Cablegate: Lagos Labor Update

This record is a partial extract of the original cable. The full text of the original cable is not available.

151306Z Sep 05

UNCLAS LAGOS 001429

SIPDIS

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: ELAB EPET KDEM PGOV NI
SUBJECT: LAGOS LABOR UPDATE

REF: A) LAGOS 1428 B) LAGOS 1397 C) LAGOS 1377

1. Nigerian Labor Congress (NLC) and other civil society
leaders are headed to Benin City today to speak with police
authorities regarding security measures for the September 16
rally against fuel price increases. Organizers are mindful
of the violent student disturbances in Benin in early
September due to the price increase (ref C) and are
attempting to make sure a repeat does not occur.

2. After meeting the Ministry of Labor yesterday September
14, John Awoniyi, Director of the Michael Imoudou Institute
of Labor Studies (MIILS) said the GON would attempt to
negotiate with Labor next week in order to head of the
upcoming series of rallies. After Benin City, rallies are
scheduled for Kano (Sept. 20), Yola (Sept. 22), Owerri (Sept.
26), Jos (Sept. 28), and Abuja (Sept. 30). These dates and
places reflect major changes from those reported in ref B.
With the return of President Obasanjo to Nigeria this
weekend, both petroleum union leaders and government
officials are sanguine about their ability to negotiate and
end the rallies early.

3. According to Awoniyi, the GON is prepared to lower fuel
prices by 1 or 2 naira per liter, even if - as labor leaders
expect - prices will return to their current level soon
thereafter. The GON will also stress the allotment of N200
billion in the 2006 budget to create a stabilization fund
that will keep prices from escalating rapidly. Mantu
Committee recommendations (ref B) call for an ideal price of
50 naira per liter with a 2 naira bandwith on either side.
Awoniyi reported the Minister of Labor wanted to use this
figure as a benchmark. The GON, he said, will also remain
firm in their expectation of a private sector solution for
refinery problems.

4. Previous meetings between the GON and Labor have broken
down because GON officials claimed they had no authority to
adjust fuel prices. Awoniyi said the Minister of Labor
expects authorization to lower prices by 1 to 2 naira once
President Obasanjo returns from the U.N. and pending the
course of negotiations. GON officials are expected to call
for negotiations next week at the latest.
BROWNE

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