PORT STRIKES: FOLLOW-UP WITH DPI DIRECTOR

C O N F I D E N T I A L SECTION 01 OF 03 DJIBOUTI 000987

SIPDIS

STATE FOR AF, AF/E, DRL AND EB;
LONDON, PARIS FOR AFRICA WATCHER

E.O. 12958: DECL: 10/03/2015
TAGS: ELAB ECON PREL PGOV ASEC SCUL DJ
SUBJECT: PORT STRIKES: FOLLOW-UP WITH DPI DIRECTOR

REF: DJIBOUTI 965

Classified By: Pol/Econ Erinn C. Stott


1. (C) Summary: Ambassador, DCM and Pol/Econ met with Dubai
Ports International (DPI) General Manager, David Hawker, at
Ambassador's request 2 October to discuss the recent problems
with strikes at the Port. Hawker offered clarification for
many points of misinformation that had been circulating
around town, including the reasons for the dismissal of 36
union workers. Hawker stated the first strike was
deliberately scheduled for President Guelleh's absence to
attend the U.N. General Assembly and coincided with absences
of himself and several other key Ministers. He said once the
Ministers of Transport, Labor, and the President returned it
was discovered that the strike did not adhere to several
requirements in Djibouti's labor code and therefore was
technically an illegal strike. Hawker said this was the
reason for the dismissal of 11 strike leaders, in addition to
disturbing the peace, following the strike of September 14th.
The 11 strike leaders that were arrested were charged with
"incitement to rebellion." The cases of the strike leaders
were forwarded to the National Prosecutor and were heard by
the court on October 2nd, where they were found not guilty
and released from custody. The 167 strikers arrested during
the September 24th were held at the Nagad Detention center
for 48 hours and then released. Meanwhile, DPI announced 9/28
that it had merged with DPI Terminals to create a single new
global port operator called DP World. End Summary.


2. (C) David Hawker, General Manager of DPI, discussed the
port strikes with Ambassador, DCM and Pol/Econ Officer
October 2nd to clarify some of the misinformation circulating
around town. Hawker explained the strike had been originally
planned for September 14th, the day he was to return from
vacation. At the time of the strike planning, none of the
Ministers involved in strikes and labor disputes were present
in country. President Guelleh was also absent attending the
U.N. General Assembly. The Prime Minister was called in to
negotiate, a week long mediation was set and everyone
returned to work. After the return of the Ministers involved
in strikes and labor disputes, it became apparent that the
Port Workers' Union (UTP) had not followed all of the
Djiboutian Labor Code regulations for holding a strike,
including the requirement of strike pre-notification. This
made the strike technically illegal. It was for this reason,
Hawker said, that the 11 ringleaders were dismissed from
their positions at the port.


3. (C) Later on the 14th, the 11 strike leaders returned to
the Port and physically blocked the entrance of buses
bringing night-shift workers. This created a large public
disturbance, and the Director of National Security, Hassan
Said, Director of the Port and Free Zone Authority,
Abdourahman Boreh, and the Police came out to control the
scene. A very heated discussion ensued, according to Hawker.
The strikers did persuade 138 people to stop work. After the
situation got very heated, Boreh asked Hawker to remove all
expatriates at the port because the Police were going to
round-up the strikers. One hundred sixty seven persons were
subsequently arrested and taken to Nagad Detention Center,
where they stayed for two nights. All of the persons arrested
refused to give their names to the Police. Hawker mentioned
that his office was able to determine who was at Nagad by
waiting until the next shift and seeing who was absent.


4. (C) The following morning, September 15, the decision was
made at the Port to terminate those among the strikers with
extremely poor work records - excessive absenteeism etc. This
resulted in an additional 25 dismissals. Hawker said for
these 25 people, the illegal strike and public disturbance
was a last straw since they already had accumulated enough
violations to warrant termination. He added that all of these
individuals are in process of receiving their severance
package, as required by Djiboutian law. Hawker said after the
strike, he, Abdourahman Boreh, and Houssein Kassim, the
Port's Human Resources Director, explained on Radio
Television Djibouti (RTD) that the strike had been illegal
and the persons dismissed were dismissed under to Djiboutian
law. The crew from RTD then asked to interview port workers
about the strike. Their interviews, according to Hawker,
showed the majority of the Port workers were not in favor of
the strike. Hawker said the conclusion had been drawn that
the strike was not related to Port activities at all, but was
a political statement by the opposition timed for when
President Guelleh would be out of town. He added that it was
a confirmed fact that the 11 strike leaders were members of
the opposition.


5. (C) Hawker added that DPI has regular meetings with the
trade unions with their own legal representatives in
attendance to decipher Djibouti's labor code. He said during
these meetings union representatives have preferred to
continue pulling out obsolete laws, repeatedly sticking to
one item, and that the meetings never got anywhere. A meeting
was finally arranged to discuss the 12 major points raised in
previous meetings. The two sides, management and labor, went
point-by-point through the list discussing each one. DPI
agreed to eight in full and two with modifications. Two other
points were refused outright. These two points were the only
demands made during the strikes.


6. (C) One of the two points that DPI refused to accept was
worker entitlement to a "prime de panier" (food stipend)
under certain circumstances. At issue is language in the
Djiboutian labor code which states "If service is longer than
8 continuous hours, the worker should get 'prime de panier.'"
Hawker said that on this point, DPI agreed that certain
classifications of workers, by nature of their work, needed
to work shifts of 10 or 12 hours. These include tug boat
crews and some dock crews. Hawker said the crews that work 10
or 12 hours shifts are already receiving overtime and a food
stipend and have not complained about the work arrangements.
The UTP, Hawker said, wanted this clause to apply to the
Security crews as well. DPI refused because the security
crews only work 8-hour shifts.


7. (C) The second of the two points was language in the labor
code that stated an employer could not force anyone to work
longer than 8 hours per day. Hawker commented that the
international standard for port shifts is 12 hours on, 12
hours off. The Port of Djibouti agreed to having 10 hours on,
14 hours off to keep changes of tug crews and dock crews to a
minimum - increasing the efficiency and safety of the port.
If DPI agreed to the unions demand to institute 8-hour shifts
across the board, it would have to hire more people and
change shifts three times a day, reducing the cost
effectiveness of the port and slowing the average time to
dock a ship. Hawker commented that DPI had to hire an
additional tug to cover Doraleh Port. This tug and its crew
was hired from Dubai and costs 50 percent less than a tug
with a Djiboutian crew. He added that the tug crews are happy
with the arrangements as they stand and are getting their
overtime and food stipends.


8. (C) Hawker said he believed the demands from the union for
8-hour shifts were only a ploy to create more jobs and to
make sure no particular section got paid more than another.
He also added that all changes DPI has implemented since it
took over management of the Port have been done with the full
and prior knowledge of both President Guelleh and Port and
Free Zone Authority Director, Abdourahman Boreh. Any major
changes he has proposed have been first cleared by Guelleh
and Boreh before implementation to avoid anything that might
appear political. Hawker commented that President Guelleh has
made the decision that the tradition of using the Port as a
place where anyone well-connected and in need of a job can be
put on the payroll must end and the Port should be run
efficiently like any other business.


9. (C) Hawker said Djibouti Port is currently operating
without a union, because all of its leaders were dismissed in
the strikes. He said in Dubai, which prohibits all unions,
DPI runs without unions and manages to keep workers happy. He
added, however, that without a union management has to stay
more attuned to its employees needs, but this can be done
efficiently.


10. (C) Hawker also explained some of the other changes DPI
has implemented. He told Ambassador that prior to DPI's take
over, absenteeism and accidents were through the roof. With
new policies like dismissal after seven unexcused absences
within a certain time period, and complete prohibition of
khat chewing on port grounds, has greatly decreased
absenteeism and accidents. Other methods used to resolve
preventable accidents have included the requirement and
conduct of medical exams for employees. Hawker said it was
discovered that a large portion of port workers were diabetic
and were not aware of it. This resulted in accidents when
diabetics would black out driving fork lifts and other heavy
machinery and either fall out of the vehicle or crash into
something. DPI has made sure that diabetics on the payroll
receive proper medication. DPI is also providing glasses to
those workers with poor eyesight, another condition that can
cause accidents if not corrected. (Note: In a separate
meeting with DCM, Hawker noted that offering eye exams made
port authorities aware that a significant percentage of port
workers, including supervisors, are illiterate. This has
resulted in some reassignment of personnel. End Note.) Hawker
said the Port will open a clinic on its grounds as soon as
the Organization de Protection Sociale (Social Security
Service) gives the Port a physician. He added the Port would
like to employ an expat physician with extensive health and
safety experience at the clinic to double as both physician
and Health and Safety inspector. Hawker hopes that this will
reduce fake sick days.


11. (U) Hawker took advantage of the meeting with Embassy to
brief on the merger of Dubai Ports Authority and DPI
Terminals. He said the single new global port operator
created by the merger, DP-World, will lead to more efficient
internal management out of Dubai and the company's greater
commercial viability. He said the merger creates one of the
largest port operators in the world but is not expected to
impact in a significant way general operations of ports in
Djibouti.
RAGSDALE