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. -------------- PRODUCTIVITY CRIMPED AT SURALCO -------------- ¶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. -------------- "WE WANT EDUCATION" -------------- ¶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. -------------- RETIREES DEMAND HIGHER PENSIONS -------------- ¶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. -------------- Floating Fishermen's Blockade PARAMARIBO 00000244 002.2 OF 002 -------------- ¶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