GOLD MINE STRIKE BECOMES POLITICAL FOOTBALL

UNCLAS SECTION 01 OF 02 PARAMARIBO 000089

SIPDIS

SIPDIS
SENSITIVE

DEPT FOR WHA/CAR - Laura Luftig, Mathew Buffington; WHA/CAN,
WHA/EPSC, EB/TPP/BTA/EWH Beth Lampron

E.O. 12958: N/A
TAGS: ELAB PGOV NS
SUBJECT: GOLD MINE STRIKE BECOMES POLITICAL FOOTBALL

REF: 06 PARAMARIBO 291

PARAMARIBO 00000089 001.2 OF 002



1. (U) SUMMARY. A deadlock in negotiations for a new collective
bargaining agreement culminated in a tense work stoppage at the gold
mine owned by the Canadian company IAMGOLD. At the height of the
conflict, President Ronald Venetiaan ordered extra army troops to
the site to guard explosives at the mine and to prevent the miners
from sabotaging any more of IAMGOLD's property. Meanwhile the
Mediation Council for Labor Disputes, a government body, heard
arguments from IAMGOLD management and the board of the union and
ordered resumption of work. Contrary to the Commission's decision,
IAMGOLD's management initially refused to open the locked gates to
the plant, saying it needed to assess the damages and ensure safety.
Politicians on both sides expressed varying degrees of sympathy with
the strikers and criticized the company. END SUMMARY.

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Surprise Strike
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2. (U) Negotiations between IAMGOLD management and union
representatives to reach a new collective bargaining agreement
started eight months ago. According to the company's spokesman, Roy
van Aerde, the two parties were near an agreement on January 25 when
the union unexpectedly called for the strike. IAMGOLD management and
the union representatives had left the negotiating table with the
understanding that the representatives would go back to the miners
to report on the progress made. A source relayed to the Embassy
that the chairman of the union, Errol Snijders, urged the miners
that striking would be best because IAMGOLD's management was
dragging its feet. The union felt the company was unwilling to meet
basic demands, including an increase in salaries, a holiday bonus,
and arrangements for medical benefits and holidays - these same
demands were the cause of a strike in May 2006 (see reftel). The
strike commenced immediately after Snijders' meeting with the
miners. Political figures across party lines expressed support for
the miners which ranged from guarded (from the coalition) to
accusations that the company puts the workers and Suriname itself in
a position of "semi-slavery" (from the opposition).

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Sabotage, military presence, and coup references
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3. (U) Roughly 200 of the 1100 IAMGOLD employees participated in the
initial strike; this number decreased significantly over the five
days the strike lasted, as many did not agree with the union's
strong-arm tactics. Workers barricaded the gate at the gold
processing plant, the roads to the open pit mine, and the explosive
depots with heavy mining vehicles and equipment. They disabled
company property including ATVs and trucks, and sabotaged the
electricity and water supply to the refinery. Army troops
permanently stationed at the mine to guard the explosives depots
were isolated and could not make contact with headquarters in
Paramaribo. Union and military figures exchanged accusations of
intimidation in the press.


4. (U) On January 28 President Venetiaan ordered extra troops to be
sent to the mine. Snijders criticized Venetiaan for not siding with
workers, but instead sending the army to "take care of business."
Snijders exhorted the workers, "gentlemen, don't forget why 1980
came about. Do not let yourselves by misused by this government," a
reference to the 1980 military coup, which was partly blamed on the
government's failure to recognize union rights within the military.

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Mining company foot-dragging on Mediation Council decision
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5. (U) The union and IAMGOLD's management were summoned to appear
before the Intermediation Commission for Labor Disputes on January

29. After hearing both parties the commission ruled that the strike
was unlawful and parties would have to continue negotiations to
reach a collective bargaining agreement. IAMGOLD's CEO Joseph
Conway said that production would only resume after the company
finished assessing damages, and after measures were taken to
guarantee a safe working environment for the miners-IAMGOLD finally
reopened the mine on February 19. According to company spokesman
van Aerde, damage to equipment and vehicles is enormous, and the
company will seek damages from the union for all losses suffered -
IAMGOLD officials speculated in the press on damages of around a
half million U.S. dollars. Meanwhile, in a first for Suriname, the
authoritative Mediation Council found its decision disputed:
IAMGOLD director Denis Meville Deschenes said the council is not
impartial, and said it changed articles in a draft collective labor

PARAMARIBO 00000089 002.2 OF 002


agreement with the labor union. Opposition figure Jiwan Sital
called IAMGOLD's actions a "power play" in parliament, and unrelated
unions jumped into the fray, saying the company's actions set a bad
precedent.

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Comment
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6. (SBU) No side has looked good. The decision taken by President
Venetiaan to send extra troops to the Rosebel plant only worsened
the already explosive situation. The comments and tactics of Union
Chairman Errol Snijders (who served as Minister of Foreign Affairs
and Minister of Labor during Presidency of Jules Wijdenbosch and is
known to have been a personal friend of former military strongman
Desi Bouterse in the 1980s) suggest a secondary goal of political
destabilization. IAMGOLD lost credibility by appearing to thumb its
nose at a decision taken by a respected government body, and fanned
the flames of nationalistic calls for more Surinamese profit in
deals with multinationals - already a strong current in parliament
and the press in recent months. In the end, the dispute is likely
to contribute to sharp public alienation and displeasure with
politicians and power brokers of all stripes. However, for the
moment tensions have abated and open conflict between the military
and the strikers has been averted.

GENTON