13 September 2012

Egypt: Court Strikes Down Privatization of Assiut Cement

A court stroke down the privatization of a cement company on Thursday, said labor lawyer and former presidential candidate Khalid Ali.

"We just received a verdict striking down the privatization of the company, Assiut Cement, which means its return to the state and the return of workers. What is new is that the verdict was issued by an Assiut court of first instance, not the state council (Egypt's Administrative Court)", Ali posted on Twitter on Thursday.

Privatization cases, which stopped to a great extent after the 2011 revolt that toppled Hosni Mubarak, witnessed many violations, were criticized by politicians and activists and led to many labor strikes over the years.

Egypt started selling state companies in the 90's submitting to the suggestions of the IMF (International Monetary Fund) and other international entities, in an attempt to introduce more opportunities for the private sector, reduce state control over the economy and reduce the budget deficit.

Ali and the Egyptian Center for Economic and Social Rights succeeded in recent years to win several cases against the privatization of companies and state commitment to minimum wage.

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