Reform of minimum wages is a positive step towards social justice
The Minister of Labor Force and Migration to Amwal Al Ghad:
In his exclusive interview to Amwal Al Ghad, the minister of labor force and migration, Kamal Abou Eta, states that the labor laws and legislations do not protect the workers from dismissal and must undergo immediate reforms. Through the legislative committee that was assigned to reform laws, the ministry aims to amend them to protect the rights of Egypt’s large labor force as well as the business owners.
Abou Eta added that the ministry is finalizing a new draft law regarding the freedom of labor unions. It is currently waiting for the cabinet’s legislative committee to approve the law; it will be approved and enforced within the upcoming six months.
In light of the current negotiations regarding the minimum wage law, the minister notes that for the first time in Egypt, there will be a minimum wage for public sector employees. By January 2014, there will be no employee earning less than 1,200 EGP and this will also apply on the private sector along with a maximum wage. He considers this to be a positive step towards the fulfillment of one of the main demands of the January 25th revolution that is social justice.
Abou Eta announced that the ministry is concluding the amendment of 96 articles in the current labor law thatdo not guarantee workers any rights. They will be completed within a matter of days and enforced by the end of this year. He stressed on Egypt’s full commitment to all international agreements. This commitment reflects on decisions taken by the government such as guaranteeing the union freedoms, applying the minimum wage law and other social policies that would take Egypt closer to fulfilling the revolution’s demands.
Abou Eta adds that the ministry is working on recovering all the assets of privatized companies that have been liquidated by the investors to return to the government once again. He states that the ministry is committed to operate the companies through compensations and restructuring. It aims to achieve this without loosing foreign investors’ trust. The minister gives the current negotiations with AbdallahKahki, a Saudi investor, as an example; where he demanded 125 million pounds in order to return the Tanta Company for Linen and Oil Production to the government. The government is currently working on speeding the process of these negotiations in order to reach a settlement before the linen crop cultivation seasons in order to guarantee the immediate operation of the factory.
Regarding the rationing of the foreign workforce in the country while there are 12 million unemployed Egyptians, Abou Eta indicated that there are regular inspections on institutions and assures that no foreign employee will be taking the place of an Egyptian. In the case that there are no competent Egyptian employees, the government urges all factories and companies to hire a minimum of 2 Egyptian employees to assist their foreign counterpart.
The minister of labor force admits that no attention is given to the status of Egyptian workers abroad which are around 8 to 10 million while the number of individuals representing the labor forces abroad does not surpass 28 advisor who work in 15 offices around the world. He acknowledges the need to rebuild institutions that enforce labor rights internally; which will leave an international impact.An Egyptian employee was one of the most hired in the Gulf Area but currently is a last resort for employers.
Despite of all the hardships the ministry is facing regarding solving the problems of the Egyptians working abroad, it remains to be a priority for the government. The worker remittances are one of the major sources for providing foreign currency that strengthens the reserves and fund the import of basic goods, raw material and capital goods for production. The remittances from Egyptians abroad has played a role in sustaining the economy in the past two years and the increase of remittances during the past period has been ground breaking.
The ministry is working on creating mechanisms that would provide jobs nationally and abroad for graduates in order to decrease unemployment and welfare. Regarding the Egyptian economy, the minster acknowledged the negative impact of the turbulent political events since the January 25th revolution until today on the economy. Although there are several difficulties facing the government, it is working on reviving the economy through regaining trust to attract foreign and Arab direct investment to boost the economy.
He adds that the government aims to recover several national industries, such as the textile industries, that have lost their position in the international market. Restructuring factories, eliminating tax evasion as well as supporting the cotton agriculture have been top priorities that the government dedicated 22.5 billion pounds for. The government is also working on developing national industrial projects; the first of them being the Suez Canal, as well as establishing the first nuclear plant for energy generation in Egypt.
