US embassy cable - 05LAGOS1377

UNCLAS SECTION 01 OF 02 LAGOS 001377 
 
SIPDIS 
 
SENSITIVE 
 
DOE FOR DAS JBRODMAN AND CGAYE 
TREASURY FOR ASEVERENS AND SRENANDER 
DOC FOR KBURRESS 
STATE PASS TRANSPORTATION MARAD 
STATE PASS USAID FOR GWEYNAND AND SLAWAETZ 
STATE PASS EX-IM FOR JRICHTER AND KVRANICH 
STATE PASS OPIC FOR ZHAN AND JEDWARDS 
STATE PASS TDA FOR NCABOT AND BTERNET 
 
E.O. 12958: N/A 
TAGS: EPET, ELAB, EPET, KDEM, PGOV, NI 
SUBJECT: UNIONS SET TENTATIVE DATE FOR STRIKE TO PROTEST 
FUEL PRICE HIKE 
 
REF: A) LAGOS 1350 B) LAGOS 1376 
 
Summary 
------- 
 
1. (SBU)  Labor sector stakeholders are preparing a nation- 
wide strike in protest of recent fuel price hikes.  The date 
for the strike, set tentatively for September 7, will be 
affirmed at meetings scheduled for September 5.  Nigerian 
Labor Congress (NLC) officials expect the strike to last one 
week; they plan to try to disrupt international flight 
operations.  The GON has not called for any further dialogue 
since the announcement regarding the strike date.  End 
Summary. 
 
Strike Date Tentatively Set for September 7 
-------------------------------------------- 
 
2.  (SBU)  On Wednesday, August 31, the NLC-led National 
Executive Council (NEC) decided to strike in protest of a 
recent hike in fuel prices from 50 to 65 naira per liter. 
The start day for the strike is tentatively set for 
September 7, but NLC plans to meet the Trade Union Congress 
and other civil society organizations on September 5 to 
finalize their decision.  The NLC has led six national 
strikes over the last couple of years which have led to fuel 
price decreases.  However, adherence to national strikes 
called during the last year has petered out within a few 
days. 
 
NLC Pessimistic Re: Government Intervention 
--------------------------------------------- 
 
3.  (SBU)  Denja Yakub, NLC Assistant General Secretary and 
Deputy Head, was pessimistic about any chance for government 
to intervene prior to the proposed start of the strike.  He 
believes intervention on the part of the Ministry of Labor 
or the National Assembly will be impossible without the 
direct fiat of the President. 
He also told us the NLC plans to obstruct flights entering 
or leaving the country during the strike.  However, the 
Airline Operators of Nigeria (AON) are happy with airplane 
fuel prices, which continue to hover between 65 and 75 naira 
per liter. 
 
Petroleum Union Says there is Potential for Reconciliation 
--------------------------------------------- ------------- 
 
4.  (SBU)  The senior branch of the petroleum workers' 
unions, PENGASSAN, provided a more optimistic perspective. 
Bayo Owosile, Assistant General Secretary of PENGASSAN, 
believes compromise is still possible, and the National 
Assembly could call an emergency session to stave off a 
strike.  Owosile stated the Federal Government's failure to 
follow the Mantu Committee's recommendations regarding 
measures to alleviate the impact of fuel price hikes on the 
population, triggered the strike.  He notes government, 
unions, and employers have all accepted the Mantu Committee 
recommendations.  Director of the Michael Imodou Institute 
for Labor Studies, John Awoniyi, hopes to bring the Ministry 
of Labor to the table soon to reexamine the Mantu 
recommendations. 
 
5.  (SBU)  The NLC has instructed their affiliates nation- 
wide to send letters to employers informing them of the 
intent to strike on September 7.  The March Trade Union 
Amendment Act, which made it illegal for labor to strike on 
any issue except worker service conditions, will likely 
frame the GON's reaction.  The Act further forbids labor 
from meeting with civil society, and allows police to jail 
offenders.  Press reports indicate recent protests over fuel 
prices in Edo and Imo states have already turned violent, 
with two people reportedly dead. 
Comment 
-------- 
6.  (SBU)  The NLC will certainly try to make its strike 
stick; however, it has had lackluster success over the last 
year in convincing the public to strike for more than a few 
days.  Most Nigerians are simply too financially pressed to 
stay away from work any longer.  The NLC may be reluctant to 
push the population hard on the length of the strike.  If 
the GON and public perceive the NLC has tried and failed to 
mobilize a long-term strike, the NLC risks further weakening 
its power base.