- Impact of the Global Financial Crisis in Egypt, Fourth Report
Introduction
The fourth report (June 2009) of the Centre for Trade Union and Workers Services (CTUWS) on the impacts of the global financial crisis on Egyptian workers monitored new sectors which were not clearly affected by the crisis during the last few months. On top of these sectors was the Egyptian workers abroad. Tens of thousands of the Egyptian workers abroad were laid off. A report of the Information Centre of the Cabinet of Ministers confirmed that seven thousand were laid off until March 209. information from the Ministry of Manpower confirmed the return of thirty thousand workers during the last ten days of last month. The number of workers travelling to work abroad was almost halved because Libya imposed a financial fine for failure to observe residency rules; a procedure claimed by Libyan authorities to be due to the financial crisis. In addition. there appeared cases of plague infections in Libya close to the Egyptian borders and the summer season has just begun. Many Egyptians returning from Libya confirmed that they returned from Libya because of the imposed fines, the restrictions imposed on them by Libyan authorities and the difficulty to conciliate their positions there.
Although the previous reports did not indicate the occurrence of tangible impacts of the crisis on the workers of the banking sector, the last month witnessed the issuance by the managing director of the Wataniya development Bank of a decision to increase daily working hours form 8 to 11 hours. The decision annoyed the bank employees especially because work hours will increase without overtime payment.
Misr-Qena and Misr Edfu paper mills which are responsible for 93% of the domestic consumption of paper stopped production because they became unable to compete with imported paper. Paper prices dropped by about 40%. The two paper mills which are owned by a consortium of banks and public companies employ about two thousand workers. It happened that the Ministry of Finance refused last month an application from the Ministry of Investment to approve decreasing the price of diesel fuel for paper mills affiliated to the Holding Company for Chemical Industries from EGP 1000 to EGP 700 per ton.
A report issued in June by Cairo Chamber if Commerce estimated the losses incurred by Egyptian production and commercial sectors due to the global financial crisis at US$ 4 billion (EGP 22 billion) during the financial year 2008/2009. Egyptian businessmen are still using the financial crisis as an excuse to call for more investment incentives. Mr. Hisham El Attaal general secretary of Alexandria Businessmen association revealed the features of a programme which the Association will present to thee government to express the demands of the businessmen of Alexandria. Mr. El Attaal said the programme may contain amendments of the Labour Law to include more flexibility in work hours and the possibility to call a worker any time throughout the day in addition to other demands concerning reducing the employer’s contribution in social insurances.
Centre for Trade Union and Workers Services (CTUWS)
July 2009
