Thailand Warned On Tougher US Labour Checks

[webfact]

Thailand warned on tougher US labour checks

By The Nation

BANGKOK: -- Exporters were warned yesterday to be prepared for a new US law banning imports of goods made by child labour, forced labour or humantrafficking victims.

The Labour Protection and Welfare Department will soon dispatch inspectors to Samut Sakhon to randomly check export factories for any illegal workers.

Directorgeneral Amporn Nitisiri said yesterday that the US was about to implement the Customs Facilitation and Trade Enforcement Reauthorization Act and get tougher on goods from other countries.

Thailand would be affected because 22 per cent of its exported merchandise goes to the US alone, while 24 per cent is shipped to Asian countries and 12 per cent to European countries, she said.

The food and frozen shrimp industries in particular have been criticised for reportedly using forced labour, she said.

Forced labour meant the employment of children or even adults with limited rights such no lunch breaks or low wages or no wages at all, she said.

One type of forced labour was the use of alien workers by some greedy employers who thought they were not entitled to the same rights and welfare as Thai workers, she said. The Thai bosses would detain them and not take them to labour offices for migrant worker registration. This was mostly a problem in fishery and related industries, she said.

Another type was the use of Thai workers by employers who broke the labour law unintentionally, such as by paying workers less than the minimum wage while on probation or during internships.

Soon the department would launch a campaign against illegal labour in exporting industries to let the international community know that authorities here were serious about the issue and ensured that Thai employers observed the labour protection law and the principles of the International Labour Organisation (ILO).

The department would also explain the current situation to foreign envoys, especially those from main export markets such as the US, Europe and Japan, representatives from the ILO, UNIAP and International Organisation for Migration, and related organisations as well as local business owners, chambers of commerce and industrial councils.

The department would initially dispatch officials to randomly inspect plants for abuse of migrant workers or child workers in Samut Prakan, which was reported as having the most migrant workers in the country, she said.

-- The Nation 2010-04-14

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[ThailandTommy]

About time!

However nothing will actually change, no doubt someone from the plants in Samut Sakhon would have either read this or been forewarned about the impending visits.

This is just a paper exercise like everything else here. I personally would like to see the US and the European countries ban imports until such time that proper independent evidence is made available.

Very few companies pay the minimum wage and the working conditions in most factories is no where near satisfactory.

My wife use to work in factories, she explained that they are warned of 'visits' and 'pay off' Government officials and Police.

It is about time the West woke up to the LoS.

[Spee]

What a crock!

There are only two possible outcomes:

1) Foreign bureacrats with absolutely squa-doosh real enforcement authority aren't going to have any effect at all.

2) Interference and influence of foreign bureaucrats will cause people who want those jobs to lose those jobs, and consumers who want those products will end up paying higher prices or will find those products too expensive to buy, resulting in production cutbacks and layoffs.

This is not to deny there aren't humans out there who will abuse other humans, both in and out of the workplace. Rather it is to suggest that what people want more than anything in the world, all over the world, is to earn enough money to put a roof over their family's heads, food on their table and clothes on their backs.

For real insight about what might be viewed as tough working conditions, I would encourage people to watch Milton Friedman's "The Power of the Market:

http://video.google.com/videoplay?docid=20...&plindex=1#

[TerryLH]

"Thailand would be affected because 22 per cent of its exported merchandise goes to the US alone, while 24 per cent is shipped to Asian countries and 12 per cent to European countries, she said."

I'm curious. Where does the other 42% of exported merchandise go?

[Paul123456]

That is good - and I hope they will also act as strongly on the use of slavery and virtual slavery in the food production in the USA. Many USA farms have Mexican and South American workers working in disgusting and illegal conditions and getting paid very little.

[HarriB]

Exporters were warned yesterday to be prepared for a new US law banning imports of goods made by child labour, forced labour or humantrafficking victims.

Walmart

Nike

...comes to mind.

Maybe big corporations are excluded from this new US law.

[wintermute]

You realize this is just a form of hidden protectionism. These "checks" can stifle foreign competition. The only thing this benefits are U.S. corporations.

[grandpops]

You realize this is just a form of hidden protectionism. These "checks" can stifle foreign competition. The only thing this benefits are U.S. corporations.

7 post in and the nail is hit fairly and squarely on the head.

No illegals working in US factories either! Nice to hear that.

[Zpete]

You realize this is just a form of hidden protectionism. These "checks" can stifle foreign competition. The only thing this benefits are U.S. corporations.

7 post in and the nail is hit fairly and squarely on the head.

No illegals working in US factories either! Nice to hear that.

Yeah, rite.

So many illegal workers in US it's not funny.

The US has the cheek to criticize others.

[hazz]

Whilst this is all a good thing, the protectionist accusations could have some basis.

I never did quite understand why the US gov believes that its wrong to import goods and services manufactured by forces prison labour; whilst making use of the system its self within the US.

smacks of that old 'do as I say not as I do' hypocrisy

[KKvampire]

I will show the US inspectors the illegal and child labour "places of work" Come with me on a tour guys

[geriatrickid]

About time!

However nothing will actually change, no doubt someone from the plants in Samut Sakhon would have either read this or been forewarned about the impending visits.

This is just a paper exercise like everything else here. I personally would like to see the US and the European countries ban imports until such time that proper independent evidence is made available.

Very few companies pay the minimum wage and the working conditions in most factories is no where near satisfactory.

My wife use to work in factories, she explained that they are warned of 'visits' and 'pay off' Government officials and Police.

It is about time the West woke up to the LoS.

Despite your comments which I do not doubt, does that mean that there should be no attempt, no effort?

Large multinationals can make a difference with their policies and standards. I think we can agree that the imposition of child labour laws on the garment trade did make a difference, even if dismissed by some. Companies like Nike, GAP, Van Heusen do impose requirements and while they have not eliminated child slavery, they have helped. The inspectors for many retailers do show up unannounced and international labour unions do have people watching. I suppose it is like the cops that patrol around western bars. They may not catch every drunk driver, but the presence acts as a deterrence for some.

The USA is not alone in this policy. Australia, Canada, the EU all have similar laws. It's just that the USA seems to actually make more of an effort every so often to enforce the laws. Canada and Australia rely on domestic labour union pressure to force a response.

Edited April 14, 2010 by geriatrickid

[k9inkrabi]

That is good - and I hope they will also act as strongly on the use of slavery and virtual slavery in the food production in the USA. Many USA farms have Mexican and South American workers working in disgusting and illegal conditions and getting paid very little.

What a stupid response. If the illegal Mexicans and South Americans that work on the farms are so disgusted and don't want to work for minimum wages then they might want to go home. The use of the word slavery is even more stupid. Where are you from? Do you get your info from CNN? Again what an idiot response!

[powderpuff]

No illegals working in US factories either! Nice to hear that.

Trust me we would like to round them up & ship them back but bleeding heart liberals aren't gonna let us. Future Democrat voters.

[Spee]

You realize this is just a form of hidden protectionism. These "checks" can stifle foreign competition. The only thing this benefits are U.S. corporations.

First two spot on. Third one way off the mark.

Protectionism hurts consumers first and foremost through higher prices. Those higher prices eventually become too high and consumers stop buying, which ultimately hurts the worker and the company who offers jobs to workers.

For all intents and purposes, there is no such thing as (those evil) "U.S. corporations" any more. Most large corporations are large multi-national entities. Oh, and by the way, most of these large multi-national corporations are publicly traded. In other words, they are owned by simple, non-wealthy middle class stockholders like me and so many others.

Businesses will move their production facilities anywhere to keep their products affordable. Why were most electronics imports from 1950-1970 from Japan? Because they had the technology to produce the product for the best price. Why did a lot of this production move to Korea, China, Malaysia and other places from 1980-present? Because Japan became too expensive and the same product could be produced more affordably elsewhere.

But we're really digressing off the topic. In Thailand or any other place, there is always someone who will work for the prevailing wage. Where people run into problems is where self-righteous do-gooders go tramping around the globe demanding US-style or US-level minimum wage. All minimum wage laws do is destroy entry level opportunity.

Thailand is the largest exporter of shrimp and rice to the US. Why? Because Thai companies produce a high quality product that is competitively priced. What do you think will happen if the government implements wage and price controls (ie., protectionism) on shrimp production? Maybe Thai companies lose their market share to Vietnamese companies. Revenues decline, companies lose money, people lose jobs.

I share similar sentiments to other posters who characterize the US position as hypocritical. It absolutely is. The US labor market is a complete disaster because of excessive government intervention. And there are still sweatshops, worker abuses, and people working illegally under the table for cash.

So too in Thailand and everywhere else, there will still be sweatshops and people willing to do menial work for very low pay. Where countries run into problems is where there is no opportunity for one generation to prosper over and above the previous generation. This is what made the US great, and to some degree has made other countries great in one period or another.

Freedom of equal outcome should never be an inalienable right. But freedom to equal opportunity should always be an unalienable right. This is far more important that sending government bureacrats running all over the world sticking their nose into the affairs of private business.

Governments should be in the business of governing, not in the business of trying to run and manipulate businesses.

[nuananddon]

What is this ? Kick the USA day for some of you people. If it's such a bad place to work why are so many people trying to go there too work? If you were an American worker you dam_n sure would want your own government to show some protectionism towards your job or should they just let every country in the world dump anything and everything in your markets so no manufacturing jobs are left? I live here for 5 months out of the year and you wouldn't believe the people who are aplying for tourist visa' just so they can go there to work as an illgeal worker in some business qwned by a Thai that is hiring them and not paying them minimum wage and cash under the table with no taxes. I will agree that my government is too lax in enforcing workplace checks at home. No wonder California is bankrupt, so many businesses there and workers not paying any taxes and milking the system that is supported by those that are paying their fair share.

[Spee]

If you were an American worker you dam_n sure would want your own government to show some protectionism towards your job or should they just let every country in the world dump anything and everything in your markets so no manufacturing jobs are left?

I'm a proud American who at the same time hopes for the best with Thailand and Thai industry, but sorry, I can't agree with you on this one.

In addition to the the problems with protectionism that I mentioned earlier, it also leads to cronyism, payola and corruption. One need look no further than the US auto industry, in which the government stole GM from the owners and gave it to their political supporters. Most GM companies were non-competitive even with protectionism and corruption. And look at the latest villification of Toyota, in which a minor problem has been overblown and lied about in the press and DC, for the sole purpose of protection for GM (aka Government Motors) in the eyes of the consumer. (Ford is the only auto brand I've ever owned. I would never buy a car or truck from GM on principle alone. Don't see too many Ford trucks on the road in Thailand, but they're there and a good product.)

Governments should have one duty to businesses, workers and consumers, and that is to let the free market work. Every time there is meddling, the laws of unintended consequences win out over everything and businesses, shareholders, employees and consumers all suffer the effects. There are certainly a multitude of examples in both the US and Thailand.