Short Mahalla update

Another short update.

5 strike leaders from Mahalla have been arrested for inciting the (illegal) strike, unlawful gathering (more than 5 persons gathered is de jure illegal in Egypt) and destruction of public property. The government is obviously hoping that that they can decapitate the strike or negotiate with other strikers. However, this plan has already backfired. In Mahalla they are very angry at this and has said that even if their strike demands are met they will continue the strike until the five are released.

Just the first day of the strike has cost the state-owned textile company LE10 Million ($1.8 million).

There has been massive support from other sectors and factories across Egypt. Apart from the solidarity protest by the South Giza Grain Milll workers and the 12.000 Kafr el-Dawwar workers set to go on strike now there has been fundraising among workers in Mahalla, Tanta, Helwan, Shoubra, 10th of Ramadan City, Suez, Alexandria, Beheira, Mansoura, Ismailiya and Port Said.

The mood is apparently quite militant, a worker representing the kafr el-Dawwar workers for Change told the Daily News Egypt that "Diplomacy, delegations and pleas are not going to solve the workers' problems".

Some context:
Economic growth in Egypt has been about 8 percent the last couple of years. The upper class (as they actually call themselves) are accumulating like it's going out of style, and it is quite visible in the number of luxury malls, compounds, restaurants and shops that are opening all the time. E.g. the textile mill in Mahalla reported profits of LE 217 million ($38 million).

At the same time the working class is getting squeezed and is becoming larger as many of those that considered themselves middle class have been getting the short end of the stick in Egypt's growth. Wages are as low as LE 150 ($27) in Mahalla and have been frozen for nearly two decades. Wages are often not paid or paid out in full, and promised bonuses are always being held back.

Inflation has been between 8-11 percent the last year or two and inflation of basic foodstuffs was 48 percent. As an effect real wages are falling drastically and workers are extremely dependent on the bonuses. It is no wonder that the common denominator of the strikers taking place all across Egypt are over non-payment of wages and bonuses and to get a higher wage. However, in many cases bosses and managers have largely failed to live up to their end of the deals struck with strikers, so no wonder we're getting another wave of strikes.

In addition, it is Ramadan now and the government can even ensure that there is enough subsidized bread in the bakeries, which has resulted in a lot of spontaneous protest in front of bakeries, especially ones where people suspect the owners of selling flour on the black market (price of flour has gone up to $334 from $109 on the world market and Egypt is mostly importing grain and flour as agriculture here, on the behest of the WB, was restructured towards cash crops and was effectively made into a net food importer from a net food exporter).

Hopefully by tonight or tomorrow I will be able to make all this into a proper news posting.