OCI woes continue

Marwa Hussein and Salma Hussein, Sunday 5 Dec 2010

A worker's sit-in at a leading steel factory hits its 11th day, as a management deal with the Egyptian government fails to appease workers

Orascom
Plans are underway to relocate workers to this factory on the Cairo-Alexandria desert road

A deal signed between the management of Orascom Construction and Industries (OCI) and representatives of the ministry of manpower last Thursday December 2 has failed to satisfy workers, who entered their 11th day of a sit-in today. The deal, which confirmed the rights of workers at OCI's Steel Fabrications Factory to maintain their current jobs with present benefits, was declared unsatisfactory. The factory had announced it would relocate workers to other OCI plants as part of a move to vacate the high-rent facility. About ten percent of the factory's 720 workers, "unskilled labour", would be dismissed as part of this move.

A delegation of workers at the factory, which is an affiliate to the largest listed company by market cap, filed a complaint to the Attorney-General accusing the management of forging signed resignations on their behalf.  Workers organized a silent protest in front of the office of the Attorney-General. The company has called the allegations "false".

In the meantime, a delegation of ten workers is currently leading negotiations with mediator representatives of the ministry of manpower.  "We expect to a deal with our wokers within 24 hours," human resources director Amr Hamalawy told AhramOnline.

"We are only dismissing the unskilled labor," he said, adding that this concerns about ten percent of the workers. "This is a legal procedure. The company is giving them all their rights."

Workers at the factory have requested to have profit distribution benefits in line with those at other OCI plants, which Hamalawy said "is not possible".

"This factory is under restructuring, it does not profit," he said. "We are giving our workers incentive bonuses, as high as 60% of their monthly wages."

Workers say they have not received profit distribution benefits since 2007.

OCI management has said it wants to evacuate the factory, which is located on the Cairo-Alexandria desert road, by tomorrow. Hamalawy said the company promised to relocate workers to two other affiliates, one in same district, and the other to Ain Sokhna, 120 km east of Cairo.

"We have the legal right to relocate our workers to any of our sites," he said.

Yesterday, the workers held another meeting with a representative of the ministry of manpower. No announcements were made on any decisions reached.

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