TUNISIAN LABOR NEGOTIATIONS: TOUGH SLOG AHEAD

C O N F I D E N T I A L TUNIS 000835

SIPDIS

E.O. 12958: DECL: 07/13/2018
TAGS: ECON ELAB PGOV PHUM PINS TS
SUBJECT: TUNISIAN LABOR NEGOTIATIONS: TOUGH SLOG AHEAD

REF: A. TUNIS 761

B. TUNIS 615

C. TUNIS 362

Classified By: Ambassador Robert F. Godec for Reasons 1.4 (b) and (d).

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Summary
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1. (C) In a July 21 meeting with the Ambassador, Secretary
General of the General Union of Tunisian Workers (UGTT)
Abdessalem Jerad said:

-- there is no end in sight to the ongoing "social
negotiations";
-- the UGTT is prepared to use strikes and all other legal
levers to secure its goals, most importantly a wage increase,
in the negotiations;
-- the UGTT will not take up its seats in the three-year old
Chamber of Advisors until appointment authority is delegated
to them; and,
-- the protests in the Gafsa region (ref B) were not
initiated by UGTT branch leaders, but were "spontaneous
social combustion" in response to economic conditions.


2. (C) In our view, the social negotiations, which will
determine the wage increases for many Tunisians, present a
critical challenge for the UGTT, the business community and
the GOT. The response of ordinary Tunisians to the decisions
made in those talks will be a measure of how happy ) or not
) they are with their situation today. End Summary.

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Role of the UGTT
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3. (C) The Ambassador met with UGTT Secrtary General
Abdessalem Jerad, Counselor Abdelhamid Achour, and Assistant
Secretary General for International Relations Mohamed
Trabelsi at their headquarters. Jerad was warm and open
through out the conversation and welcomed the Ambassador's
visit as another opportunity to exchange views. Jerad
focused his initial comments on the dual role of the UGTT: on
the one hand, the organization is a champion of social
justice, protecting the needs of Tunisian workers. On the
other hand, as a national player, it has an important
coordinating role with the government.

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Men at Work?
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4. (C) When the Ambassador asked about the status of the
ongoing "social Negotiations," Jerad asserted that the rising
cost of living, specifically food and fuel, were driving
factors for UGTT in the negotiations. He recognized that
there is some positive economic progress in Tunisia, but
underscored there is an increased need to look at
redistribution of wealth and investment in the interior of
the country. Jerad highlighted the previously reported
negotiation goals (ref A) of worker conditions, a wage
increase that takes into account inflation, professional
development and protection for union leadership. He also
confirmed that UGTT is negotiating on behalf of three million
employees of both the private and public sector and that all
parts of the organization are mobilized and fully engaged in
the process.


5. (C) Jerad made clear that there is no end in sight for
the negotiations. When asked whether there is a deadline, he
responded that the deadline is a "good result." He made
plain that the UGTT is fully prepared to use strikes and all
other legal levers to achieve its objectives. We have, he
said, no choice but to use all means at our disposal. Jerad
pointed to the strikes held in early June (Ref A) to help
secure agreement to the negotiation framework as an
indication of the UGTT,s determination to press their point.


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Social Combustion
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6. (C) When asked about the recent unrest in the Gafsa
region and the arrest of UGTT representatives, Jerad was
quick to downplay the role of UGTT's local leadership in
fomenting protests (ref C). He added that the protests were
"spontaneous social combustion" in response to the economic
conditions. Jerad explained that, while the issue of
unemployment is not a new phenomenon in Gafsa, the fact that
unemployment in that region is twice that of the rest of the
country is indicative of what motivated the public response.
Regarding the UGTT members currently detained, Jerad
confirmed that the UGTT continues to lobby the GOT to release
them.


7. (C) Jerad was keen to emphasize the challenge posed by
high unemployment in Tunisia. Jerad and Trabelsi also
stressed the problem posed by low investment in Tunisia,s
interior provinces, as compared with the littoral.

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In or Out? Chamber of Advisors
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8. (C) Jerad indicated that the UGTT would continue to
boycott its allotted seats in the Chamber of Advisors.
(Note: Under the electoral code, UGTT, along with the
Employers' Union and the Farmers' and Fishermen's Unions, are
each allotted 14 seats in the Chamber of Advisors. The
respective organizations submit lists of candidates which are
voted on municipal counselors and members of the Chamber of
Deputies. The UGTT rejects this formula, which does not
allow it full independence in selecting its own
representatives.) When asked, he affirmed that there was no
change on their position from three years ago and that UGTT
is not willing to enter the Chamber under the prescribed
conditions. Jerad asserted that UGTT is free and independent
and would only join the Chamber in that capacity.

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Comment
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9. (C) UGTT leaders finds themselves between the proverbial
"rock and a hard place." Jerad must balance the needs of the
grassroots and regional offices while maintaining relations
with the powers-that-be. At the same time, the regional
offices are taking a decisive stand regarding economic
conditions and labor rights while the national office is more
accommodating in its approach.


10. (C) The current "social negotiations" present the UGTT,
and indeed the GOT and the business community, with a key
challenge. From the disturbances in Gafsa province to the
grumbling on the streets of Tunis there are increasing signs
that Tunisians are unhappy, even fed up. Rising food and oil
prices, widespread rumors of "first family" corruption and
high levels of unemployment are feeding the discontent. If
the GOT and business agree to a sufficiently high wage
increase in the talks, the situation may well continue to
muddle along. If not, there may be further instances of
&spontaneous social combustion.8 In either case, the
response of Tunisians to the results of the talks will
provide a further measure of how happy ) or not ) they are
with their situation today. End Comment.


Please visit Embassy Tunis' Classified Website at:
http://www.state.sgov.gov/p/nea/tunis/index.c fm
GODEC