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