If you have been passing by Nile Plaza building this Thursday or Today, you would have noticed on going protests. Naturally I was curious to know what are the reasons of these protests. So after a bit of digging, found it was related to Citadel Capital.
So i did further investigation and went to an insider source within Citadel Capital to understand what exactly is happening.
In a nutshell Citadel Capital has a minority stake in a company that is called Aresco, that deals with cement production.
The protestors were protesting against that Citadel’s subsidiary , Aresco with two demands:
1- Permanent employment contracts, as the majority of them are on temporary contracts, which means they can be terminated at anytime due to turbulent times
2- Increase in wages by 25%
even-though Citadel capital is not the major shareholder, in Aresco, but the protestors went to Citadel to reach out to Heikal. That being said, Heikal himself is not in the country as he is attending the World Economic Forum in Davos right now.
Now my personal input here. Yes, i feel for the employees who are on temp contracts, however Aresco is a company that works based on “work orders” aka “contracts” so what if, for example, it doesnt receive a work order for a while, it will end up just paying salary without making money. That will just put them in loss. Citadel also has to protect itself.
Naturally with our current economic situation, a lot of work and contracts would not be awarded , which naturally will affect employment. That being said, maybe this will be tipping point that would work in the favour of the on going revolution.