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Nadine Abdalla is a PhD Fellow in the project “Elite change and new social mobilization in the Arab world” realized by the SWP Comments 32
Stiftung Wissenschaft und Politik (SWP). The project is funded by the German Foreign Office in the framework of the October 2012
transformation partnerships with the Arab World and the Robert Bosch Stiftung. It cooperates with the PhD grant program
of the Heinrich-Böll-Stiftung and the Hanns-Seidel-Stiftung.
1
Stiftung
Wissenschaft und
Politik
German Institute
for International and
Security Affairs
SWPComments
501962–2012
SWP
Introduction
Egypt’s Workers – From Protest
Movement to Organized Labor
A Major Challenge of the Transition Period
Nadine Abdalla
In the aftermath of the Egyptian revolution, the number of labor protests has increased
sharply and added to an already dire economic situation. Undoubtedly, this escalation
reflects both the culmination of the social problems in general and labor’s representa-
tion crisis in particular. The organization of the labor movement via the establishment
of new trade unions that are truly representative of the labor force would be the most
effective solution. It would decrease the expansion of irregular workers’ protests as
well as help in realizing greater “social justice” – one of the main demands of the Janu-
ary 25 revolution and an essential component for stabilizing Egypt’s transition. More-
over, the consolidation of new unions would be an important step toward the empow-
erment of civil society, and thus add to democratization. However, Egypt’s new unions
are facing several challenges that hinder their capacity to represent the workers effec-
tively and keep them in a state of legal limbo. The lack of official recognition harms
their legitimacy on the ground and they face several obstacles to the institutionaliza-
tion process. Therefore, supporting the capacity-building of newly established trade
unions is crucial for establishing an effective labor representation in Egypt and for
supporting the Egyptian transition process.
Even before the revolution of January 25,
2011, a normalization of workers’ collective
protests had become apparent (see table 1,
p. 2). Between 2004 and 2008, more than
1.7 million workers participated in con-
tentious collective actions. In the absence
of a credible body representing Egyptian
labor, strikes and demonstrations had
become the only influential tools for labor
to exert pressure on employers (in the
private sector) or the government (in the
public sector). Calls to focus attention
on workers’ grievances were consistently
ignored if they were not backed by con-
tentious collective action. Labor activism
had begun to emerge in Egypt in 2004 as
a consequence of the economic policies
established by the government of Ahmed
Nazif (2004–2011). His government’s pro-
motion of economic growth at the expense
of social justice resulted in vast social in-
equality. The protests displayed a set of
SWP Comments 32
October 2012
2
distinctive characteristics, three of which
seem to be of essential importance for the
emergence of the labor movement and its
development after the revolution.
Table 1
Total Labor Protests per Year
Year No. of worker protests
2006 222
2007 614
2008 609
2009 700
2010 584
May 2011 – April 2012
(i.e., after the revolution)
1.137
Source: own calculations.
The emergence of the labor movement
outside of ETUF: The Egyptian Trade Union
Federation (ETUF) was founded by Gamal
Abd el-Nasser in 1957 as the only official
representative body for workers. It includes
23 trade unions and has 3.8 million mem-
bers (see table 2). In spite of its dominant
position, ETUF has not adequately fulfilled
its duties of labor representation in the
past. The trade union has rather functioned
as a mouthpiece for state or regime inter-
ests. Therefore, while being forced to re-
main officially under the umbrella of ETUF,
workers have simultaneously organized in
protest movements to express their dis-
content. ETUF leaders have at times been
hostile to the strikers’ claims and tried to
prevent strike actions. This was the case
in the real-estate tax collectors strike in
December 2007. It is no coincidence that
the tax collectors were the first ones to
Table 2
Labor Union Federations
Name of the
federation
No. of affiliated
unions
No. of workers
(in millions)
% of labor force (23.346
million; working with &
without salaries)
ETUF 23 3.8 16.2
EFITU 261 2.4 10.2
EDLC 246 n.a. n.a.
Source: own calculations.
launch a new trade union in 2009. Thus,
there is a causal link between ETUF’s co-
optation by the regime and the emergence
of new trade unions in Egypt: The workers’
firm decision to establish new and un-
compromised representative bodies that
would represent their true interests came
as a direct result of their sobering experi-
ence with ETUF.
The de-politicization of workers’ griev-
ances: Hosni Mubarak’s regime carefully
distinguished between peoples’ demands –
those referring to their socioeconomic
situations and those touching on political
issues. Any kind of linkage was considered
a red line not to be crossed. Hence, labor
movements consistently rejected alliances
with political parties, because they were
aware that a violation of the regime’s un-
written rules of the game would result in
systematic repression – but also because of
the political parties’ political weakness.
The suppression of the Ghazel El-Mahalla
labor movement strike – the Misr Com-
pany for Spinning and Weaving, located
in Mahalla, is the biggest of its kind with
24,000 workers – on April 6, 2008, is an
exemplary demonstration of how the
authoritarian regime dealt with the pol-
iticization of social protest. Cyber activists
took up labor’s call for a strike and sit-in
inside the factory, and transformed it into
a call for a “national” strike. Followed by
several political opposition parties and
movements, they turned the purely eco-
nomic demands of the labor movement
into a harsh critique of the broader social
and political situation of the country – for
example, continuous price increases, wide-
spread corruption, and the torture of
political activists by the police. Since 2005
the regime had mostly reacted to workers’
protests with a mixture of indifference,
toleration, and concessions – rarely had it
resorted to violence to disperse protest
actions. But in the April 6 strike, it used
its security apparatus to oblige the labor
leaders to demobilize the workers and even
cancel their strike call. Leaders who did not
concede were arrested. The bitter experi-
SWP Comments 32
October 2012
3
ence at Mahalla deepened the split between
labor and politics, and the labor movement
remains suspicious toward involvement in
politics to this day – even though the fear of
repression has significantly decreased since
the revolution, the continued weakness
of political parties is not changing workers’
perceptions about political involvement.
Lack of structural ties: Labor move-
ments mostly appeared as “islands,” iso-
lated and with no structural ties linking
one strike or demonstration to another:
Every labor movement focused on demands
related to its own sector, and engaged in
protests and strikes separately. In conse-
quence, collective actions never led to the
formation of an overarching social move-
ment encompassing several smaller labor
movements – not even in one single indus-
trial sector. Since 2008, the increase of the
national minimum wage to 1,200 Egyptian
pounds (some 150 euro) has been the single
most important common claim forwarded
by workers in different sectors. However,
this common demand has not been fol-
lowed up with the building of labor coali-
tions that could exert enough pressure on
the government to achieve this goal. The
integration of the different unions into an
effective federation will therefore require
tremendous efforts, as it cannot rely on any
organizational linkages or prior cooper-
ation experience.
After January 25:
New unions, new challenges?
After the revolution, new trade unions
emerged at lightning speed. They were main-
ly organized under the roof of two umbrella
organizations: the Egyptian Federation of
Independent Trade Unions (EFITU), which
regroups 261 new trade unions with some
2.45 million members (see table 2, p. 2); and
the Egyptian Democratic Labor Congress
(EDLC), which embraces 246 unions (see
below). However, the new trade unions’
efficacy is constrained by several factors.
Legal obstacles: The legal framework
regulating trade unions’ affairs poses a
huge obstacle for the formation of new
trade unions. Law 35, promulgated in 1976
and amended by law 1 in 1981, recognizes
ETUF as the only legitimate and legal fed-
eral body of labor representation. Labor
activists had always criticized this law for
contradicting the International Labor Orga-
nization’s Convention 87 of 1948 and Con-
vention 98 of 1949, which stipulate the pro-
tection of the independence and freedom
of trade unions – both Conventions were
ratified by the Egyptian government as far
back as 1957.
With a view to the outdated legal setting,
several draft laws with competing visions
for a new and precise regulation of union
affairs have already been circulated in the
Egyptian parliament. While most of these
drafts agree on expanding union freedoms,
they differ with regard to the scope and
content of the envisioned freedom that has
to be included in the law. Before the dis-
solution of parliament on June 14, 2012, its
Labor Committee (Lagnet El-Kowa El-A’mela)
agreed to adopt a draft presented by the
Muslim Brotherhood’s Freedom and Justice
Party (FJP), albeit EFITU and the EDLC were
supporting a different draft that had been
previously prepared by former Minister
of Man Power and Immigration Ahmed
El-Borei. The appointment of FJP’s Khaled
El-Azhari, who is also the vice-president of
ETUF, as the new Minister of Man Power to
the newly formed government on August 2,
2012, ultimately changed the balance of
power to the FJP’s side. Naturally, the new
Minister of Man Power now officially sup-
ports the enactment of the committee’s
draft law. In a meeting with him and the
Minister of Legal Affairs, Mohamed Mah-
soub, on September 18, leaders of new
trade unions unanimously rejected the law.
The day after, EFITU issued a statement
clarifying the reasons for its refusal and its
preference for El-Borei’s draft. Three argu-
ments relating to the three most problem-
atic issues seem to be of particular rele-
vance here.
1. Civil servants and professional unions’
(such as teachers’ unions) issues: El-Azhari’s
SWP Comments 32
October 2012
4
law proposal does not cover civil servants
working in the police and military sectors.
The law also does not grant the right to
establish new professional unions – a situ-
ation favorable to the Muslim Brotherhood
that controls the administrations of the
existing professional unions.
2. The structure of the trade union feder-
ation: Contrary to El-Borei’s draft, which
would empower local unions at the work
places via strategies of decentralization,
Al-Azhari’s draft seeks to preserve the cur-
rent centralized structure, which concen-
trates decision-making power at the higher
levels of the federation.
3. Social funds: The law does not tackle
the problematic issue of the social funds
(Sanadik El-Zamala). To date, ETUF holds a
monopoly on the social funds that provide
social security services for members of af-
filiated trade unions, and pensions for their
retirement. Contributions to the funds are
included in the workers’ membership fees
for ETUF, which are usually deducted auto-
matically from their salaries. Workers wil-
ling to establish new unions that are in-
dependent from the ETUF framework are
faced with losing their claims to the social
funds they have previously been financing.
El-Borei’s draft had tried to solve this dilem-
ma by guaranteeing the workers’ freedom
to withdraw from ETUF without forfeiting
their rights to the social funds. EFITU
stressed in its statement that because of
the social funds obstacle, El-Azhari’s draft
would entail substantial disadvantages for
the emergence of new trade unions. More-
over, the statement added that this draft
law would only favor the Muslim Brother-
hood’s interests, since it would ensure their
control over ETUF. This is because Brother-
hood members hold powerful positions in
ETUF’s current transitory administration
board (recalling that the current Minister of
Man Power had been vice-president of ETUF
just before his appointment to the new
government).
With regard to the further development of
the new trade unions’ struggle against legal
obstacles, several scenarios seem plausible.
1) The best case scenario: The new union
leaders succeed in putting more pressure
on the Ministry of Man Power to engage in
a process of social dialogue that would lead
to the consensual adoption of a new law
along the lines of the Borei draft.
2) The Ministry of Man Power gets the
president (currently holding legislative
power) to issue its draft law unilaterally
despite the unions’ rejection – a develop-
ment that would lead to further protests
and instability, since workers are already
today organizing demonstrations against
this law.
3) The dialogue remains deadlocked and
thus no law is issued until the election of a
new parliament.
Recognition and legitimacy: New trade
unions face difficulties, both in the public
and private sectors, in receiving recogni-
tion as legitimate representatives. Despite
the Nazif government’s privatization poli-
cies, Egypt’s public sector remains large
and includes a large industrial sector – with
the Misr Company for Spinning and Weav-
ing being but one example. Leaders of new
trade unions in the governmental and pub-
lic sector face barriers in officially register-
ing their new organizations, since the legal
framework is not clear yet. However, get-
ting the practical recognition of their
unions on the ground is at least equally
challenging, as public employers prefer
to deal with the leaders of the officially
registered and traditionally established
syndicates. The new trade unions’ leaders
are largely considered to be leaders of a
protest movement. While public employers
have occasionally agreed to negotiate with
them over claims, such as bonuses, they
have shown much more reluctance to rec-
ognize them as official representatives with
the legitimacy to negotiate long-term agree-
ments and more substantial demands. The
new trade unions thus lack acceptance,
which leaves them unable to negotiate on
behalf of the workers and achieve their
SWP Comments 32
October 2012
5
aspirations, leaving contentious action as
their only avenue to push demands.
The situation is even worse in the private
sector, where it is mostly prohibited for
workers to establish new unions. Private
employers make use of their powerful posi-
tion vis-à-vis their employees, often depriv-
ing them entirely of their labor rights to
legal, social, and syndical protection. There-
fore, workers suffer from severe repercus-
sions or risk getting fired if they engage in
labor activism. This situation has been
entrenched because of the weakness of the
rule of law – both in the former authori-
tarian regime and the current transitional
one. The Center for Trade Unions and
Workers’ Services (CTUWS), a well known
Egyptian NGO defending labor rights since
1999, showed in several cases that workers
were fired just after organizing protests. In
other cases, according to the CTUWS, newly
hired workers are obliged to sign an un-
dated document in which they submit their
resignations, giving the employer the liber-
ty to fire workers at any given moment, and
with no legal protection whatsoever.
Resources and capacity: Two major
obstacles hinder the capacity of new trade
unions to turn into effective institutions:
The first one is related to the new leaders’
lack of experience in the most basic func-
tions of a trade union. This is a shortcom-
ing that largely results from the absence
of any tradition of unionism in Egypt – at
least outside of ETUF. Administrating a new
trade union and managing it thus poses a
major challenge. The second challenge is
related to the lack of financial resources,
due to the inability to collect regular mem-
bership fees. This is partially a consequence
of the internal administration’s weakness,
but also related to the dilemma that mem-
bers are already paying ETUF membership
fees, as previously mentioned.
The unions that succeeded in overcom-
ing those challenges were the ones built
after successful collective action experienc-
es, such as the 10-day sit-in of the real-estate
tax collectors in front of the prime ministry
of Cairo in December 2007. The long-lasting
collective action led to the building of
strong social ties between the participating
movement members, and a relation of con-
fidence was established between the latter
and their leaders. The same cohesion can be
found within the public transport’s new
trade union, which was established in 2009,
also after a successful collective strike.
EFITU and the EDLC as new
trade union federations
After the revolution, two federal organi-
zations assembling new trade unions in-
dependent from the ETUF framework were
established: the Egyptian Federation for
Independent Trade Unions and the Egyp-
tian Democratic Labor Congress. Contrary
to EFITU, the EDLC does not consider itself
yet a federation of trade unions (it is also
not formally recognized as such) but rather
a labor-oriented coalition of local trade
unions. The two organizations differ with
regard to their strategic and organizational
visions as well as views on political involve-
ment.
The EDLC pursues an educational “bot-
tom-up” approach, which is based on the
belief that a strategy of slowly teaching
workers about democratic trade unionism
is the only long-term guarantee for a sus-
tainable and effective institutionalization
of labor representation. Institutions should
be based on strong relations between the
unions affiliated to it. Such stable ties need
time and continuous joint activities to de-
velop. The EDLC was established by Kamal
Abbas, the president of the NGO CTUWS
and former labor leader at the Helwan Iron
and Steel factory. The CTUWS has always
played an important role in supporting
labor leaders legally and technically. Today,
it is working on transforming the EDLC
into a sustainable federation. Therefore,
it is coordinating the EDLC unions’ joint
activities, working on enhancing their ca-
pacities to build and defend their rights.
The CUTWS thinks that the process of
transformation has to come as a result of
a longer-term integration process as guar-
SWP Comments 32
October 2012
6
antee for the new institution’s efficiency. In
contrast to EFITU, the EDLC has shown no
aspiration toward parliamentary elections.
In contrast to the EDLC, EFITU has
adopted a “top-down” approach for the
promotion of workers’ interests, stemming
from the idea of seizing the “political op-
portunity” in the relatively open and fluid
political arena of post-revolutionary Egypt.
EFITU is led by Kamal Abu Eita, the leader
of the nationalist “Karama” party and mem-
ber of the parliament dissolved in June
2012. As the founder of the real-estate tax
collectors’ union, Abu Eita can be regarded
as a pioneer of Egyptian unionism. Unlike
the EDLC, EFITU is officially labeled as a
federation with institutional and legal com-
petence for the political representation of
labor. It is also hierarchically organized and
has a centralized internal structure (giving
some powers to local trade unions though).
To raise its political leverage, EFITU seeks to
incorporate as many of the newly founded
trade unions as possible into the federation.
At the same time, EFITU is trying to become
more integrated into the political arena. It
considered participating in the parliamen-
tary elections as a way to secure workers’
interests. However, the high electoral com-
mittee refused to recognize the candida-
tures of EFITU’s workers and their right
to compete for the parliamentary seats
allocated to the “workers quota.” It thus
chose to ignore the Egyptian Administra-
tive Court’s verdict from November 16,
2011, which had granted EFITU’s candi-
dates the right to compete in parliamentary
elections. In spite of this, the committee
instead only accepted candidates associated
with ETUF.
While EFITU is focusing on seizing “polit-
ical opportunities,” the EDLC is focusing
more on capacity-building. The organiza-
tional split of the labor movement into
these two organizations was caused by
both personal disagreements (between two
powerful labor leaders who were unable
to cooperate), as well as differences with
regard to the strategic visions. However,
when it comes to the actual representation
of workers, programmatic differences
between both entities are barely visible:
They both share the same vision about the
increase of the minimum wage to 1,200
Egyptian pounds, and both are lobbying
for Ahmed El-Borei’s trade union law.
EFITU as a political actor
EFITU has been successful in recruiting
members among public service workers,
such as tax collectors, aviation workers and
pilots, teachers, etc. The membership’s
strong affiliation with new trade unions
that have recently emerged in the public
sector might offer a potential source of
strength in the future, especially when
taking collective actions. However, EFITU is
much weaker in terms of membership in
the industrial and manufacturing sectors.
The latter suffers from a workforce with
low levels of education and hard working
conditions. This makes many workers
regard the formation of a union a luxury
they cannot afford at the moment.
In general, EFITU faces two major internal
challenges.
The first is a lack of structural capacity:
Apparently the “top-down” approach
adopted by EFITU has created a lag between
its coordination mechanisms and the in-
creasing number of unions that have to be
integrated within the new structure. Given
EFITU’s limited staff and resources, this
has resulted in devoting less time to other
issues, such as the setup of administrative
capacities and the professional training of
leadership personnel – both of the feder-
ation and of its affiliated unions. This has
affected the functionality of the institution
on two main levels: First, EFITU’s govern-
ance has started to suffer from a lack of
professionalism (and sometimes transpar-
ency). For instance, the rules regulating the
representation of local unions on the
federal level are not clear. Similar problems
emerge when tackling the issue of the rules
for the selection of the representatives of
the federation abroad. These issues were
SWP Comments 32
October 2012
7
also two of the major complaints of the
public transport union, which left EFITU
and instead joined the EDLC. Second, the
emphasis on embracing as many new
unions as possible came at the expense of
internal harmony between the federation’s
components. Obviously, the interests of the
peasants’ new trade union differ from those
of the teachers’ or tax collectors’ unions.
This situation could have, in the future, a
negative impact on EFITU’s capacities of
coherent, collective decision-making.
The second is an ambiguous relation to
politics: In periods of transition, it can be
of great benefit for labor movements to
form alliances with political actors, espe-
cially parties. It provides them with an
additional channel of influence on politics,
since the latter has the duty of putting
the workers’ demands on their political
agenda. However, in the Egyptian case, this
kind of alliance appears to be problematic
for labor due to political parties’ weakness.
In the 2011 and 2012 elections, the leftist
coalition “Revolution Continues” achieved
only 8 of 508 parliamentary seats. The
Tajammu’ Party and the Egyptian Social
Democratic Party – the remaining leftist
parties that were not part of the coalition –
won 3 and 16 seats respectively. This leads
to a continued feeling of mistrust among
ordinary members of the federation: As
parties remain unable to provide the
workers with concrete political impact, the
latter feel that they are being used by par-
ties to exploit their leverage. In addition,
workers mistrust parties also because of
their potential to divide them with dif-
ferent ideological approaches.
On the other hand, EFITU’s leaders, with
a number of them having clear political
stances and leftist political affiliations,
acknowledge the need of the federation to
forward its demands effectively through
all available political channels. Hence,
between the federation’s top and bottom,
contradictory stances have emerged. While
the former is ready to adopt more proactive
political positions, the latter is still reluc-
tant to either get connected to political
parties or to take any explicit political
positions. The ambiguous decision issued
by the federation’s administration board on
EFITU’s participation in the national strike
on February 11, 2012, provides an illustra-
tive example for this: Several youth activ-
ists’ movements had called for a “national
strike” and for civil disobedience in order
to create pressure to end military rule in
Egypt. EFITU’s board decided that the fed-
eration would join the national strike, but
that it would leave it to the respective
leaders of the affiliated unions to decide
whether to participate. The ambiguous
relation to politics is made clear also by the
unwillingness to take a decision to back any
candidate in the May 2012 presidential elec-
tions, although many of the federation’s
leaders were already members of the cam-
paign of the leftist-nationalist candidate,
Hamdin Sabahy.
Conclusions and recommendations
Besides the necessity to reform ETUF, the
organization of the labor movement
through the establishment of new trade
unions that are truly representative of labor
would be the most effective solution for
lowering the number of workers’ protests
and their disruptive effects. New unions
are, however, facing structural obstacles
that affect their legitimacy and influence:
They suffer from a lack of financial re-
sources and know-how. To support the con-
solidation of unions and the promotion
of labor rights in Egypt, the following mea-
sures should be adopted by European
policymakers:
Help trade unions develop into bodies
that effectively represent their members:
It would be helpful if European organiza-
tions, such as Germany’s political founda-
tions working in the field of labor, for ex-
ample the Friedrich Ebert Foundation, as
well as unions and their umbrella organi-
zations continue to provide Egyptian labor
leaders with technical support and finan-
cial know-how regarding the establish-
ment of democratic and professional trade
SWP Comments 32
October 2012
8
unions, both on the organizations’ local
and federal levels. This should be achieved
via multiple approaches: Training courses
can provide labor with the needed exper-
tise. However, it would be preferable to
conduct these training courses at least par-
tially at the offices of the respective unions.
Otherwise, union leaders would have to
travel and leave their labor environments,
which would negatively affect relations
with their social base and the union’s mem-
bers. In addition, the support of new trade
unions and federations should invariably
be subjected to attentive monitoring to
guarantee its efficiency. Setting up bench-
marking mechanisms will push new trade
unions to adhere more carefully to rules
of transparency and professionalism. More-
over, partnerships and experience ex-
changes between European labor unions
and federations and their Egyptian counter-
parts should be encouraged.
Help Egyptian institutions to improve
the legal situation and labor relations:
If the EU wants to be a credible normative
power, it needs to consistently promote
democratic values and human rights, also
with regard to labor rights. The foundation
already exists: Not only does the EU-Egypt
Association Agreement include a human
rights clause, but it also stresses the right of
both partners to initiate talks on reciprocal
bilateral agreements on working conditions
of workers (Art. 32, part IV of the Associa-
tion Agreement). At this juncture, it would
be opportune to start a dialogue with the
Egyptian government while the new trade
union law is still in the making. Targeted
and consistent European pressure could in-
fluence the current legislative debate, and
thereby support the adoption of a more
labor-friendly law.
However, the Egyptian case admittedly
proves the limits of “positive conditionali-
ty” as one of the major approaches of the
new European Neighborhood Policy for
the promotion of human rights, as well
as the support of economic and political
transformation. This mechanism has, as
of now, no concrete tools (in the form of
concrete incentives or disincentives) – and
little effect when applied to the promotion
of labor rights. In the absence of such incen-
tives and disincentives, the EU should still
encourage European companies to refrain
from trade with Egyptian companies that
do not respect international labor stand-
ards, especially regarding the freedom of
association.
Moreover, for a successful promotion
of human rights, the EU should not only
create awareness of, and thereby a demand
for, labor rights, but should also provide a
supply for it – in terms of support for good
governance (laws, regulations, and effective
enforcement). In this sense, the EU should
offer capacity-building for politicians and
government officials, for example in the
Ministry of Man Power and Immigration in
the best practices related to labor rights,
the implementation of modern labor laws,
as well as the best ways for a partnership
between capital and labor.
Convince multinational companies
(MNC) to adhere to labor rights standards:
Several MNCs with branches in Egypt cur-
rently have their head offices in European
states and are therefore bound to the social
responsibility standards, such as the OECD
guidelines on corporate social responsibil-
ity. However, MNCs should adhere to these
international standards for the protection
of labor rights also in their dependencies
abroad. In this way, they would set a good
example for their Egyptian counterparts.
In addition, MNCs should use their bargain-
ing power and resources to effect positive
changes in the factories producing for
them. Here, the implementation of codes
of conduct that incorporate the freedom of
labor association should be made a pre-con-
dition for supply contracts.
© Stiftung Wissenschaft und
Politik, 2012
All rights reserved
These Comments reflect
solely the author’s views.
SWP
Stiftung Wissenschaft und
Politik
German Institute for
International and
Security Affairs
Ludwigkirchplatz 3­4
10719 Berlin
Telephone +49 30 880 07-0
Fax +49 30 880 07-100
www.swp-berlin.org
swp@swp-berlin.org
ISSN 1861-1761

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  • 1. Nadine Abdalla is a PhD Fellow in the project “Elite change and new social mobilization in the Arab world” realized by the SWP Comments 32 Stiftung Wissenschaft und Politik (SWP). The project is funded by the German Foreign Office in the framework of the October 2012 transformation partnerships with the Arab World and the Robert Bosch Stiftung. It cooperates with the PhD grant program of the Heinrich-Böll-Stiftung and the Hanns-Seidel-Stiftung. 1 Stiftung Wissenschaft und Politik German Institute for International and Security Affairs SWPComments 501962–2012 SWP Introduction Egypt’s Workers – From Protest Movement to Organized Labor A Major Challenge of the Transition Period Nadine Abdalla In the aftermath of the Egyptian revolution, the number of labor protests has increased sharply and added to an already dire economic situation. Undoubtedly, this escalation reflects both the culmination of the social problems in general and labor’s representa- tion crisis in particular. The organization of the labor movement via the establishment of new trade unions that are truly representative of the labor force would be the most effective solution. It would decrease the expansion of irregular workers’ protests as well as help in realizing greater “social justice” – one of the main demands of the Janu- ary 25 revolution and an essential component for stabilizing Egypt’s transition. More- over, the consolidation of new unions would be an important step toward the empow- erment of civil society, and thus add to democratization. However, Egypt’s new unions are facing several challenges that hinder their capacity to represent the workers effec- tively and keep them in a state of legal limbo. The lack of official recognition harms their legitimacy on the ground and they face several obstacles to the institutionaliza- tion process. Therefore, supporting the capacity-building of newly established trade unions is crucial for establishing an effective labor representation in Egypt and for supporting the Egyptian transition process. Even before the revolution of January 25, 2011, a normalization of workers’ collective protests had become apparent (see table 1, p. 2). Between 2004 and 2008, more than 1.7 million workers participated in con- tentious collective actions. In the absence of a credible body representing Egyptian labor, strikes and demonstrations had become the only influential tools for labor to exert pressure on employers (in the private sector) or the government (in the public sector). Calls to focus attention on workers’ grievances were consistently ignored if they were not backed by con- tentious collective action. Labor activism had begun to emerge in Egypt in 2004 as a consequence of the economic policies established by the government of Ahmed Nazif (2004–2011). His government’s pro- motion of economic growth at the expense of social justice resulted in vast social in- equality. The protests displayed a set of
  • 2. SWP Comments 32 October 2012 2 distinctive characteristics, three of which seem to be of essential importance for the emergence of the labor movement and its development after the revolution. Table 1 Total Labor Protests per Year Year No. of worker protests 2006 222 2007 614 2008 609 2009 700 2010 584 May 2011 – April 2012 (i.e., after the revolution) 1.137 Source: own calculations. The emergence of the labor movement outside of ETUF: The Egyptian Trade Union Federation (ETUF) was founded by Gamal Abd el-Nasser in 1957 as the only official representative body for workers. It includes 23 trade unions and has 3.8 million mem- bers (see table 2). In spite of its dominant position, ETUF has not adequately fulfilled its duties of labor representation in the past. The trade union has rather functioned as a mouthpiece for state or regime inter- ests. Therefore, while being forced to re- main officially under the umbrella of ETUF, workers have simultaneously organized in protest movements to express their dis- content. ETUF leaders have at times been hostile to the strikers’ claims and tried to prevent strike actions. This was the case in the real-estate tax collectors strike in December 2007. It is no coincidence that the tax collectors were the first ones to Table 2 Labor Union Federations Name of the federation No. of affiliated unions No. of workers (in millions) % of labor force (23.346 million; working with & without salaries) ETUF 23 3.8 16.2 EFITU 261 2.4 10.2 EDLC 246 n.a. n.a. Source: own calculations. launch a new trade union in 2009. Thus, there is a causal link between ETUF’s co- optation by the regime and the emergence of new trade unions in Egypt: The workers’ firm decision to establish new and un- compromised representative bodies that would represent their true interests came as a direct result of their sobering experi- ence with ETUF. The de-politicization of workers’ griev- ances: Hosni Mubarak’s regime carefully distinguished between peoples’ demands – those referring to their socioeconomic situations and those touching on political issues. Any kind of linkage was considered a red line not to be crossed. Hence, labor movements consistently rejected alliances with political parties, because they were aware that a violation of the regime’s un- written rules of the game would result in systematic repression – but also because of the political parties’ political weakness. The suppression of the Ghazel El-Mahalla labor movement strike – the Misr Com- pany for Spinning and Weaving, located in Mahalla, is the biggest of its kind with 24,000 workers – on April 6, 2008, is an exemplary demonstration of how the authoritarian regime dealt with the pol- iticization of social protest. Cyber activists took up labor’s call for a strike and sit-in inside the factory, and transformed it into a call for a “national” strike. Followed by several political opposition parties and movements, they turned the purely eco- nomic demands of the labor movement into a harsh critique of the broader social and political situation of the country – for example, continuous price increases, wide- spread corruption, and the torture of political activists by the police. Since 2005 the regime had mostly reacted to workers’ protests with a mixture of indifference, toleration, and concessions – rarely had it resorted to violence to disperse protest actions. But in the April 6 strike, it used its security apparatus to oblige the labor leaders to demobilize the workers and even cancel their strike call. Leaders who did not concede were arrested. The bitter experi-
  • 3. SWP Comments 32 October 2012 3 ence at Mahalla deepened the split between labor and politics, and the labor movement remains suspicious toward involvement in politics to this day – even though the fear of repression has significantly decreased since the revolution, the continued weakness of political parties is not changing workers’ perceptions about political involvement. Lack of structural ties: Labor move- ments mostly appeared as “islands,” iso- lated and with no structural ties linking one strike or demonstration to another: Every labor movement focused on demands related to its own sector, and engaged in protests and strikes separately. In conse- quence, collective actions never led to the formation of an overarching social move- ment encompassing several smaller labor movements – not even in one single indus- trial sector. Since 2008, the increase of the national minimum wage to 1,200 Egyptian pounds (some 150 euro) has been the single most important common claim forwarded by workers in different sectors. However, this common demand has not been fol- lowed up with the building of labor coali- tions that could exert enough pressure on the government to achieve this goal. The integration of the different unions into an effective federation will therefore require tremendous efforts, as it cannot rely on any organizational linkages or prior cooper- ation experience. After January 25: New unions, new challenges? After the revolution, new trade unions emerged at lightning speed. They were main- ly organized under the roof of two umbrella organizations: the Egyptian Federation of Independent Trade Unions (EFITU), which regroups 261 new trade unions with some 2.45 million members (see table 2, p. 2); and the Egyptian Democratic Labor Congress (EDLC), which embraces 246 unions (see below). However, the new trade unions’ efficacy is constrained by several factors. Legal obstacles: The legal framework regulating trade unions’ affairs poses a huge obstacle for the formation of new trade unions. Law 35, promulgated in 1976 and amended by law 1 in 1981, recognizes ETUF as the only legitimate and legal fed- eral body of labor representation. Labor activists had always criticized this law for contradicting the International Labor Orga- nization’s Convention 87 of 1948 and Con- vention 98 of 1949, which stipulate the pro- tection of the independence and freedom of trade unions – both Conventions were ratified by the Egyptian government as far back as 1957. With a view to the outdated legal setting, several draft laws with competing visions for a new and precise regulation of union affairs have already been circulated in the Egyptian parliament. While most of these drafts agree on expanding union freedoms, they differ with regard to the scope and content of the envisioned freedom that has to be included in the law. Before the dis- solution of parliament on June 14, 2012, its Labor Committee (Lagnet El-Kowa El-A’mela) agreed to adopt a draft presented by the Muslim Brotherhood’s Freedom and Justice Party (FJP), albeit EFITU and the EDLC were supporting a different draft that had been previously prepared by former Minister of Man Power and Immigration Ahmed El-Borei. The appointment of FJP’s Khaled El-Azhari, who is also the vice-president of ETUF, as the new Minister of Man Power to the newly formed government on August 2, 2012, ultimately changed the balance of power to the FJP’s side. Naturally, the new Minister of Man Power now officially sup- ports the enactment of the committee’s draft law. In a meeting with him and the Minister of Legal Affairs, Mohamed Mah- soub, on September 18, leaders of new trade unions unanimously rejected the law. The day after, EFITU issued a statement clarifying the reasons for its refusal and its preference for El-Borei’s draft. Three argu- ments relating to the three most problem- atic issues seem to be of particular rele- vance here. 1. Civil servants and professional unions’ (such as teachers’ unions) issues: El-Azhari’s
  • 4. SWP Comments 32 October 2012 4 law proposal does not cover civil servants working in the police and military sectors. The law also does not grant the right to establish new professional unions – a situ- ation favorable to the Muslim Brotherhood that controls the administrations of the existing professional unions. 2. The structure of the trade union feder- ation: Contrary to El-Borei’s draft, which would empower local unions at the work places via strategies of decentralization, Al-Azhari’s draft seeks to preserve the cur- rent centralized structure, which concen- trates decision-making power at the higher levels of the federation. 3. Social funds: The law does not tackle the problematic issue of the social funds (Sanadik El-Zamala). To date, ETUF holds a monopoly on the social funds that provide social security services for members of af- filiated trade unions, and pensions for their retirement. Contributions to the funds are included in the workers’ membership fees for ETUF, which are usually deducted auto- matically from their salaries. Workers wil- ling to establish new unions that are in- dependent from the ETUF framework are faced with losing their claims to the social funds they have previously been financing. El-Borei’s draft had tried to solve this dilem- ma by guaranteeing the workers’ freedom to withdraw from ETUF without forfeiting their rights to the social funds. EFITU stressed in its statement that because of the social funds obstacle, El-Azhari’s draft would entail substantial disadvantages for the emergence of new trade unions. More- over, the statement added that this draft law would only favor the Muslim Brother- hood’s interests, since it would ensure their control over ETUF. This is because Brother- hood members hold powerful positions in ETUF’s current transitory administration board (recalling that the current Minister of Man Power had been vice-president of ETUF just before his appointment to the new government). With regard to the further development of the new trade unions’ struggle against legal obstacles, several scenarios seem plausible. 1) The best case scenario: The new union leaders succeed in putting more pressure on the Ministry of Man Power to engage in a process of social dialogue that would lead to the consensual adoption of a new law along the lines of the Borei draft. 2) The Ministry of Man Power gets the president (currently holding legislative power) to issue its draft law unilaterally despite the unions’ rejection – a develop- ment that would lead to further protests and instability, since workers are already today organizing demonstrations against this law. 3) The dialogue remains deadlocked and thus no law is issued until the election of a new parliament. Recognition and legitimacy: New trade unions face difficulties, both in the public and private sectors, in receiving recogni- tion as legitimate representatives. Despite the Nazif government’s privatization poli- cies, Egypt’s public sector remains large and includes a large industrial sector – with the Misr Company for Spinning and Weav- ing being but one example. Leaders of new trade unions in the governmental and pub- lic sector face barriers in officially register- ing their new organizations, since the legal framework is not clear yet. However, get- ting the practical recognition of their unions on the ground is at least equally challenging, as public employers prefer to deal with the leaders of the officially registered and traditionally established syndicates. The new trade unions’ leaders are largely considered to be leaders of a protest movement. While public employers have occasionally agreed to negotiate with them over claims, such as bonuses, they have shown much more reluctance to rec- ognize them as official representatives with the legitimacy to negotiate long-term agree- ments and more substantial demands. The new trade unions thus lack acceptance, which leaves them unable to negotiate on behalf of the workers and achieve their
  • 5. SWP Comments 32 October 2012 5 aspirations, leaving contentious action as their only avenue to push demands. The situation is even worse in the private sector, where it is mostly prohibited for workers to establish new unions. Private employers make use of their powerful posi- tion vis-à-vis their employees, often depriv- ing them entirely of their labor rights to legal, social, and syndical protection. There- fore, workers suffer from severe repercus- sions or risk getting fired if they engage in labor activism. This situation has been entrenched because of the weakness of the rule of law – both in the former authori- tarian regime and the current transitional one. The Center for Trade Unions and Workers’ Services (CTUWS), a well known Egyptian NGO defending labor rights since 1999, showed in several cases that workers were fired just after organizing protests. In other cases, according to the CTUWS, newly hired workers are obliged to sign an un- dated document in which they submit their resignations, giving the employer the liber- ty to fire workers at any given moment, and with no legal protection whatsoever. Resources and capacity: Two major obstacles hinder the capacity of new trade unions to turn into effective institutions: The first one is related to the new leaders’ lack of experience in the most basic func- tions of a trade union. This is a shortcom- ing that largely results from the absence of any tradition of unionism in Egypt – at least outside of ETUF. Administrating a new trade union and managing it thus poses a major challenge. The second challenge is related to the lack of financial resources, due to the inability to collect regular mem- bership fees. This is partially a consequence of the internal administration’s weakness, but also related to the dilemma that mem- bers are already paying ETUF membership fees, as previously mentioned. The unions that succeeded in overcom- ing those challenges were the ones built after successful collective action experienc- es, such as the 10-day sit-in of the real-estate tax collectors in front of the prime ministry of Cairo in December 2007. The long-lasting collective action led to the building of strong social ties between the participating movement members, and a relation of con- fidence was established between the latter and their leaders. The same cohesion can be found within the public transport’s new trade union, which was established in 2009, also after a successful collective strike. EFITU and the EDLC as new trade union federations After the revolution, two federal organi- zations assembling new trade unions in- dependent from the ETUF framework were established: the Egyptian Federation for Independent Trade Unions and the Egyp- tian Democratic Labor Congress. Contrary to EFITU, the EDLC does not consider itself yet a federation of trade unions (it is also not formally recognized as such) but rather a labor-oriented coalition of local trade unions. The two organizations differ with regard to their strategic and organizational visions as well as views on political involve- ment. The EDLC pursues an educational “bot- tom-up” approach, which is based on the belief that a strategy of slowly teaching workers about democratic trade unionism is the only long-term guarantee for a sus- tainable and effective institutionalization of labor representation. Institutions should be based on strong relations between the unions affiliated to it. Such stable ties need time and continuous joint activities to de- velop. The EDLC was established by Kamal Abbas, the president of the NGO CTUWS and former labor leader at the Helwan Iron and Steel factory. The CTUWS has always played an important role in supporting labor leaders legally and technically. Today, it is working on transforming the EDLC into a sustainable federation. Therefore, it is coordinating the EDLC unions’ joint activities, working on enhancing their ca- pacities to build and defend their rights. The CUTWS thinks that the process of transformation has to come as a result of a longer-term integration process as guar-
  • 6. SWP Comments 32 October 2012 6 antee for the new institution’s efficiency. In contrast to EFITU, the EDLC has shown no aspiration toward parliamentary elections. In contrast to the EDLC, EFITU has adopted a “top-down” approach for the promotion of workers’ interests, stemming from the idea of seizing the “political op- portunity” in the relatively open and fluid political arena of post-revolutionary Egypt. EFITU is led by Kamal Abu Eita, the leader of the nationalist “Karama” party and mem- ber of the parliament dissolved in June 2012. As the founder of the real-estate tax collectors’ union, Abu Eita can be regarded as a pioneer of Egyptian unionism. Unlike the EDLC, EFITU is officially labeled as a federation with institutional and legal com- petence for the political representation of labor. It is also hierarchically organized and has a centralized internal structure (giving some powers to local trade unions though). To raise its political leverage, EFITU seeks to incorporate as many of the newly founded trade unions as possible into the federation. At the same time, EFITU is trying to become more integrated into the political arena. It considered participating in the parliamen- tary elections as a way to secure workers’ interests. However, the high electoral com- mittee refused to recognize the candida- tures of EFITU’s workers and their right to compete for the parliamentary seats allocated to the “workers quota.” It thus chose to ignore the Egyptian Administra- tive Court’s verdict from November 16, 2011, which had granted EFITU’s candi- dates the right to compete in parliamentary elections. In spite of this, the committee instead only accepted candidates associated with ETUF. While EFITU is focusing on seizing “polit- ical opportunities,” the EDLC is focusing more on capacity-building. The organiza- tional split of the labor movement into these two organizations was caused by both personal disagreements (between two powerful labor leaders who were unable to cooperate), as well as differences with regard to the strategic visions. However, when it comes to the actual representation of workers, programmatic differences between both entities are barely visible: They both share the same vision about the increase of the minimum wage to 1,200 Egyptian pounds, and both are lobbying for Ahmed El-Borei’s trade union law. EFITU as a political actor EFITU has been successful in recruiting members among public service workers, such as tax collectors, aviation workers and pilots, teachers, etc. The membership’s strong affiliation with new trade unions that have recently emerged in the public sector might offer a potential source of strength in the future, especially when taking collective actions. However, EFITU is much weaker in terms of membership in the industrial and manufacturing sectors. The latter suffers from a workforce with low levels of education and hard working conditions. This makes many workers regard the formation of a union a luxury they cannot afford at the moment. In general, EFITU faces two major internal challenges. The first is a lack of structural capacity: Apparently the “top-down” approach adopted by EFITU has created a lag between its coordination mechanisms and the in- creasing number of unions that have to be integrated within the new structure. Given EFITU’s limited staff and resources, this has resulted in devoting less time to other issues, such as the setup of administrative capacities and the professional training of leadership personnel – both of the feder- ation and of its affiliated unions. This has affected the functionality of the institution on two main levels: First, EFITU’s govern- ance has started to suffer from a lack of professionalism (and sometimes transpar- ency). For instance, the rules regulating the representation of local unions on the federal level are not clear. Similar problems emerge when tackling the issue of the rules for the selection of the representatives of the federation abroad. These issues were
  • 7. SWP Comments 32 October 2012 7 also two of the major complaints of the public transport union, which left EFITU and instead joined the EDLC. Second, the emphasis on embracing as many new unions as possible came at the expense of internal harmony between the federation’s components. Obviously, the interests of the peasants’ new trade union differ from those of the teachers’ or tax collectors’ unions. This situation could have, in the future, a negative impact on EFITU’s capacities of coherent, collective decision-making. The second is an ambiguous relation to politics: In periods of transition, it can be of great benefit for labor movements to form alliances with political actors, espe- cially parties. It provides them with an additional channel of influence on politics, since the latter has the duty of putting the workers’ demands on their political agenda. However, in the Egyptian case, this kind of alliance appears to be problematic for labor due to political parties’ weakness. In the 2011 and 2012 elections, the leftist coalition “Revolution Continues” achieved only 8 of 508 parliamentary seats. The Tajammu’ Party and the Egyptian Social Democratic Party – the remaining leftist parties that were not part of the coalition – won 3 and 16 seats respectively. This leads to a continued feeling of mistrust among ordinary members of the federation: As parties remain unable to provide the workers with concrete political impact, the latter feel that they are being used by par- ties to exploit their leverage. In addition, workers mistrust parties also because of their potential to divide them with dif- ferent ideological approaches. On the other hand, EFITU’s leaders, with a number of them having clear political stances and leftist political affiliations, acknowledge the need of the federation to forward its demands effectively through all available political channels. Hence, between the federation’s top and bottom, contradictory stances have emerged. While the former is ready to adopt more proactive political positions, the latter is still reluc- tant to either get connected to political parties or to take any explicit political positions. The ambiguous decision issued by the federation’s administration board on EFITU’s participation in the national strike on February 11, 2012, provides an illustra- tive example for this: Several youth activ- ists’ movements had called for a “national strike” and for civil disobedience in order to create pressure to end military rule in Egypt. EFITU’s board decided that the fed- eration would join the national strike, but that it would leave it to the respective leaders of the affiliated unions to decide whether to participate. The ambiguous relation to politics is made clear also by the unwillingness to take a decision to back any candidate in the May 2012 presidential elec- tions, although many of the federation’s leaders were already members of the cam- paign of the leftist-nationalist candidate, Hamdin Sabahy. Conclusions and recommendations Besides the necessity to reform ETUF, the organization of the labor movement through the establishment of new trade unions that are truly representative of labor would be the most effective solution for lowering the number of workers’ protests and their disruptive effects. New unions are, however, facing structural obstacles that affect their legitimacy and influence: They suffer from a lack of financial re- sources and know-how. To support the con- solidation of unions and the promotion of labor rights in Egypt, the following mea- sures should be adopted by European policymakers: Help trade unions develop into bodies that effectively represent their members: It would be helpful if European organiza- tions, such as Germany’s political founda- tions working in the field of labor, for ex- ample the Friedrich Ebert Foundation, as well as unions and their umbrella organi- zations continue to provide Egyptian labor leaders with technical support and finan- cial know-how regarding the establish- ment of democratic and professional trade
  • 8. SWP Comments 32 October 2012 8 unions, both on the organizations’ local and federal levels. This should be achieved via multiple approaches: Training courses can provide labor with the needed exper- tise. However, it would be preferable to conduct these training courses at least par- tially at the offices of the respective unions. Otherwise, union leaders would have to travel and leave their labor environments, which would negatively affect relations with their social base and the union’s mem- bers. In addition, the support of new trade unions and federations should invariably be subjected to attentive monitoring to guarantee its efficiency. Setting up bench- marking mechanisms will push new trade unions to adhere more carefully to rules of transparency and professionalism. More- over, partnerships and experience ex- changes between European labor unions and federations and their Egyptian counter- parts should be encouraged. Help Egyptian institutions to improve the legal situation and labor relations: If the EU wants to be a credible normative power, it needs to consistently promote democratic values and human rights, also with regard to labor rights. The foundation already exists: Not only does the EU-Egypt Association Agreement include a human rights clause, but it also stresses the right of both partners to initiate talks on reciprocal bilateral agreements on working conditions of workers (Art. 32, part IV of the Associa- tion Agreement). At this juncture, it would be opportune to start a dialogue with the Egyptian government while the new trade union law is still in the making. Targeted and consistent European pressure could in- fluence the current legislative debate, and thereby support the adoption of a more labor-friendly law. However, the Egyptian case admittedly proves the limits of “positive conditionali- ty” as one of the major approaches of the new European Neighborhood Policy for the promotion of human rights, as well as the support of economic and political transformation. This mechanism has, as of now, no concrete tools (in the form of concrete incentives or disincentives) – and little effect when applied to the promotion of labor rights. In the absence of such incen- tives and disincentives, the EU should still encourage European companies to refrain from trade with Egyptian companies that do not respect international labor stand- ards, especially regarding the freedom of association. Moreover, for a successful promotion of human rights, the EU should not only create awareness of, and thereby a demand for, labor rights, but should also provide a supply for it – in terms of support for good governance (laws, regulations, and effective enforcement). In this sense, the EU should offer capacity-building for politicians and government officials, for example in the Ministry of Man Power and Immigration in the best practices related to labor rights, the implementation of modern labor laws, as well as the best ways for a partnership between capital and labor. Convince multinational companies (MNC) to adhere to labor rights standards: Several MNCs with branches in Egypt cur- rently have their head offices in European states and are therefore bound to the social responsibility standards, such as the OECD guidelines on corporate social responsibil- ity. However, MNCs should adhere to these international standards for the protection of labor rights also in their dependencies abroad. In this way, they would set a good example for their Egyptian counterparts. In addition, MNCs should use their bargain- ing power and resources to effect positive changes in the factories producing for them. Here, the implementation of codes of conduct that incorporate the freedom of labor association should be made a pre-con- dition for supply contracts. © Stiftung Wissenschaft und Politik, 2012 All rights reserved These Comments reflect solely the author’s views. SWP Stiftung Wissenschaft und Politik German Institute for International and Security Affairs Ludwigkirchplatz 3­4 10719 Berlin Telephone +49 30 880 07-0 Fax +49 30 880 07-100 www.swp-berlin.org swp@swp-berlin.org ISSN 1861-1761