TCC DISPUTE GOES ON

UNCLAS NDJAMENA 001227 SIPDIS DEPT FOR AF, EB, ENERGY FOR CAROLYN GAY AND GEORGE PEARSON, DAKAR FOR CYNTHIA GRIFFITH-GREENE, TREASURY FOR OTA, LONDON AND PARIS FOR AFRICA WATCHERS, OPIC FOR JOSEPH WOZNIAK E.O. 12958: N/A TAGS: ECON EFIN ELAB ENRG PGOV CD SUBJECT: TCC DISPUTE GOES ON REF: NDJAMENA 901 ¶1. The following cable is Sensitive but Unclassified. Please protect accordingly. ¶2. (SBU) SUMMARY: Following the suspension on June 23 by the National Courts of the case brought against Esso-subcontractor TCC by the company's former employees, plaintiffs organized demonstrations on Esso facilities in Doba and N,Djamena on June 28 and July 18. While the former event received little attention from the GOC, the latter demonstration resulted in the arrest of eight former TCC employees, who were later released after negotiations between the GOC and Labor Unions. The ex-TCC employees, with the support of the labor unions, plan to recommence their strikes on Esso compounds after August 3. End Summary. ¶3. (SBU) The case against Esso-subcontractor TCC by former employees has taken several interesting turns in the past few weeks. After the suspension of the case by the Court of Appeals on June 23, which followed a discussion between the Ambassador and Mahamat Saleh Annadif, Cabinet Director of the Presidency (see reftel),the Chadian National Labor Union UST and the ex-TCC employees began to publicly accuse the company and its lawyer, Jean Bernard Padare, for manipulating the evidence submitted to the courts to bolster their case. Specifically, UST stated that Padare unfairly altered the company,s payment stubs to reflect the company,s argument that the workers had already been paid in full for their overtime. In addition, immediately following the decision by the Court Appeals, the Chadian press reported that Padare began receiving death threats from unidentified sources. ¶4. (SBU) On June 28, UST called for demonstrations on the Esso compound in N,Djamena and its facilities in Doba, Miandoum, and Bebedjia. While there was an extremely small turnout and no incidents during these demonstrations, local gendarmes were present to protect Esso,s headquarters in N,Djamena. On July 7, Esso Director General Ron Royal met with UST General Secretary Djbrine Assali to discuss each party,s respective position. Royal presented the Esso position that the trial was conducted unfairly (see reftel) and the decision on this matter should be rendered on the international level. Royal also noted that Esso should not be held accountable for the actions and policies of its sub-contractors. Assali responded by saying that as far as UST is concerned, Esso took responsibility for TCC activities when the latter closed its operations and left the country, and the ex-employees should be compensated for their losses. ¶5. (SBU) On July 20, UST called for another series of demonstrations in the capital and in the Doba region to continue to pressure Esso to comply with the ex-employees, demands. According to Assali in a conversation with Econ/Consular officer on July 21, eight strikers were arrested in Kome during these demonstrations after failing to obtain an authorization to strike from the Ministry of Labor. Assali was able to obtain the workers, release after contacting the Governor of Doba and Minister of Labor. Assali also convinced the ex-TCC employees to suspend their activities until August 3. In the meantime, UST would try to discuss the possibility of a settlement with Esso. Nevertheless, Assali reaffirmed to Econ/Consular officer that UST and the ex-TCC employees would not cease their activities until they receive what they claim is full compensation for their activities. ¶6. (SBU) COMMENT: The latest flurry of activities surrounding the TCC dispute demonstrates that the issue is far from being resolved. While the last two demonstrations have been resolved peacefully with no serious incidences, the potential for more severe events around Esso facilities exists. Post will continue to monitor events surrounding this case. WALL NNNN