Minor Springtime Strikes Plague Government, Minus Fall

UNCLAS SECTION 01 OF 02 PARAMARIBO 000244

SENSITIVE
SIPDIS

DEPT FOR WHA/CAR - Jackie Rosholt, WHA/PDA - Chad West

E.O. 12958: N/A
TAGS: ELAB EFIS PGOV NS
SUBJECT: Minor Springtime Strikes Plague Government, Minus Fall
Strike Tensions

REF: A. 2008 Paramaribo 219

B. 2007 Paramaribo 626

C. 2007 Paramaribo 617

D. 2007 Paramaribo 586

PARAMARIBO 00000244 001.2 OF 002



1. (SBU) SUMMARY. Spring 2008 saw an outbreak of several strikes
in Suriname. Contractors at Suralco (owned by U.S. aluminum giant
Alcoa) went on strike in April, followed by a high school teachers'
strike, a demonstration by retired civil servants, and blockades by
fishermen. Similar events in late 2007 coincided with the beginning
of the murder trial of political opposition leader Desi Bouterse and
led some to fear that Bouterse would make good on threats to bring
down the government (reftels). The current spate of strikes has
passed more quietly and generated less fear of instability, but with
rising gas and food prices the new strikes may be the first of many,
and potentially more serious for the government. END SUMMARY.

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PRODUCTIVITY CRIMPED AT SURALCO
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2. (U) On April 11, 400 laborers working for a U.S.-based
contractor, Kier CCC, which provides workers for Suralco (a
subsidiary of U.S. aluminum giant Alcoa),went on strike. Although
wages had remained low from 1996 to 2008, laborers did not strike
because compulsory overtime work resulted in a reasonable salary
level. In March 2008 Kier CCC decided to restrict laborers from
working overtime - a measure that effectively halved workers'
salaries (to approximately U.S. $214 per month). On April 17 and
April 27, workers blocked entrances to the primary Suralco refinery;
this action decreased output by 15 percent; eventually, the
strikers' barricades had to be removed by the Police Arrest Team.
Meanwhile, Errol Snijders, Chairman of de Moederbond, one of
Suriname's largest unions, stepped in as self-appointed
spokesman/union leader for the previously not-unionized Kier
workers. Suralco General Manager Warren Pederson broke precedent
when he agreed to mediate in the conflict between Kier and the union
- even though Suralco had previously insisted the matter was
strictly between Kier and its workers. On April 30, the Minister of
Labor, Technological Development, and Environment announced that the
Ministry was developing a basic Collective Labor Agreement to
include contract and short term workers, and the strike was called
off on May 9.

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"WE WANT EDUCATION"
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3. (U) On April 29, the Teachers' Union (BVL) went on strike
demanding revision of a new salary structure. The Union generated
little public sympathy because the teachers had already earlier been
on strike for seven weeks beginning in November 2007 and many
Surinamese expressed concern over the class time being missed. On
May 7 and 15, high school students took to the streets, voicing
their anger with the government and the teachers and using the
simple slogan "we want education." The students blocked busy
intersections, causing traffic pile-ups in downtown Paramaribo. On
May 7, the government brought the union to Court. On May 15, Judge
Ewald Ombre told the parties to take two months to work out their
differences and the BVL to immediately suspend its strike. Teachers
resumed classes on May 18. The Ministry of Education and the
Collective of High School Principals have already begun formulating
lesson schedules so students can make up for the time lost.

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RETIREES DEMAND HIGHER PENSIONS
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4. (U) On May 15, civil service retirees staged a one-day protest
at the Vice President's office (directly across the street from the
U.S. Embassy). Retirees receive small pensions based on a
percentage of working salaries; however many retirees complain that
their pensions no longer provide a livable retirement income, as
pensions were never adjusted following the country's hyper-inflation
in the late 90s. (Political opposition leader and current murder
trial defendant Desi Bouterse added to the hype by saying on the
radio that he recently received a pension check from the government
worth mere cents.) Minister Maurits Hassankhan of Home Affairs
addressed the retirees and assured them that a governmental
commission was working on the revision of the current pension
scheme. Minister Humphrey Hildenberg of Finance added that the
government was working on a structural plan to improve pensions for
civil servants as well as for private sector retirees. Talks
between the union and the government are ongoing.

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Floating Fishermen's Blockade

PARAMARIBO 00000244 002.2 OF 002


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5. (U) On May 28, Surinamese fishermen escalated their protest
over high gas prices, blocking access to the navigable channel in
the Suriname River. The fishermen, organized by the Suriname
Seafood Association (SSA) and the Fishers Collective (FC),also used
cars to block one of the main roads in Paramaribo along the Suriname
River, causing an enormous traffic jam. The SSA and the FC only
removed their trawlers and vessels from the channel after
representatives were granted a meeting with Vice-President Ramdien
Sardjoe. Meanwhile, SSA Chairman Prahlad Sewdien told reporters
that the fisheries sector in Suriname is "going down the drain."
While they have an earning capacity of approximately U.S. $35
million per year, Sewdien said fish and shrimp trawlers have not
left port since April due to high operating costs. Union sources
told the media the industry's break-even point lies at U.S. $0.40
per liter diesel, but the current price is approximately U.S. $0.90
per liter. The fishermen were also plagued by Venezuelan and
Guyanese fishermen illegally fishing in Surinamese waters, and by
piracy. In response the government approved a 5 million SRD
(approximately U.S. $1.8 million) grant for the fisheries sector to
take care of the most pressing issues (ref A). Sewdien said the
money should be allocated soon, as 7,000 fishery jobs are on the
line.


6. (SBU) COMMENT. In the fall of 2007, numerous strikes led many
in Suriname to believe government stability was threatened (refs b,
c, d). The timing coincided with the opening of the murder trial of
political opposition leader Desi Bouterse, and many believed that
the strikes were part of a politically motivated,
Bouterse-orchestrated master plan to force the government from
power. No such master plan was ever uncovered, the opening of the
trial was uneventful (ref b),and the strikes and street protests
petered out over the course of a few weeks, taking the societal
tensions with them. The current spate of spring 2008 strikes lacked
the threatening edge and much of the political context of the fall
2007 strikes, but in the end they may prove more serious for the
government. If the fall 2007 strikes were indeed politically
motivated, their failure indicated a repudiation of the opposition.
If the spring 2008 strikes are motivated by economic distress caused
by rising food and fuel prices, they will be less easy for the
ruling coalition to resolve. END COMMENT