FIJI UPDATE AUG. 6, 07: STRIKES; AUSTRALIA-FIJI;

C O N F I D E N T I A L SECTION 01 OF 02 SUVA 000387 SIPDIS SIPDIS E.O. 12958: DECL: 08/02/2017 TAGS: PREL MARR PHUM FJ SUBJECT: FIJI UPDATE AUG. 6, 07: STRIKES; AUSTRALIA-FIJI; BAINIMARAMA SCORE CARD; GCC STATUS REF: SUVA 379 Classified By: Amb. Dinger. Sec. 1.4 (B,D). Summary -------------- ¶1. (C) Some Fiji public-sector unions remain on strike. Others have gone back to work, at least for now. The interim government (IG) is adamant thus far that no lucrative settlement will take place. A war of words between Australia and the IG continues. Interim PM Bainimarama is spinning the IG's "anti-corruption" and "building a bright future" themes as fast as he can. Today's pressured resignation of the head of Fiji's Revenue and Customs Authority suggests less savory IG motives. The IG's suspension of Fiji's Great Council of Chiefs (GCC) has been lifted, sort of. Details are murky but may relate to the need to appoint a Vice President sooner rather than later. End summary. Strike news -------------- ¶2. (SBU) Four Fiji public-sector trade unions have been on strike over interim government decisions to reduce pay and cut the retirement age from 60 to 55. The Fiji Nursing Association (FNA) was first in line and has now been out for two weeks. The Fiji Teachers Association (FTA),Public Employees Union (PEU),and Viti National Union of Taukei Workers (VNUTW) went on strike last week (ref). When the Education Minister pulled forward a two-week school holiday from late August to the present, the FTA called off its strike for now, attempting to regain paid vacations for teachers, but with a threat to resume strike action later. The Education Minister said he considers the unionists to still be on strike so they should not be paid. Media report the PEU may be near settlement. Still, the FNA and VNUTW remain insistent, asking for compulsory arbitration if the interim government won't meet their demands. Interim PM Bainimarama has said the cupboard is bare, and he has refused to let interim Labor Minister Rounds-Ganilau go down the arbitration route, presumably fearing a negative ruling. The head of the FNA admits her union is "stuck," since "the powers now rest with the interim prime minister." Bainimarama has made clear publicly that he feels no compunction to meet strikers demands, since his is "not an elected government." The relatively light strike turnouts, except for the nurses, has made Bainimarama's stance less difficult than it might have been. Australia-Fiji war of words continues -------------- ¶3. (C) Australian Foreign Minister Downer reportedly has stated publicly in Auckland that Bainimarama will not be welcomed at this year's Pacific Islands Forum (PIF) in Tonga. Downer said that is now a widely-held view among Forum partners. Bainimarama responded by accusing the PIF Secretariat of being used by Australia and New Zealand to SIPDIS campaign against Fiji's interim regime. Bainimarama accused the Secretariat of appointing two former CEO's of the Qarase Government into key PIF positions in Solomon Islands (Lesi Korovavala) and Nauru (Paula Uluinaceva). (Note: PIF officials have told us they vetted the appointments with very senior levels of the Fiji IG, including the Foreign Minister, and received assent at the time.) Bainimarama also lashed out at Australia and New Zealand for campaigning to get him disqualified from attending the Forum meeting in Tonga. Bainimarama said, "Their reaction typifies the lack of understanding and arrogance. They have a condescending attitude to the unique problems and challenges a small country like Fiji is facing." Bainimarama on his motives and results -------------- ¶4. (U) In remarks at a Pacific Islands Business Forum in Nadi on Aug. 6, Bainimarama said the Dec. 6 coup was "not a power grab." It was about rescuing a young and fragile nation that was being plunged into the abyss by manipulative, corrupt, racist, and divisive political leaders. Now all those issues will be addressed through a proposed National Council to Build a Better Fiji. Efforts to streamline regulatory frameworks, install good-governance practices, and implement the Fiji Independent Commission Against Corruption (FICAC) are producing results. Bainimarama said the IG remains fully committed and engaged with the PIF initiative to return Fiji to parliamentary democracy, as illustrated by release of funds for a census, appointment of an electoral SUVA 00000387 002 OF 002 commission, and acceptance in principle of a March 2009 time frame for elections. Revenue and Customs CEO resigns -------------- ¶5. (C) A few weeks ago, Fiji Islands Revenue and Customs Authority (FIRCA) CEO Tevita Banuve refused to release tax records of suspended Chief Justice Fatiaki to FICAC. Banuve sourced his decision in Fiji's tax law. FICAC reportedly went to a magistrate friendly to the IG, got a warrant, and barged into FIRCA headquarters to grab the Fatiaki file. Interim PM Bainimarama then ordered FIRCA to fire Banuve. Banuve went on leave, as FIRCA staff expressed unhappiness over the affair. Over the weekend, Banuve reportedly submitted his resignation letter. GCC reinstated...sort of -------------- ¶6. (U) The IG and the Great Council of Chiefs seem to have cut some sort of deal, though details are very murky. Interim Fijian Affairs Minister Ganilau announced Aug 3 that the suspension of the GCC he had announced in April (after the GCC refused to bless the IG's choice as Vice President) has now been rescinded. Four senior GCC members announced they had withdrawn their lawsuit against the interim regime challenging the suspension. Supposedly details were to follow; however, thus far the only details have been contradictory, with both sides blaming the media for the confusion. GCC leaders indicated they may call a meeting for this week, but Bainimarama says any official meeting will not be allowed. An element in all this could be the IG's strong desire to fill the VP position, given President Iloilo's feeble state. Under the Fiji Constitution, the GCC is instrumental in that process. Comment -------------- ¶7. (C) Commodore Bainimarama is spinning a tale of success in his "clean up" campaign. Many observers are skeptical. FICAC is a rogue organization without legal legitimacy. One FICAC court case has already been withdrawn, presumably to keep from having a near-term constitutional challenge. The strikes have been a chance to observe grassroots moods. Turnout for the nurses' strike reportedly has been pretty strong. The others have been spotty, and strike organizers blame military and police intimidation. A couple days before the strikes were to commence, national TV news showed security forces exercising strong-arm contingency preparations. Also, per reftel, the military took the head of the VNUTW to Queen Elizabeth Barracks where he was reportedly abused and threatened with death. That said, people at the Fijian grassroots still have yet to show overtly what so many sources say is the state of play beneath the surface: a deep-seated anger about the coup and its aftermath. The strikes are an opportunity, but the nurses have appeared to be the only ones prepared to exercise anti-IG courage on a mass scale. DINGER