LIBERIA: FIRESTONE LIBERIA CONCLUDES COLLECTIVE BARGAINING

UNCLAS MONROVIA 000618

SENSITIVE
SIPDIS

DEPARTMENT FOR AF/W, INR/AA

E.O. 12598: N/A
TAGS: ELAB ECON PGOV LI
SUBJECT: LIBERIA: FIRESTONE LIBERIA CONCLUDES COLLECTIVE BARGAINING
AGREEMENT WITH UNION

REF: A) 07 MONROVIA 1439, B) 07 MONROVIA 1418, C) 07 MONROVIA 887,
D) 07 MONROVIA 518, E) 07 MONROVIA 253


1. (U) Firestone Liberia concluded a labor agreement August 6 with
the Firestone Allied Agricultural Workers Union of Liberia (FAAWUL).
The Collective Bargaining Agreement (CBA) covers over 4,000 workers
and provides wage increases of 24% for rubber tappers (from a little
over US$3 to just under $5 per day for three years) and 19.5% for
salaried staff, retroactive to January 2007 when an internal union
leadership battle halted previous CBA talks (ref A). Other CBA
provisions include a 20% reduction of the daily rubber tree quota
for tappers from 750 to 450-600 depending on the class of the trees.
The CBA also provides for further upgrades to housing, health and
educational facilities for rubber tappers and their families.
Firestone agreed to provide transportation to workers bringing latex
to weigh stations [Note: previously tappers had to walk and carry
rubber to weigh stations. End note]. The agreement follows several
strikes in 2007 over labor conditions and union leadership (refs B).



2. (U) Firestone initiated CBA negotiations with previous union
leadership in 2006 and had already embarked on many of the
improvements in social infrastructure (health, education and
housing) included in the CBA. Those prior talks broke down when the
union split in early 2007 and an internal election was called in
July 2007 (refs C-E). Results of that election remained in dispute
and generated episodes of violence and unrest until a Supreme Court
ruling in December 2007 ratified the election. Following the
ruling, Firestone officially recognized the new FAAWUL leaders and
CBA talks resumed in April, 2008.


3. (U) FAAWUL received support from the United Steelworkers Union
(USW) and the AFL-CIO's Solidarity CenterQuring the negotiations
and the Liberian Ministry of Labor mediated the discussions. The
USW also provided a radio transmitter to establish a FAAWUL radio
station in Firestone, while the AFL-CIO has promised to contribute
US$5,000 to FAAWUL for general administration.


4. (SBU) Firestone Liberia representatives told EconOff that
negotiations were professional and productive and that relations
with the union had improved since the unrest in 2007. FAAWUL told
the Embassy that the present relationship with the management of
Firestone is more cordial than before. At the end of the agreement
FAAWUL committed to doing everything in its power to avoid strikes,
disruption or work stoppages during the period covered by the new
agreement (2007-2009). Firestone and FAAWUL will begin new
negotiations in April 2009 for the 2010-2012 CBA.

ROBINSON