06ASTANA900, Kazakhstan: Economy Minister Comments on Tengiz Brawl

WikiLeaks Link

To understand the justification used for the classification of each cable, please use this WikiSource article as reference.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol).Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #06ASTANA900.
Reference ID Created Released Classification Origin
06ASTANA900 2006-12-21 01:40 2011-08-30 01:44 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Astana

VZCZCXRO0600
RR RUEHDBU RUEHLN RUEHVK RUEHYG
DE RUEHTA #0900 3550140
ZNR UUUUU ZZH
R 210140Z DEC 06
FM AMEMBASSY ASTANA
TO RUEHC/SECSTATE WASHDC 8001
INFO RUCNCIS/CIS COLLECTIVE

UNCLAS ASTANA 000900 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT FOR SCA/CEN - O'MARA 
 
E.O. 12958: N/A 
TAGS: ECON PGOV ENRG EPET KZ
SUBJECT: Kazakhstan: Economy Minister Comments on Tengiz Brawl 
 
REF: A: Astana 501; B: Astana 737 
 
1. (SBU) Summary.  In a December 6 meeting with the Ambassador, 
Economy Minister Musin identified the inadequacy of Kazakh workers' 
wages as a key contributor to the recent "Tengiz brawl."  Even 
though an oil company might allocate funds for a decent wage, Musin 
explained, by the time a contractor and sub-contractor took their 
cut, only a fraction of that wage reached the workers - a result the 
Minister termed a "social injustice."  End summary. 
 
2. (SBU) In a December 6 meeting with the Ambassador,  new Economy 
Minister Aslan Musin added to our insight on the economic context of 
what has become known as the "Tengiz brawl" (Ref A).  A key problem, 
Musin said, is the inadequacy of Kazakh workers' wages.  While the 
oil company pays a significant wage to its own employees, Musin 
explained, contractors and subcontractors take a disproportionate 
amount of the funds the oil company allocates for wages in its 
contracts.  As a result, only a small portion of the intended wage 
actually gets to the worker, a result which the new minister called 
a "social injustice."  (Musin suggested that if a company allocates 
$8 an hour, only $1.50 of that amount might reach the worker.) 
.Musin, who as the former akim of the Atyrau Oblast is familiar with 
the issue, said that he has tried to convince Tengiz Chevroil (TCO) 
to "take this under its control."  He added that the idea of 
imposing a solution at the local government level ran into legal 
obstacles.  (Note:   The minimum construction wage at TCO was 
recently doubled, to approximately $4,200 / year. Ref B incorrectly 
quoted TCO General Manager Todd Levy as stating that the minimum 
construction wage was $420. End note.) 
 
3. (SBU) Musin also shed some light on the dynamics of the Tengiz 
brawl.  The reason nearly all the victims of the violence were 
Turkish workers, he said, was that three Turks had initiated the 
conflict by beating up a Kazakh worker.  Furthermore, he said, 
70-80% of the workers are Kazakh.  TCO, Musin continued, needs to 
take control of the situation by handing over security from an 
internal force to the local police. 
 
ORDWAY

Wikileaks

Advertisements
Post a comment or leave a trackback: Trackback URL.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: