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Viewing cable 09BANGKOK2032, LABOR LEADERS CONCERNED ABOUT RIGHTS AND LESS WORK DURING

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Reference ID Created Released Classification Origin
09BANGKOK2032 2009-08-17 09:32 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bangkok
VZCZCXRO4015
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #2032/01 2290932
ZNR UUUUU ZZH
R 170932Z AUG 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 7920
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHC/DEPT OF LABOR WASHINGTON DC
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