The industrial society is waiting for the end of the Council of State to review and draft the new law of the Union of Industries and Chambers of Industry, which aims to maximize the role of the Union as a business organization, rather than the two republican decisions regulating its work.
The draft law was adopted by the Industry Committee in the House of Representatives in the previous session under the chairmanship of Eng. Ahmed Samir, and it was discussed and extended discussions with all concerned parties. The Committee completed its discussions in the current session under the chairmanship of Engineer Mohamed Faraj Amer, , Which was approved in principle and referred to the Council of State to ensure that there is no conflict between the provisions of the articles and that their articles do not conflict with other relevant legislation.
It is expected that the law will be presented to the House of Representatives at a final session after being referred by the Council of State. A transitional text was drafted in the draft law to extend the current session of the Federation of Industries and Chambers of Industry for one year until the end of September 2020 instead of September 2019 in order to discuss the details of the executive regulations and take the procedures for the electoral process with the industrial chambers.
Al-Wafd discussed the details of the new law and its expected effects with Eng. Mohamed El Sewedy, President of the Federation of Egyptian Industries, which revealed that it was not acceptable for the Federation of Industries and Industrial Chambers to continue to be subject to two republican decisions issued in 1958. Most of the establishments in the industrial sector were public establishments owned by the Ministry of Industry, The present situation, which represents the private sector 95% of the industrial base.
Al-Suwaidi revealed that the basic philosophy of the new law is that the union represents the interests of its members and elects the president and the proxy through candidates from the industry instead of being appointed in the current law. He said that the first session after the promulgation of the law would be a different situation through a transitional procedure where the minister will choose the president of the union and its agents according to nominations for three people in each position. In the next sessions, the president and his deputies will be elected.
He explained that the law came out of the idea of sectoral representation of the Board of Directors of the Chambers on the basis of the people to representation at the level of size so that four members of the Board of Directors of each room are selected from each of the small and medium industries and large, and the purpose is to achieve the fairness of representation and comprehensiveness of the various enterprises of different sizes because the challenges Companies and their needs vary from one segment to another.
On the fear of this transformation, he said that this concern is misplaced because it is in the interest of all chambers that the international industrial companies in Egypt have an active role in the rooms they follow. It is also in their interest to encourage small industries that have long operated under the informal economy to take Of the rooms have an official umbrella, which will help in the reorganization of the industry to operate industrial cluster system Industrisl Clusters where industries are integrated and interdependent within the value chain.
As for the absence of large industries in some rooms due to the current situation, Eng. El Sewedy stressed that the philosophy of law is flexible and deals with the matter according to the reality. If it is not possible to have a large segment of establishments in the general assemblies in an electoral cycle, The sector has attracted international companies to invest in Egypt or there have been mergers between some of the enterprises to form a larger entity.
Al-Suwaidi explained that the new law does not neglect the importance of the quality people and that the member of the board represents the interests of the general industry represented by the chamber without bias to its own division. He explained that keeping the role of the people as specialized committees is a technical reference for the room. .
He also explained that the new law has made the duration of one session of a board of directors
The Federation and the Federation are 4 years instead of 3 years to be sufficient to implement programs that have a significant impact especially since the preparation of the elections consumes up to nine months of preparation and procedural arrangements. Will be a maximum of two sessions in order to provide the opportunity for new blood a new card and confirmation that this capacity is a voluntary work leads by the cost of his role for a specific period and then allow others to complete the process of giving.
He pointed out that the law stipulates that the membership of industrial chambers is mandatory and not optional, as is the case in other unions and organizations. He stressed that the patterns and forms of business organizations in the world have been extensively studied and found to have been embodied in three main patterns.
The Swedes identified these models as the European model, the Anglo-Saxon model and the mixed system.
He said that the European model, such as Germany, France, Italy, and Egypt where the rooms are governed by a general law and has a regulatory relationship with the government and provide advice and sometimes services in partnership with it and membership mandatory.
In the Anglo-Saxon model, as in America, Britain and Canada, where the work of the organizations is not regulated by a general law but a list and membership is voluntary. The organization can include individual members such as doctors and lawyers with establishments, and every individual or group of individuals has the right to establish a room. Governmental organizations.
The mixed system is found in countries such as Brazil and Japan, and its features are mixed in the two previous models, but in general the most common system is the European system.
Eng. Mohamed El Sewedy concluded that the draft law of the Union has remained a dream for the Union and its leaders through several sessions of the history of the Union without the realization of action on the ground to take this important step, but the Union has found the appropriate climate in the process of comprehensive and bold reform adopted by the political leadership It encouraged the Union to seek to rectify its organizational situation, especially with the increasing role and alliances of the Organization at the global level, both through membership in global gatherings such as the International Employers Organization, the Federation of Mediterranean Business Organizations, the COM Business Council The International Business Alliance, or through its relations with corresponding business organizations under cooperation agreements such as the German, Indian, Italian, Danish, Indian and French industries and other organizations with regulatory status as the Union targets through its new law.