Egypt gives 15% raise to state employees

EGYPT’S embattled regime yesterday announced a 15% raise for government employees in an attempt to shore up its base and defuse popular anger amid ongoing protests demanding President Hosni Mubarak’s ouster.

The cabinet decision follows earlier promises to investigate election fraud and official corruption as well as an announcement that a detained Google executive, who was one of the most prominent youth organisers, would be released later last night.

Wael Ghonim, a marketing manager for the internet company, was seized by security agents on January 28, three days after the crisis erupted.

The gestures so far have done little to persuade the tens of thousands occupying Tahrir Square to end their two-week protest, leaving the two sides in an uneasy stalemate.

The protesters have vowed to stay put until Mubarak steps down.

Newly-appointed Finance Minister Samir Radwan said some 6.5 billion Egyptian pounds (€710 million) will be allocated to cover the salary and pension increases, which will take effect in April for the six million people on public payrolls.

“We don’t trust him and he’s a liar — he’s made many promises in the past,” said Salih Abdel-Aziz, an engineer with a public sector company.

“He could raise it 65% and we wouldn’t believe him.

As long as Mubarak is in charge then all of these are brittle decisions that can break at any moment.”

Public sector employees have been a pillar of support for the regime, but their salaries have stagnated in recent years as prices have soared, forcing the government to periodically announce raises to quell dissatisfaction.

Following widespread labour unrest in public sector factories in 2008, Mubarak announced a 30% increase in prices that appeared to temporarily blunt public anger at the time.

The regime appears confident in its ability for the moment to ride out the unprecedented storm of unrest, and maintain its grip on power, at least until September, but it has made a number of moves in response to protesters’ demands.

Egypt’s vice president Omar Suleiman also met several major opposition groups, including the outlawed Muslim Brotherhood, for the first time on Sunday and offered new concessions including freedom of the press, release of those detained during the protests and the eventual lifting of the states emergency laws.

Egypt’s state-run news agency reported yesterday Mubarak ordered the country’s parliament and its highest appellate court to re-examine lower-court rulings disqualifying hundreds of ruling party lawmakers for campaign and ballot irregularities, that were ignored by electoral officials — possibly paving the way for new elections.

The ruling National Democratic Party won more than 83% of the 518 seats in the parliamentary elections last year, which were widely condemned as being rigged.

Judicial officials also promised to start the questioning today of three former ministers and a senior ruling party official accused of corruption charges after they were dismissed by Mubarak last week. The cabinet reshuffle was intended to placate protesters by removing some of the most hated government officials.

Meanwhile, the city enjoyed the most normal day since the unrest began. Banks and many shops opened for limited hours. Traffic was returning to normal and night curfew was relaxed to begin at 8pm.