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Kabo claims loss of output & exports due to strike
30 Aug '11
2 min read
A workers strike going on in Egypt's El Nasr Clothing & Textile Co (Kabo) since August 17 has caused the company to suffer a production loss of four million LE and three million LE in terms of exports.
Inspired by the rebellion that overthrew President Hosni Mubarak, several workers in Egypt started observing strikes seeking better working conditions and higher wages. Though majority of the strikes have receded but still erratic eruptions are on.
Kabo, one of the earliest Egyptian companies to be privatised, has been restructuring itself since its listing on stock exchange in 1997. Following restructuring, the company besides cutting down its workforce has even streamlined its operations.
The company in a statement submitted to the stock exchange stated that a particular group of workers was prohibiting other workers from working.
In the statement, company Chairman Amr el-Sharnoubi who assumed charge in September 2009 said that the firm's administration was startled by the demands newly out forth by the workers, particularly when their demands had already been addressed by the management.
As revealed by the company Chairman, the company has already approved a 15 percent hike in wages alongside increased allowances, allowed promotions to around 1,500 workers and made all temporary workers permanent. Doing all this, Sharnoubi said, required the firm to incur a cost of nine million LE.
The statement further added that industrial action even held back the firm from fulfilling domestic orders worth LE3.5 million as the firm even operates retail stores under flagship brand Jil.
Inspired by the rebellion that overthrew President Hosni Mubarak, several workers in Egypt started observing strikes seeking better working conditions and higher wages. Though majority of the strikes have receded but still erratic eruptions are on.
Kabo, one of the earliest Egyptian companies to be privatised, has been restructuring itself since its listing on stock exchange in 1997. Following restructuring, the company besides cutting down its workforce has even streamlined its operations.
The company in a statement submitted to the stock exchange stated that a particular group of workers was prohibiting other workers from working.
In the statement, company Chairman Amr el-Sharnoubi who assumed charge in September 2009 said that the firm's administration was startled by the demands newly out forth by the workers, particularly when their demands had already been addressed by the management.
As revealed by the company Chairman, the company has already approved a 15 percent hike in wages alongside increased allowances, allowed promotions to around 1,500 workers and made all temporary workers permanent. Doing all this, Sharnoubi said, required the firm to incur a cost of nine million LE.
The statement further added that industrial action even held back the firm from fulfilling domestic orders worth LE3.5 million as the firm even operates retail stores under flagship brand Jil.
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