Identifier
Created
Classification
Origin
08CONAKRY708
2008-11-19 09:01:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Conakry
Cable title:  

BANK WORKERS ISSUE PRE-NOTIFICATION OF INTENT TO

Tags:  ELAB ECON PGOV ASEC GV 
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VZCZCXRO4512
PP RUEHMA RUEHPA
DE RUEHRY #0708 3240901
ZNR UUUUU ZZH
P 190901Z NOV 08
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC PRIORITY 3160
INFO RUEHZK/ECOWAS COLLECTIVE
RHEFDIA/DIA WASHINGTON DC
RUEAIIA/CIA WASHDC
RHMFISS/HQ USAFRICOM STUTTGART GE
UNCLAS CONAKRY 000708 

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: ELAB ECON PGOV ASEC GV
SUBJECT: BANK WORKERS ISSUE PRE-NOTIFICATION OF INTENT TO
STRIKE

UNCLAS CONAKRY 000708

SIPDIS
SENSITIVE

E.O. 12958: N/A
TAGS: ELAB ECON PGOV ASEC GV
SUBJECT: BANK WORKERS ISSUE PRE-NOTIFICATION OF INTENT TO
STRIKE


1. (U) On November 14, a union of private bank employees
issued a pre-notification of intent to strike. In compliance
with local law, the union must provide employers with a 10
day notice before commencing strike activity. If the union's
demands are not satisfactorily addressed, the union may
initiate a strike after November 26. The largest banks
operating in Guinea are BICIGUI, Ecobank, and SGBC (Societe
General des Bancs en Guinee). The Government of Guinea owns
a minority of shares in SGBC.


2. (U) According to a union contact, bank employees have
been negotiating with bank management for more than a month,
but without success. The union is reportedly seeking salary
increases and benefits that would make the local compensation
package equitable to those of other banks in the West African
sub-region. In addition, the union is requesting increases
in basic allowances.


3. (SBU) Union representatives said that Guinean banks are
affiliated with parent banks overseas, as are other banks in
the sub-region. They argue that Guinean bank employees
fulfill the same duties and attain similar results, but are
paid significantly less than colleagues in neighboring
countries. The union demanded a 100% increase in base
salaries, but the banks offered a three per cent raise. Bank
employees refused to accept the offer. Bank managers
categorically stated that the banks would not offer more than
a 10% increase. Bank employees again refused, saying they
would accept nothing less than a 50% increase. The resulting
impasse prompted the union to file the pre-notification of
intent to strike.


4. (U) Guinea's Central Bank is facilitating negotiations
between the union and the banks.

--------------
COMMENT
--------------


5. (U) The union of bank employees has successfully
conducted labor strikes several times in the past and
generally obtained salary and allowance increases as a
result, although perhaps not at the level initially sought.
Past bank strikes have been peaceful, but short-lived since
they have an almost immediate negative impact on local
business operations. This union threat comes on the heels of
a teachers' strike in June and a health workers' strike in
August. END COMMENT.
RASPOLIC