The 'Brotherhoodization' of Egypt and its unions

Issandr El Amrani, the main writer behind The Arabist, has been posting occasional links and thoughts on the Brotherhoodization of Egyptian institutions, real and imagined, since the election of the Muslim Brotherhood's Mohamed Morsi as president.
A few days ago he pointed to the failure of Egypt's new constitution to devolve powers from Egypt's traditionally strong central state to the provinces and the power that gives to President Morsi and his appointees to control politics at the local level. In Egypt's recent cabinet reshuffle what caught his eye in particular was the appointment of Brotherhood stalwart Mohamed Beshir as minister of local development, since he was given an expanded role in selecting governors, who are appointed, not elected, in Egypt. An article in Al-Masry Al-Youm ("Egypt Today") says Beshir's ministry is currently planning on changing eight Egyptian governors, with the new officials coming from the ranks of the Brotherhood's Freedom and Justice Party and Salafi Al Nour Party.
"This is probably a more significant move than the cabinet shuffle. Governors have tremendous powers in Egypt, particularly ahead of an election. That all come from politics — the FJP and Nour parties — rather than the senior civil service, police, universities etc. as was the case under Mubarak is a striking change. It will certainly fuel the accusations of "Brotherhoodization" of the state, this time with some merit. Constitutionally, President Morsi has the right to appoint governors or delegate that privilege. It's one of the many shames of the new constitution it does not include mechanisms for direct election of governors and the empowerment of local government."
Today he flags a new piece by Joel Beinin, a historian of Egyptian labor and industrialization at Stanford University, which reinforces the sense that Morsi and the leaders of the Brotherhood are seeking to adapt the institutions and methods of Mubarak's Egypt to their own rule, rather than fundamentally change the top-down way the country has almost always been governed.
Beinin writes that on Nov. 25, Morsi issued a presidential decree on labor unions that received scant attention in the press, coming as it did on the heels of a decree that issued him broad powers designed to help him rush through Egypt's new constitution. That earlier decree sparked clashes and a political stand-off that ended in a Brotherhood victory when the constitution was passed. But Decree 97 of 2012 could have far reaching implications for how Egypt is governed going forward.
The decree governs how the leaders of Egypt's state-controlled Egyptian Federation of Trade Unions (ETUF) will be chosen, and could lead to Brotherhood packing the government-sponsored sub-unions with their own men.
"The decree also authorizes Minister of Manpower and Migration Khalid al-Azhari of the Muslim Brotherhood’s Freedom and Justice Party to appoint replacements to vacant trade union offices if no second-place candidate exists. State security officials banned thousands of opposition trade unionists from running in 2006, so hundreds of candidates ran unopposed. Thus, as many as 150 Muslim Brothers could be appointed to posts in ETUF’s 24 national sector unions, while 14 of 24 executive board members will be sacked," Beinin writes.
He continues:
Decree 97 also extends the terms of incumbent union office-holders for six months or until the next ETUF elections (whichever comes first). Muslim Brothers and ETUF old guard figures will supervise those elections and likely confirm their joint control over the organization. This is characteristic of the Muslim Brotherhood’s recent political practice. Rather than reform institutions and power centers of the Mubarak regime, it has sought to extend its control over them. But as in other spheres, they do not have a concrete program or enough trained personnel to manage ETUF. Therefore, they are dividing control of the organization with Mubarak era figures. Their common interest is first and foremost bureaucratic—to maintain their positions. The Brothers also seek to limit the extent of independent trade unionism, as it constitutes a potential opposition to their free market ideology.
That last sentence is worth emphasizing, since it's a point often missed about the Brothers in the West. The movement's economic ideology is largely free market capitalist, and strong independent trade unionism as about the furthest thing from the minds of the movement's leaders.
Beinin points out there were 3,150 strikes and other workers actions in the first eight months of last year, and with Egypt currently negotiating an austerity program in exchange for a $4.8 billion loan from the International Monetary Fund, the chance for more unemployment and labor unrest is high.
In hindsight, an unprecedented wave of wildcat strikes across Egypt that started in the middle of the last decade helped set the stage for the uprising against Hosni Mubarak in 2011. While it looks clear that the new government, just like the old one, will seek to push labor organization into easily controlled government proxies, stuffing the genie back into the bottle may prove difficult.
In 2007, I quoted American University in Cairo Political Science Professor Mohammed Kamel al-Sayyid in a piece on the then-blossoming strike wave, which was being fueled by IMF-urged policies that had sped up economic growth, but left wages stagnant and unemployment high.
Mohammed Kamel al-Sayyid, a political science professor at the American University in Cairo, says the country's labor unrest could, over the long term, prove one of the greatest threats to the stability of the system, as a generation of Egyptians brought up to count on government jobs for life confront a new reality.
"This unprecedented wave of worker strikes certainly seems connected to the government's liberalization policies," he says. "I'm not saying there's going to be a revolution, but there's this ongoing process of deterioration in public trust. How many cops do you have to put on the streets to counter all this public frustration?"
Those risks, clearly, remain today. And now it is Morsi and the Muslim Brotherhood's problem.
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Japan to boost military budget amid regional tensions

Japan's Defense Ministry will request a second boost to its military budget, according to reports, just a day after the government announced the first Defense budget increase in 10 years. The boosts, although relatively modest compared with Japan's overall defense spending, coincide with increasing tensions in the Asia Pacific region.
Japan's Defense Ministry intends to ask for 180.5 billion yen ($2.1 billion) from a government stimulus package – on top of an increase of more than 100 billion yen ($1.1 billion) to its military budget announced earlier this week – in order to upgrade its air defenses, according to the BBC.
"We will request 180.5bn yen to be allocated to military spending from a stimulus package," a defence ministry spokesman told Agence-France Presse news agency.
He said that part of it would fund the purchase of PAC-3 surface-to-air anti-ballistic missile systems and modernise four F-15 fighter jets.
The defence ministry spokesman said the funds were needed "to prepare for the changing security environment surrounding Japan".
The budgetary shifts are relatively modest – both increases are dwarfed by the government's 4.65 trillion yen ($53 billion) defense budget – but are still noteworthy as a reverse course from the past decade, which has seen a steady decrease in Japan's defense spending, notes the BBC.
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Kazuhiko Togo, director at the Institute for World Affairs of Kyoto Sangyo University, told Agence France-Presse that the military budget increases were the direct result of tensions over a set of islands – known as Senkaku to the Japanese and Daiyou to the Chinese – claimed both by Tokyo and Beijing. The islands have been at the root of increasingly testy relations between the two countries, as they sit amid a region of the East China Sea believed to be home to large oil and natural gas deposits that both nations covet.
“China has publicly said it would seize the islands by force if necessary and acted as such. To avoid a possible armed clash, Japan has no choice but to possess deterrence by boosting its defence budget,” he said.
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The Yomiuri Shimbun reports that the budgetary increase is needed to fund upgrades to materiel, as much of the budget is dedicated to salaries and food for personnel. "Continued decreases in defense spending [as in years past] would make it difficult for the SDF [Self-Defense Forces] to procure aircraft, vessels and other necessary equipment," it reports.
Bloomberg Business Week reports that according to documents distributed by the Defense Ministry, Japan also plans to use the budget increase to upgrade several F-15 fighters and purchase more missile interceptors.
The budgetary increases may also go toward exploring a drone program in Japan. The Guardian reports that China has been expanding its drone capabilities in recent months, nominally for surveillance, though experts warn future drone skirmishes with Japan are a strong possibility.
China unveiled eight new models [of domestically developed drones] in November at an annual air show on the southern coastal city Zhuhai, photographs of which appeared prominently in the state-owned press. Yet the images may better indicate China's ambitions than its abilities, according to Chang: "We've seen these planes on the ground only — if they work or not, that's difficult to explain."
Japanese media reports said the defence ministry hopes to introduce Global Hawk unmanned aircraft near the disputed islands by 2015 at the earliest in an attempt to counter Beijing's increasingly assertive naval activity in the area. ...
The Kyodo news agency quoted an unnamed defence ministry official as saying the drones would be used "to counter China's growing assertiveness at sea, especially when it comes to the Senkaku islands".
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Freed Iranians arrive in Damascus after prisoner swap

DAMASCUS/ISTANBUL (Reuters) - Forty-eight Iranians freed by Syrian rebels in exchange for more than 2,000 civilian prisoners held by the Syrian government arrived in central Damascus on Wednesday, a Reuters witness reported.
The Syrian government has not referred to the prisoner swap and the whereabouts of the civilian prisoners was not immediately known.
Opposition groups accuse it of detaining tens of thousands of political prisoners during his 12 years in office and say those numbers have spiked sharply during the 21-month-old civil war.
The Syrian rebel al-Baraa brigade seized the Iranians in early August and initially threatened to kill them, saying they were members of Iran's elite Islamic Revolutionary Guard Corps sent to fight for President Bashar al-Assad.
The Islamic Republic, one of his staunchest allies, denied this, saying they were Shi'ite Muslim pilgrims visiting shrines, and it asked Turkey and Qatar to use their connections with Syrian insurgents to help secure their release.
The freed Iranians arrived at a Damascus hotel in six small buses, looking tired but in good health, each carrying a white flower, and they were welcomed by Iranian Ambassador Mohammad Reza Sheibani. They did not speak to reporters.
Bulent Yildirim, head of the Turkish humanitarian aid agency IHH which helped broker the deal, told Reuters by telephone from Damascus shortly beforehand that the reciprocal release of 2,130 civilian prisoners - most of them Syrian but also including Turks and other foreign citizens - had begun.
Syrian government forces have struck local deals with rebel groups to trade prisoners but the release announced on Wednesday was the first time non-Syrians were freed in an exchange.
The Damascus government has periodically freed hundreds of prisoners during the conflict but always stressed such detainees "do not have blood on their hands."
Given the number of political prisoners held during the course of Assad's rule, missing persons became a key issue when street protests against him first erupted in March 2011.
Turkey is one of Assad's fiercest critics, a strong backer of his opponents and proponent of international intervention. It has denounced Iran's stance during the Syrian uprising, which has killed around 60,000 people according to a U.N. estimate.
Turkey, Gulf Arab states, the United States and European allies support the mainly Sunni Muslim Syrian rebels, while Shi'ite Iran supports Assad, whose Alawite minority is an offshoot of Shi'ite Islam.
A pro-government newspaper said on December 31 that Syrian forces arrested four Turkish fighter pilots who were trying to sneak into a military airport with an armed group in the northern province of Aleppo.
The Damascus-based al-Watan newspaper said the arrests at the Koers military base, 24 km (15 miles) east of Aleppo city, proved "scandalous Turkish involvement" in Syria's crisis.
TURKEY, QATAR INTERVENE
The al-Baraa brigade, part of the umbrella rebel organization, the Free Syrian Army, said in October it would start killing the Iranians unless Assad freed Syrian opposition detainees and stopped shelling civilian areas.
But Qatar, following a request from Iran, urged the rebels not to carry out the threat.
Insurgents fighting to topple Assad accuse Iran of sending fighters from the Revolutionary Guards to help his forces crush the revolt, a charge the Islamic Republic denies.
The rebels now control wide areas of northern and eastern Syria, most of its border crossings with Turkey and a crescent of suburbs around the capital Damascus.
But Assad's government is still firmly entrenched in the capital and controls most of the densely populated southwest, the Mediterranean coast and the main north-south highway.
The IHH has been involved in previous negotiations in recent months to release prisoners, including two Turkish journalists and Syrian citizens, held in Syria.
The humanitarian group came to prominence in May 2010 when Israeli marines stormed its Mavi Marmara aid ship to enforce a naval blockade of the Palestinian-run Gaza Strip and killed nine Turks in clashes with activists on board.
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Lance Armstrong may admit he used banned drugs: NY Times

(Reuters) - Lance Armstrong, the American cyclist at the center of the biggest doping scandal in the sport's history, may admit he used performance-enhancing drugs during his career, the New York Times reported in Saturday's editions, citing unidentified sources.
Such an admission would be a stunning reversal for Armstrong, who has vehemently denied doping for years.
The Times reported that Armstrong, 41, has told associates and anti-doping officials he may make the admission in hopes of persuading anti-doping officials to allow him to resume competition in athletic events that adhere to the World Anti-Doping Code, under which Armstrong is currently subject to a lifetime ban.
Asked if Armstrong might admit to doping, Armstrong's lawyer Tim Herman told the Times: "Lance has to speak for himself on that."
The newspaper, citing an unidentified person briefed on the situation, said Armstrong has been in discussions with the United States Anti-Doping Agency (USADA) and met with Travis Tygart, the agency's chief executive.
The paper, citing the same source, said Armstrong is also seeking to meet with David Howman, the director general of the World Anti-Doping Agency.
Armstrong's lawyer denied his client had talked with Tygart, according to the Times.
Howman said in a statement the agency had read "with interest" media accounts of Armstrong's possible intention to confess.
"To date, WADA has had no official approach from Mr. Armstrong or his legal representatives, but - as with anyone involved in anti-doping violations - it would welcome any discussion that helps in the fight against doping in sport," Howman said.
A spokeswoman for the USADA declined to comment.
An October 10 report from the USADA citied Armstrong's involvement in what it characterized as the "most sophisticated, professionalized and successful doping program that sport has ever seen," involving anabolic steroids, human growth hormone, blood transfusions and other doping.
Less than two weeks later, Armstrong's seven Tour de France victories were nullified and he was banned from cycling for life after the International Cycling Union ratified the USADA's sanctions against him.
Wealthy supporters of Livestrong, the charity Armstrong helped found, have been seeking to convince Armstrong to come forward to clear his conscience and spare the organization from further damage, the Times reported, citing a person with knowledge of the situation.
But an official with Livestrong said the group was unaware of any pressure on Armstrong by organization donors to admit anything, and declined to comment further.
Calls to Armstrong's attorney and Capital Sports & Entertainment, which represents Armstrong, were not returned on Saturday.
Austin, Texas-based Livestrong was launched in 2003 by the Lance Armstrong Foundation, which the cyclist founded in 1997, a year after he was diagnosed with testicular cancer. In October, he stepped down from his post as chairman of the board, saying he did not want the doping controversy to affect the organization. A few weeks later, he quit the board outright.
World Anti-Doping rules permit under certain circumstances penalties for admitted dopers to be reduced.
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Confess? Armstrong may not have much to gain

Associated Press
Lance Armstrong may be considering a change in course, dropping his years of denials and admitting that he used performance-enhancing drugs — though whether such a move would help him is uncertain.
The New York Times, citing anonymous sources, reported late Friday that Armstrong has told associates he is thinking about the move.
However, Armstrong attorney Tim Herman says that the cyclist hasn’t reached out to USADA chief executive Travis Tygart and David Howman, director general of the World Anti-Doping Agency.
A USADA spokeswoman declined comment on Saturday, while Howman was quoted by the Sunday Star-Times in New Zealand, where he is vacationing, saying Armstrong has not approached his group.
USADA stripped Armstrong of his seven Tour de France titles last year and issued a report portraying the cyclist as the leader of a sophisticated doping operation on his winning teams.
Public confessions and apologies have been the route of redemption for several athletes who have gotten in trouble.
For example, Tiger Woods said he was sorry for cheating on his wife in televised speech, and baseball slugger Mark McGwire eventually admitted to steroid use. Yet Armstrong faces serious legal entanglements those megastars didn’t, and a confession to doping could end up complicating matters for Armstrong — not making them easier.
The U.S. Department of Justice is considering whether to join a federal whistle-blower lawsuit filed by former Armstrong teammate Floyd Landis alleging fraud against the U.S. Postal Service during the years the agency sponsored Armstrong’s teams.
A Dallas-based promotions company has also said it wants to recover several million dollars paid to Armstrong in bonuses for winning the Tour de France. And the British newspaper The Sunday Times is suing to recover about $500,000 paid to Armstrong to settle a libel lawsuit.
Armstrong has testified under oath that he never used performance-enhancing drugs, which could theoretically lead to charges if he confessed. Former U.S. track star Marion Jones spent several months in federal prison for lying to investigators about her drug use.
And after so many years of vehement denials and sworn statements that he never doped, at this point, what would Armstrong gain from a confession? There would be no guarantee that his personal sponsors would return or that the public would accept it.
Is the public even interested in an Amrstrong confession?
Gene Grabowski, executive vice president of Levick, a Washington, D.C.-based crisis and issues management firm, said “it may be too little, too late because he’s been denying it for so long.”
A confession would only work to salvage Armstrong’s reputation if he accepted full responsibility and blamed no one else, Grabowski said. And it would have to include some public act of atonement.
“If he does all three, he has a shot,” Grabowski said. “You have to show people you are willing to pay a price.”
The New York Times reported the 41-year-old Armstrong may be considering a confession in an attempt to reduce his lifetime ban from cycling and Olympic sport so he can return to competing in triathlons and elite running events.
Armstrong lost most of his personal sponsorship worth tens of millions of dollars after USADA issued its report and he left the board of the Livestrong cancer-fighting charity he founded in 1997. He is still worth about a reported $100 million.
Livestrong might be one reason to issue an apology. The charity supports cancer patients and still faces an image problem because of its association with its famous founder.
And if Armstrong did confess, the corporate sponsors who abandoned him might support him again, Grabowski said.
“They’ll do what the public does,” Grabowski said.
Betsy Andreu, the wife of former Armstrong teammate Frankie Andreu, was one of the first to publicly accuse Armstrong of using performance-enhancing drugs.
She dismissed a potential confession from Armstrong as self-serving and too late.
“Sorry, your chance is over. You’re banned for life. It’s not with an asterisk, that because you are Lance Armstrong you get to come back,” Andreu said. “He does not belong in sport.

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Golf-McIlroy breaks with first sponsor, Nike waits in wings

LONDON, Jan 8 (Reuters) - World number one golfer Rory McIlroy has parted company with his first corporate sponsor ahead of confirmation of a deal that will make him the new face of sportswear giant Nike.
U.S. PGA champion McIlroy is poised to rubber-stamp a 10-year deal with U.S. company Nike worth as much as $250 million, according to media reports.
Nike is set to supply the 23-year-old Northern Irishman's clubs and have its name or logo on his clothing in an exclusive deal.
The Dubai-based hotel company Jumeirah Group said on Tuesday that its five-year sponsorship with 2011 U.S. Open champion McIlroy had ended.
"Jumeirah became my first corporate sponsor when I turned professional back in 2007 and I would like to thank everyone at the company for their support in helping me become the player I am today," McIlroy said in a news release.
The player, who topped the money-lists on both sides of the Atlantic last year, said in November he did not think that ditching the Titleist clubs that have taken him to the top of the sport would affect his game.
Nike is hoping a partnership with the clean-cut McIlroy will help it to move on after it dropped disgraced cyclist Lance Armstrong last year over his doping scandal.
The company stuck with former world number one golfer Tiger Woods despite the bad publicity the American suffered when a series of extra-marital affairs were exposed in 2009.
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H&R Block 2Q loss narrows as revenue rises

 H&R Block's fiscal second-quarter loss narrowed, helped by cost-cutting efforts. Revenue climbed mostly because of a strong tax season in Australia.
The nation's largest tax preparation company typically turns in a loss in the August-to-October period because it takes in most of its revenue during the U.S. tax season. H&R Block's quarterly performance beat analysts' estimates and its stock hit the highest level in more than two years.
The company is optimistic and gearing up for its busy season.
"The U.S. tax season is right around the corner and we believe we're on pace to deliver significant earnings and margin expansion in fiscal 2013," President and CEO Bill Cobb said in a statement on Thursday.
For the three months ended Oct. 31, H&R Block Inc. lost $105.2 million, or 39 cents per share. A year earlier it lost $141.7 million, or 47 cents per share, for the quarter.
Its loss from continuing operations was 37 cents per share. Analysts surveyed by FactSet expected a bigger loss of 41 cents per share.
Selling, general and administrative expenses declined and the quarter was free of any impairment charges. The prior-year period included a $4.3 million impairment charge.
Revenue rose 6 percent to $137.3 million from $129.2 million. This topped Wall Street's forecast of $129.6 million.
Shares of H&R Block gained 89 cents, or 5.1 percent, to close at $18.26. Earlier in the session the stock reached $18.40, its highest point since May 2010.
Tax services revenue increased 7 percent primarily due to the strong Australian tax season. Corporate revenue fell because of lower interest income from H&R Block Bank's shrinking mortgage loan portfolio.
H&R Block disclosed in October that it hired Goldman Sachs to help it explore options for its banking arm, H&R Block Bank. Those options, Block said, could result in the company no longer being regulated as a savings and loan holding company by the Federal Reserve.
The Federal Reserve announced some proposed rules in June that would impose higher capital requirements on savings and loan holding companies. H&R Block contends that if the proposed rules are enacted it would have to hold on to significant additional capital.
H&R Block, based in Kansas City, Mo., prepared 25.6 million tax returns worldwide in fiscal 2012.
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Oregon governor says Nike plans to hire thousands

SALEM, Ore. (AP) — Sporting goods giant Nike plans to expand its operations in Oregon and hire as many as 12,000 new workers by 2020 but wants the government to promise it won't change the state tax code, prompting a special session of the Legislature.
Gov. John Kitzhaber said he'll call lawmakers together Friday in Salem to create a new law authorizing him to grant Nike's wish.
The governor did not release information about the company's expansion plans but the $440 million project would create 2,900 construction jobs with an annual economic impact of $2 billion a year.
Nike Inc. has its headquarters in Beaverton. Company officials could not immediately be reached.
The Legislature is due to meet in its regular annual session beginning Jan. 14, but Kitzhaber said Nike needed certainty sooner. The company was being wooed by other states, he said.
"Getting Oregonians back to work is my top priority," Kitzhaber said in a news conference.
Either the governor or the Legislature itself can call lawmakers into session at times other than the state Constitution specifies.
For much of the state's history, the Legislature's regular sessions have been held every other year, at the beginning of odd-numbered years. That's the kind of session the Legislature is scheduled to begin early next year.
In recent years, the Legislature has moved to meet annually, running test sessions of briefer sessions in even-numbered years. Those led to voter approval of a constitutional amendment in 2010 that called for annual sessions.
Records list 38 special sessions since Oregon's statehood, ranging from one day on eight occasions to 37 days in 1982.
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Tax filing delay looms if no fix for minimum tax: IRS

WASHINGTON (Reuters) - The top U.S. tax collector warned on Thursday of a delayed start to 2013's tax season if Congress fails to reset the alternative minimum tax (AMT) on high-income taxpayers so that it does not sweep in millions of middle-income people.
Without another adjustment by lawmakers soon to the AMT, "many of us will see a delayed filing season," said Steven Miller, named just last month as Internal Revenue Service acting commissioner.
Miller did not give an exact date by which Congress must approve an AMT "patch" to prevent a delay to the tax season, which is scheduled to begin on January 22.
"We don't have any drop-dead time in mind," Miller told reporters after a speech at a conference in Washington.
But his remarks came on a day of continued stalemate in Washington between Democrats and Republicans over what to do about the "fiscal cliff" approaching at the end of the year.
The AMT is a crucial part of the assorted tax increases and automatic spending cuts that make up the so-called "cliff," a convergence of events that, absent congressional action, threatens to plunge the U.S. economy back into recession.
"Many people don't realize that they could potentially face a significantly delayed filing season and a much bigger tax bill for 2012," if the AMT is not dealt with, Miller said.
"In programming our systems, the IRS has assumed that Congress will patch the AMT as Congress has for so many years.
"And I remain optimistic that the fiscal cliff debate will be resolved by the end of the year. If that turns out not to be the case, then what is clear is that many of us will see a delayed filing season," Miller said.
The AMT is a tax intended to make sure that at least some tax is paid by high-income people who otherwise could sharply reduce or eliminate their regular income tax bills through using tax loopholes. About 4 million people annually pay the AMT.
Unlike the regular income tax, the AMT is not indexed for inflation. So the thresholds that determine who must pay the tax have to be regularly raised. This prevents the AMT from hitting middle-class people whose incomes may have crept upward on the back of inflation, but who are not wealthy.
Congress last patched the AMT in late 2010. Without another patch, the AMT could hit as many as 33 million people for the 2012 tax year, according to the IRS.
Democratic Senator Charles Schumer of New York said on Thursday he is "hopeful" that the AMT problem will be fixed with a broader "fiscal cliff" resolution before December 31.
Republicans in Congress may see the AMT as leverage in their "fiscal cliff" negotiations with President Barack Obama and the Democrats.
The IRS might have until mid-January to implement an AMT patch and still start the tax season on time, if Congress approves the fix as expected, said Richard Harvey, a tax professor at Villanova University and a former IRS official.
The AMT "is a ticking time bomb that is going to go off some time in January," Harvey said.
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Cricket-Wade's sparkling century hauls Australia to lead of 138

SYDNEY, Jan 5 (Reuters) - A brilliant century from Matthew Wade gave Australia a first innings lead of 138 when they declared at 432 for nine just before lunch on the third day of the third test against Sri Lanka on Saturday.
Openers Dimuth Karunaratne (17 not out) Tillakaratne Dilshan (0) ushered the tourists to the end of the session on 18 without loss and reduced the deficit to 120 but the morning belonged to wicketkeeper Wade.
The 25-year-old lefthander, playing in just his ninth test, resumed on 47 with Australia just 48 runs ahead of Sri Lanka's first innings tally of 294.
It has been anything but a chanceless innings but Wade comfortably reached his third test half century in the second over of a brilliantly sunny day at the Sydney Cricket Ground.
Peter Siddle was also playing a few shots at the other end as the pair put on 77 for the seventh wicket but it was the sheer power of Wade's strokes that caught the eye.
Siddle was caught behind for 38 off Nuwan Pradeep 50 minutes into the session and Mitchell Starc lasted just five further minutes before departing for two, trapped lbw by spinner Rangana Herath.
When Nathan Lyon departed 10 minutes later for four - bowled through the gate by Herath - it looked like the last rites for Australia's innings at 393 for nine, just 99 runs ahead.
Wade, who was on 70, had other ideas and with Jackson Bird (6) offering support with his first test runs at the other end, he bludgeoned his way to his second test century.
He reached the mark by smashing his ninth four to deep cover and then raced around the ground, arms stretched wide, to take the applause of the crowd in an emotional celebration.
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