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


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