Labour crisis in Chon Buri as 20,000 workers face unemployment

[webfact]

A significant labour crisis looms in Chon Buri as 20,000 workers face potential unemployment due to financial strain on 16 subcontractor companies. This situation has put 60,000 family members at risk, with unpaid wages persisting for six months.

 

The Federation of Refinery Contractors TOP Clean Fuel Project (CFP) gathered yesterday, October 15, at the Holiday Inn & Suites Si Racha Laem Chabang, Chon Buri to address the pressing issue.

 

This consortium, comprising 16 Thai subcontractors, is spearheaded by Chatmongkol Khemaphirat, Assistant Managing Director of SCC Ltd., alongside Yutthana Kanjanaram, CAZ Corporate Coordinator, Weerapol Ocharos, Managing Director of CKC, Chanint Setaaputra, CEO of IETL, and Natthawut Ratchaisit, Director and Deputy General Manager of TREL. Together, they highlighted the severe impact of delayed payments by the main contractor, affecting the operations of smaller subcontractors.

The press conference underscored the dire consequences of not receiving contractual payments for over six months. Not only has this delay hampered the financial liquidity of several subcontractors, hindering their ability to meet project deadlines and maintain quality but it has also affected budget allocation for labour and material procurement.

Without immediate resolution, these companies risk failing to fulfil their contracts, which could lead to a cascade of problems, including:

 

Unpaid wages causing worker protests.

Financially strained companies potentially laying off their entire workforce soon.

Approximately 20,000 site workers face unpaid wages and compensation, indirectly affecting 60,000 family members.

The Clean Fuel Project’s potential failure to meet its construction deadlines if subcontractors are forced to halt operations.

The subcontractors continue working despite not receiving payments due to contractual obligations preventing work stoppages under any circumstances. Non-payment is not considered a breach justifying work suspension or contract termination. Any legal disputes would need to be resolved in Singapore under English law.

 

The press conference aimed to:

 

Demand clarity from the project owner on how they will handle subcontractors’ inability to sustain their workforce without pay for over six months.

Identify who the subcontractors can claim unpaid wages from.

Prevent exploitation of Thai subcontractors by foreign contractors.

If the project owner fails to provide a clear action plan following the official press conference, the subcontractors are prepared to mobilise management and staff from all 16 companies. They plan to march from Boonjitt Wittaya School to the refinery’s front to submit a letter to the management on October 18 at 9am.

 

Further actions include seeking justice from Suchart Chomklin, Deputy Minister of Commerce, and Thawatchai Srithong, Governor of Chon Buri, to support the affected businesses and workers. If unresolved, the next step involves appealing to the Ministry of Energy and Industry, reported KhaoSod.

The Clean Fuel Project, valued at US$4,825 million (approximately 158,404 million baht), began in 2019 and was expected to be completed by 2023.

 

Located in Si Racha, Chon Buri, the project involves 16 subcontractors including CAZ, CKC, CMG, FSC, IETL, ITE, LHL, RCS, RMC, SCC, SBD, STECON, SWOT, TJEL, TREL, and VAP, all of whom are now seeking urgent intervention and assistance.

 

by Puntid Tantivangphaisal
Photo courtesy of KhaoSod English

 

Source: The Thaiger 

-- 2024-10-16

 

 

[Korat Kiwi]

Hells bells. how do people survive without being paid? 

 

 If any of my past jobs didn't pay me on time I would have walked.  No hesitation.  But then we have employment courts and the like to see recompense. 

 

Pretty buggered here by the sounds of it. 

[MikeandDow]

This is a very bad worded Article

The subcontractors continue working despite not receiving payments due to contractual obligations preventing work stoppages under any circumstances. Non-payment is not considered a breach justifying work suspension or contract termination. Any legal disputes would need to be resolved in Singapore under English law.

It does Not says who the Main Contractor is  Singapore contractor ??? and why under English Law  their is a lot more to the story

[Tropicalevo]

But hey - just keep on upping the minimum wage and there will be many more.

This government, and a few before it, does not care about small to medium size businesses nor its people.

 

Back handers and bribes also take away the much needed cash.

[BritScot]

1 hour ago, Korat Kiwi said:

Hells bells. how do people survive without being paid? 

 

 If any of my past jobs didn't pay me on time I would have walked.  No hesitation.  But then we have employment courts and the like to see recompense. 

 

Pretty buggered here by the sounds of it. 

So does Thailand and I know they used to be very good even to foreigner. 

[jacko45k]

Reading that article it seems clear why the outfit is in financial difficulty... top heavy, too many overly long names having expensive meetings!

[hotchilli]

15 hours ago, Korat Kiwi said:

Pretty buggered here by the sounds of it. 

On your own out here, the main contractors sounds like monsters screwing the lower tier contractors.

[hotchilli]

42 minutes ago, jacko45k said:

Reading that article it seems clear why the outfit is in financial difficulty... top heavy, too many overly long names having expensive meetings!

Ain't that so

[Snackbar]

Net zero nonsense

[Muhendis]

I have come across these horrendously complex contractual rules in the UK in the past. 

The primary customer/project owner will only make stage completion payments which could be months if not years down the line. These stage payments are further delayed simply because the primary customer/project owner doesn't want to pay too much interest on the loan needed to finance the project. 

It is the sub contractors contractual responsibility to have sufficient funds to complete the contract.

Also these types of contracts are designed to make it difficult if not impossible to seek redress ie "If you don't like it you must go to Singapore and argue your point in a court using laws of a foreign country". 

I got caught by this once in the UK but fortunately I was not contractually obliged to remain working for nothing. I walked away from that job after some weeks of non payment.