STRIKE ANNOUNCED FOR JULY 31

UNCLAS ABIDJAN 000493 SENSITIVE SIPDIS E.O. 12958: N/A TAGS: PGOV ASEC ECON ELAB AMGT IV SUBJECT: STRIKE ANNOUNCED FOR JULY 31 REF: A. ABIDJAN 480 ¶B. ABIDJAN 475 ¶C. ABIDJAN 467 ¶D. ABIDJAN 452 ¶1. (SBU) Summary. The Union of General Workers of Cote d'Ivoire (UGTCI) has rejected as insufficient the economic measures enacted by the government on July 20 in response to the UGTCI's July 17-18 general strike and widespread discontent among transporters and consumers. The UGTCI has called for another general strike starting on July 31 unless the government responds to its demands, which include further cuts in the price of petrol, reductions in the price of basic commodities, and increases in salaries. President Gbagbo's strong reaction to a statement issued on July 18 by an umbrella group of major opposition political parties criticizing his handling of the country's economic situation has increased rumors of a Cabinet reshuffle. End Summary. ¶2. (U) UGTCI on July 23 rejected as insufficient the economic measures enacted by the government on July 20 in response to UGTCI's July 17-18 general strike (See Reftels A, B, and C). UGTCI announced that it will call for another general strike starting on July 31 and continuing for an indefinite period unless the government responds to its demands. The UGTCI is now respecting the legal requirement of 6 days of notice of a strike which it did not observe when it called for a strike on July 17-18. ¶3. (U) Although the government announced reductions in diesel and lamp oil, UGTCI is calling for deeper cuts in both gasoline and diesel prices. UGTCI wants a reduction in the price of unleaded gas, which the government did not lower, to USD 1.60 (670 CFA) a liter from USD 1.90 (CFA 785). UGTCI wants diesel to be further reduced from USD 1.65 (CFA 685) to USD 1.55 (CFA 650) a liter and lamp oil further reduced from USD 1.19 (CFA 495) to USD 1.17 (CFA 490). ¶4. (U) The government increased the transport allowance of civil servants from USD 4.83 (CFA 2000) to USD 16.90 (CFA 7000) in the cities of Abidjan and Bouake and to USD 12.07 (CFA 5000) in other locations (See Reftel A). UGTCI is calling for an increase in the transportation allowance for the public sector nationwide to USD 48 (CFA 20000) and in the private sector to USD 84 (CFA 35000) in Abidjan, USD 60 (CFA 25000) in Bouake and USD 38 (CFA 16000) in other locations. ¶5. (U) UGTCI is demanding a 44 percent increase in the private sector wage and an increase in the minimum wage from USD 84 (CFA 35000) to USD 288 (CFA 120000) a month. In addition, UGTCI has called for application of a previously reached agreement that taxi and mini bus drivers' salaries will be USD 170 (CFA 71000). They have also called for an increase in the family allowance allotted monthly per child to public servants to USD 24 (CFA 10000) from USD 6 (CFA 2500),the elimination of taxes on pensions, and the decrease in prices for cooking gas, sugar, rice, meat and fish. ¶6. (SBU) Since May, the President has held preliminary talks regarding increases in salaries and benefits with the three main labor confederations of unions, of which UGTCI is one, without reaching any agreement. While the government's rapid enactment of measures in response to the strikes by UGTCI and transport workers the week of July 14 demonstrates the importance it places on avoiding social unrest in this electoral year, it will be difficult for it to accede to UGTCI's demands. The government faces a rough cash flow situation and the budgetary impact of the measures already enacted is serious. ¶7. (SBU) President Gbagbo reacted strongly to the July 18 statement issued by RHDP, the umbrella group of major opposition political parties, which criticized Gbagbo's indifference towards the economic difficulties faced by Ivorians and characterizing the government's increase in gas prices as inexplicable since the country produces oil and gas (See Reftels A and D). During a July 22 audience with representatives of the city of Vavoua, Gbagbo said it is inappropriate for members of the government to criticize the actions taken by the government since they are a part of it. He noted that he has made his displeasure with this practice known to the Prime Minister. Gbagbo's comments have fueled rumors that have been circulating for weeks of a Cabinet reshuffle. Widely circulated rumors indicate Prime Minister Soro has resisted the President's push for such a reshuffle. RHDP members are scheduled to meet on July 25 in Daoukro, the hometown of former President and PDCI party leader Henri Konan Bedie. ¶8. (SBU) Comment. One reason for the President to be committed to respecting the November 30 presidential election date is that, if he were to win the election, he would then be free to form a government composed of persons who are members of his political party or who are loyal to him. The somewhat embarrassing turnabout on the fuel prices rise in the face of widespread opposition and the evident ineffectiveness of Ministers from the President's FPI party and the Prime Minister's FN movement charged with managing the fuel price rise (Bouabre at Planning - FPI, Monnet at Energy - FPI, Diby at Finance - FPI leaning, and Soumahoro at Commerce - FN) give credence to reports of Gbagbo's frustration with the roster of his current Ministers. End Comment. AKUETTEH