STRIKES ON THE HORIZON DESPITE GOM OFFER

C O N F I D E N T I A L CASABLANCA 000093

SIPDIS

E.O. 12958: DECL: 05/08/2018
TAGS: PGOV ELAB ECON ETRD MO
SUBJECT: STRIKES ON THE HORIZON DESPITE GOM OFFER

REF: A) Casablanca 0087

B) Casablanca 0086
C) 07 Casablanca 0198

Classified By: Principal Officer Douglas C. Greene for Reasons 1.4
(b),(d).


1. (SBU) Summary: Following a surprisingly weak turnout on what many
though would be well attended May Day celebrations, Prime Minister
Abbas El Fassi announced that he would implement his offer to
increase monthly minimum wage, lower some income taxes and increase
other social benefits. In response to El Fassi's decision to
implement the offer, which was recently rejected by Moroccan labor
unions, the unions have called for general strikes. While at least
three major unions have called for a general strike on May 13, one of
the largest and most vocal unions, the Democratic Confederation of
Labor (CDT),has decided on May 21 for its action. End Summary.

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Mild Mannered May Day March
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2. (SBU) Leading up to Morocco's May 1 festivities, many local labor
leaders speculated that this year's march had the potential to be the
largest in recent history. For the first time in many years,
Moroccan laborers were facing a number of major issues which provoked
strong emotions from members: rising food prices, the failure of the
social dialogue (Ref A),and two recent fatal factory fires, caused
by owners' disregard for safety regulation (Ref B). However,
participation was barely more than in recent years: between 20,000
and 35,000 participants from the two largest labor unions, CDT and
the Moroccan Union of Labor (UMT)


3. (C) Despite low turnout, the participants made clear their
dissatisfaction with the current economic situation in Morocco. Food
prices took center stage with union members displaying large replicas
of cooking oil bottles and sacks of sugar during a rally sponsored by
the governing Istiqlal Party-affiliated, General Union of Moroccan
Workers (UGTM). The deaths of 58 Moroccan citizens in a horrific
factory fire were also a prominent theme. The CDT march was itself
delayed by Moroccan police due to their concern over the
participation of family members of those killed in the fire. The
family members were eventually allowed to march and most held aloft
photos of loved ones lost in the fire.


4. (C) In addition, the unions' rejection of El Fassi's social
package figured prominently in the demonstrations. To a lesser
extent, Arab solidarity with Palestinians and Iraqis was also
featured. However, for the first time in many years, there was no
significant evidence of anti-Americanism. There were no reports of
unrest or violence during the marches.

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A Show of Strength from El Fassi
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5. (C) On May 1, Morocco's Prime Minister, Abbas El Fassi, announced
his intention to implement a social investment package which had been
rejected by the five major unions just days before. The highlight of
the package, a ten percent increase in the guaranteed minimum wage
(SMIG) over the next two years, falls far short of the immediate
thirty percent increase demanded by the unions. Other concessions by
the government fall short of union demands as well. It appears,
however, that the GOM's strategy is based on the view that immediate
action and money in the pockets of the workers will appease them.
The first tranche of benefits, to be implemented in July, includes a
five percent increase in the SMIG.

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Strike One...Strike Two...Who's Out
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6. (U) During the May Day union rallies, discussion focused on
impending strikes. Within days at least four unions announced their
plans of action. The UMT, the Democratic Federation of Workers
(FDT),which is affiliated with the government's Popular Union of
Socialist Forces (USFP),and the Democratic Workers Organization
(ODT) have all called for general strikes on May 13. The CDT,
however, has called for a national strike in all sectors, public and

private, on May 21. According to CDT Secretary General Noubir
Amaoui, the strike will include the transportation,
telecommunications and tourism sectors. Amaoui announced that his
union is striking to protest "the high cost of living, the unbearable
increase in prices, and the unequal distribution of national wealth."
The unions say they are poised to demonstrate to the GOM that they
can mobilize their members and, according to Amaoui, "paralyze every
sector."

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Comment
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7. (C) Moroccan workers are clearly disgruntled with the high cost
of living and labor unions are moving quickly to protect their
members' interests and advance their own organizational interests as
well. However, the GOM strategy of attempting to put cash into the
hands of workers before the financial pressures of school-year
start-up costs and Ramadan in September may turn out to be at least
partially successful. Strikes slated for later this month have the
potential to reflect the same lack of enthusiasm shown on May 1. The
unions' historic foot-dragging and table-thumping may have been
enough to dampen the confidence of laborers. Participation in the
May 13 and 21 strikes should indicate whether Moroccan workers are
satisfied for now with the GOM offer or are clamoring for more action
from the unions.

GREENE