Tekel
Encyclopedia
Tekel, is a Turkish tobacco company. It was nationalised in 1925 from a French company, the "Regie Compagnie interessee des tabacs de l'empire Ottoman". Tekel evolved into the sole manufacturer and distributor of all alcohol and tobacco products in Turkey. Today, Tekel is no longer a monopoly but it does control taxing and distribution of all alcohol
and tobacco
products in Turkey. In 2008 it was sold to British American Tobacco
.
was an important industrial crop, where its cultivation and manufacture were monopolies under capitulations of the Ottoman Empire
. The tobacco and cigarette trade was controlled by two French companies the "Regie Compagnie interessee des tabacs de l'empire Ottoman", and "Narquileh tobacco." These companies founded as a monopoly in 1862 by the Ottoman
government for the payment of its international debt. Original purpose of the company was to deal with tobacco products. It later became a part of an even greater monopoly, REJI, which controlled all trade, finance, and manufacturing in the empire .
For the first time in 1862, via commercial agreements between Ottoman Government, France and Britain, tobacco importation has been prohibited and monopoly has been established.
In accordance with the “Rusumu Sitte” Decree published in 1879, the monopoly income of salt, tobacco and alcohol have been left for first to foreign bankers and later to “Duyun-u Umumiye (Public Debts)”. Later on, the operation of the Tobacco Monopoly has been transferred to “Memaliki Osmaniye Duhanları Müşterek Menfaa REJI Şirketi”.
The duty of performing the “monopoly” tasks regarding Tobacco, Alcohol drinks, Salt, Gunpowder and explosives has been appointed to the Monopolies Public directorate founded in 1932.
Tobacco, alcohol drinks and salt have been taken under the state monopoly in the year 1932, gunpowder and explosives in 1934, beer in 1939, tea and coffee in 1942, and matches in 1946. Coffee has been released from the State monopoly in 1946, matches in 1952, gunpowder and explosives and beer in 1955 and tobacco in 1986.
pushed through controversial legislation which would allow for the privatisation of Tekel.
In January 2003, then Turkish Deputy Prime Minister Abdullatif Sener
announced plans to privatise Tekel in the first half of the year, as part of a $16bn loan agreement with the International Monetary Fund
(IMF), stating, "These are privatisations which have been planned for years and should have been taken care of a long time ago." He promised that the jobs of workers affected by the privatisations would be safeguarded but warned unprofitable businesses would be closed down.
These privatisation plans were dropped in November of that year when the leading $1.15bn bid by Japan Tobacco International
was deemed too far below government expectations. Turkey's operating environment, perceived problems with regulation, and competition with major players such as Philip Morris
and Japan Tobacco International, already active in the Turkish market, were thought by analysts to have lowered the bids.
Tekel was eventually bought by the UK-based British American Tobacco
(BAT) in a televised auction on 22 February 2008 for $1.72bn, making it the second largest tobacco company in the country with a 36% market share.
where they were forced off with teargas and pepper spray fired by riot police. They subsequently reestablished their camp in front of the head office of Turkey's main trade union organisation, Confederation of Turkish Trade Unions (Türk-İş). The protestors have engaged in public demonstrations outside the headquarters of the ruling Justice and Development Party
(AKP) and several protestors have been admitted to hospital after refusing food and water.
Media images of the protests have provoked angry rows in the Turkish parliament and analysts believe the situation has inflicted political damage on a government heavily reliant on conservative working-class support but Turkish Prime Minister Recep Tayyip Erdogan
said the government would not "dole out money to workers for not producing anything" and challenged the protestors, who he claims are being influenced by "ideological groups and extremists" who had turned it into an "anti-government campaign," to start their own businesses and ordered Finance Minister Mehmet Şimşek
and Labour Minister Hayati Yazıcı
to find a formula to resolve the dispute.
On 4 February 2010 tens of thousands of Turkish workers took part in a one day general strike organised by Türk-İş in support of the protest. Public services including transport were disrupted across the country and the largest demonstrations were reported in Ankara (20,000 demonstrators) and Izmir (15,000 demonstrators).
Alcohol
In chemistry, an alcohol is an organic compound in which the hydroxy functional group is bound to a carbon atom. In particular, this carbon center should be saturated, having single bonds to three other atoms....
and tobacco
Tobacco
Tobacco is an agricultural product processed from the leaves of plants in the genus Nicotiana. It can be consumed, used as a pesticide and, in the form of nicotine tartrate, used in some medicines...
products in Turkey. In 2008 it was sold to British American Tobacco
British American Tobacco
British American Tobacco p.l.c. is a global tobacco company headquartered in London, United Kingdom. It is the world’s second largest quoted tobacco company by global market share , with a leading position in more than 50 countries and a presence in more than 180 countries...
.
Foundation and early history
Turkish tobaccoTurkish tobacco
Turkish tobacco or Oriental tobacco is a highly aromatic, small-leafed variety of tobacco which is sun-cured. Historically, it was cultivated primarily in Thrace and Macedonia, now divided among Greece, Bulgaria, the Republic of Macedonia, and Turkey, but it is now also grown on the Black Sea...
was an important industrial crop, where its cultivation and manufacture were monopolies under capitulations of the Ottoman Empire
Capitulations of the Ottoman Empire
Capitulations of the Ottoman Empire were contracts between the Ottoman Empire and European powers, particularly France. Turkish capitulations, or ahdnames, were generally bilateral acts whereby definite arrangements were entered into by each contracting party towards the other, not mere...
. The tobacco and cigarette trade was controlled by two French companies the "Regie Compagnie interessee des tabacs de l'empire Ottoman", and "Narquileh tobacco." These companies founded as a monopoly in 1862 by the Ottoman
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...
government for the payment of its international debt. Original purpose of the company was to deal with tobacco products. It later became a part of an even greater monopoly, REJI, which controlled all trade, finance, and manufacturing in the empire .
For the first time in 1862, via commercial agreements between Ottoman Government, France and Britain, tobacco importation has been prohibited and monopoly has been established.
In accordance with the “Rusumu Sitte” Decree published in 1879, the monopoly income of salt, tobacco and alcohol have been left for first to foreign bankers and later to “Duyun-u Umumiye (Public Debts)”. Later on, the operation of the Tobacco Monopoly has been transferred to “Memaliki Osmaniye Duhanları Müşterek Menfaa REJI Şirketi”.
The duty of performing the “monopoly” tasks regarding Tobacco, Alcohol drinks, Salt, Gunpowder and explosives has been appointed to the Monopolies Public directorate founded in 1932.
Tobacco, alcohol drinks and salt have been taken under the state monopoly in the year 1932, gunpowder and explosives in 1934, beer in 1939, tea and coffee in 1942, and matches in 1946. Coffee has been released from the State monopoly in 1946, matches in 1952, gunpowder and explosives and beer in 1955 and tobacco in 1986.
Privatisation
In the early 2000s, then Turkish Prime Minister Bülent EcevitBülent Ecevit
Mustafa Bülent Ecevit was a Turkish politician, poet, writer and journalist, who was the leader of Republican People's Party , later of the Democratic Left Party and four-time Prime Minister of Turkey.- Personal life :...
pushed through controversial legislation which would allow for the privatisation of Tekel.
In January 2003, then Turkish Deputy Prime Minister Abdullatif Sener
Abdüllatif Sener
Abdüllatif Şener is a former Finance Minister in the 54th cabinet of the Turkish Government and served as the Deputy Prime Minister in the 58th and 59th cabinets of Recep Tayyip Erdoğan....
announced plans to privatise Tekel in the first half of the year, as part of a $16bn loan agreement with the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...
(IMF), stating, "These are privatisations which have been planned for years and should have been taken care of a long time ago." He promised that the jobs of workers affected by the privatisations would be safeguarded but warned unprofitable businesses would be closed down.
These privatisation plans were dropped in November of that year when the leading $1.15bn bid by Japan Tobacco International
Japan Tobacco
, abbreviated JT, is a cigarette manufacturing company. It is part of the Nikkei 225 index. In 2009 the company was listed at number 312 on the Fortune 500 list. The company is headquartered in Toranomon, Minato, Tokyo. The international headquarters are in Geneva, Switzerland.-History:The company...
was deemed too far below government expectations. Turkey's operating environment, perceived problems with regulation, and competition with major players such as Philip Morris
Philip Morris USA
Philip Morris USA is the United States tobacco division of Altria Group, Inc. Philip Morris USA brands include Marlboro, Virginia Slims, Benson and Hedges, Merit, Parliament, Alpine, Basic, Cambridge, Bucks, Dave's, Chesterfield, Collector's Choice, Commander, English Ovals, Lark, L&M, Players and...
and Japan Tobacco International, already active in the Turkish market, were thought by analysts to have lowered the bids.
Tekel was eventually bought by the UK-based British American Tobacco
British American Tobacco
British American Tobacco p.l.c. is a global tobacco company headquartered in London, United Kingdom. It is the world’s second largest quoted tobacco company by global market share , with a leading position in more than 50 countries and a presence in more than 180 countries...
(BAT) in a televised auction on 22 February 2008 for $1.72bn, making it the second largest tobacco company in the country with a 36% market share.
2009-2010 industrial action
In December 2009, following the privatisation, the Turkish government announced that 12 Tekel factories would close with the 10,000 workers redeployed in other public sector jobs on 11-month temporary contracts (4/C status) with pay-cuts up to 40% and reduced employment rights. This sparked industrial action, which began on 15 December, by the workers who claimed the changes would cut their monthly wage and leave them without any severance pay. An estimated 12,000 workers from across the country set up camp in a central park in AnkaraAnkara
Ankara is the capital of Turkey and the country's second largest city after Istanbul. The city has a mean elevation of , and as of 2010 the metropolitan area in the entire Ankara Province had a population of 4.4 million....
where they were forced off with teargas and pepper spray fired by riot police. They subsequently reestablished their camp in front of the head office of Turkey's main trade union organisation, Confederation of Turkish Trade Unions (Türk-İş). The protestors have engaged in public demonstrations outside the headquarters of the ruling Justice and Development Party
Justice and Development Party (Turkey)
The Justice and Development Party , abbreviated JDP in English and AK PARTİ or AKP in Turkish, is a centre-right political party in Turkey. The party is the largest in Turkey, with 327 members of parliament...
(AKP) and several protestors have been admitted to hospital after refusing food and water.
Media images of the protests have provoked angry rows in the Turkish parliament and analysts believe the situation has inflicted political damage on a government heavily reliant on conservative working-class support but Turkish Prime Minister Recep Tayyip Erdogan
Recep Tayyip Erdogan
Recep Tayyip Erdoğan has been Prime Minister of Turkey since 2003 and is chairman of the ruling Justice and Development Party , which holds a majority of the seats in the Grand National Assembly of Turkey. Erdoğan served as Mayor of Istanbul from 1994 to 1998. He graduated in 1981 from Marmara...
said the government would not "dole out money to workers for not producing anything" and challenged the protestors, who he claims are being influenced by "ideological groups and extremists" who had turned it into an "anti-government campaign," to start their own businesses and ordered Finance Minister Mehmet Şimşek
Mehmet Simsek
Mehmet Şimşek was born 1 January 1967, from a Turkish family of Kurdish descent in the city of Batman, Turkey.He is the Minister of Finance of Turkey in the cabinet of re-elected Prime Minister Recep Tayyip Erdoğan. He was elected to the Parliament for Gaziantep in the general election on July 22,...
and Labour Minister Hayati Yazıcı
Hayati Yazici
Hayati Yazıcı is a Turkish lawyer and politician. He is currently one of Turkey's Minister of State.Hayati Yazıcı graduated 1975 from the School of Law at Istanbul University and served as judge in several towns...
to find a formula to resolve the dispute.
On 4 February 2010 tens of thousands of Turkish workers took part in a one day general strike organised by Türk-İş in support of the protest. Public services including transport were disrupted across the country and the largest demonstrations were reported in Ankara (20,000 demonstrators) and Izmir (15,000 demonstrators).