Thai Airways union backs down, supports bankruptcy court-led restructuring

[snoop1130]

Thai Airways union backs down, supports bankruptcy court-led restructuring

By Chayut Setboonsarng and Panarat Thepgumpanat

 

FILE PHOTO: Thai Airways airplanes are parked at the tarmac of Suvarnabhumi Airport in Bangkok, Thailand March 25, 2020 REUTERS/Jorge Silva/File Photo

 

BANGKOK (Reuters) - The Thai Airways <THAI.BK> workers’ union will not oppose the government’s plan to reduce holdings in the airline and petition for restructuring with the bankruptcy court, the union’s president said on Wednesday.

 

The reversal comes after a cabinet decision on Tuesday to reduce the government’s holding in the national carrier to below 50%, stripping the airline of its state enterprise status.

 

“We opposed this position before but after reexamination … we have to show creditors that Thai Airways will genuinely follow the restructuring plan including adjustments to the board and staff,” union president Nares Peung-yaem told Reuters.

 

The union had previously said it would protest any plan that would reduce the government’s shareholding to less than 50%.

 

Under Thai law, state-owned companies are governed by another set of management and labour regulations.

 

The Ministry of Finance currently holds 51.03% in the airline.

 

After the government finds buyers for its shares and the airline loses its status as a state enterprise, its union would also be dissolved.

 

“This is a painful reality … we will hold discussions with the Transport Ministry to ensure workers are taken care of,” Nares said, adding a new union would be formed under labour laws.

 

Thai Airways shares were up nearly 15% at 0800 GMT, but down 21% year to date.

 

-- © Copyright Reuters 2020-05-20

 

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[Burma Bill]

18 hours ago, snoop1130 said:

After the government finds buyers for its shares and the airline loses its status as a state enterprise, its union would also be dissolved

At last, a positive action that will enable much needed "down sizing" of so called "civil servant type" State employees! May I suggest, those that can speak English, transfer them to the Ministry of Education for deployment as teachers in schools around the country.

[RichardColeman]

18 hours ago, snoop1130 said:

After the government finds buyers for its shares 

[Sydebolle]

So the little brown envelopes passed under the table top?