VZCZCXYZ0000
RR RUEHWEB

DE RUEHAB #0493/01 2071544
ZNR UUUUU ZZH
R 251544Z JUL 08
FM AMEMBASSY ABIDJAN
TO SECSTATE WASHDC 4411

UNCLAS ABIDJAN 000493 
 
SENSITIVE 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PGOV ASEC ECON ELAB AMGT IV
SUBJECT: STRIKE ANNOUNCED FOR JULY 31 
 
REF: A. ABIDJAN 480 
     ¶B. ABIDJAN 475 
     ¶C. ABIDJAN 467 
     ¶D. ABIDJAN 452 
 
¶1. (SBU) Summary. The Union of General Workers of Cote 
d'Ivoire (UGTCI) has rejected as insufficient the economic 
measures enacted by the government on July 20 in response to 
the UGTCI's July 17-18 general strike and widespread 
discontent among transporters and consumers.  The UGTCI has 
called for another general strike starting on July 31 unless 
the government responds to its demands, which include further 
cuts in the price of petrol, reductions in the price of basic 
commodities, and increases in salaries.  President Gbagbo's 
strong reaction to a statement issued on July 18 by an 
umbrella group of major opposition political parties 
criticizing his handling of the country's economic situation 
has increased rumors of a Cabinet reshuffle.  End Summary. 
 
¶2. (U) UGTCI on July 23 rejected as insufficient the economic 
measures enacted by the government on July 20 in response to 
UGTCI's July 17-18 general strike (See Reftels A, B, and C). 
UGTCI announced that it will call for another general strike 
starting on July 31 and continuing for an indefinite period 
unless the government responds to its demands. The UGTCI is 
now respecting the legal requirement of 6 days of notice of a 
strike which it did not observe when it called for a strike 
on July 17-18. 
 
¶3. (U) Although the government announced reductions in diesel 
and lamp oil, UGTCI is calling for deeper cuts in both 
gasoline and diesel prices.  UGTCI wants a reduction in the 
price of unleaded gas, which the government did not lower, to 
USD 1.60 (670 CFA) a liter from USD 1.90 (CFA 785).  UGTCI 
wants diesel to be further reduced from USD 1.65 (CFA 685) to 
USD 1.55 (CFA 650) a liter and lamp oil further reduced from 
USD 1.19 (CFA 495) to USD 1.17 (CFA 490). 
 
¶4. (U) The government increased the transport allowance of 
civil servants from USD 4.83 (CFA 2000) to USD 16.90 (CFA 
7000) in the cities of Abidjan and Bouake and to USD 12.07 
(CFA 5000) in other locations (See Reftel A).  UGTCI is 
calling for an increase in the transportation allowance for 
the public sector nationwide to USD 48 (CFA 20000) and in the 
private sector to USD 84 (CFA 35000) in Abidjan, USD 60 (CFA 
25000) in Bouake and USD 38 (CFA 16000) in other locations. 
 
¶5. (U) UGTCI is demanding a 44 percent increase in the 
private sector wage and an increase in the minimum wage from 
USD 84 (CFA 35000) to USD 288 (CFA 120000) a month.  In 
addition, UGTCI has called for application of a previously 
reached agreement that taxi and mini bus drivers' salaries 
will be USD 170 (CFA 71000).  They have also called for an 
increase in the family allowance allotted monthly per child 
to public servants to USD 24 (CFA 10000) from USD 6 (CFA 
2500), the elimination of taxes on pensions, and the decrease 
in prices for cooking gas, sugar, rice, meat and fish. 
 
¶6. (SBU) Since May, the President has held preliminary talks 
regarding increases in salaries and benefits with the three 
main labor confederations of unions, of which UGTCI is one, 
without reaching any agreement.  While the government's rapid 
enactment of measures in response to the strikes by UGTCI and 
transport workers the week of July 14 demonstrates the 
importance it places on avoiding social unrest in this 
electoral year, it will be difficult for it to accede to 
UGTCI's demands.  The government faces a rough cash flow 
situation and the budgetary impact of the measures already 
enacted is serious. 
 
¶7. (SBU) President Gbagbo reacted strongly to the July 18 
statement issued by RHDP, the umbrella group of major 
opposition political parties, which criticized Gbagbo's 
indifference towards the economic difficulties faced by 
Ivorians and characterizing the government's increase in gas 
prices as inexplicable since the country produces oil and gas 
(See Reftels A and D).  During a July 22 audience with 
representatives of the city of Vavoua, Gbagbo said it is 
inappropriate for members of the government to criticize the 
actions taken by the government since they are a part of it. 
He noted that he has made his displeasure with this practice 
known to the Prime Minister.  Gbagbo's comments have fueled 
rumors that have been circulating for weeks of a Cabinet 
reshuffle.  Widely circulated rumors indicate Prime Minister 
Soro has resisted the President's push for such a reshuffle. 
RHDP members are scheduled to meet on July 25 in Daoukro, the 
hometown of former President and PDCI party leader Henri 
Konan Bedie. 
 
¶8. (SBU) Comment. One reason for the President to be 
committed to respecting the November 30 presidential election 
date is that, if he were to win the election, he would then 
be free to form a government composed of persons who are 
members of his political party or who are loyal to him.  The 
somewhat embarrassing turnabout on the fuel prices rise in 
the face of widespread opposition and the evident 
ineffectiveness of Ministers from the President's FPI party 
and the Prime Minister's FN movement charged with managing 
the fuel price rise (Bouabre at Planning - FPI, Monnet at 
Energy - FPI, Diby at Finance - FPI leaning, and Soumahoro at 
Commerce - FN) give credence to reports of Gbagbo's 
frustration with the roster of his current Ministers.  End 
Comment. 
AKUETTEH