Misr Spinning and Weaving Company

Development

Growth of the Egyptian cotton industry

The Misr Spinning and Weaving Company was founded in 1927 by a group of Egyptian businessmen in collaboration with the Misr Bank, facing Mahalla's Tal‘at Harb Square in El-Mahalla El-Kubra. The bank, which had formed during the Egyptian uprising of 1920 and proclaimed itself to be "an Egyptian Bank for Egyptians only," began providing capital for large-scale Egyptian industrial facilities and considered Misr Spinning and Weaving to be its flagship enterprise. Egyptian economist Talaat Harb was one of those who helped establish the firm. Misr Helwan was largely staffed by workers from peasant backgrounds, many of whom worked temporarily to save and return money to their families.

Long-staple cotton had been invented in Cairo in the 1820s, becoming a staple of the Egyptian economy in the 19th and 20th Centuries. Cotton production used 2.1 million acres for cultivation after the Second World War and by the 1980s represented the second largest export in Egypt, after crude oil. Cotton production in Egypt nevertheless declined after its post-WWII peak as arable land was converted to cereal or clover production, and previous importers including India achieved cotton self-sufficiency.

In 1960, Misr Helwan was the first firm to be nationalized by Gamal Abdel Nasser. The loan caused controversy among American textile manufacturers, faced with losses as global textile markets expanded.

In the 1990s, solar heat increasingly used in dye and bleaching saved the textile company 11,000 barrels of oil annually, according to Egypt's New and Renewable Energy Authority. Efforts to private Misr Helwan, and Misr Fine Spinning and Weaving in Kafr el-Dawwar, were blocked by strike actions at both facilities.

Misr Helwan in the 21st century

In 2004, the company employed 23,000 workers and exported 46,000 tons of cotton yarn, 150 million square meters of fabric, and 5 million garments annually. In 2005, it employed 26,000 workers, and company facilities included 8 spinning mills, 10 weaving factories, processing units and labs, and recreational centers. The factory concentrated around the 20 percent of the whole labour force existing in the Egyptian public textile sector. The company remained nationalized despite largescale liberalization of other sectors of the Egyptian economy.

Misr Helwan currently sells approximately 70% of its production to domestic markets, with the remaining production sold primarily to Europe.

Early labor struggles

The earliest efforts to unionize Misr Helwan workers were led by the radical Abbas Halim, a member of the Muhammad Ali Dynasty and veteran of the German and Turkish armies during the First World War. While these efforts failed, Misr Helwan workers nevertheless organized strike activities themselves, demanding in July 1938 that they be granted eight-hour workdays, and in 1947 that they work under more lenient disciplinary rules. During the 1947 strike, the Egyptian government brought tanks into Mahalla, killing three workers and injuring 17 more. It was not until 1948 that workers achieved eight-hour days, following a government commission responding to strike pressure. Strikes were again suppressed by the army under Nasser in August 1952.

Due to low capital investment in Egypt's textile industry, the proportion of textile workers in Egypt's workforce began declining in 1960, and absolute numbers were declining by 1976. While wages initially increased following nationalization, wages began declining in the 1970s under Anwar al-Sadat. Following structural adjustments mandated by the World Bank during the 1990s, Egyptian textile manufacturing wages declined more precipitously, making them among the lowest of any textile manufacturers on earth as of the mid-2000s.

In May 1975, workers from Misr Helwan, still the Middle East's largest spinning and weaving plant, demonstrated against high costs of living. Many workers were veterans of the 1973 Yom Kippur War and expected better treatment following their service in the Egyptian army. During this period, in order to organize labor activity, Misr Helwan workers created a political organization of several hundred members called Fagr (Dawn), and published a digest of the same name.

In September 1984 a sit-in strike at the Misr Company over government-mandated price increases and declining wages led to a general strike in El-Mahalla and surrounding towns. The strike forced Mubarak to return the cost of flat bread in working class districts to one penny, a subsidy then costing the government $400 million annually. Between 1986 and 1988, workers struck demanding an increase in wages from $26 to $30 monthly, and placed an image of Mubarak in a coffin outside the factory walls; government response was severe.

2004-9 strikes

In 2003, Egypt passed a Unified Labor Law effectively outlawing strikes, by prohibiting labor actions not authorized by the General Federation of Egyptian Trade Unions, itself run by the ruling National Democratic Party (NDP). Workers at Misr Helwan nevertheless struck on several occasions prior to the fall of the Mubarak government.

Low wages and rising food costs lead to strikes

A strike at Misr Helwan in December 2006 prompted a nationwide strike centered on pay, living conditions, and market reforms. Workers in March 2006 had made concessions to the management accepting 45 rather than 60 days of bonus pay, in exchange for profit sharing in the event of profits beyond an agreed upon threshold. Workers decided to return to strikes in December after Misr Helwan reported over $30 million in profits, while giving only 20 days bonus pay, less than agreed upon under any condition. The December 2006 strike was initiated when 3,000 female garment workers left their stations chanting "Here are the women! Where are the men?" prompting male workers to join them. Workers, initially surrounded and confronted by security forces, were joined by 20,000 additional workers, elementary school pupils, and students from Mahalla, forcing security forces to back down. Workers then demanded the impeachment of union officials.

From 2006 to 2007, while basic foodstuff prices increased by 48% and Misr Helwan reported profits of $120, many Misr workers were paid only $27 monthly, with some paid as little as $18 monthly. They furthermore denied any relationship with the Muslim Brotherhood and stated that any implied links were intended to represent their fight over rights as a security risk. The company subsequently promised to meet many of the workers' demands, ending the strike after one week.

Failed 6 April 2008 strike

Faced with municipal elections largely ignored by the population of Mahalla and still rising food prices, Misr Helwan workers promised to strike on 6 April 2008, demanding higher pay. but police response including arrests, occupation of Misr Helwan facilities and intimidation initially prevented them from doing so; a strike would have been illegal unless sanctioned by the ruling National Democratic Party. 300 people were injured in the first two days of rioting, and one youth fatally shot by police; two more later died as well. The Egyptian government offered concessions to Misr Helwan workers of 30 days bonus pay, and sent prime minister Ahmed Nazif to negotiate with them.

Among those arrested in the April strikes was Kareem el-Beheiri, a Misr Helwan worker and organizer of previous strikes, whose arrest sparked concern and condemnation from Reporters Without Borders. Later released by Egyptian authorities, el-Beheiri and fellow Misr Helwan workers Tarek Amin and Kamal al-Fayoumy told the Agence France Presse that they had been subjected to beatings, electric shocks and starvation during their 76 days of confinement. Police reportedly sought to block the publicizing of workers conditions and planned protests via blogs and Facebook groups, and arrested Ahmed Maher after he created the Facebook "6 April" group supporting the Misr Helwan workers.

In September 2009, 1,500 Misr Helwan workers demanding unpaid wages went on strike and took company executives hostage.

Strikes during and after the Egyptian Revolution

Collapse of the Mubarak government

In February 2011 Misr Helwan workers closed the factory and went on strike in solidarity with protestors in Tahrir Square. After the fall of Mubarak's government, Misr Helwan workers briefly ceased but then continued strike action, demanding higher wages. Workers also demanded the replacement of company officials, as the Egyptian Supreme Council for the Armed Forces called on the workers to return to work. With a tank stationed outside the company's main gate, workers also called for reforms within the country's military.

Misr Helwan workers also demanded the resignation of the state-controlled Egyptian Trade Union Federation leadership. The Supreme Council of the Armed Forces threatened strikers, declaring that the military "will not allow the continuation of these illegal acts which pose a danger to the nation, and they will confront them.". Following threats, the military acceded to strike demands and Misr Helwan workers returned to the factory.

Subsequent strikes

On 15 July 2012, American Secretary of State Hillary Clinton met with Egyptian Field Marshal Mohamed Hussein Tantawi and praised the Supreme Council of the Armed Forces for "representing the Egyptian people in the revolution." On the same day, 25,000 workers from Misr Helwan went on strike demanding increased profit sharing, better retirement benefits and a replacement of the management. Some strikers argued that the revolution had not materially benefitted Misr Helwan workers, and had rather promoted "corrupt" officials such as Fouad Abd-al-Alim. The Misr workers were joined by workers from seven other textile factories in the region, and strikes also broke out among doctors and health workers, university workers, and ceramics workers in other parts of Egypt.

Declaration of independence from the "Muslim Brotherhood State"

Violent clashes broke out in Mahalla on 27 November 2012, over the constitution proposed by the Muslim Brotherhood; some Misr Helwan workers participating in the protest stated that they did not participate in an attack on the Muslim Brotherhood's Freedom and Justice Party headquarters. On 7 December protesters in El-Mahalla El-Kubra stormed the city hall and declared independence from the "Muslim Brotherhood State." One Misr Helwan worker, arrested on previous occasions by the Mubarak government, explained workers' attitudes to the Muslim brotherhood:

Other protestors noted that Misr Helwan workers could launch a general strike, slowing or crippling the national economy. Voting in Mahalla was largely peaceful on the day of the election.

Reign of Abdel Fattah el-Sisi

After the overthrow of Egyptian president Mohamed Morsi by general Abdel Fattah el-Sisi in the 2013 Egyptian coup d'état, the Egyptian government passed laws raising the minimum wage to 1,200 EGP per month. In February 2014, 13,000 Misr Helwan workers, some earning only 500 EGP per month, began a sit-down strike demanding the implementation of minimum wages. Workers also demanded unpaid bonuses. In April Egypt's Higher Administrative Court ruled that public sector employees who strike can be prosecuted, prompting clashes between Misr Helwan workers and Egyptian security forces. In June, the Sisi government called on workers to stop all strikes, and increase productivity. Some Misr Helwan workers stated that mismanagement had brought productivity to 50% of capacity through failure to provide adequate raw materials for production. Misr Helwan employees stated that their wages still remained below minimum wage.

In October 2015 Egyptian authorities declared that they would no longer provide promised and as-yet unpaid bonuses to employees, prompting another strike by 17,000 Misr Helwan workers, soon joined by workers in associated industries. The bonuses were meant to help with surging inflation. In response to the strike Egyptian labor minister Gamal Sorour threatened workers with prosecution "against any attempts to obstruct work." A labor rights director in Egypt stated that the Egyptian government canceled bonuses in an effort to reduce pay to all public sector employees except those in the Interior Ministry, armed forces, judiciary and banks. According to another analyst, the Egyptian government was allowing the workforce to shrink and lowering payroll costs to privatize the company. When workers ignored the ultimatum, the government announced it would extend bonuses to some workers, but not to those at Misr Helwan, unless the company regained profits lost in the strike. When workers remained on strike, the government promised they would extend bonuses to Misr Helwan employees as well, ending the strike. The company announced however that it would deduct 11 days of wages from salaries in retaliation for the strike.

In 2015, Egyptian Sumo wrestler and Misr Helwan employee, Ramy Abd El Aty Ibrahim Belalal-Gazzar, became the world Sumo wrestling champion at the annual US Sumo Open. Gazzar is a maintenance worker at the company and also coaches its Judo team.

Significance

The Misr Spinning and Weaving Company is considered Egypt's largest company and industrial facility; 48% of Egypt's economy involves the textile industry.

Textile workers at Misr Helwan and at other facilities in Kafr el-Dawwar, Qalyub, Helwan and Shubra al-Khayma played major roles in nationwide Egyptian strike actions beginning in 1977, with the U.S.-backed liberalization of the Egyptian economy. Resisting nationwide trends, workers at Misr Helwan rejected privatization in Mahalla and encouraged workers at other public facilities to do the same.

The company's failed 6 April 2008 strike inspired Egypt's April 6 Youth Movement that ultimately played a significant role in Egypt's Arab Spring and the collapse of the Mubarak government.

Misr Helwan workers considered themselves to be at the vanguard of the 2011 Egyptian Revolution, and continued to fight for improved working conditions after Mubarak's fall. The World Socialist Web Site has argued that the strike called by Misr Helwan workers in the early days of February 2011 prevented further compromise between government and opposition groups, contributing to Mubarak's departure.

References

https://www.misrmehalla.com/default_ar.aspx

References

1. "الصفحة الرئيسية لمركز معلومات قطاع الأعمال العام - BSIC Home !".
2. "About Misr Helwan Spinning & Weaving Industry". Misr Spinning and Weaving Company.
3. Beinin, Joel. (2007). "The Ashgate Companion to the History of Textile Workers: 1650-2000".
4. McDougall, John. (16 September 1985). "Egypt: new hope for cotton trade . . .". [[Christ. Sci. Mont..
5. Williams, Debra. (28 November 1984). "Textile industry calls for government controls on imports". United Press International.
6. Nashat, Rajia. (21 April 1994). "Sun and wind, more power to them". Moneyclips.
7. King, Stephen. (2009). "The New Authoritarianism in the Middle East and North Africa". Indiana University Press.
8. De Coster, Jozef. (14 June 2004). "Egyptian exporters express quota-free fears". Aroq Ltd..
9. De Coster, Jozef. (6 June 2005). "Egyptian industry at a strategic crossroads". Aroq Ltd..
10. Del Panta, Gianni. (1 September 2016). "The Role of the Egyptian Working Class in Mubarak's Ouster". Partecipazione e Conflitto.
11. (1 September 2010). "Mohielden holds meeting with asset management company". Egyptian State News Service.
12. Beinin, Joel. (2006). "Egyptian textile workers in the transition to a neoliberal order". The American University in Cairo.
13. (April 2024}} The Misr Helwan workers earned $12.50 a week; Egyptian Interior Ministry officials stated that workers had burned cotton shipments and looted the homes of company executives.{{cite news). "Textile workers riot". Facts on File World News Digest.
14. Ottaway, David. (2 October 1984). "Mubarak Orders Price Rollbacks To Quell Violence Near Alexandria". The Washington Post.
15. (25 March 2007). "Egyptian Textile Workers Confront the New Economic Order". Middle East Research and Information Project.
16. Hassan, Sara. (28 September 2007). "Workers Occupy Egyptian Factory During Massive Strike Over Pay". Global Insight.
17. Stern, Johannes. (8 December 2012). "Protests spread throughout Egypt against Islamist dictatorship". World Socialist Web Site.
18. Beinin, Joe. (29 September 2007). "The militancy of Mahalla El-Kubra". Middle East Research and Information Project.
19. Nasrawi, Salah. (24 September 2007). "Egypt: Police arrest 5 labor leaders after strike by textile workers". The Associated Press.
20. Pakinam, Amer. (26 September 2007). "Egyptian workers occupy factory during massive strike". Deutsche Presse-Agentur.
21. Pakinam, Amer. (29 September 2007). "Egyptian factory workers end week-long massive strike". Deutsche Presse-Agentur.
22. Michael, Maggie. (8 April 2008). "Egypt moves quickly to appease angry workers and head off more unrest over food costs". The Associated Press.
23. Zayan, Jailan. (6 April 2008). "Egypt police clash with protesters after foiled strike". Agence France Presse.
24. Zayan, Jailan. (6 April 2008). "Egypt strike plans fizzle out under security pressure". Agence France Presse.
25. Schemm, Paul. (7 April 2008). "Egypt's workers battle police amid rising economic discontent". The Associated Press.
26. Bel Aiba, Ines. (8 April 2008). "Egypt scrambles to appease workers after deadly riots". Agence France Presse.
27. (19 May 2008). "Rights group calls for release of Egypt blogger". Agence France Presse.
28. Zayan, Jailan. (2 June 2008). "Egypt blogger freed after 'weeks of torture'". Agence France Presse.
29. . (2 June 2008). ["Egypt: Blogger Kareem el-Beheiri freed after 73 days in prison"](http://en.rsf.org/article.php3?id_article=27064). *Reporters Without Borders*.
30. Stern, Johannes. (23 November 2009). "Egypt hit by wave of strikes and protests". World Socialist Web Site.
31. Salem, Mona. (10 February 2011). "Egypt military steps in as Mubarak regime totters". Agence France Presse.
32. (15 February 2011). "Egypt constitutional referendum expected in 2 months". AlArabiya.net.
33. (16 February 2011). "Workers in Egypt's largest factory strike: organiser". Agence France Presse.
34. Dunlop, W.G.. (18 February 2011). "Strikers at giant Egypt factory push for reforms". Agence France Presse.
35. (18 February 2011). "Egypt strikes continue". Daily News (Sri Lanka).
36. Marsden, Chris. (23 February 2011). "Egyptian Junta clamps down on strikes". World Socialist Web Site.
37. (20 February 2011). "Strike ends in Egypt's largest factory". Agence France Presse.
38. Stern, Johannes. (16 July 2012). "Clinton backs Egyptian military junta, Islamist president". World Socialist Web Site.
39. (15 July 2012). "Hillary Clinton meets Egypt military leader Tantawi". BBC.
40. Stern, Johannes. (18 July 2012). "Egyptian workers mount mass strikes against US-backed junta". World Socialist Web Site.
41. (20 July 2012). "Workers Struggles: Europe, Middle East & Africa". World Socialist Web Site.
42. (27 July 2012). "Workers Struggles: Europe, Middle East & Africa". World Socialist Web Site.
43. Gaber, Yassin. (30 November 2012). "Delta clashes highlight struggle for revolutionary legitimacy". Al-Ahram.
44. Mathieu, Luc. (11 December 2012). "Face à Morsi, El-Mahalla retrouve sa hargne". Libération.
45. Gaber, Yassin. (15 December 2012). "Mahalla gears up to vote on contentious constitution". Al-Ahram.
46. (16 December 2012). "Blow by blow: Egypt votes in disputed constitution referendum". Al-Ahram.
47. (10 February 2014). "Thousands of workers strike at two Mahalla textile factories". Daily News Egypt.
48. (31 October 2015). "Company losses mount as Mahalla workers continue strike for 11th day". Aswat Masriya.
49. (26 October 2015). "Mahallah strike continues as minister gives ultimatum". Aswat Masriya.
50. (18 June 2014). "Egypt: government moves to outlaw strikes, but is it promoting production?". Legal Monitor Worldwide.
51. (21 October 2015). "Mahalla textile company on strike over bonuses". Egypt Independent.
52. (30 October 2015). "Govt to disburse 10% bonus to public business sector workers, excludes protest-ing workers". Egypt Independent.
53. (1 November 2015). "Mahallah workers end strike, after written guarantee of demands". Aswat Masriya.
54. (11 August 2015). "Egyptian Sumo champion says suffering from neglect". Egypt Independent.
55. (22 February 2012). "The Factory". Al Jazeera English.
56. Rady, Faiza. (2 March 2011). "Egytpt: Al-Mehalla textile workers lead the struggle". Al-Ahram.
57. Lantier, Alex. (2 November 2011). "The counterrevolutionary role of the Egyptian pseudo-left". World Socialist Web Site.