Workers guaranteed jobs and pensionsGovernment sells Aden steel factory [Archives:2003/693/Business & Economy]

December 8 2003

The council of ministers in Yemen, as part of the privatization of public projects in Yemen, has approved the restructuring of Al-Thawra factory for steel industries in the governorate of Aden.
The decision stipulates privatization of the factory for the leaseholder under conditions of accommodating all employees of the factory.
The conditions also include guarantees their jobs with all their legal rights and terms of social securities as well as pensioning those at the age of retirement.
The council of ministers also approved restructuring the State Establishment of Agricultural Services.
A committee will propose the best way for privatization of this establishment, after annexing the factory of agricultural implements in Aden, and the unit of digging in the governorate of Seiyoun.
The committee would carry out the redrafting of goals of the establishment and its organizational structure and necessary arrangements for the labour force.
This comes in completion of the privatization program the government is implementing, started in 1997, including the selling of some public installations to get rid of their financial burdens and upgrading their production.
Nevertheless it is noted that the program is progressing with slow steps and under some official cautions aimed at gradual application of the program especially to avoid its social consequences resulting from deterioration of local labour situations and aggravation of unemployment problems.
The Yemeni privatization program has included a number of factories producing dairies, other food products, shoes and some tourist institutions, and submitting the state property for partial contribution in some ports and establishments.
The World Bank says the privatization program in Yemen would help the country overcome financial problems and additional burdens the state budget is bearing.
In its implementation, the program is facing up much protest by Yemeni opposition that thinks the liquidation of state ownership of public establishments would not help the national economy progress.