UPDATE: EGYPT: Strikes force Arafa to close factories
By just-style.com | 16 February 2011
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Arafa makes clothing for some of the world's leading retailers |
The spread of workers' strikes across Egypt has forced Arafa Holding, the country's biggest garment exporter, to close some of its factories, although it hopes to open them again by the weekend.
Around one-quarter of its 6,000 workers at Swiss Garments Company and Egyptian Tailoring Company have joined the nationwide protests demanding higher wages and better working conditions.
As a result, the company has shuttered its Swiss Garments, Egyptian Tailoring and Goldentex factories in 10th of Ramadan city, along with its Beni Sweif facilities. Management will assess the situation on Thursday (17 February) with a view to resuming operations by Saturday (19 February).
Earlier this month Arafa said production was back to full capacity after two weeks of political unrest, and that none of its orders had been cancelled.
The company, which is headquartered in Nasr City, Cairo, makes clothing for Zara, JC Penney, Macy's, Banana Republic and Gap, with around 78% of its local manufacturing sales shipped overseas.
Workers across Egypt are emboldened by the ousting of President Hosni Mubarak at the weekend, and have refocused their anger on improving their own pay and conditions.
Workers at the state-owned Misr Spinning and Weaving textile firm, Egypt's largest factory with 24,000 employees, have reportedly gone back to work after going a strike last Thursday. But they say they will continue to demand a rise in the minimum wage.
Egypt's newly formed government says it will raise public sector salaries and pensions by 15%. But the minimum wage has remained unchanged at EGP35 (US$6) per month since 1984, according to reports.
Sectors: Apparel, Manufacturing, Sourcing
Companies: Zara, JC Penney, Macy’s, Banana Republic
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