EGYPTIAN AIR TRAFFIC CONTROLLERS STRIKE

UNCLAS CAIRO 003688

SIPDIS

SENSITIVE

E.O. 12958: N/A
TAGS: EAIR CASC OTRA EG
SUBJECT: EGYPTIAN AIR TRAFFIC CONTROLLERS STRIKE

This cable is Sensitive But Unclassified. Please protect
accordingly.


1. (U) Summary: On May 9, Egyptian air traffic controllers
began an air traffic slow down in response to what they
considered low wages and unfair punishments meted out by the
Minister of Civil Aviation, Major General Ahmed Shafik. The
delays reportedly cost upwards of USD 600,000 per day. Such
concerted defiance of a powerful minister is rarely seen in
Egypt. End summary.


2. (U) On the afternoon of May 9, Egyptian air traffic
controllers began to slow down air traffic to and from all
airports in Egypt. Almost all Egyptair flights have been
affected, creating delays of as brief as 20 minutes to as
long as 7 hours. Domestic charters and international flights
are also experiencing significant delays. The delays have
been so long that Lufthansa, Alitalia, and Kuwait Airways
canceled flights. Several companies, including Hungarian Air
Malev Airlines, Royal Jordanian, and Spanish Iberia Airlines,
have requested financial compensation for the delays.
Minister Shafik stated that the Ministry of Civil Aviation
(MCA) is losing about USD 600,000 per day. In the last few
days the slow down has lessened, but flights are still not
back on regular schedules as of May 15.


3. (U) The association of the Egyptian air traffic
controllers (530 members) has long been calling for salary
raises and promotions. Newly employed controllers earn
approximately USD 345 per month while the most experienced
earn USD 638 per month. The association recently asked for a
100 percent raise in salaries over 3 years and Minister
Shafik responded that the 30 percent increase previously
granted was sufficient. Also, with the recent restructuring
of the MCA, the controllers wanted to regain some lost
privileges such as bonuses and discounts on flights and some
high-level MCA management positions previously occupied by
controllers. "Unsatisfactory" medical care for the
controllers and their families is a further aggravation.


4. (U) The recent conflict started when Shafik decided early
last week to penalize eight traffic controllers at Sharm El
Sheikh airport after multiple flights experienced delays of
15 to 20 minutes. The association responded by threatening
to slow down air traffic or even to bring it to a halt if the
punishments of the eight controllers were not lifted and
other salary and benefit demands addressed.


5. (SBU) Minister Shafik took a tough stand. In a press
conference on May 10, he accused association members of being
disloyal to their country and threatened to bring in foreign
traffic controllers if the Egyptian controllers did not
return flights to full operation immediately. (Note: It
would be unlikely that the GOE would permit foreign
controllers in Egypt. More likely, Minister Shafik could
bring in Egyptian military controllers to manage civilian
flights. End note.) The press has reported that Minister
Shafik has already fired three to four controllers and sent a
warning to the association and its director, Magdy Abdel
Hadi.


6. (SBU) Comment: Direct confrontation with a powerful
minister is rarely seen in Egypt. It is unclear whether
Egyptian employees feel empowered by recent public activism
and an increase in the frequency of demonstrations, or if
their grievances alone are deemed sufficient cause to
challenge authority. End comment.


Visit Embassy Cairo's Classified Website:
http://www.state.sgov.gov/p/nea/cairo

You can also access this site through the
State Department's Classified SIPRNET website.

GRAY