THIRD DAY OF BUS STRIKE ENDS IN VIOLENCE

C O N F I D E N T I A L DJIBOUTI 001068 SIPDIS STATE FOR AF, AF/E, AND DRL; PARIS AND LONDON FOR AFRICA WATCHER; E.O. 12958: DECL: 10/25/2015 TAGS: ELAB ENRG ELTN PHUM PGOV ECON ETTC SOCI DJ SUBJECT: THIRD DAY OF BUS STRIKE ENDS IN VIOLENCE Classified By: Pol/Econ Erinn C. Stott for reasons 1.4 (b) and (d). ¶1. (C) Djibouti is experiencing its fourth day of its longest general strike in the public transportation sector. Bus, mini-bus, and taxi drivers' unions began striking on Saturday, October 22nd, protesting the higher cost of fuel and insurance. The strike has paralyzed the country, whose population is heavily dependent on public transportation, for the past four days. The unions demands were that the Government either lower the cost of fuel or allow the drivers to raise their prices. Negotiations were started on Oct. 22nd between the unions and the Ministers of Finance, Interior and Transport. An initial, but temporary, agreement was reached to end the strike after the Minister of Finance, Ali Farah Assoweh, explained to the unions that the international market determines the price of oil. He also estimated the Government of Djibouti has lost nearly 500 million Djibouti Francs (3 million USD) since the beginning of the oil crisis because it has tried to maintain the price of fuel as low as possible. The two parties agreed to meet again for further discussions on October 24th. However, the unions continued striking the following morning. The second day of the strike, October 23rd, saw fairly peaceful demonstrations by students who were angry at the strikers because students and teachers alike could not get to school. ¶2. (C) The strike continued on to a third day, October 24th, fueled by additional concerns about the recent rising costs of fuel, staple foods, electricity and most necessary commodities. Protests in the city center the morning of the third day ended in violence when police were overwhelmed by a increasingly large and agitated crowd of about 300 that joined with the striking drivers to protest the rising cost of goods and fuel. Protesters threw rocks and used slingshots against the approximately 20-30 National Police officers that were sent to the scene. Seven police officers were injured by rocks thrown. Before riot police could arrive on scene the officers present were overwhelmed by the crowd and several officers were taken by protesters into the crowd. In attempts to defend the officers taken into the crowd and prevent further injuries to themselves, police officers fired shots at the protesters. Two protesters were hit; one survived his wound, the other was killed immediately by the bullet. Three of the seven officers injured were seriously wounded and are still in the hospital. ¶3. (C) In a joint press release, the Ministries of Finance, Interior and Transportation stated "all measures have been taken to ensure the continuity of public service." The Government has ordered the Forces Armee Djiboutian (FAD) and the Police Nationale (FNP) to activate bus shuttles using army and police resources to serve the busiest bus routes. ¶4. (C) Comment: The rising prices are all directly or indirectly linked to the high cost of oil. Since oil prices began climbing the cost of cooking fuel, gasoline and diesel made it difficult for the average Djiboutian to afford basic necessities. Because all of Djibouti's food staples and basic commodities are imported by sea or by land, mainly by land from Ethiopia, shipping companies are forced to charge more for transporting the goods and in turn the suppliers to the Djiboutian market must charge higher rates for even basic staples of the Djiboutian diet like rice, beans, and flour. Kerosene and Butane, the two main sources of cooking fuel, are increasingly hard to come by in the capital city. Some shops no longer have any to sell. Electricity prices have gone up 19 percent since the oil prices began rising. Electricite de Djibouti (EDD) has said the prices will remain at this elevated level until the cost of oil lowers to more normal levels. Many Djiboutians believe the Government must do something about the rising cost of goods, despite the international market prices. Some Djiboutians expressed wonder that President Guelleh would travel during such a major crisis as the transportation strike. Guelleh departed October 24th for Mecca to make an Oumra (minor pilgrimage) and to meet with King Abdallah Bin Abdulaziz on October 26th. Reports are saying the Government and unions reached an agreement late on October 25th. Post will follow up with reports on official terms of the agreement. End Comment. RAGSDALE