One of the most frequently cited case is the dispute between the French company “Veolia” and Egypt. The argument here sounds really shocking – French company sue Egypt for the increase in the minimum wage and wants compensation. This claim would leave any threads of the conspiracy thought – mechanisms for investment protection can be used against the sovereignty of countries and almost prevent the implementation of policies on the labor market, including working conditions, pay, etc. All this, of course, is not true.
The French company – the same one that, incidentally, is the concessionaire of the RWC in Sofia, has a concession for waste collection in the city of Alexandria. Of course, in Egypt as well as in Bulgaria, when you have such a concession, the price of the service is regulated – French company may not impose any price he wants for waste collection. The contract has a clause that says that the price reflects the realities of the market and, if costs increase for objective reasons, then the price for the service should be increased.
What happened in Egypt after the revolution of 2011 that followed a sharp rise in the minimum wage for some public workers. Leaving aside the economic debate whether it was correct or not, no one has occurred and to “ban” on Egypt to take such a step – it is the decision of the State. As you can imagine, the cost of the French company pay jump and the expectation is that it will affect the price of the service. This is not happening. It was there that Veolia sued for compensation that objectively higher costs for collection is not reflected in the price – the claims of the French company venturing into an investment agreement between France and Egypt since the 1975 case of the French company practice for breach of contract for waste collection and has nothing to do with the act of raising the minimum wage – no one has contested only rise. A similar debate in his native fact, for example, disputes between electricity companies and the State Energy and Water Regulatory Commission about which investments / costs to acknowledge what enters into the price of electricity, etc.
The case of the dispute between Veolia and Egypt is still open. Without judgment in one direction or another, it is sufficient to say that this is a case which is presented extremely manipulative as almost “a ban on increases in the minimum wage,” while in fact it is a dispute about the concession contract, such disputes we had in Bulgaria and which originate from specific clauses in this type of contract.