Labour on the Fence

 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 ilan 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


he 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-`-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.

>
 Yet, the quality of jobs as well

> as the rate of growth vis-`-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."

>

> --

>

> Mine Aysen Doyran

> PhD Student

> Department of Political Science

> SUNY at Albany

> Nelson A. Rockefeller College

> 135 Western Ave.; Milne 102

> Albany, NY 12222




--


Mine Aysen Doyran

PhD Student

Department of Political Science

SUNY at Albany

Nelson A. Rockefeller College

135 Western Ave.; Milne 102

Albany, NY 12222