GOVERNMENT WORKERS STRIKE OVER COST OF LIVING

UNCLAS BAMAKO 000696 SIPDIS SIPDIS E.O. 12958: N/A TAGS: ELAB PREL PGOV ECON ML SUBJECT: GOVERNMENT WORKERS STRIKE OVER COST OF LIVING ¶1. Government and some private sector workers went on strike June 26 to protest the failure to address cost of living and pay issues agreed to during collective bargaining negotiations in 2006. The UNTM (National Union of Malian Workers) called for the two day "warning strike" after discussions with the Government and private sector managers left the UNTM leadership convinced the Government was unwilling to live up to its previous commitments. The unions have sought clarification of the grade structure within the civil service (with consequent promotions and pay raises for many),a careful look at some planned privatization, and greater price controls on consumer staples to help control the cost of living. ¶2. The strike has created very little disruption, with the exception of airport services. The Airport staffing remains at "essential personnel only;" the airport director said that critical flights should still be able to land as scheduled. Numerous flights have been canceled, with the exception of the Air France flight, which was reportedly delayed four hours. Security forces remain on duty and automobile and motorbike traffic is lighter than usual. All services are expected to return to normal when the strike ends at midnight June 27. ¶3. The UNTM put forth twenty demands and followed up on May 24 with a threat to strike if its demands remained unmet on the 26th of June (in keeping with Malian law, which requires several weeks of advanced notification for labor action). Key elements among the UNTM demands are: --Various payments for current and former employees, such as pay raises, payment of salary arrears, termination pay to those fired through privatization, equalizing the different rates of pay that currently exist within ministries, increases in family and other allowances, etc. --Reduction in taxes on payroll salaries, and lowering consumer costs for water, electricity, pharmaceuticals, telephone service, and fuel. --Price controls for basic food items. --Greater legal protection for union members and activities --Accelerated privatization of SOTELMA, the state-owned telecommunications company. --A review of the privatization of CMDT, the state-owned cotton company. ¶4. UNTM demands for greater legal protections grow out of allegations that management at some companies, such as Transrail (privatized in 2004),have physically threatened, or even fired, workers who engaged in union activities. ¶5. COMMENT. Strikes are a normal part of Malian life, but the distinction drawn by the UNTM between SOTELMA and CMDT is notable. SOTELMA will likely remain intact, minus a significant reduction in force; the UNTM evidently wants to move the case forward so workers will no longer be in doubt about their future. Many fear that the privatization of the cotton parastatal, CMDT, however, will allow foreign buyers to scoop up its profitable components, leaving the very unprofitable but badly needed elements of CMDT, those that provide direct assistance to cotton farmers, left to wither on the vine. Leonard