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⚖️ Government to drag the teachers' union to court

while the IMF visits Suriname for 6th review

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De Brief
May 14, 2024

Happy Tuesday!

This week we cover the ongoing strikes and the government’s response, the IMF’s visit to Suriname, Staatsolie’s positive results, and SLM’s ongoing turmoil.

Government drags teachers’ union to court because of strikes

  • Government to take action against education unions protesting increased electricity rates.

  • Federation of Teachers' Organizations in Suriname (FOLS) leading protests, prompting teachers to leave schools until May 14 at 11 am.

  • Minister Ori emphasizes that the conflict is not between employer and employee; the government won't accept the situation.

  • President Santokhi is in talks with unions, including FOLS, to address issues.

  • Technicians given a week to discuss electricity rates with relevant authorities; claim errors in calculations and projections.

  • Government officials assert subsidy on electricity should be phased out; no room for reducing rates.

  • Some unions returning to work; Minister Ori implements measures to ensure peace, including inspector presence; concerns raised about educational impact of strikes.

Meanwhile other protests simmer down

  • Most C-47 member unions resumed activities on Monday after calling for stay-at-home protests since May 2; some parts of the trade union movement, including C-47, resumed work from May 6.

  • Government met with Ravaksur and other unions on May 7; representatives expressed concerns over high rates and cost.

  • Technical consultations ongoing between trade union representatives and EBS, Energy Authority of Suriname, and Staatsolie.

  • President Santokhi granted a week for resolution; unions to meet again with government on Thursday.

  • Joint unions to convene on Tuesday to discuss future developments.

IMF conducting 6th review of Suriname's recovery program; decision expected mid-June on availability of US$55 million loan.

  • Concerns addressed regarding income decrease and rising expenditure; program extended until March 2025.

  • Raghoebarsing emphasizes need to achieve 3.5% reserve in state budget; continuation of IMF program crucial for budget support.

  • IMF delegation requests focus on economic stability measures and corruption tackling during courtesy visit.

  • Phasing out of subsidies agreed upon; government increases electricity rates, aims to reduce subsidy by end of year.

  • Economy showing signs of recovery; inflation decreasing, import reserve sufficient for 6 months.

  • Social support program under strain due to increased applicants; inflation affecting purchasing power.

  • Anastasia Guscina (head of IMF mission) urges aggressive subsidy reduction, reduction in government expenditure to meet major goals. This is in the backdrop of continuing protests by labor unions regarding the electricity prices.

Staatsolie's revenue in 2023: US$722 million; contributed US$335 million to national treasury.

  • At the shareholders meeting on May 6, 2024: approved 2023 annual accounts; President Santokhi attended; management discussed operating results and future outlook.

  • Eddy Fränkel was appointed as statutory board member, effective May 6, 2024; to serve as director of Downstream & Power.

  • Revenue in 2023 was lower than in 2022 due to lower oil price; pre-tax profit: US$426 million.

  • Contribution to the state treasury increased to US$335 million; includes taxes, dividends, royalties, and bonuses.

  • Investments in community projects: approximately US$1.8 million by Staatsolie, US$1.5 million by offshore partners.

  • Production results in 2023: 6.27 million barrels of Saramacca Crude; 3.16 million barrels of diesel and gasoline; 1.60 million MWh of electricity.

  • Offshore developments: preliminary design studies for Block 58; five production sharing contracts signed in 2023; Blue Wave training program completed; TotalEnergies to make final investment decision for Block 58 by end of 2024.

The Surinamese Airlines (SLM) is slowly crawling out of the valley, says SLM director Steven Gonesh.

  • SLM director Steven Gonesh notes slow recovery from pandemic impact, emphasizes commitment to future growth.

  • Addressing debt burden crucial for financial turnaround; aims for positive cash flow within 1-2 years.

  • Positive cash flow vital for covering high operating costs, technology investments, and safety requirements.

  • Collaboration with union and stakeholders crucial for successful recovery.

  • SLM's importance not only for employees but also for Suriname's connectivity, as highlighted in the recent ACS meeting in Suriname

  • Emphasizes SLM's role in maintaining connectivity with Suriname despite challenges.

  • Acknowledges challenges in the recovery process but sees it as an opportunity for growth.

  • Urges continued efforts to ensure SLM's success for Suriname and as a commercial entity.