BANK WORKERS ISSUE PRE-NOTIFICATION OF INTENT TO

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