The general social context of Thailand

1. Economic development is slowing down. Factories closed down as economy is slowing down, employers apply the labour law allowing enforcing 75% of salary.  They also lay off workers in garment, automobile, electronics, electric appliances, chemical products sectors and so on.
   • Around 44,000 workers are laid off (as of December 2019) and many are cheated their wages and compensation. Women workers are laid off: some are pregnant, many are young and middle-aged.  Some cases can be fixed, the other cannot. 
   • Union weakening and busting during these times such as decreasing Triumph International labour union members.
   • Dramatic cases appear on media coverage: workers and small entrepreneurs committed suicide; almost empty markets happen around.
2. Monopoly corporates have been granted for concessions by the military and current government to run mega project development such as Eastern Economic Corridor, Pracharat partnership model, etc.
3. Nationwide human rights violation oppressing the right to rally/organize of activists. More repressive laws are regulated and measures used by authorities since the 2014 military coup and administration.
4. People movement is rising up to express their dissatisfying with the government’s administration and the Constitution Law.

Topic

1. Economic recession and impacts toward workers
2. Political economy’s environment under the elected government
3. Labour movement’s response to economic and political conflicts
4. Conclusion

1. Economic recession in 2019

• Thai Baht currency has been strong since mid-year 2019.
• GDP drops from 3.5% to 2.7%. Orders reduced. Export is affected.
• Massive workers dismissal. Thousand enterprises shut-down
• Generalized System of Preference (GSP) of the USA granted for Thailand is cut because of weak protection of labour rights.
• Some big corporates gain wealthy from the government’s economic policies: Eastern economic corridor, Pracharat group (corporation between private and government sectors)
• Massive dismissal, i.e. 300 workers laid off at General Motors company in August, Apex Circuit dismissed 200 workers in probation in Sept., SRF Industries dismissed 400 workers in October, 350 Triumph brand/Body Fashion aged workers (50 years) in November 2019.
  • Early retirement project
  • Sub-contract workers dismissed
  • Dismissal without compensation (opportunists) and dismissal for reducing costs

• Temporary and permanent shut-down of factories 
• Permanent shut-down, i.e. Sanyo’s supplier (mold production) in July
• Temporary shut-down because of no or lower orders, employer can pay 75% of normal pay to employees as law stated such as Nippon Steel Processing but stop production only for one day on 9 Nov., Thai Summit (automobile parts)
• OT reduces, less orders from foreign countries
• Conditions of employment are changed from temporary employees into outsourced employees in public education sector such as teacher, security, clerks, etc. (77,000 employees) by the basic education office in Oct.
• More Thai workers in rural area work abroad: Korea
• More workers are pushed to informal sector.

Implication to labour issues

• From the structured of workforce, there are less formal workers in non-agricultural sector, about 860,000 people.
• Unemployment rate is 1.0%, more than last year (more 12,000 unemployed workers in Sept.2018)
• Although there are little more employed workers in August, but the labour trend is massive dismissal due to less export.
• There are less number of workers in non-agricultural sector from last year: total reducing 860,000 workers, mostly reducing in manufacturing (470,000), construction (130,000)
• Low skilled workers and aged workers are pushed to informal sector, so the employment rate in the sector is about 61%-69%.
• There are less workers protected from the security fund, now total number is 11.687 million workers.

2. Political economy’s environments under the elected government

• Eastern economic corridor: conflicts between the government, corporates and communities
• Political repression under the 2017 Constitution Law
• Limitation of freedom of expression
• Bully of people’s political party: Future Forward Party

3. Labour movement’s response to economic and political conflicts

• Labour unions and activists join new political parties: Future Forward and the Commoners Party
• Movement on wage increasing, welfare state campaigning as parties promising.
• Thai political issues are put into the parliament.

4. Conclusion

• Weak organizing work on the ground, small number of protest on the ground
• State repression on freedom of expression by decriminalizing activists by laws. (national security comes before freedom)
• State excludes people partnership from the development.

Solution

• Strengthen organizing work on the ground

ที่มาภาพ: skeeze (CC BY-NC-ND 2.0)