By Arinze Iloani

Nigeria’s inflation rate rose to 18.72 per cent in January 2017 from 18.55 per cent recorded in December 2016 over rising prices of consumable goods and energy.

A Consumer Price Index report released yesterday by the National Bureau of Statistics indicated that communication, restaurants and hotels recorded the slowest pace of price growth in January.

“The faster pace of growth in headline inflation, year on year, were bread and cereals, meat, fish, oils and fats, potatoes, yams and other tubers, wine and spirits, clothing materials and accessories, electricity, cooking gas, liquid and solid fuels, motor cars and maintenance, vehicle spare parts and fuels and lubricants for personal transport equipment and passenger transport by road,” the report stated.

Analysis showed that on a month on month basis, headline inflation was driven by passenger transport by air, fuels and lubricants for personal transport equipment, liquid fuels, cooking gas, oils and fats, fruits, Miké cheese and eggs, fish, meat and bread and cereals.

The Food Index increased by 17.82 per cent in January, up by 0.43 percentage points from the rate recorded in December 2016, (17.39) per cent.

“During the month, all major food sub-indexes increased, with soft drinks recording the slowest pace of increase at 7.8 per cent,” the report also stated.

Price movements recorded by Core sub-index rose by 17.90 per cent in January, down by 0.20 per cent points from rates recorded in December 2016 (18.10) per cent.

“During the month, the highest increases were seen in Housing, Water, Electricity, Gas and Other Fuels, Education and Transport growing at 27.2, 21.0 and 17.2 per cent respectively,” the report said.

Analysis showed that the Urban index rose by 20.31 per cent (year-on-year) in January from 20.12 per cent recorded in December, and the Rural index increased by 17.34 per cent in January from 17.20 per cent in December.

On month-on-month basis, the urban index rose by 1.03 per cent in January from 1.08 per cent recorded in December, while the rural index rose by 1.00 per cent in January from 1.04 per cent in December.

The Composite Food Index rose by 17.82 per cent in January 2017. The rise in the index was mainly driven by increases in prices of Bread and cereals, Meat, Oil and Fats, and Fish.

Multinational companies often talk about investing in Africa and expanding their footprint here, but few of them actually follow through on their promises to make significant contributions to setting up operations in African countries. GE is the exception and has been walking the talk in terms of funding its expansion on the continent as well as upskilling the various communities in which the company operates.

A prime example of GE’s commitment to Africa is evidenced by its phenomenal expansion in Nigeria. “The business has really grown quite a bit. Four or five years ago, we had less than 200 people and now we have over 500 people in Nigeria. We have also expanded tremendously in terms of our commitment to the supply chain  footprint,” said Lazarus Angbazo, President and CEO of GE Nigeria.

Energy  security

GE has invested in Nigeria on quite a few fronts, including power generation. After GE’s acquisition of Alstom in 2015, the company now has about 80% of the gas turbine power production facilities in the country. “We’ve also been able to expand our reach into both hydro and solar, and we’re playing in a very big way across the entire value chain within power in Nigeria,” said Mohammed Mijindadi, Managing Director of GE Gas Power Systems.

“I am proud of our partnerships with government as well as our private sector customers. We have been able to solve some of the most difficult challenges they’ve had within the power space.”

“We’ve invested millions of dollars in facilities here. One of those facilities is in Onne, where we fabricate, repair and maintain wellheads and Christmas trees [offshore power equipment]. We also have a facility in Port Harcourt, where we do maintenance on some of our equipment,” said Doyin Akinyanju, CEO of West and Central  Africa, GE Oil & Gas.

The Calabar manufacturing and assembly facility, which is under construction, is intended to be a marque development in GE’s path to localisation in Nigeria and on the African continent. Calabar will be a multi-use facility, but it will house GE’s  African centre of excellence for power generation and turbine repair.

Creating a healthy nation

In 2012, GE Healthcare signed a memorandum of understanding (MOU) with the Nigerian Ministry of Health and under the MOU, made a commitment to supporting the development of diagnostic and specialist hospitals, primary and rural care and capacity building with regards to education.

On the  right track

On the rail front, in the last seven years, GE has supplied the Nigeria Rail Corporation with 25 locomotives and is researching other ways to support the federal government in its revitalisation of the rail industry.

From a human resources perspective, GE believes in attracting, developing and retaining critical talent for GE Nigeria. The company has invested in accelerator programmes as well as other employee development programmes to ensure a healthy pipeline of Nigerians are ready for roles whenever they become vacant.

Somalia intends to resume printing banknotes this year for the first time since the government collapsed in 1991.

The governor of Somalia’s central bank, Bashir Issa Ali, told VOA in an exclusive interview Saturday that all technical preparations are complete, and his government is confident it can assemble a financial aid package within three months to fund the printing program.

Further work would take another four months.

Asked if Somalia will print and distribute banknotes during 2017, Ali answered: “Absolutely. Absolutely. Absolutely!” He pledged the new currency would include “good, reliable security features.”

Pre-1991 banknotes have disappeared from Somali markets, replaced by either Western currencies, including dollars, or privately printed notes, most of which are worthless fakes.

Financial reforms to take hold soon

Ali said international institutions, such as the World Bank and the International Monetary Fund, as well as the U.S. Treasury, have been helping Somalia reform its financial sector and train central bank staff.

“We have prepared all the issues and all the basic groundwork, and put in place the technical requirements,” he told VOA.

Outgoing Somali President Hassan Sheikh Mohamud met a key demand of the international community last year by signing into law parliament-approved legislation to outlaw money laundering and “financial terrorism.”

The Somali government needs $60 million to be able to begin printing banknotes. Ali said he expects to obtain pledges for that sum at an international donors’ conference for Somalia in London in May.

“We expect the international community to assist us with that issue,” the bank governor said.

Private banks, ‘mobile money’

Hardship and the scarcity of trustworthy currency has created opportunities for some innovative strategies in the private sector, Ali said, and Somalia has made some progress in establishing private banks and mobile money systems.

Many transactions in Somalia now take place using “electronic mobile money,” Ali added.

Somali shillings account for a small portion of the payments system, he said.

“Most of it is done through dollars and electronic money, which is a great thing for … saving costs and effort and very convenient, also.”

Remittance companies that relay payments from Somalis working abroad operate in many parts of the country, Ali noted, but a large part of the nation does not have access to electronic funds or dollars, so there is an urgent need for a reliable national currency.

Once Somalia-printed banknotes begin to circulate, the central bank governor said, his staff will be able to regulate and control operations by private banks and remittance services.

The bank now has trained staff members to work on the financial and exchange systems, and training efforts are continuing. On February 12, he said, “more than 10 staffers are departing for training about counterfeiting and financial controls. They include staff from the bank, police and the national security agency.”

Monetary policy comes next

Since Somalia does not yet have its own currency, it also lacks a monetary policy, Ali said, but once the banknotes begin circulating, he looks forward to “the beginning of a new era” in the East African nation.

“Monetary policy always must come together in close collaboration with the fiscal policy of the government — taxation and revenue, the public budget and these kind of things,” Ali told VOA. “We don’t apply any monetary policy at the moment.”

Economists have recently predicted a slowdown for Somalia’s domestic economy, which largely relies on livestock exports. Ali said a “very disastrous” drought has killed thousands of farm animals.

“When you don’t have enough crops, it will contribute to food shortages,” he said. “When you have drought problems, you will not be able to export livestock.

“That will affect our foreign market and our exports,” he added, so Somalia’s foreign-exchange earnings will decline.

“When you get less foreign exchange, you will not be able to import what is required,” the bank governor said, “and when you import less, there will be less tax revenue for the government.”

In the short term, the peaceful election of a new Somali president appears to have helped the nation’s economy. The Somali shilling rose in value compared with the U.S. dollar over a two-day period; $1 brought 22,000 shillings before the election in Mogadishu, and by Saturday it was trading at 16,000 shillings.

“It’s a matter of expectations. There is a new government, new environment and new atmosphere,” Ali said, and that will have an effect on people’s opinions about security, the economy and the stability of the government.

By Jeremiah Wakaya

Nairobi — The Universities Academic Staff Union (UASU) has said it will reject a Sh10 billion counter-offer by the government extended to lectures to end the ongoing strike.

In a statement released Sunday, UASU Secretary General Constantine Wasonga termed the offer by the State as inadequate, saying it only translates to a three percent increment on the basic salary of lecturers and a 1.6 percent increase on house allowances.

“Tomorrow (Monday), UASU will attend a negotiation meeting with IPUCCF at 2 pm; during which UASU will formally reject the Sh10 billion counter-offer to all varsity staff which translates into a paltry 3pc compounded increment on basic salary and 1.6pc increment on house allowance,” Wasonga said in a statement.

UASU, together with Kenya University Staff Association (KUSA) and Kenya Union of Domestic, Hotel, Educational and Allied (KUDHEA) workers union, began negotiations with the Inter Public University Consultative Council Forum (IPUCCF) on Wednesday following the Sh10 billion offer by the State.

A Joint Negotiations Committee (JNC) comprising representatives from the three unions and the IPUCCF however resolved on Thursday to form a joint technical sub-committee which was tasked with computing the impact of the Sh10 billion offer on the salaries of university staff, something that still remained unresolved by close of business on Friday.

“The joint negotiations committee re-convenes on Friday at 11am to evaluate the impact, if any, of the counter-offer on the terms and conditions of service of varsity employees,” Wasonga said on Thursday.

UASU also intends to present a petition to the National Treasury and Parliament on Tuesday as it escalates the industrial action which enters its fourth week Wednesday midnight.

According to Wasonga, all lecturers will assemble at the University of Nairobi on Tuesday, before proceeding to the two institutions in to present their petition.

“This Tuesday, 14th February; UASU members will present a Petition to the Treasury and Parliament, in accordance with the terms under Articles 37, 94, 95 and 96 of the Constitution of Kenya.”

The three unions – UASU, KUSA and KUDHEA – commenced a nationwide strike on January 18, demanding for the negotiation, signing, registration and implementation of a Collective Bargaining Agreement (CBA) for the period between 2013-2017 as fears of losing it became imminent with the end of current Fiscal Year 2016/2017 approaching.

By Ndapewoshali Shapwanale

PRESIDENT Hage Geingob on Friday called for teamwork and rededication to address the twin issues of housing and land shortages.

He made the call at the launch of the Harambee Housing Initiative in Windhoek when he handed over a house built with alternative building materials to Otjomuise resident Abed Philip and his family.

The house was donated to the Namibian government by the German PolyCare Research Technology GmbH& Co.KG that introduced its building technology at the Invest in Namibia conference, held in Windhoek from 8-9 November last year.

“This is the year of rededication, and it is in this spirit that I, as the head of the ‘Namibian House’, once again reaffirm my personal commitment to addressing land reform and the provision of affordable housing to all Namibians,” Geingob said.

He said while Namibia has achieved much since independence, a lack of adequate land and housing remained contentious issues. The Harambee plan identified residential land delivery, housing and sanitation as necessary for social progress.

“In the interest of ensuring a dignified life for all Namibians, government has undertaken several initiatives to tackle the issue of a lack of decent housing in the country,” Geingob said, adding that the provision of adequate and affordable housing was a primary weapon in the war against poverty.

Commending the urban development ministry and the contractor, Kavango Block Brick, for transforming a shack into a house, the President said it was only through unity and teamwork that the promise of providing all Namibians with sustainable human settlements could be delivered.

According to Geingob, the task of delivering land and decent housing to Namibians who have been left out due to past injustices would be a mammoth one.

However, if all stakeholders remained committed to working together in the spirit of harambee, a prosperous future for the Namibian House could be safeguarded.

“We are cognisant of the fact that the need for housing outmatches government’s existing resources. Nevertheless, I am confident that if we all rededicate and commit ourselves to helping our fellow Namibians, and look beyond our own self-interests by considering the needs of others, then we will be able to meet the demand for housing,” Geingob stated.

Urban development minister Sophia Shaningwa said the donation of the house was made possible through collective efforts, and that she was pleased that financial institutions such as Standard Bank and NamPost have indicated their support for alternative building materials.

She said government has acknowledged that it could not solve the housing problem alone, and the ministry would thus support public-private partnership arrangements to assist in solving the housing issue.

“The houses will not be given for free. Citizens who want housing are encouraged to start saving money for the houses that are going to be constructed under the initiative,” the minister added.

Prime Minister Kassim Majaliwa yesterday ordered special audit of the national flag carrier, Air Tanzania Company Limited (ATCL) to establish the level of its performance.

Speaking during his visit to the airline headquarters in Dar es Salaam, the premier directed the Controller and Auditor General (CAG) to audit the earnings collections, saying the government was not ready to see the airline collapsing again after all initiatives to revive its operations.

“I’ll direct the CAG to probe the earning collections by ATCL since the government decided last year to revive the operations up to now to establish revenue collection performance,” said Mr Majaliwa. Last September, ATCL got a big boost after acquiring two CS300 Bombardier jetliners to enhance performance after years of operational dilly-dallying.

Speaking to ATCL management, Mr Majaliwa challenged the team to ensure the airline registers great achievements, thanks to the government’s resolve to revive the national flag carrier. He ordered ATCL management to start using electronic receipts to protect the firm against treachery, warning against the use of traditional receipts in ATCL transactions.

“We have ordered all payments to be done electronically to prevent any loss of money… the electronic payments have proved to be of great use in protecting the public money,” observed Mr Majaliwa.

The premier as well directed acting Finance and Administration Director Witness Mbaga to conduct assessment on the earning collections from the cargo area to avoid any loss of income.

“The management should ensure that the airline keeps time to avoid losing customers,” he said.

Coffee sold at Moshi Exchange increased to 7,668 bags compared to 5,564 bags of the previous auction supported by price surge driven by high global demand.

According to the auction results released by the Coffee Board of Tanzania (TCB), the overall average prices were up by 5.85 US dollars per 50 Kgs bag for Mild Arabica compared to an increment of 0.95/50US dollars for the same volume in the previous auction.

The Bank of Tanzania (BoT) monthly economic review for December shows that the prices of coffee (Arabica) went up mainly due to high global demand. Moshi Exchange average prices were above the terminal market by 4.03 US dollars per 50 for Mild Arabica.

The amount of coffee supplied at the Moshi Exchange increased to amount offered 9,759 bags in the last auction compared to 6,709 bags offered in the previous session.

The New York coffee May delivery were up by 3.35 US dollars equivalent to 3.69 per 50kgs Free on Board and London (LIFFE) market May delivery were up by 12 US dollars per metric tonne equivalent to 0.60 per 50kgs FOB compared to last week terminal market.

According to the TCB, the next auction will be held today.

By Henry Boyo

It seems strange but true that the more dollars we earn, the more are the challenges of Excess Naira liquidity, inflation, higher cost of funds and a weaker naira exchange rate. The above title was first published in Punch and Vanguard newspapers in January 2014. Please read on.

“The Punch Newspaper recently carried a report titled “CBN Defended Naira with $26.6bn in 2013.” The report obtained from the Central Bank’s website, indicated that $26.6bn was sold to currency dealers in 94 foreign exchange Dutch Auctions between January and December 2013.

Indeed, in consonance with Lamido Sanusi’s promise to maintain stability, the official naira exchange rate has inexplicably remained stagnant between N153 and N156=$1, despite our increasing foreign reserve base. Regrettably, however, the unofficial (street market) rate has gradually moved from a deviation of N1 or N2 to N20/$; thus, an ‘ingenious’ bank or Bureau de Change could easily make a monthly profit of about N20m by simply buying $1m directly from CBN’s allocations and selling same dollars elsewhere!

The resultant abuse of CBN’s wholesale forex auctions inevitably induced unbridled capital flight, characterized by huge bulk movements of hard currency through our airports and other land and sea borders. The CBN’s recent reintroduction of the earlier discredited Retail Forex Auction, once more restricted direct sales of foreign exchange specifically to end users, in place of the speculative hoarding by banks, under the Wholesale Auction System.

Furthermore, CBN also reduced its weekly dollar allocations to BDCs from $1m to $250,000; regrettably, however, despite (or maybe we should say because of) these measures, the clear shortfall in dollar supply to the open market has instigated a widening gap between official and Bureau de Change rates.

Invariably, therefore, the naira exchange rate mechanism has persistently been a clear case of the tail wagging the dog, as higher parallel market rates ultimately determine official rates.

The naira exchange rate is further characterized by the paradox of depreciation despite significant increases in dollar revenue and imports cover! For example, the naira rate remained consistently at N80/$1 between 1994 and 1998, despite barely $4bn total reserves, while it has officially fallen below N150/$1 despite the buoyant reserves consistently remaining above $40bn with more than 10 month’s demand cover in recent years!

Inexplicably, however, in 2012, the IMF recommended a further official naira devaluation, to reduce the size of government spending and budget deficit, and presumably also to restrain the spiralling inflation, fuelled by the stifling persistent systemic naira surplus!

Nevertheless, with heavy unemployment (over 25%) particularly amongst youths, and an inflation-ravaged economy, discerning critics and observers might see IMF’s prescription to reduce government spending as ironically socially antagonistic!

Undoubtedly, the universal antidote for low consumer demand and high unemployment is to increase government spending, and pursue an expansionary monetary strategy to instigate job creation and stimulate demand. Consequently, IMF’s recommendation and CBN’s inappropriate tight monetary policy instruments, which conversely fuel inflation, and trigger high cost of funds in excess of 20%, will invariably only deepen poverty nationwide!

Nonetheless, some observers blame our parlous economy and weak naira on our ‘inability’ to diversify our economy. However, such observers have never satisfactorily explained how our economy can be diversified when the systemic growth engine of SMEs is constrained by high cost of funds, and low consumer demand caused by dwindling job opportunities, plus the increasingly low-income values, induced by oppressive inflation.

Conversely, however, I have rightly consistently observed for several years, that our economy will remain distressed and unable to satisfactorily diversify because of CBN’s unconstitutional capture of our export dollar revenue and the substitution of exclusively naira payments for monthly allocations to constitutional beneficiaries.

Furthermore, CBN has belatedly recognized the poisonous impact of commercial banks’ ability to leverage on the monthly heavy inflow of naira allocations, which precipitate the unending spectre of excess cash, and the attendant necessity for CBN to reduce such surplus naira and contain inflation by borrowing from the same commercial banks at oppressive rates of interest.

Unexpectedly, however, the apex bank inexplicably turns round thereafter, to sequester the same loans as idle surplus, which cannot be applied for infrastructural enhancement or appropriation!!

Indeed, it is also instructive that CBN’s cache of self-styled “own dollar” reserves which were accumulated from the substitution of naira allocations actually increases in tandem with the burden of increasing naira surplus and deepening poverty nationwide!

Incidentally, CBN’s current ‘own reserves’ of over $40bn is not also available for reducing our nation’s increasing strangulating debt burden; curiously, however, the apex bank still consciously seeks opportunities to invest ‘its dollar reserves’ in foreign economies, despite the paltry yields associated with such investments!

Nonetheless, CBN Governor, Lamido Sanusi confirmed in his controversial letter of September 25, 2013 on the subject of the “$49.9bn Unremitted Oil Revenue” to President Jonathan, that the treasury had received about $22bn as at July 2013 for oil exports. Consequently, since oil prices remained consistently over $100/barrel, cumulative oil earnings should probably have exceeded $40bn in 2013.

Thus, with the practice of CBN’s usual substitution of naira allocations for dollar revenue, naira cash supply would increase by over N6tn (i.e. N155/$1), while commercial banks could also leverage almost tenfold on the fresh naira inflow, with the present relatively modest Cash Reserve Requirement to create systemic naira liquidity of about N60tn. Consequently, the total available spendable naira unleashed on the system can adequately purchase over ten times (i.e. over $400bn) the $40bn possibly earned from crude oil sales in 2013!

It is therefore, obvious that CBN’s substitution of naira allocations for dollar denominated revenue actually weakens the naira exchange rate!

Worse still, CBN’s confirmation that only $26.6bn (i.e. 65%) out of the total $40bn revenue collected was auctioned, suggests that naira exchange rate would clearly be under greater pressure if 35 per cent of the dollars earned (i.e. about $14bn) was short-supplied in CBN’s dollar auctions, despite the earlier provision of full naira cover for the total actual revenue of $40bn! It is not rocket science to deduce that systemic surplus naira simultaneous existing with such rationed dollar supply, will deliberately, artificially skew the exchange rate mechanism in favour of the dollar!

So, while it is true that CBN sold $26.6bn in foreign exchange auctions in 2013 as per the Punch newspaper headline, it is not true that the sales procedure realistically defended the naira exchange rate; if anything, CBN’s monopolistic rationed dollar auctions, after consciously flooding the system with naira allocations, should more appropriately be recognized as a contrived mechanism to continuously depreciate the naira, especially more so, whenever we earn increasingly more dollars!”

SAVE THE NAIRA, SAVE NIGERIANS!!

Beirut — Egyptian prosecutors should drop all charges against at least 26 workers who were arrested and charged in recent months in connection with peaceful strikes and protests, Human Rights Watch said today. The parliament should also revise a new trade unions draft law to fully legalize independent unions and amend penal code provisions that criminalize the right to organize and strike.

Since May 2016, police have arrested scores of striking workers from various industries. Most were later released, but prosecutors have referred dozens for trial, including some before a military court.

“Arresting workers for striking is another example of how Egyptian authorities are determined to stifle all space for peaceful mobilization,” said Joe Stork, deputy Middle East and North Africa director at Human Rights Watch.

In January 2017, prosecutors charged 19 striking workers at an oil products factory in Suez with inciting a strike and halting production, though all were acquitted in a trial later that month. In December 2016, security forces arrested at least 55 striking workers at the Egyptian Fertilizers Company, and prosecutors summoned eight for investigation. On September 26, Kamal Abbas, a member of the government-sponsored National Council for Human Rights and head of the independent Center for Trade Union and Workers’ Services (CTUWS), wrote to the Interior Ministry regarding the National Security Agency’s “disappearance” of six workers from the Public Transport Authority following raids on their homes two days earlier. On September 28, following a news conference by families of the missing workers, the six workers appeared before prosecutors who accused them of belonging to an unidentified banned group. In May, military prosecutors referred 26 Alexandria Shipyard Company workers to a military court on charges of inciting strikes.

The January strike in Suez followed a sit-in at the privately owned IFFCO oil products factory in the last week of December seeking an equal distribution of bonuses between workers and supervisors. The workers decided to strike after Interior Ministry officers arrested two members of the IFFCO Independent Workers’ Union who had been participating in the sit-in, according to a workers’ statement published in local newspapers.

The CTUWS said that National Security officers demanded that union leaders end the strike and then police arrested 13 striking workers on January 2. Prosecutors summoned another 10 for questioning on the same day and referred 19 to a minor offenses court on charges of inciting a strike, halting production, and sabotaging factory properties. Though the court acquitted the workers, the factory administration can appeal the decision. Activists told Human Rights Watch that, according to workers, 26 people were later fired, including the 19 who were acquitted.

Union leaders at the IFFCO factory demanded a larger share of bonuses after the prices of everyday goods in Egypt rose dramatically when the government floated the Egyptian pound in early November, a requirement for a US$12 billion International Monetary Fund (IMF) loan package. Since then, the pound has lost more than 100 percent of its value, and the IMF has estimated that inflation will rise to 18 percent.

Egyptian authorities greatly restrict the ability of workers to mobilize independently, and the penal code criminalizes strikes and workplace sit-ins in articles 124 and 125, with sentences of up to two years, despite several administrative court rulings that have upheld the right to strike.

Kamal Abbas, the CTUWS leader, told Human Rights Watch that the government-controlled Egyptian Trade Union Federation (ETUF) sent a letter to the administration of the Suez oil products factory saying that the independent workers’ union, which had signed two collective bargaining agreements with administrators in 2012 and 2015, was illegal. The IFFCO Independent Workers’ Union could be shut down as a result.

The government has never legalized the independent labor unions that proliferated after the 2011 uprising, while officially recognized unions have not held elections for 11 years, and successive governments have appointed union leaders, most recently in January.

In June, an administrative court sent the current, restrictive 1976 law on unions for review, stating that “the [ETUF] was not capable of expressing workers’ grievances and hopes whether before the state or business owners.” To Human Rights Watch’s knowledge, the Supreme Constitutional Court has yet to take up the case.

In April 2016, Human Rights Watch called on the Egyptian authorities to legalize independent unions and criticized a draft law that would dissolve independent unions and restrict workers’ rights. The cabinet approved a modified draft in July and sent it to parliament on January 25. The current draft would not recognize existing independent unions and would impose prison sentences for establishing unions that do not follow the new law.

The sharp devaluation of the Egyptian pound also led to strikes in November and December at two privately owned fertilizer companies in the Suez governorate, Egyptian Fertilizers Company and the Egyptian Basic Industries Corporation, the independent news website Mada Masr reported. Police dawn raids ended both sit-ins, and police rounded up at least 55 workers, one worker participating in the sit-in told Human Rights Watch. Central Security Force riot police put the arrested workers inside vans and dropped them in a deserted area three hours later, the worker said. Prosecutors detained two for several weeks before releasing them on bail, and the factory administration dismissed six with no explanation, the worker said. The two factories have no unions.

A representative for the Egyptian Fertilizers Company told Human Rights Watch that police tried for 10 days to convince workers occupying control rooms to leave before “very peacefully” ending the sit-in. The workers returned to work the following morning. He said that halting production was a crime and acknowledged that prosecutors summoned several workers, but said the administration had not made complaints against them during the investigations. Workers denied the administration’s allegations that they stopped the production or occupied the control room.

Dawn raids also led to the arrest of six Public Transport Authority workers from their homes in Cairo on September 24, ahead of a planned strike demanding bonuses. Authorities did not acknowledge their whereabouts for four days, CTUWS leader Kamal Abbas told Human Rights Watch, adding that lawyers had not been allowed to obtain a copy of prosecution documents as required by law. Prosecutors accused the six of joining a banned group that prosecutors did not identify, inciting strikes, and disturbing public order, pro-government news websites reported. Two of the workers remain in pretrial detention, while authorities released four pending investigation.

Egypt’s military has also suppressed workers’ actions. In Alexandria, 26 workers of the military-owned Alexandria Shipyard Company have been on trial before a military court since June 21, 2016. A report by the Egyptian Center for Economic and Social Rights (ECESR) said the workers had organized a brief protest inside the company’s premises on May 23 and 24, to demand bonuses, promotions, and safety equipment and tried to negotiate with General Abd al-Hamid Essmat, the company’s executive.

On May 25, military prosecutors ordered 13 workers held pending investigation. One, a woman, was released on bail. Thirteen others were arrested weeks later. Fatma Ramadan, the head of an independent union and a workers’ rights researcher, told Human Rights Watch that military prosecutors relied entirely on a memo from the company to charge the workers with inciting strikes and abstaining from work. Human Rights Watch was not able to review the memo. After several days, the company allowed 1,100 of 2,800 workers to return, the ECESR said.

The shipyard administration told workers they would be released if they resigned, said Abbas and an ECESR lawyer. All the prosecuted workers resigned and were released on bail in groups in October, November, and December, but they still face trial.

Military prosecutors referred the striking workers to military court under the Military Code of Justice, which covers civilian workers in military-owned institutions and does not establish any workers’ rights. The current draft unions law would not change this.

Egypt’s constitution grants freedom of association and the right to strike. Egypt is a state party to the International Covenant on Economic, Social and Cultural Rights, article 8 of which establishes the right to strike, as well as the right to form and join trade unions and national and international confederations. Egypt is also a member of the International Labour Organization and has ratified its eight fundamental conventions.

Parliament should ensure that the draft union law under consideration meets Egypt’s obligations under international human rights law by allowing free and fair union elections and ensuring straightforward legalization procedures for all existing independent unions. Civilian workers in military institutions should be allowed association rights and should never be tried before military courts.

Human Rights Watch wrote to IFFCO, the Public Transport Authority, and the Alexandria Shipyard Company, regarding the incidents but received no responses.

“Instead of arresting and prosecuting workers, the government should amend its laws to guarantee workers’ rights to effective bargaining and mobilization which are essential to effective economic reform,” Stork said.