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Côte d'Ivoire: Ministers Cut Own Wages to End Public Sector Strike
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UN Integrated Regional Information Networks
21 July 2008
Posted to the web 21 July 2008
Abidjan
A week of strikes and protests in Cote d'Ivoire's economic capital Abidjan ended on Sunday following a government announcement that it would continue to subsidise fuel, and that government ministers would slash their own wages by 50 percent to help cover the cost.
The move marks a reversal on a 6 July government policy scrapping fuel subsidies.
With presidential elections looming at the end of the year, the move could be interpreted as deft politicking by the incumbent government, a criticism Prime Minister and former rebel leader Guillaume Soro went out of his way to dispel in his speech announcing the measures.
"These decisions have been taken in response to the cries of distress from the Ivorian population. Reducing the cost of diesel is the best way to increase consumer spending power," he said.
"I underline that none of the events of the last week will have any impact on the process leading up the presidential election," Soro added.
Other measures planned include increased transportation subsidies for public sector workers.
Thousands of business-owners closed down their shops across the capital last week and several of the city's main roads were blocked in protest at a government decision to stop fuel subsidies, which caused prices to rise steeply overnight.
The government, which has been subsidising fuel prices for the past three years, removed these subsidies on 6 July because it could no longer afford to keep them in place. As a result the price of a litre of fuel rose by 29 percent in 24 hours, and the price of diesel by 44 percent.
According to the weekend announcement, diesel will be reduced by 100 CFA francs (US$0.24) and lamp oil by 55 CFA francs ($0.13). The two products were chosen because they are the most widely used. The price for unleaded fuel will remain unchanged.
The cost to the Ivorian state will be 200 billion CFA francs ($480 million), of which 49 billion CFA francs ($118 million) will be recouped by cutting in half the salaries awarded to government members and cutting other administrative costs.
On Monday morning, trucks and taxis had started circulating again in Abidjan and staff turned up to work in government offices.
Strike leaders said the government's measures were only likely to yield a lull not a conclusion to the strikes and civil actions.
"We have called off the dead city operation from last week... but we're waiting for other measures to be taken to alleviate the suffering the population," said Gode Doukoua, president of the Cote d'Ivoire Consumer's Association.
Abdoulaye Kone, head of the transport union, said his group is "partly satisfied" by the weekend announcements. "There is a still a lot more to be done in our view," he said.
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[ This report does not necessarily reflect the views of the United Nations ]
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