LABOR LEADERS CONCERNED ABOUT RIGHTS AND LESS WORK DURING

UNCLAS SECTION 01 OF 02 BANGKOK 002032 SENSITIVE SIPDIS E.O. 12958, AS AMENDED: N/A TAGS: ELAB ECON ETRD TH SUBJECT: LABOR LEADERS CONCERNED ABOUT RIGHTS AND LESS WORK DURING ECONOMIC CRISIS SENSTIVE BUT UNCLASSIFIED. FOR OFFICIAL USE ONLY. ¶1. (SBU) Summary: Labor leaders from the Eastern Seaboard area believe that companies may be using the economic downturn to undermine labor union rights. They also complained to visiting Econoffs of a lack of enforcement of existing labor protection laws and Thailand's unwillingness so far to ratify International Labour Organization Conventions 87 and 98. End Summary. ¶2. (SBU) On August 3, Econoffs met with a group of six leaders of the Eastern Area Union Group (EAUG) at its headquarters in Chon Buri province - approximately two hours southeast of Bangkok - on the Eastern Seaboard. The Eastern Seaboard is the center of much of Thailand's industrial production critical to the nation's export-led economy. Industries centered on the Eastern Seaboard include petrochemicals and automotives. Created in 1975, the Eastern Area Union Group began with only two unions but has grown to include 75 labor unions and approximately 50,000 members. Because the Group is not registered with the Royal Thai Government (RTG) as an official labor confederation, membership is not restricted to a single industry. The Group's activities include teaching workers about their rights and helping workers set up unions. Financial support for the Group is provided through fundraising and grants from NGOs. ¶3. (SBU) On August 6, Econoff met with the leader of the Thai Auto Worker's Federation. As much of the automotive sector is located in the Eastern Seaboard area, the large majority of this Federation's activities take place in the Eastern Seaboard area. These include educating workers on their rights, assisting in the set up or reinvigoration of unions, mediating conflicts, and providing assistance in the filing of labor-related complaints. The Federation is comprised of 33 unions and approximately 22,000 members. Three Main Concerns -------------- ¶4. (SBU) The main concerns of the labor leaders from the Eastern Seaboard are threefold. The first involves business practices associated with the economic downturn. According to the individuals with whom we spoke, companies in some sectors have begun to rehire following crisis-driven layoffs earlier this year. (Note: Economic indicators from June showed a modest recovery in production. According to a report from Phatra Securities, manufacturing production rose 3 percent month-on-month, continuing a five month trend. Auto production improved from a 50 percent year-on-year (yoy) contraction in the fourth quarter of 2008 (compared to the fourth quarter one year earlier) to a 29 percent yoy contraction in June 2009, compared to June 2008. End Note.) While it is a good sign that the number of layoffs has decreased and companies are rehiring, labor union officials expressed concern that much of the rehiring has been through the use of short-term labor contracts. As a local labor advocate explained, a short-term contract does not provide all of the protections that a more permanent position offers. Short term contractors have less job security, do not receive severance pay, and, in some cases, receive lower pay than regular workers. When asked about the effects of the economic crisis, one EAUG leader downplayed the crisis itself and said that he believed that businesses are taking advantage of the economic downturn to chip away at benefits provided to laborers. ¶5. (SBU) The second concern involves the ratification of International Labour Organization (ILO) Conventions 87 (Freedom of Association and Protection of the Right to Organize) and 98 (Right to Organize and Collective Bargaining). According to the leader of the Thai Auto Worker's Federation, this is the first time that the Thai Labor movement has been unified in their goals. Labor leaders have come together to petition the RTG to ratify the two sections. We were informed that in a recent discussion with Ministry of Labor officials, it was pointed out that the U.S. has also not ratified Conventions 87 and 98. Labor leaders have also been publicly albeit silently advocating for ratification of the Conventions via their apparel. In nearly every meeting or conference on the topic of labor attended by Econoffs, people have been wearing t-shirts, jackets, and hats emblazoned with a call for the ratification of Conventions 87 and 98. ¶6. (SBU) The third concern expressed by the leaders is what they consider the failure of the government to enforce many of the laws that provide protection to laborers. One representative of the Eastern Area Union Group said that he believes that government officials/politicians are afraid to enforce the law for fear of lawsuits or other types of retribution from wealthy business owners. He, like other labor leaders with whom we have spoken, believes that workers have no choice but to engage in street protests to seek change. According to him, protests are a tool of last resort, but necessary to draw attention to the lack of enforcement of the laws as they are written. During our discussion, frustrations were expressed with politicians in general. Members of the Group said that despite the attention given to unions while running for office, BANGKOK 00002032 002 OF 002 after getting elected, politicians focus their attention on the demands of wealthy business leaders. When asked their opinion of the government of Prime Minister Abhisit, one labor leader stated that the current government seems more honest than previous governments, and that he is willing to give it more time to see how it develops policies regarding to organized labor. JOHN