SPAIN TRUCKERS' STRIKES WINDING DOWN

UNCLAS SECTION 01 OF 02 MADRID 000672 SIPDIS E.O. 12958: N/A TAGS: ECON SP EPET ENRG PREL SUBJECT: SPAIN TRUCKERS' STRIKES WINDING DOWN ¶1. (U) Summary. A strike by truckers that began on June 9 enters its fifth day amidst a standoff between the Ministry of Public Works and the two main unions behind the strike (Confedetrans and Fenadismer),which represent about 20 percent of truckers. The strike led to diesel and food shortages as well as sporadic outbreaks of violence but now shows signs of winding down. The two holdout unions, which primarily represent independent drivers and small companies, have pushed for the statutory establishment of a minimum haulage fee to ensure that truckers are able to turn a profit despite high fuel prices. The Ministry of Public Works has refused to comply with this demand, and has instead put forth an alternative relief package which it signed June 11 with the remaining trucking associations (representing 80% of all truckers, most of whom had not joined the strike). President Zapatero has made clear that the government's position will not change and that there will be a zero tolerance policy against acts of aggression by strikers. As such, the Ministry of Interior deployed 25,000 police and National Guard members June 12 to escort non-striking truckers and ensure that supplies reach their destinations. Since then, the roads have been clear, and we expect shortages to gradually end. End Summary. ¶2. (U) A strike of over 50,000 truckers began June 9 to protest the effects of high fuel prices and to demand among other things that the government set in law minimum hauling rates to guarantee truckers the ability to turn a reasonable profit. Over the past 12 months, fuel prices have risen from .95 euros a liter to 1.30 euros a liter, an increase which press articles estimate has forced truck drivers to assume additional operating costs of up to 16,000 euros per year. This increase has especially affected independent and smaller trucking companies which in some cases have operated at a loss. The truckers' strike, which prompted precautionary buying at grocery stores and gas stations, has led to shortages in food and fuel supplies. These shortages have been compounded by a separate strike waged by Spain's fishermen for similar reasons. Furthermore, the strike has resulted in tensions between strikers and non-strikers, culminating in sporadic acts of violence and civil disobedience leading to over 100 arrests. ¶3. (U) In a move to end the strike, the Ministry of Public Works put forth on June 11 a draft accord of 54 "principles" which include tax breaks and other relief measures. Because the accord stops short of guaranteeing minimum haulage fees, the two unions that initiated the strike (Confedetrans and Fenadismer) refused to sign off on it. The Ministry of Public Works instead signed the accord June 11 with the remaining truckers unions which represent 80 percent of all truckers, most of whom had not joined the strike. Minister of Public Works Magdalena Alvarez as well as President Zapatero announced June 12 that the Spanish government would stand firm on its decision. The GOS deployed 25,000 civil and national guards to protect non-striking truckers and ensure that supplies reach their destinations unhindered. ¶4. (U) Meanwhile negative sentiment against strikers has grown especially amidst reports of violence in which strikers attacked and set fire to non-striking trucks. Shortages of food supplies and medicine have also increased discomfort, and news that the strikes have adversely affected Spanish businesses is also not playing well in the public eye. Automobile companies have especially been hit hard by the strike, and the lack of part deliveries has led these companies to seek to temporarily lay off thousands of workers. Estimates of the economic impact of the strike per day reach 500 million euros. Comment: ¶5. (SBU) The remaining truck strike holdouts are mainly independent drivers or employees of small haulage companies that are having trouble competing with the larger transport groups. The two unions who represent these workers are standing firm to their demands, but so is the government. Given the firm stance of the government and growing negative sentiment against the strikes, it is doubtful that these holdouts will continue for long. This strike is one of three major strikes that have occurred in the past weeks related to higher fuel prices. The other strikes include the recently-ended 2-week fishermen's strike and a June 13 nationwide taxi strike. These strikes not only underline the effects of higher fuel prices in Spain, they highlight the MADRID 00000672 002 OF 002 difficulty that independent workers or smaller businesses face in surviving in the current marketplace. AGUIRRE