EDC owners accused of "oppressing" Chinese workers

Despite the reputation of Scandinavian countries as progressive, just and socially advanced, our capitalists are just like any others, it seems... especially when operating in "third world" countries like Egypt or China. I was just sent this link to an article about A.P. Moller-Maersk, the Danish company that owns 45% of the Egyptian Drilling Company (EDC), which was recently accused of laying off employees on fixed contracts while hiring new workers on temporary contracts. The report in Danish daily Politiken recounts accusations concerning a container factory in Dongguan in southern China, owned by Maersk, where workers are said to suffer from health hazards, corruption within the management, and humiliating work rules - including a ban on strikes (with no basis in Chinese law according to an expert interviewed in the article) imposed in June 2008 after a series of strikes and protests for better work conditions. A number of reports and statements in Danish and English are available at the Hong Kong-based Globalization Monitor.

Oil workers protest layoffs

Workers from the Egyptian Drilling Company, EDC (despite the name apparently 45% owned by a Danish company - the A.P Moller-Maersk Group) gathered outside to ministry of manpower in Nasr city today to protest being fired. The said the EDC stopped the operation of several wells and laid off hundreds of workers since January. While this might seem like a natural response to the declining oil price (but not exactly fair since these companies hardly shared their huge profits during last year's record peak in the oil price but are now asking the workers to pay the price of the recession), the workers also claimed that the EDC has been hiring new workers at lower wages and on temporary contracts during the same period. They demanded to be returned to work or receive just compensation.

As the workers were still gathering outside the gates, the minister - Aisha abdel Hadi - suddenly left the building in a car, which made some of them furious. "We came to talk to the minister and you smuggle her out in front of our eyes?" one man yelled to the security guards. Later, a ministry official (possible security) came out to talk to the workers, refusing to say his name. He told them that the situation was beyond the control of the government since this is a global crisis and "even in America 5 million workers has been laid off".

It's ironic how government officials will deny the impact of the global crisis on Egypt one day, while at the same time using it as an excuse to escape all responsibility to help workers who are losing their jobs because of it...

These workers feel betrayed by the employer, the union, and the government after spending 10-25 years working for this company "12 hours a day 6 days a week" and then suddenly being left with no income whatsoever. One of the workers, a 50 year old man named Hafez, showed a wound on his leg and an older scar on his shoulder that he said was from work injuries. He complained bitterly: "The company stole 18 years of my life, and now they are throwing me into the street."

UPDATE: Sarah Carr reports: "EDC petrol comp. management makes u-turn and agrees to pay compensation and renew contracts of dismissed workers." And a more detailed report by Sarah Carr can be found here).