Rising labor cost differences between Türkiye and Egypt have triggered unrest within Turkish-owned textile operations in Egypt, highlighting the growing complexity of cross-border production strategies.
Following Türkiye’s recent minimum wage increase, companies that had shifted part of their manufacturing operations to Egypt to control costs are now facing unexpected social tension. The latest development involves strike action at factories operated by Yeşim Tekstil in Egypt.
Turkish Investment Builds Major Manufacturing Network in Egypt
Yeşim Tekstil, a supplier to global brands including Nike, Under Armour, Tommy Hilfiger, and Lacoste, was among the first major Turkish textile investors in Egypt.
Operating under the name Jade Textile Egypt, the company opened its first factory in Borg El Arab in 2008. This was followed by:
- A new facility in 10th of Ramadan City (2009)
- A second factory in Borg El Arab (2018)
- A production site in Ismailia (2018)
Two additional plants established in subsequent years
Today, the company employs thousands of workers across its Egyptian facilities, forming one of the most significant Turkish manufacturing footprints in the country.
Also Read: Egypt Emerges as Fastest-Growing Market for Turkish Textile Exports in 2025
Minimum Wage Gap Triggers Strike
At the beginning of 2026, Türkiye’s minimum wage increased to approximately USD 655 per month, while wage adjustments in Egypt remained significantly lower. Reports indicate that workers in Yeşim’s Egyptian factories received an increase of around 800 Egyptian pounds, bringing the average monthly salary to approximately 6,500 EGP.
Workers demanded that wages be raised to at least 10,000 EGP, arguing that compensation levels should reflect their contribution to the same multinational supply chain.
The strike initially began at the 10th of Ramadan facility, where around 6,000 workers reportedly stopped work. Shortly after, employees at the Ismailia plant joined the protest.
Escalation and Police Presence
According to Egyptian media reports, tensions intensified after factory transportation services were reportedly suspended. Some workers described this as an attempt to weaken the strike, prompting them to seek alternative ways to reach the plants.
Police presence was subsequently reported around the facilities.
In a statement to Egypt’s Al Manassa newspaper, one worker expressed frustration over wage disparities:
“We are asking for even half of what workers in Türkiye earn. Aren’t we colleagues? We work for the same company.”
A Broader Question for the Textile Industry
The situation raises important questions about global supply chain strategies in the textile sector. While relocating production to lower-cost countries has long been a common cost-control strategy, rising transparency and worker awareness are making wage comparisons increasingly visible.
As textile companies expand internationally, managing not only operational efficiency but also wage expectations and labor relations will become critical to long-term sustainability.
The developments in Egypt may signal a turning point, reminding industry players that cost optimization strategies must also consider social stability and workforce equity.
