VZCZCXRO3333
PP RUEHMA RUEHPA
DE RUEHRY #0005/01 0021431
ZNR UUUUU ZZH
P 021431Z JAN 08
FM AMEMBASSY CONAKRY
TO RUEHC/SECSTATE WASHDC PRIORITY 2005
INFO RUEHZK/ECOWAS COLLECTIVE

UNCLAS SECTION 01 OF 02 CONAKRY 000005 
 
SIPDIS 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ELAB PREL GV
SUBJECT: UNION LEADERS DEMAND CONSULTATIONS WITH PM OVER 
PROPOSED FUEL HIKES 
 
 
¶1.  (U) SUMMARY.  In a December 28 open letter to the PM, 
union leaders called for public-private consultations in 
order to discuss the government,s plans to reduce fuel 
subsidies.  While not against the idea in principle, the 
unions want to be part of the consultative process and work 
with the government to develop an appropriate, effective 
implementation strategy.  According to one union leader, 
doing so will enable the unions to prepare the general 
population for what is likely to be painful economic hit, 
thereby minimizing any potential resulting civil unrest.  END 
SUMMARY. 
 
¶2.  (U) Union leaders issued an open letter on December 28, 
addressed to Prime Minister Lansana Kouyate, demanding 
public-private consultations to discuss government plans to 
reduce fuel subsidies and raise the price of gasoline.  Union 
leaders also criticized the recently signed presidential 
decree permitting reorganization of the government (septel). 
Finally, the unions requested that the government reconsider 
plans to lift an export ban on basic food commodities and 
suggested a delay of at least six months in order to allow 
for public-private consultations and development of an 
effective implementation strategy.  (COMMENT ) The lifting 
of the export ban is part of an ECOWAS commercial trade 
agreement).  The letter was issued by the 
Unions-Intersyndicale, an umbrella organization representing 
multiple labor unions under the leadership of Mme. Serah 
Rabiatou and Dr. Ibrahima Fofana. 
 
¶3.  (SBU) During a January 02 telephone conversation with 
Poloff, Rabiatou said that in principle, the unions are not 
against the idea of raising the price of fuel.  She noted 
that the unions understand the economic pressures and the 
fact that the government is losing significant revenues for 
what is becoming an increasingly unsustainable economic 
policy.  According to Rabiatou, the unions, problem is that 
they have not been consulted on the issue.  She emphasized 
that Kouyate is part of a consensus government and the 
January 27 Accords that established his government require 
regular dialogue and consultation with key players, including 
the unions and civil society.  Rabiatou said that the unions 
had met briefly with the PM on December 31 when they 
delivered the letter, but did not have an opportunity to go 
into detail as the PM was pressed for time. 
 
¶4.  (SBU) Rabiatou stressed that any increases in the price 
of fuel are likely to have a significant impact on the 
general population.  &It is important that we do this 
together and look at how it needs to be done,8 she said, 
adding &We want to be able to guarantee support.8  Rabiatou 
noted that the PM must have some flexibility in his ability 
to govern, but that he needs the unions and civil society on 
board with this particular economic policy.  &We all have 
different roles to play and we can help inform the 
population,8 she said.  Rabiatou said that if the PM goes 
forward with price increases without holding formal 
consultations with civil society, she is certain that there 
will be a widespread, negative popular reaction.  She 
emphasized that if the PM consults with unions and others and 
that everyone agrees on an appropriate course of action, the 
unions can help prepare the population and minimize 
discontent. 
 
¶5.  (SBU) With respect to the planned lifting of the export 
ban on certain commodities, Rabiatou said again that it is 
not so much a question of whether the policy needs to be 
implemented, but rather, a question of how it should be done. 
 According to Rabiatou, the unions also want to be part of 
consultations on this issue as the government decides how to 
proceed. 
 
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COMMENT 
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¶6.  (SBU) The unions have traditionally supported Kouyate and 
his administration as they see themselves as responsible for 
his appointment with a vested interest in ensuring his 
success.  At the same time, Rabiatou,s comments and the 
mildly critical tone of the open letter suggest that for the 
unions, having a consensus government means that the PM 
should consult with civil society before implementing key 
reforms.  While such a process is inherently democratic, it 
may also be inefficient and time consuming.  However, Guinea 
is in a unique political situation in that the population has 
demanded democratic change while its governing institutions 
lack the accountability to the people characteristic of a 
strong representative democracy.  The unions, demand to be 
part of the reform process may be an effort to ensure that 
the government remains accountable to the population that put 
it there. 
 
 
CONAKRY 00000005  002 OF 002 
 
 
¶7.  (SBU) Increases in fuel prices are likely to be highly 
unpopular and misunderstood.  Having the unions and others on 
board could help Kouyate &sell8 the policy to the 
population since the unions carry significant political 
weight and could help soften the eventual blow.  The Embassy 
fully supports the need for eliminating government fuel 
subsidies as a necessary, but likely painful economic reform. 
 At the same time, it is important to minimize potential 
civil unrest.  Embassy is releasing sound bytes to local 
radio stations in order to explain the international 
economics of rising oil prices and the negative effect of 
government subsidies.  Encouraging the PM to consult with 
civil society over this issue may be another mechanism by 
which Embassy can help mitigate potential discontent.  END 
COMMENT. 
CARTER