VZCZCXRO5001
RR RUEHMA RUEHPA
DE RUEHRY #1234 3171543
ZNR UUUUU ZZH
R 131543Z NOV 07
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC 1867
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS CONAKRY 001234 
 
SIPDIS 
 
SIPDIS 
SENSITIVE 
 
E.O. 12598:  N/A 
TAGS: PREL PREL KDEM ASEC GV
SUBJECT: GAS STATION WORKERS STRIKE IN GUINEA 
 
 
¶1.  (SBU)  SUMMARY.  Unionized gas station workers started a 
nation-wide strike on November 11 in protest of low wages, long 
working hours, and a lack of contracts and basic benefits.  Business 
owners say they cannot increase wages due to an already too low 
profit margin resulting from government price fixing and increasing 
world oil prices.  During initial negotiations, employers reportedly 
agreed to implement a contractual hiring process while workers 
agreed to suspend the strike and return to work.  However, union 
leaders say that the strike is still in effect and if demands are 
not addressed, they may reinstate it as early as November 14.  END 
SUMMARY. 
 
¶2.  (SBU) On November 13, Embassy staff met with a number of 
business contacts representing gas stations and their employees.  In 
addition, poloff met with leaders of the Independent Union of 
Guinean Labor Forces (SIFOG), which represents gas station 
employees. 
 
¶3.  (SBU) Union leaders report that they filed all the necessary 
paperwork required by law in order to organize a strike.  Although 
some advance notice was evidenced by the long lines of drivers in 
front of capital gas stations the evening before the strike, one 
station owner complained that she was unaware of the strike until 
her employees failed to show up for work the morning of November 11. 
 Gas Station owners throughout the city said that strike activity 
was generally peaceful with no demonstrations or destruction of 
property.  Despite a significant increase in the number of 
pedestrians in the streets, people appeared to generally go about 
their business as usual. 
 
¶4.  (SBU) Union representatives told poloff that they organized the 
strike in order to negotiate better salaries, better working hours, 
and implementation of contractual hiring practices.  Currently, gas 
station workers earn approximately $49 a month.  Many employees 
reportedly work from 7:00 AM to 12:00 midnight.  Most gas station 
workers do not have official contracts, which leaves them without 
benefits and subject to firing without procedure or cause.  Union 
leaders said they have four key demands:  contracts for all workers, 
social security benefits, a 100% increase in salaries, and medical 
insurance. 
 
¶5.  (SBU) Business owners acknowledged that workers' salaries are 
low, but said they cannot increase wages due to the low profit 
margin caused by government price fixing.  With the per liter price 
set at approximately $.80 (as compared to a regional average of 
$1.46 according to contacts) and steadily increasing world oil 
prices, business owners reported that their current profit margin 
amounts to approximately two and a half cents per liter.  Those 
profits are used to pay salaries, taxes and all operating costs.  To 
maintain profitability, contacts said they need a minimum profit 
margin of seven cents. 
 
¶6.  (SBU) During the first day of the strike, union leaders met with 
gas station owners, as represented by the Patronat (an association 
of businesses).  During negotiations, they reportedly agreed that 
employers would begin implementing a contractual hiring process, but 
as of November 13, employers had not yet signed the agreement as 
promised.  Union leaders said that while they agreed to go back to 
work, they will continue to fight in order to meet all of their 
demands.  They added that if no progress is made, they are prepared 
to reinstate the strike as early as November 14.  Business contacts 
said that the Patronat is convening another meeting on November 13 
to discuss the need for a larger profit margin and a strategy for 
getting the government to adjust the fixed gasoline price. 
 
¶7.  (SBU) Several business contacts said that the Guinean government 
simply cannot afford to maintain the current subsidy level.  One 
credible source reported that the government took a revenue loss of 
$3.65 million for October alone, which was the result of tax breaks 
given to gas vendors as an offset of the fixed price. 
 
¶8.  (SBU) COMMENT.  The salary issue seems to be the main problem 
for workers, but there is likely little that business owners can do 
to address it until the Guinean Government agrees to adjust the gas 
price or stop fixing the price altogether.  The GoG is rapidly 
losing millions of dollars in much needed revenues in order to 
maintain the price subsidy, which is a huge budgetary drain.  To 
date, the GoG has been reluctant to adjust the subsidized fuel 
price, which could be widely unpopular.  However, the strike could 
be a hidden opportunity for the GoG to adjust the subsidized price 
under cover of meeting worker demands, which may be more palatable 
to the general population.  END COMMENT. 
 
CARTER