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Signing an agreement for iron and steel workers’ entitlements and compensation for 450 thousand pounds for the worker

Hisham Tawfiq, Minister of Public Business Sector, and Mohamed Saafan, Minister of Manpower, witnessed the signing of a collective labor agreement that stipulates that employees of the Egyptian Iron and Steel Company (under liquidation) benefit from the complementary end-of-service reward system for voluntary service leaving before reaching the legal retirement age.


The agreement also stipulates the termination of all disputes, in particular the waiver by the General Union of Workers in the Engineering, Metallurgical and Electrical Industries, the Union Committee of the Iron and Steel Company and all employees of all lawsuits and arbitration cases brought against the company in relation to the rights and entitlements of workers or any of the terms of the agreement.


The Minister of Public Business Sector confirmed that the signing of the agreement comes under the auspices of the Ministries of Manpower and the Public Business Sector, out of interest and preservation of the rights and interests of workers, and an affirmation of respect for the provisions of the law.


Tawfiq explained that closing a company represents an exceptional case after benefiting from all possible means of reform, and in return 117 companies affiliated with the ministry are being developed, noting that this agreement is the result of many discussions and multiple negotiations, which confirms the full care of the two ministries on workers, as an original commitment adopted by the two ministries. , in carrying out its two missions towards the workers, and giving them all their rights guaranteed by law.


The Minister expressed his sincere thanks to the Ministry of Manpower, the General Union, the Holding Company for Metallurgical Industries, and the Union Committee of the Iron and Steel Company for overcoming all obstacles during the negotiation stage, which confirms their full and sure keenness on workers' rights, and the conclusion of the agreement in this satisfactory way.


For his part, the Minister of Manpower expressed his deep thanks to the Minister of the Business Sector, the President of the General Syndicate, the Syndicate Committee, and all the company’s employees, everyone who worked in this file, for the agreement they reached that satisfies the workers, and is balanced for the public business sector, in a period of about 6 months from Continuous work, in which the General Syndicate was characterized by flexibility and understanding of what is in the interest of the general climate in the coming period.


Saafan indicated that this agreement will allow us to give appropriate compensation to the workers, reiterating his thanks to the Ministry of Public Business Sector for their efforts to satisfy the union and workers and the public interest.


The agreement was signed as a first party by Mostafa Hassan, the general liquidator of the company, on behalf of the Egyptian Iron and Steel Company, and the second party on behalf of the General Syndicate for Workers in the Engineering, Metallurgical and Electrical Industries, Eng. .


The General Assembly of the Iron and Steel Company had taken a decision in its session held on January 11, 2021, approving the dissolution and liquidation of the company and the appointment of a general liquidator, in light of the successive losses achieved by the company, which exceeded more than 8.5 billion pounds, as stated in its budget on 30/6/ 2020, according to reports that recommended the futility of the company's continuation and the impossibility of correcting its course economically, financially and technically.


This agreement applies to all employees of the company, with the exception of some employees, who will be kept until the completion of the liquidation work, as well as employees of the Iron and Steel Company for Mines and Quarries, where the company is obligated - according to the agreement - to pay a lump sum of 14,000 pounds to each of the company’s employees for each year of service. The actual amount is up to a maximum of 450,000 pounds, in addition to the cash equivalent of the leave balance for the last comprehensive month that was paid to the worker in the month preceding the issuance of the liquidation decision in accordance with the provisions of the personnel system in force in the company, and an additional bonus for a notice period of two months of the comprehensive wage for those who exceeded His service period is 10 years, and three months for those whose service period does not exceed 10 years, in addition to disbursing an end-of-service gratuity at the rate of half a month of the worker’s basic wage for each year of service, with a maximum of 50 thousand pounds, as well as disbursing compensation for early retirement in the amount of 900 pounds for Each month of the remaining years of service for employees who are not entitled to a pension - on the date of signing the agreement - in accordance with Article 21 of the Social Security and Pensions Law No. 148 of 2019, provided that the minimum For the aforementioned rewards and financial dues of 225 thousand pounds.


The signing was attended by the Ministry of Manpower, Ihab Abdel-Aty, legal advisor to the minister, Khaled Abu Bakr, head of the Central Administration for Manpower Welfare, Reda El-Araby, assistant adviser to the Minister of Finance, and from the Ministry of Public Business Sector Amr Hazin, adviser to the Minister of Public Business Sector for Human Resources, and Mohamed El-Saadawi, Executive Managing Director. The Holding Company for Metallurgical Industries, Dr. Wael Youssef, Managing Director of Financial Affairs of the Holding Company, and a number of members of the Syndicate Committee.