> >      In the 1963 May Day speech quoted above, Nasser, in reference to
> > the sweeping nationalisations of two years
> >      before declared, "In 1961, the worker became the boss.; in 1961,
> > the worker participated in administration; in
> >      1961, the worker shared in profits; in 1961, work hours were
> > reduced to seven hours; in 1961, the minimum wage
> >      was set at 25 piastres; in 1961, the real benefits of the workers
> > began." Yet, Nasser's Arab Socialism was a social
> >      contract and as with all contracts, gains come at a cost. In return
> > for greater benefits the labour movement gave up
> >      its independence. The government-controlled General Federation of
> > Trade Unions (GFTU) and the Ministry of
> >      Manpower became the guardians of labour rights.
> >
> >                                         However, these were the heady
> > days of state-driven industrialisation,
> >                                         public sector expansion and
> > guaranteed employment. In a few short
> >                                         years, this economic framework
> > quickly reached the limits of its
> >                                         potential. Since the
> > mid-seventies, the country has been moving to a
> >                                         more laissez-faire model of
> > development. In 1992, the government
> >                                         adopted a programme of
> > structural adjustment that consummated the
> >                                         ideological and economic policy
> > shift. Today, liberal free market
> >                                         economic policies are espoused
> > with the same intensity of conviction
> >                                         that had once characterised the
> > drive to build socialism.
> >
> >                                         Last week, in an interview with
> > the Al-Ahram Weekly, the Minister of
> >                                         Manpower and Immigration, Ahmed
> > El-Amawi, explained that the
> >                                         liberalisation process has meant
> > more jobs for workers. In the new
> >                                         satellite industrial cities and
> > within the private sector in general, he
> >                                         estimates that 200,000 jobs were
> > created last year alone. He also
> >                                         praised the vitality of the
> > informal sector, which had created an
> >                                         estimated eight million jobs.
> >
> >                                         Yet, the quality of jobs as well
> > as the rate of growth vis-à-vis
> >                                         unemployment are still serious
> > concerns. While the dominant opinion
> >                                         holds that the populist
> > instruments of the past are still adequate, labour
> >                                         grievances, and struggles on the
> > ground seem to be testing the limits of
> >                                         this argument.
> >
> >                                         Debate on the current state of
> > labour in Egypt focuses on the issue of
> >                                         unemployment. The government
> > claims it currently stands at about
> >                                         eight per cent. This figure,
> > however, has been contested by a number
> >                                         of independent studies which
> > generally put it around 17 per cent.
> >                                         Nader El-Fergani, head of the
> > independent Almishkat Center for
> >                                         Social Studies, explained to the
> > Weekly that this discrepancy is due to
> >                                         the fact the "standard
> > definition of unemployment, ratified by
> >                                         international conventions, is
> > not used by the government when
> >                                         calculating their current
> > estimate." El-Fergani pointed out that, "In
> >                                         1996, the Central Authority for
> > Mobilisation and Statistics
> >                                         (CAPMAS) figure was 22 per cent!
> > I think that the new figures are a
> >                                         result of the fact that the
> > issue of unemployment has become very
> >                                         politicised and there is a need
> > to manipulate the figure."
> >
> >                                         In a recent study of the main
> > labour market aggregates and rates in
> >                                         Egypt between 1988 and 1998,
> > Ragui Assaad, professor at the
> >                                         Humphries Institute of Public
> > Affairs, University of Minnesota, found
> >                                         that of those entering the job
> > market, only one out of every three
> >      entrants found a job. A large percentage of these jobs were to be
> > found within the government sector itself. In the
> >      private sector, Assaad discovered that most of the newly employed
> > were not sufficiently protected by current
> >      legislation. In the study, he found that 80 per cent of these
> > workers enjoyed no labour protection.
> >
> >      Perhaps the most poignant indicator of the pressures created by the
> > growing pool of unemployed is the size of the
> >      informal labour market. So-called "men's markets" can be found all
> > over urban centres. Men congregate in these
> >      areas to be picked up by contractors in need of menial day labour.
> > Other indicators of deep unemployment are the
> >      mass of internal migrants, the expansion of the informal sector and
> > the climate of fear that seems to prevail among
> >      workers who have succeeded in landing jobs. As one worker in the
> > industrial 10th of Ramadan City put it, "The
> >      owner of my factory has the upper hand. I need this job. If I say
> > anything to protest work conditions, well then, he
> >      can throw me out and find ten to replace me on the same day. After
> > all, we all know that there are a lot of people
> >      who desperately need a job."
> >
> >      Chronic unemployment is only one half of the labour dilemma,
> > however. The other major problem is endemic
> >      poverty. Fergany explained to the Weekly, "One of the most telling
> > pieces of information is that labour's share in
> >      national income dropped from 44 per cent in 1975 to 25 per cent in
> > 1995. Wealth has become polarised and in this
> >      situation the poor, in reality, do not count within the system.
> > Don't believe otherwise."
> >
> >      Mahmoud Mortada, former trade union activist and current labour
> > issues researcher, is another scholar attempting to
> >      raise awareness of the deterioration in the labour market. He
> > explains that, "workers have suffered a decrease in
> >      their standard of living as a result of the state withdrawing from
> > many basic services. The development of the new
> >      industrial cities has created a section of the working class which
> > is totally isolated, and the informal sector provides
> >      jobs where protection is non-existent, and working conditions are
> > harsh. The net result is that workers feel they have
> >      been thrown on the market without the protection of either the
> > state or their own organisations, which creates a
> >      strong feeling of fear."
> >
> >      Even senior trade union officials, while supporting the overall
> > direction of economic policy, concede that labour is,
> >      for the time being, at a distinct disadvantage within the new
> > economic environment. "The new capital is in many cases
> >      ferocious," confided a senior GFTU official who requested
> > anonymity, who went on to explain that "there are many
> >      cases of inhumane capital/labour relations in which the aim of
> > capital is to make a quick profit and take advantage of
> >      incentives given to investment. Yet, these incentives were made in
> > order for capital to create good jobs. In such
> >      cases, capital has not come through with its part of the deal."
> >
> >      A case in point is the plight of 300 workers at El-Motahida factory
> > in 10th of Ramadan City. "The owner of the
> >      factory borrowed LE23 million from the banks without proper
> > insurance and in September he fled. Since then
> >      workers have not been paid," explained Abdel-Hakim Amer, head of
> > the factory trade union committee.
> >
> >      Arriving in this much heralded archetype of the new industrial
> > cities one is impressed by the wide tree-lined roads
> >      and well maintained gardens. Venturing further in, however, the
> > green spaces recede and the road gets bumpy.
> >      When we finally reached the El-Motahida plant, the city was a
> > dismal sight.
> >
> >      Within the gates, which are guarded half-heartedly by a few
> > policemen, workers have converted burlap bags into
> >      tents. In order to protect their jobs, they have not left the
> > premises since the first of February. Amer explained that,
> >      "We presented a detailed plan of how to work the factory
> > profitably," showing us neatly hand-written sheets of
> >      paper covered in figures. "We have gone to [Manpower Minister]
> > El-Amawi and to Sayed Rashed [head of
> >      GFTU]. So far it seems there is nothing they can do for us. Also,
> > our appeal to have the government take
> >      custodianship of the factory was thrown out of court on 30 April,"
> > he recounted. Refusing to accept defeat, Amer
> >      added adamantly, "We will, however, appeal this court decision and
> > we will not move from our factory until we have
> >      been paid in full and our jobs are back."
> >
> >      Workers gathered around us as we speak nod their heads in sullen
> > agreement. The situation at the El-Motahida
> >      factory is not unique in this city. Amer informs us that, "As far
> > as we know there are 28 factories which shut down
> >      the same way. Workers would leave Thursday evening only to come
> > back Saturday morning and find a lock on the
> >      door. They had no rights and there was nothing they could do about
> > it. They had no union committees. Fortunately,
> >      we are one of the very few that do, which is why we were able to
> > take action."
> >
> >      It is estimated that out of the 1,200 factories in 10th of Ramadan
> > a mere 17 have trade union committees. A GFTU
> >      source who requested anonymity explained to the Weekly that factory
> > owners prohibited workers from organising.
> >      The official explained, "To deal with this problem we have started
> > setting up informal committees, but outside the
> >      work place. Of course, more must be done." Yet, the prospects for
> > movement in this direction are not promising.
> >      The GFTU itself introduced regulations, some years ago, which
> > increased the number of required applicants to
> >      create a trade union committee from 50 to 250, which further
> > complicated organisation efforts.
> >
> >      The workers of El-Motahida recount that many of their colleagues in
> > other factories are required to sign a resignation
> >      form -- 'form number six' -- before being hired. Such insecurity is
> > the cost of higher wages. "Of course we are lured
> >      to the new cities because the money offered is better. In similar
> > industries within the traditional industrial areas, the
> >      salaries offered are a third to a half less than here. In 10th of
> > Ramadan an average salary is no less than LE250. But
> >      for many of the workers here, you have to sign yourself over to the
> > will of the owner before you can get a job,"
> >      muttered one of the workers.
> >
> >      The new cities, however, are only one aspect of the changing labour
> > market. Another crucial dynamic is the heavy
> >      cuts being made to the size of the public sector. "To date 135,000
> > workers have been removed from their jobs via
> >      the early retirement scheme," explained Hassan Badawi, a spokesman
> > for the leftist Tagammu' Party on labour
> >      issues. "That is not counting tens of thousands of workers who have
> > lost their jobs as a result of the closure of certain
> >      factories, such as the case of the General Company for Batteries,
> > and the de facto factory shut downs, such as the
> >      Misr Helwan Spinning and Weaving Factory. Furthermore, as far as
> > the traditional private sector goes the past year
> >      has seen the mass closure of medium- and small-sized aluminum
> > factories in Mit Ghamr and textiles factories in
> >      Shubra Al-Kheima. In these cases because legislation is set up in
> > favour of large capital, owners could not keep up."
> >
> >      GFTU and the Ministry of Manpower and Immigration have argued that
> > the formulation of more balanced
> >      labour-capital relations can be achieved if the controversial draft
> > Unified Labour Law is passed. The draft has
> >      already been in the making for about five years. Drawn up through
> > consultation with representatives of labour,
> >      business and the International Labour Organisation (ILO), a final
> > version has yet to see the full light of day. Last May
> >      Day was in fact an opportunity for both Minister El-Amawi and
> > GFTU's Rashed, to call on President Hosni
> >      Mubarak to expedite the passing of the proposed legislation. A GFTU
> > source told the Weekly that some
> >      businessmen were against the draft law because it was in their
> > benefit to keep workers in a state of legal limbo. Even
> >      on the side of labour there is some trepidation regarding the
> > possible impact of the new legislation. There are many in
> >      the labour movement who fear that the proposed draft will only work
> > against their interests.
> >
> >      But even more pressing than the pros and cons of the proposed new
> > legislation seems to be the fact that labour laws,
> >      whatever they may be, are inadequately enforced. In the idle
> > factory grounds of El-Motahida, workers complained
> >      that the fine for delayed or even non-payment of salaries was a
> > paltry LE10 a month per worker. Amer lamented,
> >      "Even if the official at the Labour Office is conscientious, the
> > sum is so small that owners don't care. The interest
> >      made in the bank by the total sum of our salaries in one month
> > would cover the fine and then some. Then, of course,
> >      there is the problem of Labour Office employees who are responsible
> > for inspection. These have more to gain from
> >      the owners than they have to gain from the workers, and what
> > happens as a result is self-evident."
> >
> >      But what about labour activism. Detailed studies are few and far
> > between. A report issued by the Land Centre for
> >      Human Rights, an NGO, documented 164 incidents of labour protest
> > during 1999. Tagammu's Badawi explains,
> >      however, that labour activism remains disjointed and defensive.
> > Labour at the moment does not have the
> >      organisational power to effect change, argues Badawi who goes on to
> > suggest that the time has come for new forms
> >      of labour organisation to meet the requirements of the new economic
> > reality. He notes that, "The current trade union
> >      structure represents three million workers out of over 17 million,
> > and as the public sector is broken up so is the base
> >      of the GFTU."
> >
> >      Similarly, Mortada argues that although GFTU has promoted a model
> > of labour-capital relations based on
> >      negotiation, it does not have the abilities to undertake the role.
> > "How can we talk about negotiations in the absence
> >      of independent shop-floor organisations?" questioned Mortada.
> >
> >      Badawi believes that he can outline a new labour regime to which
> > most independent activists would agree. "Before
> >      we can talk of laws or a balanced relationship between labour and
> > capital I think that the freedom to form trade
> >      unions must be provided without restrictions, as well as the right
> > to strike. In this aspect, workers should have equal
> >      rights to businessmen who not only enjoy full freedom of
> > association but can close down whenever they please.
> >      General policies must be geared to reduce unemployment which
> > continually pressures labour into accepting
> >      wretched working conditions while both social and health insurance
> > must be upgraded and re-structured in ways
> >      which would provide real services to workers."
> >
> >      The debate on labour legislation, trade union organisation and
> > employment policy is unlikely to reach conclusive
> >      results any time soon. Meanwhile, the workers of the El-Motahida
> > continue their indefinite sit-in on the grounds of
> >      their defunct company. Their concerns are at once pressing and
> > far-reaching. In the words of their leader, Amer,
> >      "We want to have a future, something to look forward to. So far,
> > that 'something' is very unclear."
> >
> > --
> >
> > Xxxx Xxxxx Xxxxxx
> > PhD Student
> > Department of Political Science
> > SUNY at Albany
> > Nelson A. Rockefeller College
> > 135 Western Ave.; Milne 102
> > Albany, NY 12222
>
> --
>
> Xxxx Xxxxx Xxxxxx
> PhD Student
> Department of Political Science
> SUNY at Albany
> Nelson A. Rockefeller College
> 135 Western Ave.; Milne 102
> Albany, NY 12222

--

Xxxx Xxxxx Xxxxxx
PhD Student
Department of Political Science
SUNY at Albany
Nelson A. Rockefeller College
135 Western Ave.; Milne 102
Albany, NY 12222



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