Center for Trade Union & Workers' Services

Report of April: Impacts of the Global

 Financial Crisis on Egyptian Workers

This is the second report issued by the Center for Trade Union and Workers' Services (CTUWS) about the impact of the global financial crisis on workers in Egypt. Although the report covers the most significant events of April 2009 only, the monitoring team affirms that tens of labor sites in many of Egypt's governorates were affected, particularly in new industrial areas which lack any protection for workers. The global financial crisis uncovers the black labor market, for private sector workers in general and new industrial city workers in particular. It also uncovers the absence of any official union organization role in these industrial cities as the number of union committees in a city like Sadat city does not exceed 10 despite the presence of over 2,000 industrial establishments.

 The report has also monitored the declarations made by officials about the impact of the crisis on workers, which, contrary to the situation monitored in the previous report, were characterized by honesty away from trying to make the situation look better. The officials' acknowledgment of the impact of the crisis was reflected in the President's refraining from mentioning amount of the social bonus in his Labor Day speech, which shows the severe effect of the crisis on Egypt's economy. Nevertheless, the government still lacks a clear work plan to face this crisis. It continues to be silent in the face of the employers who laid off workers and reduced their salaries and incentives. The government discourse continues to ignore workers and their rights while focusing only on measures to support businessmen.

 CTUWS, affirming the increasing dismissal of workers due to the global financial crisis, which is expected to deteriorate in the coming months, would like to point out that the monitored cases do not represent all cases.

 CTUWS also affirms that the report was finalized before the swine flu catastrophe which will certainly have a major impact on the global economy and in turn on Egypt's economy in general and those working in this field in particular, estimated at over 20,000 workers.

 Center for Trade Union and Workers Services (CTUWS)

1 May 2009