
Court opposes release of arrested workers as labor action concludes at clothing supplier for Levis, UNIQLO, Tommy Hilfiger
The Administrative Prosecution opposed on Tuesday court release orders for nine workers who were arrested after participating in a strike at the Cairo factories of a clothing manufacturer supplying global brands including Levis, Tommy Hilfiger and UNIQLO, according to a lawyer who spoke to Mada Masr.
After a court north of Cairo ruled that the workers should be released on bail in the morning, the prosecution later blocked the release with an appeal to prolong their detention pending further investigation.
The workers will stay in detention facilities until Wednesday morning, when the court will review the prosecution's appeal, according to Mahmoud Magdy, a lawyer at the Center for Trade Union and Workers' Services.
The T&C Garments strike also ended on Tuesday, three of the workers who had participated said to Mada Masr on condition of anonymity.
The workers did not comment on whether management responded to the strike demands nor did the company's managers provide a public statement regarding their response to the strike.
Around 6,000 employees at T&C Garments' Obour City complex to Cairo's east began strike action on January 16, organizing sit-ins at the companies' facilities to demand that management increase their bonuses, commissions and meal allowances, as workers currently take home less than minimum wage per month despite a sharp increase in the cost of living.
Following several days during which workers attended daily shifts at the company to gather and hold protest action, the company halted the daily transport it normally provides for staff to reach the industrial zone where its facility is located.
Security forces later arrested the nine workers from their homes on Saturday, after the company's lawyer filed a complaint against them due to their participation in the strike and demanded an increase in the annual bonus.
The workers were detained under Case 264/2025 of the First Circuit Obour Administrative Prosecution for investigation on charges of 'inciting unrest and sedition, striking, encouraging other workers to strike and harming the company's interests,' according to Magdy.
Magdy told Mada Masr that the Obour prosecution initially issued orders for the workers to be held in detention for several more days pending further investigation, until they were ordered released on LE2,000 bail each on Tuesday at the Khanka Misdemeanor Court.
The releases were later blocked by the administrative prosecution's appeal against the court decision.
Two other workers named in the summons order for the same case are yet to be questioned in relation to the charges, the lawyer said.
The thousands of T&C factory workers launched their strike on January 16, demanding a 50 percent increase in their annual bonus to cope with rising living costs, a raise in meal allowances from LE600 to LE1,200, an enforcement of the minimum wage and permission for discretionary leave and paid public holidays.
While management made no public announcement regarding the strike's conclusion, one worker told Mada Masr that a supervisor informed them to expect an increase in their bonus.
The company's executive director had offered the laborers a 17 percent increase to bonuses on Sunday, which was rejected by workers at the time who held firm to their demand for a 50 percent increase.
Workers at the company currently take home between LE4,000 and LE5,000 per month, substantially below the minimum wage for the private sector, which is set at LE6,000.
The worker speaking on Tuesday said that the raise they expect is not the company's offer of 17 percent. 'I'll find out the rate from my manager,' they said.
They were also demanding that the company improve its on-site health clinic, which is poorly equipped and offers little more than painkillers, they say.
Workers who fall ill or are injured on the job must seek treatment outside the company at their own expense, and if they have to take leave for health reasons, they are only paid a quarter of their daily wage, workers told Mada Masr last week.
The strike further called for the dismissal of HR manager Mohamed Abdel Rahman for insulting workers.
T&C Garments, a partnership between Egypt's Tolba Group and Turkey's Tay Group, manufactures ready-made clothing for well-known brands, including Levis, UNIQLO and Tommy Hilfiger.
The factory operates under the Qualified Industrial Zones (QIZ) agreement between Egypt, Israel and the United States, which stipulates that Egyptian products must include a 10.5 percent Israeli component to enter the US import market.
T&C currently exports 70 percent of its production to the US and the rest to Europe.
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Mada
2 days ago
- Mada
New law to regulate state ownership: Pushing through the IMF review with the same old recipe
During the International Monetary Fund delegation's visit to Cairo for its ongoing fifth review of Egypt's US$8 billion loan program, the government renewed its push for a draft law that would regulate state ownership in companies in which it holds full or partial stakes. While the IMF closed out its visit with praise for Egypt's economic performance, it once again called for a faster pace of reform to reduce the state's footprint in the economy, particularly by moving forward with asset sales in sectors the government had already committed to exit under its State Ownership Policy. The draft legislation, now with the House of Representatives a year after the Cabinet approved it, is closely tied to the implementation of that policy and the broader privatization agenda. Mada Masr broke down what's in the law and spoke to sources familiar with the key issues it introduces, who painted the new law as little more than 'reheating leftovers' — a recycled, hasty push aimed to appease the IMF ahead of its report. *** First, what's in the law? According to a copy of the draft law reviewed by Mada Masr, the legislation would establish a central unit within the Cabinet responsible for inventorying and tracking state-owned companies. This body would submit recommendations to the Cabinet and its ministerial economic group, with a mandate to 'implement the state-ownership policy according to specific timelines and targets, and remove obstacles to progress in this area.' First issued in 2022, the State Ownership Policy outlines the government's roadmap for withdrawing from sectors outside its designated 'core functions,' including those that the private sector has shown reluctance to invest in. The stated objective is to generate financial savings that could ease pressure on the state budget. The policy sets three directions to manage state involvement: full exit within three years, continued participation with either stable or reduced ownership; or continued participation with stable or increased investment. Under the proposed law, the new Cabinet unit would also develop frameworks to 'regulate' all state-owned assets. For companies entirely owned by the state, Article 6 outlines mechanisms that include selling shares — whether through initial or secondary market offerings — increasing capital, expanding the ownership base, or restructuring through mergers or demergers. In cases where the state holds only a partial stake, its role would be limited to managing the sale of shares or voting rights. The draft law also requires relevant authorities in share-owning state entities to provide the newly proposed Cabinet unit with any information or data it requests. This includes updates on restructuring plans and policies, as well as detailed reports on projected and actual cash flows and overall financial performance. Article 5 of the draft outlines steps the unit may take to implement its regulatory programs for both fully and partially state-owned enterprises, with frequent references to privatization and private sector involvement. These include recommending the best approach to attract private investment across various sectors, maintaining and regularly updating a comprehensive database of companies fully or partially owned by the state, evaluating whether continued state ownership is warranted, and determining the most appropriate exit strategy for each company based on the economic or investment sector under which it falls. The unit would also be authorized to identify state-held shares in companies and decide whether to sell them — either in full or in part — or list them on the stock exchange. It would be responsible for determining the size of the stake to be offered and approving the selection of investment banks, offering advisors, and financial consultants, in coordination with the relevant owning state entity. The draft law also stipulates that, upon a proposal from the unit's executive director and with Cabinet approval, a formal decision must be issued to set mechanisms for managing labor surpluses in state-owned companies. It states that any financial costs associated with these measures must not add further strain on the public budget. As part of implementing the State Ownership Policy, the law introduces restrictions on the state's ability to expand its holdings. It requires prior written approval from the unit before any state entity can establish or invest in a company whose primary activity falls within sectors where the state has opted to keep its investments unchanged. It also prohibits investment in sectors from which the state has committed to a full or partial withdrawal, as outlined in the policy document. *** Not everyone, however, believes the legislation has much chance of success or has been fully thought out. A member of the Cabinet's macroeconomic advisory committee criticized its timing as rushed, 'like reheating leftovers that have been there for a year.' Speaking to Mada Masr, the source said the law appears to offer a superficial display of reform to satisfy the IMF and secure a favorable outcome in the fifth review negotiations. The Cabinet approved the draft law in May 2024, and the parliamentary economic committee began deliberations in a closed session on May 25, without journalists present. The committee approved the draft and referred it to the House's general assembly for a final vote. The IMF previously referenced the draft law as part of Egypt's structural reform commitments. In its third review report, published in August, the fund said the law aims to 'embed key elements of the state-ownership policy into law.' The fourth review report has yet to be published, at the request of the Egyptian government for it to be withheld. The advisory committee source argued that the law's passage was merely 'a formal gesture to show that certain steps — with no value to the project's core — are being taken.' They also pointed to overlap between the proposed unit's role and existing bodies that already, in a way, manage state-owned assets: the Sovereign Fund of Egypt, the Public Enterprise Ministry, and the National Investment Bank. By contrast, Nation's Future Party MP Mahmoud al-Saeedy, a member of the House Economic Committee who took part in the discussions, told Mada Masr he sees no conflict between the new unit and the sovereign fund. 'As part of its multiple roles,' he said, 'the unit may recommend transferring a specific asset to the sovereign fund after reviewing its data.' A second member of the Cabinet's macroeconomic advisory committee raised concerns about the 'ambiguity surrounding the new unit's role and its actual purpose.' They noted that a committee with nearly identical responsibilities — the higher committee on implementing the State Ownership Policy — was already created by administrative decree in December 2022 and also reports directly to the Cabinet. Amr Adly, an assistant professor of political economy at the American University in Cairo, told Mada Masr that such overlap and conflict between the roles of the sovereign fund and the new unit is not unusual. Egypt's bureaucratic system, he noted, has long been characterized by parallel bodies with overlapping mandates. 'Take, for example, the National Center for Planning State Land Use,' he said, 'whose responsibilities both resemble and clash with those of the Industrial Development Authority, the Tourism Development Authority and the New Urban Communities Authority.' Beyond questions of overlapping mandates, the draft law also includes a broad exemption from its own provisions. According to the text, the law does not apply to companies engaged in activities deemed to be of 'national or strategic importance, as defined by a Cabinet decision issued based on a joint proposal from the relevant minister and the competent authority within the owning state entity.' But the draft provides no definition or clear criteria for what qualifies as a national or strategic activity. This vague exemption strips the law of its substance, according to both advisory committee members. The first of the sources said that it further demonstrates that 'the government has no real intention of implementing the law, and only aims to show the IMF that it is fulfilling the required tasks.' Adly echoed the same skepticism, suggesting that the broad exemptions indicate the law is not grounded in any genuine governmental belief in the need to exit the economic sphere or scale back its role in line with the IMF's repeated calls. Instead, he argued, the government is primarily seeking short-term financial returns from select assets to compensate for its inability to grow tax revenues — while maintaining control over assets it is unwilling to relinquish. In contrast, the law's explanatory memorandum defends the exemption, claiming that decisions related to such companies may involve matters of national security or require approval at higher levels of decision-making. The exemptions outlined in the draft law also include 'companies established under international agreements, companies named in special legislation that governs their purpose or ownership structure, and contributions by state-owned insurance firms to the capital of other companies.' Under the law, the new asset inventory and tracking unit is to be led by a full-time executive director with proven expertise in investment, corporate management, and economic project administration. The unit will be supported by a team of experts and specialists in these fields, alongside personnel with financial, technical, and legal qualifications. Staff may be hired on a contractual basis or seconded from existing administrative bodies. The unit's organizational structure will be determined by a decision from the prime minister, based on a proposal by the executive director and after consultation with the Central Agency for Organization and Administration — 'without being bound by the current government rules and regulations.' Saeedy interpreted this provision as intended to bypass several standard government constraints that may not be compatible with attracting top talent to the unit — 'particularly the public sector's maximum wage cap,' he noted. The government's decision to revive this law came as Egypt undergoes its fifth review under the IMF loan agreement, which shows how closely the State Ownership Policy is tied to the terms of the country's arrangement with the fund. The State Ownership Policy document was issued following the government's November 2021 announcement of the findings of a study — prepared, it said, by the Cabinet Information and Decision Support Center — the full text of which was never published. The study was intended to lay out steps to reinforce the state's shift toward supporting the private sector. According to the government at the time, the document emphasized the need to 'identify key sectors in which the state will remain, those it will exit, and others it will gradually withdraw from.' It also recommended 'reforming the public sector by retaining major companies in strategic, high-priority sectors' while divesting from those deemed less critical. The study's conclusions closely mirrored the IMF's second review report, released four months earlier. That report explicitly called for 'a clear state ownership policy,' stating that 'reform of state-owned enterprises should start with developing an ownership policy to enhance accountability and transparency, define the sectors where public intervention is governed by a public service mandate, and implement performance boosting measures. This would enable the state to withdraw from other sectors and allow for private sector-led productivity gains.'


Mada
4 days ago
- Mada
Around 100 WFP flour trucks looted in Gaza as malnutrition deepens under Israeli aid restrictions
Around 100 aid trucks carrying flour meant to be delivered to families were looted on Friday shortly after crossing into southern Gaza. Eighty truck drivers were injured to varying degrees, Nahed Shehaiber, head of the Private Transport Association in Gaza, told Mada Masr, warning that continued looting of aid convoys could halt all deliveries from the border. The incident disrupted a new flour distribution operation managed by the World Food Program, which was meant to represent a major step in combatting starvation and ensuring that the scarce humanitarian aid reaches those who need it most after nearly three months of Israel's total siege on the coastal enclave. The only alternative source of supplies at present is the dangerous aid collection sites operated by the Gaza Humanitarian Foundation — a United States-based company designated by Israel to distribute aid in areas adjacent to zones under Israeli military control across the strip. Shehaiber said the Friday looting incidents took place in several different sites after the convoy crossed out of Israeli-controlled areas into southern Gaza. Some trucks were intercepted in the Nuseirat area and others near the court complex in Netsarim, central Gaza. The convoy was ambushed upon reaching northern Khan Younis, eyewitness Ahmed al-Najjar told Mada Masr. Armed gangs opened heavy fire on the trucks leading the way, forcing them to stop and bringing the entire convoy to a standstill. Once the trucks stopped, Najjar said, gang members climbed onto the vehicles and offloaded flour sacks into personal cars parked along the roadside. At first, they blocked residents from approaching, but once their vehicles were full, they left, allowing others to gather what remained. Another eyewitness from southern Khan Younis, near the 'red zone' under Israeli military control in Rafah, told Mada Masr that some aid trucks were already empty upon leaving the area, suggesting they may have been looted within Israeli-controlled areas. The flour was set to be delivered to the WFP, which requested last week that the Israeli military grant it permission to distribute the flour sacks to families who need humanitarian support following the months of siege, calling it 'the most effective way to prevent widespread starvation.' Cases of malnutrition have surged amid the total blockade, with the Gaza Government Media Office reporting that it played a part in the deaths of over 300 people since March. The siege was partially lifted two weeks ago, when Israel allowed the WFP to deliver very limited amounts of flour to designated bakeries within the strip, which were then tasked with handing out the loaves. However, overcrowding made access difficult, and many bakeries and storehouses were looted and have since shut down. The only other alternative for people is to travel to a few designated collection sites, all of which are located near Israeli military zones, where they must undergo security checks before being allowed to take rationed goods. Forty-nine people have already been killed at these sites, Gaza Government Office head Ismail al-Thawabta said on Sunday. The amount of aid currently being delivered to the strip 'makes a mockery of the mass tragedy unfolding under our watch,' United Nation Relief and Works Agency Commissioner-General Philippe Lazzarini stated on Saturday. He called for the UN, including UNRWA, to be granted access to deliver aid and uphold human dignity. UN Secretary-General spokesperson Stephane Dujarric described the situation in Gaza as 'catastrophic' and 'the worst it has been' since the war began. 'Humanitarian needs have exploded in Gaza following nearly 80 days of a total blockade of all supplies,' he said.


Mada
7 days ago
- Mada
Hundreds of people raid WFP's Gaza warehouse after week of Israeli-hindered aid distribution
Hundreds of people stormed a World Food Programme (WFP) warehouse in Deir al-Balah Governorate on Wednesday night to seize food provisions after distribution of the little aid that has entered the strip in the last week has been marked by chaotic and often violent outbursts due to Israel's restrictions on how it makes its way to people. Two eyewitnesses of Wednesday night's raid who spoke to Mada described an hours-long struggle between hungry crowds and security personnel stationed to protect the warehouse. At least two people were killed in the incident, according to a statement published by the United Nations program, which said the raid took place amid 'spiralling' humanitarian conditions following over 80 days of a complete blockade on the strip. The ongoing siege imposed by Israel's occupation has stretched dwindling resources in the coastal enclave to their limit, caused widespread sickness, that has led to a rash of deaths from malnutrition, and prompted a rapid breakdown in social order. At the same time, Israel has sought to install a securitized aid-distribution scheme in isolation from independent humanitarian organizations. Alongside the American and Swiss-registered Gaza Humanitarian Foundation, the Israeli military has established distribution centers policed by its own military, while restricting humanitarian organizations' access to deliver and distribute supplies to families in need, which WFP has called 'the most effective way to prevent widespread starvation.' Those that have made their way to those centers, the first of which opened earlier this week, have faced humiliating conditions and, for some, arrest. When chaos broke out at the center in Rafah earlier this week, Israeli forces opened fire to try to restore order, several of the thousands of people who had gathered at the distribution point were killed and wounded. Israel's induced starvation has prompted a spike in incidents of armed theft across Gaza in recent weeks. An eyewitness to the raid on the WFP's Ghafari warehouse on Wednesday evening told Mada Masr that they were aware before the incident that large quantities of flour were being held in the warehouse. Israel allowed the delivery of sacks of flour to the WFP for the first time in over 80 days last week. However, they prohibited the UN agency from resorting to the previous distribution method, which had seen flour given directly to families. Due to Israel's prohibition, the UN had to resort to distributing the flour to bakeries, which would then make bread and sell it to citizens. Bakeries, however, were unable to manage the crowds of people who had been without sufficient food for over two months. Abu Talal Awwad, the owner of Zadna bakery in Deir al-Balah, told Mada Masr earlier this week that armed groups had stormed several bakeries in the central governorates of Gaza, including the Banna bakery in Deir al-Balah and Hajj bakery in Nuseirat, with assailants threatening to destroy equipment and assaulting staff. An eyewitness to the storming of a bakery told Mada Masr on condition of anonymity th at while waiting in line at a bakery in Nuseirat camp to collect a bundle of loaves, a group of masked men wielding bladed weapons suddenly appeared, seized large quantities of bread, and fled the scene. The bakery subsequently shut down, leaving the eyewitness and tens of thousands of others without access to even a single loaf. Eyewitness Nael Khattab was waiting outside Deir al-Balah's Banna bakery on Saturday to collect a bundle of bread for his family. There was a large crowd and people began pushing, he told Mada Masr. The situation escalated further when some individuals broke down the barriers set up in front of the bakery entrance. The owners had no choice but to open the gates. 'Chaos broke out,' he continued. 'Groups carrying bladed weapons stormed the bakery, stole bread, and loaded it into [tuktuks] waiting outside.' Resident Amal al-Hattou urged for flour to be distributed directly to citizens rather than forcing them to wait for hours at bakeries with no guarantee they'll walk away with any bread. 'We're ready to prepare the bread ourselves,' she said. 'But we don't want to go through this humiliation outside bakeries again just to get some bread.' While some may accept the current bakery-based system in hopes of securing a daily supply of bread, it fails to meet the needs of Gaza's large families, as the allocated quantities are insufficient. Susan Bashir, another resident, said that her household includes 20 people, yet they are only permitted one bundle containing 18 small loaves. She asked how these few loaves are supposed to feed such a large family, adding that if flour were distributed directly, families could bake according to their actual needs. Eyewitness Oday Hemeida called the mechanism ineffective and unjust to hundreds of thousands of residents. There is also no system to manage crowds at bakeries, he said, leading to mass congestion and countless thefts. Many bakeries have refused to participate in the new system, Abdel Nasser al-Ajrami, the head of the Gaza Bakery Owners Association, told Mada Masr, arguing that it fails to meet residents' needs and puts bakeries at risk amid the rise of groups stealing bread. He also described thefts, and said that some of the stolen bread was reappearing in markets at extortionate prices. The stocks positioned at the Ghafari warehouse that was raided on Wednesday were pre-positioned there for distribution, the WFP said on Wednesday night. One of the eyewitnesses who spoke to Mada Masr about the raid said they joined the crowd at the Ghafari warehouse hoping they could get a sack of flour for themselves and their family, who they said had not eaten bread for weeks. Armed individuals outside the warehouse initially attempted to defend it, opening fire on some of those who attempted to approach, the eyewitness said. They noted that several people were injured in the fracas over the course of several hours. A second eyewitness also saw armed security personnel outside, who ultimately withdrew as hundreds of people forced their way into the building. Once the crowd was inside, they emptied the warehouse of all its contents, the first eyewitness said, while the second confirmed that the warehouse had been stocked with large amounts of flour. The raid on the warehouse and the failed attempt to have bakeries manage bread distribution may be enough for the WFP to be able to secure the ability to revert to its previous distribution method. Two civil society representatives in the Gaza Strip told Mada Masr on Wednesday that the WFP is expected to begin distributing flour to families instead of bakeries over the coming days. Bakers Owners Association in Gaza head Abdel Nasser al-Ajrami told Mada Masr that after meetings to determine a better mechanism, the WFP informed the association that Israel has finally approved the delivery of flour to the Gaza Strip week for direct distribution to residents, including its northern governorates, starting early next week. Nahed Shehaibar, the head of the Private Transport Association in Gaza, confirmed the information. Ajrami noted that contacts have been made with the Israeli side to request the reopening of the Zikim crossing, on Israel's border with the northern Gaza Strip, to allow flour and food aid to enter the northern governorates. However, he added that Israel is yet to respond to the request. Ultimately, any change in the distribution method will be in Israel's hands, as it controls all the entrance and exit points of Gaza. Approximately 1,000 tons of flour remain at the Karm Abu Salem crossing, awaiting Israeli approval to allow it into the strip in the coming days, Ajrami said. An Egyptian official also told Mada Masr in recent days that authorities have trucks full of material stationed in North Sinai waiting to enter the strip. 'We want to operate the Rafah border,' the official said, 'but Israel doesn't want to get out.'