GRENADA LABOR ISSUES UPDATE

C O N F I D E N T I A L BRIDGETOWN 000642

SIPDIS

SIPDIS

STATE FOR WHA/CAR
SOUTHCOM ALSO FOR POLAD

E.O. 12958: DECL: 05/18/2017
TAGS: ELAB ECON PGOV GJ
SUBJECT: GRENADA LABOR ISSUES UPDATE

REF: BRIDGETOWN 617

Classified By: DCM Mary Ellen T. Gilroy for reasons 1.4(b) and (d).


1. (SBU) Summary: The Technical and Allied Workers Union
(TAWU),Grenada's most radical and active union, continues to
challenge the government with mini-strikes and threats of
broader strike action. Concerned about persistent high
unemployment, Prime Minister Mitchell's government has so far
avoided challenging TAWU and is seeking to demonstrate that
it is engaged on economic issues and responsive to the needs
of workers. Among the labor issues on the government's
agenda is the pending agreement with the Public Workers'
Union (PWU) on a 5-year contract containing wage increases
for PWU members. End Summary.

TAWU Work Stoppage at the Port Authority
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2. (SBU) The ongoing battle between the Technical and Allied
Workers Union (TAWU) and the Port Authority saw another
skirmish on May 10, when TAWU members at the St. George's
port facility voted to strike after ten of the port's daily
workers received letters that their services would not needed
on May 10-11. TAWU insists the daily workers should be
treated no differently than regular employees, but the Port
Authority insists that they can be hired on a daily basis as
needed. The Port Authority usually loses the argument, and
it did so on May 10 again. The Port Authority met with TAWU
on May 10 at the Ministry of Labour, where a decision was
taken in favor of the union and the workers. The Port
Authority's case was undermined by the fact that many of the
port's workers have been working there for many years, a few
for nearly 20 years. Furthermore, the government is not
willing to risk a wider strike, and is therefore inclined to
side with TAWU. The May 10 strike is unlikely to be the last
chapter, since TAWU's head Chester Humphrey and the port's
manager Ambrose Phillips have similar personalities and
rarely back down from a fight.

St. George's Bus Terminal Workers Vote to Strike
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3. (SBU) The Port Authority and TAWU were also the chief
protagonists in a labor dispute at the St. George's Bus
Terminal. The bus terminal is managed by the Port Authority
and many of its workers are represented by TAWU. Constructed
by the People's Republic of China after Hurricane Ivan and
completed in 2005, the bus terminal has suffered from a
number of structural problems, including a leaky roof and a
lack of proper ventilation. Workers' complaints about these
problems have gone unanswered, and on May 15, the workers
voted to strike. On May 16, Labor Commissioner Cyrus
Griffiths publicly expressed concern about the strike action
and called for discussions with the union. (Note: Many
Grenadians rely on buses to commute to and from work every
day. A strike that would close the bus terminal would
negatively impact the entire island as all intra-island bus
traffic flows through it. End Note.)

Agreement On Public Workers' Wage Increase
--------------


4. (SBU) As reported in reftel, Prime Minister Keith
Mitchell announced on May 6 that the government reached a
partial agreement on a new contract for public workers.
According to the agreement, the middle and upper level wage
earners would get 4 percent per year in each of the four
years. Lower wage earners would get 6 percent the first year
(2006) and 5 percent per year in each of the remaining years.
In reaction to Mitchell's announcement, the President of the
Public Workers' Union, Madonna Harford, told the media on May
7 that Mitchell had no business making the offer public as
the proposal had not been approved by the workers. However,
several media personalities have noted since then that it is
not unusual for contract offers to be publicized and
discussed openly while union members consider their options.

Background on Grenada's Unions
--------------


5. (U) Grenada's Ministry of Education and Labour estimates
that approximately 47 percent of Grenada's work force is
unionized. A list of the unions follows:

a. Grenada Union of Teachers (GUT)
b. Technical and Allied Workers' Union (TAWU)
c. Public Workers Union (PWU)
d. Bank and General Workers Union (BGWU)
e. Commercial and Industrial Workers Union (CIWU)
f. Taxi Owners and Drivers Association (TODA)
g. Seamen and Waterfront Workers Union (SWWU)
h. Grenada Maritime Manual and Intellectual Workers Union
(GMMIWU)

Grenada Trades' Union Council (the umbrella trade union body)
is affiliated with Caribbean Congress of Labor (CCL) and the
International Confederation of Free Trade Unions (ICFTU).
TAWU and CIWU are affiliated with the Union Network
International (UNI). TAWU and BGWU are affiliated with the
International Union of Foods (IUF).

Comment
--------------


6. (C) Humphrey, who had taunted the Mitchell government
throughout the run-up to the Cricket World Cup (CWC) with
warnings of strikes that would bring the entire country to a
standstill, never followed through on his threats. He
probably calculated that any strike that might undermine
preparations for the popular CWC would undermine his position
as well. However, if Humphrey could find the right issue,
his TAWU could shut down much of the country because it
represents workers in a wide range of businesses, including
the Port Authority, banks, shops, insurance companies, and
hotels. Humphrey's power is further enhanced by the fact
that the government, facing 25 percent unemployment, appears
unwilling to stand up to TAWU. The government clearly
believes it is better for the Port Authority to continue
paying the workers to do little or nothing at the port than
to have them on the street or to give Humphrey an excuse to
call for a broader and more crippling strike.


7. (C) Prime Minister Keith Mitchell's decision to take on
the job of Minister for Finance in the May 15 cabinet
reshuffle may be another sign of just how worried he is about
Grenada's economy and high unemployment. Unemployment
remains stubbornly high and since Hurricane Ivan in 2004,
prices have skyrocketed on basic consumer items. Mitchell
may be hoping his May 6 threat to call in business leaders
and to expand the Price Control Unit will result in lowered
prices (reftel). It remains to be seen how well the tactic
works, and if it does not, what other steps he is prepared to
take.
OURISMAN