SECOND TRANSPORT STRIKE HAS MOROCCANS ON EDGE

UNCLAS CASABLANCA 000071

SIPDIS

SENSITIVE
SIPDIS
E.O. 12958: N/A
TAGS: ELAB PGOV ECON ETRD MO
SUBJECT: SECOND TRANSPORT STRIKE HAS MOROCCANS ON EDGE

REF: Rabat 00492


1. (SBU) Summary: As Morocco enters the fourth day of its second
transportation strike in less then a month, the country's citizens,
economy, and government are paying a significant and growing price.
The strike, initiated by a group of 46 taxi drivers unions and
associations, was initially to last 48 hours beginning Tuesday, April

3. One day into the strike, however, with no headway made between
the driver representatives and the Ministry of Transportation, the
associations extended the strike another 48 hours. The action,
launched in protest against the pending government legislation to
stiffen penalties for driving violations, was an extention of the
March 11 transportation strike undertaken by transportation workers
represented by two larger unions, the Union of Professional
Federations (SUFP) and the Committee of Moroccan Workers (COM).
(reftel) As the current strike plows on, the impact is again
affecting the Moroccan economy. Gas shortages and increased food
costs are stirring some resentment towards what the public perceives
is a government insensitive to the hardships of the working class.


2. (U) Casablanca's port has been functioning with limitations and
under police protection. Morocco's agricultural sector has reported
heavy losses mid-week as loaded delivery trucks were intercepted by
strikers. There have been isolated reports of violence against those
who choose to work. Taxi drivers have been pulled from their
vehicles and beaten and there have been reports of attacks against
busses and trucks. As of Friday, it appears that the strikes may be
easing up as a few taxis can be seen in and around Rabat and
Casablanca. The Prime Minister is now engaged and has agreed to
speak with drivers representatives early next week, as negotiations
with the Minister of Transport Karim Ghellab continue throughout the
weekend. End Summary


3. (SBU) The impact of the second transportation strike, of urban
and long distance taxi drivers in cities around Morocco, has been
significant. The action, launched by a group of 46 taxi drivers'
unions and associations, large and miniscule, has been disrupting the
country. Initially, the strike called for a 48-hour work stoppage
beginning on Tuesday April 3. Partway into the second day, the
strike was extended for a second 48 hours due to stalled
negotiations.


4. (SBU) The large number of organizations involved, internal
struggles, leadership instability, and most importantly lack of
consensus among the unions themselves at the desired outcome, is
making a quick solution impossible. Is shelving of the proposed
harsher driving code, or simply amending the fines and penalties, the
desired outcome? Even the largest Moroccan unions involved in this
action are at odds. At exactly the same time the Democratic
Confederation of Workers (CDT) announced that the strike was
suspended because the Prime Minister had agreed to a meeting on April
9, the Moroccan Workers Union (UMT) announced that the strike would
continue and threatened to bring other sectors into the action.


5. (SBU) This lack of consensus seems to be causing a breakdown in
the unity of the strikers. Friday morning, on the streets of
Casablanca, taxis with passengers were spotted for the first time in
nearly four days. When asked if the strike was over, the driver
responded "half and half." He said he was told that negotiations are
underway and a solution is imminent. However, at the same time only
a handful of drivers were seen on the streets at all. We have heard
reports of gouging by underground taxis this week. One Consulate
employee was told a trip that normally costs 10 Moroccan dirham would
cost him 100 dirham. Despite the fact that many Moroccans cannot
afford to pay these fees and have been walking to work or taking the
infrequent city busses, many others have been unable to get to their
places of employment at all. The problem with the lack of taxis has
been somewhat mitigated since this is Moroccan school vacation week
and there are fewer people traveling. Some speculate this is the
reason the taxi drivers decided to hold their strike this week as
opposed to participating for more than one day in the March 11-15
strike.


6. (SBU) The potential repercussions of the strike could be
serious. Representatives of the Association of the Producers and
Exporters of Fruits and Vegetables, while personally supportive of
the action against the new driving code, are experiencing serious
problems. The association claims that in addition to attacks on
their drivers, their trucks, loaded with local produce from the
Agadir region, are being intercepted by strikers and held at depots
near Agadir where the produce is going to rot. The losses of the
goods, on their way to the port of Casablanca for shipment to Europe
and for local distribution, are said to be close to 50 million dirham
each day. Moreover, a dramatic increase in the price of produce that
is finding its way to domestic markets is causing anxiety.


7. (SBU) There are varying degrees of impact around the country.
We have reports that taxis and trucks were running as usual in
Tangier where the only impact may be a slight increase in produce
prices. Marrakech, on the other hand may be feeling the impact. As
Morocco's most popular tourist destination, the lack of taxis in the
city has the potential for significant financial damage. There were
also reports on Thursday of a possible gas shortage at the Marrakech
airport if the situation did not ease up soon to allow more gas
deliveries.


7. (SBU) There is a genuine fear on the part of the government that
if the strike continues much longer the rising cost of staples could
prove more damaging to the economy. Friday, Casablancans have
experienced a doubling or even tripling of prices in the local
markets. Morocco has a history of riots over food prices and the GOM
is well aware of this factor in the background. The Prime Minister
is himself now involved. There is speculation that he canceled an
official trip to Romania to avert the impending fallout from the
strike and to meet with the union representatives on Monday, April 9.
This very public high level interest may be soothing the ruffled
feathers of the striking drivers encouraging more to return to work.


8. (SBU) Comment: Without a doubt, the strike is causing growing
difficulties for Moroccans. Despite that fact, however, there seems
to be some public support for the strikers. There is a public
perception that the GOM does not fully appreciate the challenges in
the life of the average Moroccan. Many believe that unemployment,
underemployment, lack of adequate housing, and everyday hardships
experienced by Moroccans, in the view of many, should be address
ahead of an issue like the new traffic code. End Comment

GREENE