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The Week Ahead: Strike Action in Gabon
Forecasting the next seven days: likely strike action in Gabon to disrupt oil production.
Gabon
Strike action in the oil sector is increasingly likely in the next two weeks, causing disruptions to oil production and cargo.
Event
On 15 September, the National Organisation of Oil Employees (ONEP) started a consultation amongst its members to decide on strike action.
Implications
ONEP has repeatedly put pressure on the government to respect legal provisions on the 'Gabonisation' of the oil sector, which sets a quota of 10% of expatriate workers with the aim of gradually reducing this to 5%. ONEP claims that 83% of senior management positions are held by foreign workers, with 22% of foreigners earning 70% of all disbursed salaries. Although the government pledged to act on ONEP's demands following earlier strike actions in 2010 and 2011, it is facing difficulties in putting more pressure on the oil sector, which is the country's main income earner. A strike action is therefore increasingly likely in the coming two weeks, which is likely to paralyse the sector. A four-day strike action in April 2011 severely disrupted production at Total, Shell and Tullow Oil's facilities, causing an estimated $131 million loss in revenues. Disruptions are also likely to road and air traffic as well as power and water production due to fuel shortages.
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