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RR RUEHIK
DE RUEHAK #1829/01 3571454
ZNR UUUUU ZZH
R 231454Z DEC 09
FM AMEMBASSY ANKARA
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INFO RUEHZL/EUROPEAN POLITICAL COLLECTIVE
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RHEHAAA/NSC WASHDC
RHMFIUU/39ABG INCIRLIK AB TU
RUEUITH/ODC ANKARA TU
RUEAIIA/CIA WASHDC
RHEFDIA/DIA WASHDC
RHMFISS/EUCOM POLAD VAIHINGEN GE
RUEKJCS/JOINT STAFF WASHDC//J-3/J-5//
RUEILB/NCTC WASHINGTON DC
RUEKJCS/SECDEF WASHDC

UNCLAS SECTION 01 OF 02 ANKARA 001829 
 
SIPDIS 
SENSITIVE 
 
DEPARTMENT ALSO FOR EUR/SE 
 
E.O. 12958: N/A 
TAGS: PGOV ELAB TU
SUBJECT: PRIVATIZED TOBACCO WORKERS CONTINUE ANGRY PROTESTS 
 
REF: ANKARA 1708 
 
ANKARA 00001829  001.2 OF 002 
 
 
¶1. (U) SUMMARY:  Thousands of workers who face losing their 
benefits and right to organize under Turkey's privatization 
of its tobacco industry entered their ninth day of raucous 
protest in Ankara December 23 while union leaders and the 
government discuss ways to address their concerns. 
Extraordinary measures by the GOT to give them the same 
benefits as past public sector workers are unlikely. 
Generating 12,000 newly unemployed workers in February 2011 
-- half of them from the most economically depressed region 
of the country -- is unlikely to bolster the AKP's prospects 
in the 2011 elections.  END SUMMARY. 
 
¶2. (U) On December 15 over 100 buses from 21 provinces in 
Turkey descended upon downtown Ankara, delivering large 
numbers -- the media reported between 5,000 and 10,000 -- of 
disgruntled employees of British American Tobacco (BAT) to a 
shopping mall where they began an illegal protest for their 
labor rights.  The protesters walked from the mall to the 
headquarters of the AKP, but were later moved from there by 
riot police to Abdi Ipekci Park.  They later continued their 
protest in front of their labor confederation headquarters, 
Turk-Is.  During the protest, Turk-Is Confederation Secretary 
General Mustafa Turkel and some other members of the 
confederation were briefly detained.  Media reports indicate 
the police used water cannons and tear gas to control the 
crowds, and occasionally there were physical confrontations. 
According to one report, Ali Can Aykel, a member of the Mus 
branch office of the Tekgida-Is union, was beaten so severely 
by police that he faces possible paralysis and had to be 
taken to the hospital. 
 
¶3. (U) Eight unions affiliated with Turk-Is issued a joint 
statement supporting the workers' work stoppage, denouncing 
the Turk-Is detentions, and reiterating the demands of the 
BAT workers.  DISK (the Revolutionary Workers Unions 
Confederation) also issued a statement expressing support, 
while the International Union of Federations sent letters to 
the GOT to express support.  The MHP, CHP and DSP opposition 
political parties also expressed support for the work 
stoppage.  Opposition CHP party MP Cetin Soysal, who 
participated in the protests, was subdued by the tear gas 
used by riot police.  He later met with Parliament Speaker 
Mehmet Ali Sahin, and complained that the workers should be 
treated more respectfully.  On December 23 he announced that 
he will bring the excessive use of force by the police during 
the protest before the Human Rights Commission in parliament. 
 
¶4. (U) During a privatization in 2008, BAT purchased the 
tobacco-producing facilities formerly owned by the state 
monopoly TEKEL -- which had controlled production of tobacco, 
alcohol and salt since the founding of the Turkish Republic 
in 1923.  In its initial tender, BAT made it clear that it 
intended to continue production of only three brands of TEKEL 
cigarettes, while closing 40 of the 42 production facilities 
in operation and reducing the TEKEL workforce by around 
12,000 employees.  BAT offered the highest price for the 
purchase and won the tender. 
 
¶5. (U) In 2007, the ruling Justice and Development Party 
(AKP) amended law Number 657 regarding civil servants to make 
way for privatizations of several state-owned enterprises. 
The amended Article 4.c. now says that people whose jobs are 
eliminated due to privatization shall be given temporary 
employment for less than a year.  On February 1, 2010, when 
BAT will formally take over operational control of the former 
TEKEL facilities, the employees occupying positions to be 
downsized will be able to choose: to either resign from their 
positions, receiving severance pay and unemployment benefits, 
or to continue to work under "temporary" status under Article 
4.c.  With this new "temporary" status, however, the 
employees' pay will be cut significantly.  Initial reports 
are that their monthly pay will decrease from TL 1600 to TL 
650 per month.  When the temporary period ends, on or before 
February 2011, if they are not offered a renewal of their 
contract, their employment will end and they will not receive 
any severance or unemployment benefits.  In addition, because 
their new category of work will be "temporary," they will not 
 
ANKARA 00001829  002.2 OF 002 
 
 
be allowed to unionize under Turkish law. 
 
¶6. (U) Prior to the amendment of this law in 2007, when the 
employees of the Petlas, Turban, Koy Hizmetleri, SEKA and 
Orman Urunleri state enterprises were privatized, the GOT 
took the employees who had been working in these enterprises 
but whose services were no longer required and reassigned 
them to other jobs in the government, where they could work 
until their retirement.  The BAT workers, through their 
union, Tekgida-Is, are seeking this kind of arrangement: an 
agreement from the government that they will be reassigned to 
permanent government employment elsewhere, preserve their 
current level of compensation, and retain the ability to 
unionize as they currently enjoy. 
 
Minimal Steps to a Resolution 
----------------------------- 
 
¶7. (U) During the protests, Turk-Is President Mustafa Kumlu 
has been meeting with GOT ministers to find a solution, but 
no breakthrough has been announced.  On December 22, PM 
Erdogan said that two years ago the employees' transition was 
discussed and their severance and notification fees were 
paid.  While Turkgida-Is requested the privatization be 
postponed, Erdogan said "currently around 10,000 TEKEL 
workers are receiving salaries without working, which costs 
the Turkish Republic TL 40 trillion." Erdogan said the 
Government is reexamining the 4.c. agreements with BAT for 
salaries and contracts -- the length of which was initially 
proposed to be 10 months, now being considered to be raised 
to 11 months -- and that a decision should be made within a 
week.  He cautioned that any statements made during the 
protests were speculative and that opposition party members 
who were supporting the work stoppage were being insincere. 
After the PM's statement, Turk-Is invited the members of 33 
unions together to decide how to continue the protests. 
 
Comment 
------- 
 
¶8. (SBU) While the privatization of many industries in Turkey 
is a fiscally sound decision for the bottom line of the GOT, 
this one is occurring during a global economic downturn that 
already has increased unemployment in Turkey to record 
levels.  The government's finances may improve in the long 
run, but in the short term it will need to spend considerable 
sums to address the needs of increasing numbers of Turks who 
have no income.  In addition, as outlined by the nine unions 
that support the BAT workers, the majority of the facilities 
that will cut employees are in southeastern provinces that 
are already feeling the brunt of the economic downturn in 
Turkey, and an influx of several thousand newly unemployed 
workers will exacerbate an already grim situation there.  The 
GOT has said that it wants to target increased development in 
this region as a part of its Democratic Opening (now known as 
the "National Unity Project") and outreach to ethnic Kurds, 
yet its privatization policy is undercutting that objective. 
Large increases in regional unemployment in early 2011, if 
left unaddressed, will dampen AKP's already slumping 
electoral prospects in the southeast for the 2011 elections. 
SILLIMAN 
 
           "Visit Ankara's Classified Web Site at http://www.intelink.s 
gov.gov/wiki/Portal:Turkey"