Against the privatization of EGF - STAL recalls mayors support

(6 February 2014) In a recent letter sent to the Mayors, EPSU affiliate in Portugal, STAL, stresses that nothing justifies the privatization of EGF, the waste management public company, whose implementation represents a serious blow against the interests of the people and the country, which thus lose control of a strategic and crucial sector for social and economic cohesion of the territory and the quality of life. And EGF is a balanced and financially sustainable company.

Privatization is unjustifiable

In the letter, STAL recalls that "EGF is a profitable group with accumulated profits during the last three years of € 62 million, with an annual turnover close to € 170 million".

"The EGF company controls 65 percent of the national total municipal waste, through the 11 regional public companies of collection, treatment and recovery of waste, created in partnership with the municipalities (174 in total), which serve 63% of the population, employing directly nearly 2000 workers ."

The union also notes that the group has a rich patrimony, "valued at around a billion euros”, advanced technology and skilled workers.
In 2012, EGF investments were around 45 million euros.

Thus, in addition to private sector activity in this sensitive area lead to considerable damages, the deal “which the Government PSD / CDS - PP wants to carry out is most of all ruinous”.

According to data released by the press, the sale of EGF could provide around 200 million euros, a fifth of the actual value of the EGF companies!

The government controls EGF group companies in 51% or more and the municipalities own the rest of the shares. The solution could be the acquisition of the 2% or more of the shares by the municipalities so that would control the companies.

However, the Government is preparing the privatization process that enables private bidders to acquire the EGF and the shares of the municipalities, but does not allow the municipalities to purchase the shares of EGF.

And harmful

With the privatization the municipalities will also face increased pressures to abandon the waste sector, namely their positions in the intermunicipal systems.
The private management will seek to maximize profits through the increase of labor exploitation and raising tariffs to the population, while it tends to favor the most profitable systems at the expense of the less profitable.

Defend the public waste sector

In order to fight against privatization, STAL launched a campaign in defense of public waste services, under which promotes a Petition to the Parliament (www.stal.pt) demanding the maintenance of EGF in the public sector, the defense of municipal services, employment, wages, rights and the improving of working conditions.

In the letter, STAL also recalls that this campaign is already supported by numerous municipalities that are against EGF privatization and determined to assume their responsibilities if the government keep its intention to privatize.