Egypt to Compensate Worker at Liquidated Iron and Steel Company
Egyptian media Ahram reported that Egypt’s Ministry of Public Business Sector will disburse a minimum of EGP 255,000 in reparations for each of the 2,500
Egyptian media Ahram reported that Egypt’s Ministry of Public Business Sector will disburse a minimum of EGP 255,000 in reparations for each of the 2,500 workers at the recently liquidated Egyptian Iron and Steel Company. Egypt’s Minister Hisham Tawfik said “The liquidation of EISC is a final decision and the Public Business Sector Ministry’s priority is to compensate the workers within three months. Liquidating the establishment will be completed after the company’s workers are compensated.
On 12 January, citing chronic losses, the board of directors of the Egyptian Iron and Steel Company passed on a resolution liquidating the company and dividing it into two new companies. The company’s board said the decision was made as a result of the heavy losses that have been accumulating over the years, which hit EGP 9 billion, EGP 982.8 million of which were lost between July 2019 and June 2020.
The liquidation resolution triggered anger among workers, various MPs, as well as some in the business community in Egypt; all called on the government to reverse its decision. On 17 January, the industrial committee at the House of Representatives said that the government's resolution to liquidate the company should be subject to careful studies and reviews of causes for losses. Meanwhile, the Egyptian Trade Union Federation voiced last week its opposition to the resolution, calling on all concerned bodies to overturn it and form a national commission of experts to look into the step's ramifications.
The federation said it will address President Abdel-Fattah El-Sisi to intervene and salvage the company. The day after the resolution was passed, Egyptian Lawyer Samir Sabry initiated a court action to stop the liquidation decision.
The Egyptian Iron and Steel Company HADISOLB, an affiliate of the Metallurgical Industries Company, is the major iron and steel production company operating in the public sector, with total investments estimated at EGP 650.7 million. The company was founded in 1954 in the Helwan district in south Cairo, as per a decree issued by then-president Gamal Abdel-Nasser, and started operations in 1961. It was founded as a joint stock venture with majority equity from the state as the first-ever iron industry complex in the Arab region. The company specialises in the manufacturing of iron and steel products with the highest quality and lowest cost based on the needs of the local and global markets at a rate of up to 2.1 million tonnes