TRANSIT STRIKE CONTINUES

UNCLAS LA PAZ 002724 SIPDIS SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV PREL ECON BL SUBJECT: TRANSIT STRIKE CONTINUES ¶1. (U) La Paz public transportation workers began a 24-hour strike October 9 to protest La Paz Mayor Juan del Granado's plan for redirecting downtown traffic. The city implemented the plan October 6 to improve traffic flows; transportation workers complain that the new routes are causing confusion and loss of income. Late October 9, after the municipality announced that it would not withdraw its plan for the improvements, workers extended the strike "indefinitely." While the strike has been mostly pacific, there have been isolated cases of physical violence or property damage (mostly tire slashing) against bus drivers who attempted to pass strikers' blockades. ¶2. (SBU) Comment: Negotiations continue October 10 to resolve the La Paz strike, but even if successful, a larger nationwide transportation strike (including public and private transportation) is scheduled for October 12-13. The nationwide strike will protest the GOB's possible legalization of over 50,000 illegally imported autos, which would boost GOB revenue (due to a delayed importation tax) but would flood the auto market, resulting in unwanted competition for transportation workers. The Embassy is operating with essential personnel October 10 and is providing transportation for all employees. We will continue to monitor these strikes closely. End comment. GOLDBERG