Austerity Policies Are Killing Children in Egypt – CADTM

Report on Labor Rights Violations in Egypt and Their Conflict with Sustainable Development Goals

Executive Summary

A recent incident at the “Linen Group textile” company in Alexandria, resulting in an infant’s death, highlights the severe consequences of national austerity policies on the workforce, particularly women. This event is not an isolated administrative failure but a direct outcome of a systemic economic approach that contravenes multiple Sustainable Development Goals (SDGs). The nation’s compliance with International Monetary Fund conditions, driven by an external debt exceeding $170 billion, has led to policies that erode labor protections and undermine progress towards SDG 1 (No Poverty), SDG 3 (Good Health and Well-being), SDG 5 (Gender Equality), SDG 8 (Decent Work and Economic Growth), SDG 10 (Reduced Inequalities), and SDG 16 (Peace, Justice and Strong Institutions).

Systemic Failures in Achieving Sustainable Development Goals

Violation of SDG 8: Decent Work and Economic Growth

The prevailing economic and political system actively undermines the principles of decent work. A recent wave of labor strikes across Egypt underscores the widespread deterioration of working conditions. The core issues directly conflict with the targets of SDG 8.

• Inhumane Working Conditions: The denial of leave to a mother with a sick infant, leading to the child’s death, is an extreme example of the unsafe and inhumane conditions faced by workers.
• Wage Insecurity: Widespread industrial action has centered on demands for the enforcement of the minimum wage and the timely payment of salaries, indicating a systemic failure to provide fair and regular remuneration.
• Increased Precarity: Austerity policies empower private companies to exploit workers, fostering an environment of job insecurity and precarious employment, contrary to the goal of stable and secure work for all.
• Denial of Basic Rights: The refusal to grant paid leave, a fundamental labor right, demonstrates the erosion of protections essential for decent work.

Impact on SDG 5 (Gender Equality) and SDG 10 (Reduced Inequalities)

The current framework disproportionately harms women workers, exacerbating existing inequalities and directly impeding progress on SDG 5 and SDG 10.

• Compounded Vulnerability: The intersection of gender with economic and social class intensifies the exclusion of women from effective social protection, doubling the risks of economic and social violence.
• Legislative Deficiencies: The new Labor Law has failed to provide sufficient protection for women workers or address their specific vulnerabilities, such as the need for maternal and family care. This legislative gap puts the lives of working women and their children at direct risk.
• Structural Bias: The economic system fosters a hostile work environment for women, where market logic prioritizes profitability over the well-being and rights of female employees, thereby widening gender-based and economic inequalities.

Austerity Policies and the Undermining of SDG 1 (No Poverty) and SDG 3 (Good Health and Well-being)

National economic policies, adopted to manage external debt, have had a direct and detrimental impact on the fundamental goals of eradicating poverty and ensuring public health.

1. State Withdrawal: IMF-mandated conditions have led to the state’s withdrawal from its social role, manifesting in cuts to public spending and subsidies for basic services.
2. Wage Suppression: The freezing of wages and the failure to enforce a living minimum wage trap workers in a cycle of poverty, directly contradicting the objectives of SDG 1.
3. Deadly Consequences: Austerity measures translate into deadly practices. The infant’s death is a stark illustration of how economic pressures can create conditions that violate the right to health and well-being, a cornerstone of SDG 3.

Institutional Weakness and Contradiction of SDG 16: Peace, Justice and Strong Institutions

The state’s response to the labor crisis reveals a structural failure of institutions to uphold justice and protect the rights of vulnerable citizens, in opposition to the aims of SDG 16.

• Bias Against Labor: State institutions have demonstrated a clear bias towards employers, often intervening to break up strikes rather than mediate or enforce legally guaranteed rights like the minimum wage.
• Lack of Accountability: There is a failure to hold corporations accountable for flagrant violations of labor law and human rights, reflecting weak enforcement and oversight mechanisms.
• Erosion of Rights: The state’s retreat from ensuring workers’ rights in favor of market profitability undermines the legal and constitutional safeguards that are essential for a just and equitable society.

Recommendations for Aligning with SDG Commitments

To address these systemic violations and realign national policy with international development commitments, the following actions are urgently required:

1. Re-evaluate Austerity Policies: Economic strategies must be reconsidered to prioritize social protection and public welfare, in line with SDG 1 and SDG 3.
2. Strengthen Legal and Regulatory Frameworks: The Labor Law must be reformed to provide robust protections, especially for women and working mothers, to meet the standards of SDG 5 and SDG 8.
3. Enforce Decent Work Standards: Mechanisms must be activated to ensure the consistent enforcement of minimum wage, timely salary payments, paid leave, and safe working conditions.
4. Promote Institutional Accountability: Both the state and corporations must be held accountable for labor rights violations, strengthening the rule of law as envisioned in SDG 16.
5. Uphold Rights to Organize: The rights of workers to organize, unionize, and be represented in monitoring and enforcement mechanisms must be reaffirmed and protected.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The article highlights several issues that directly connect to multiple Sustainable Development Goals. The analysis reveals connections to the following SDGs:

• SDG 1: No Poverty – The focus on minimum wage and the economic precarity of the working class directly relates to poverty alleviation.
• SDG 3: Good Health and Well-being – The tragic death of an infant due to the mother being denied leave and the overall inhumane working conditions impact the physical and mental well-being of workers and their families.
• SDG 5: Gender Equality – The article specifically emphasizes the disproportionate burden on women workers, their exclusion from social protection, and the failure of the new Labor Law to provide them with sufficient protection.
• SDG 8: Decent Work and Economic Growth – This is the most central SDG, as the entire article revolves around labor rights, including fair wages, safe working conditions, paid leave, and the right to organize.
• SDG 10: Reduced Inequalities – The text points to a “structural bias towards employers,” “unequal and marginalizing power relations,” and austerity policies that worsen the conditions of the most vulnerable classes, all of which are issues of inequality.
• SDG 16: Peace, Justice and Strong Institutions – The article critiques the state’s failure to enforce laws, its intervention to break up strikes, and the passage of legislation that does not protect workers’ rights, indicating a failure of institutional justice and accountability.

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the specific problems and demands mentioned in the article, the following SDG targets can be identified:

1. SDG 1: No Poverty

   • Target 1.3: Implement nationally appropriate social protection systems and measures for all. The article mentions the “exclusion from any effective social protection network,” particularly for women, which directly contradicts this target.

2. SDG 5: Gender Equality

   • Target 5.4: Recognize and value unpaid care and domestic work through the provision of public services… and social protection policies. The incident of the working mother whose infant died because she was denied leave highlights a critical failure in social protection for working mothers, who bear a dual burden of work and care.

3. SDG 8: Decent Work and Economic Growth

   • Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men… and equal pay for work of equal value. The workers’ demands for a “minimum wage” and “timely salary payments” are central to achieving this target.
   • Target 8.8: Protect labour rights and promote safe and secure working environments for all workers… and those in precarious employment. The article’s core theme is the violation of this target, citing “inhumane working conditions,” the “precarity of workers’ conditions,” the denial of “paid leave,” and the need to reaffirm “rights to organize and unionize.”

4. SDG 10: Reduced Inequalities

   • Target 10.4: Adopt policies, especially fiscal, wage and social protection policies, and progressively achieve greater equality. The article critiques “austerity policies,” “freezing wages,” and the state’s failure to enforce the “minimum wage,” all of which are policies that exacerbate inequality rather than reduce it.

5. SDG 16: Peace, Justice and Strong Institutions

   • Target 16.7: Ensure responsive, inclusive, participatory and representative decision-making at all levels. The call to “include workers’ representatives, both men and women, in monitoring and enforcement mechanisms” is a direct appeal for the kind of inclusive decision-making this target promotes.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions or implies several indicators that can be used to measure progress:

1. Indicators for Decent Work (SDG 8)

   • Minimum Wage Enforcement: The article explicitly mentions the “minimum wage” as a central demand of striking workers and criticizes the state’s failure in its “consistent enforcement.” The proportion of the workforce earning below the statutory minimum wage would be a direct indicator.
   • Access to Paid Leave: The denial of “paid leave” is a key issue. The percentage of the workforce with access to paid leave, particularly maternity and family leave, is a measurable indicator.
   • Frequency of Labor Disputes: The article notes a “wave of labor strikes.” The number of strikes and workers involved can serve as an indicator of poor working conditions and unresolved labor grievances.
   • Freedom of Association: The call to reaffirm “rights to organize and unionize” implies that these rights are suppressed. Union density and legal protections for organizing are key indicators.
   • Timely Wage Payments: The demand for “timely salary payments” suggests that wage arrears are a problem. The frequency and extent of delayed wage payments can be tracked as an indicator.

2. Indicators for Gender Equality (SDG 5)

   • Legal Protections for Working Mothers: The article states the new Labor Law “failed to… provide sufficient protection for women workers.” The existence and enforcement of laws guaranteeing rights like maternity leave and nursing breaks are crucial indicators. The tragic death of the infant serves as a stark qualitative indicator of the failure of these protections.

3. Indicators for Reduced Inequalities (SDG 10)

   • Social Spending: The article criticizes austerity policies that involve “cutting public spending” and “reducing subsidies for basic services.” The level of government spending on social protection as a percentage of the national budget is a relevant indicator.

4. Summary Table of SDGs, Targets, and Indicators

Source: cadtm.org