Summary:

On 13 December 2024, the Tunisian General Labor Union (UGTT) announced plans to hold a strike at production sites of the Gafsa Phosphate Company (CPG) on 25 and 26 December. 

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The announcement came a day after the suspension of production in Mdhila, Metlaoui and Oum Al-Arayes due to workers being unhappy with the results of recent negotiations with CPG leadership. 

Labor union leaders supporting CPG workers blamed the CPG leadership for failing to meet their demands and for a deteriorating labor climate at production sites. 

The CPG responded by promising to provide allowances for work uniforms and meal vouchers by January 2025, stating that it is striving to improve morale within the company and to guarantee its employees’ rights. 

Outlook: 

Strikes are likely to continue impacting phosphate production as long as employees’ demands are not met. The state is capitalizing on the phosphate sector after years of production suspension to increase its exports and revenues, but tensions remain with workers regarding benefits and work conditions.  

Challenging economic conditions in Tunisia, including steadily rising goods prices, are likely to continue prompting employees to demand great financial benefits and compensation from industrial producers that typically rely on low labor costs to drive their profitability. 

Attempts to continue attracting foreign investment into Tunisia’s extractives sector, including phosphates, could face challenges with ongoing labor disputes disrupting production. Foreign investors could rightly hesitate at the potential for labor and legal disputes should they enter the Tunisian market, making neighboring countries potentially more attractive in this regard.  

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