No Guarantee That Workers Will Be Re-Employed: Thailand

[webfact]

EDITORIAL

No guarantee that workers will be re-employed

The Nation

Flood-hit factory workers not only need immediate assistance from companies and the govt, but also assurances of work and retraining

The government has already announced a series of measures to assist corporations hit by the flooding disaster. It should now turn the focus towards the problem of labour. Hundreds of thousands have been left unemployed - either temporarily or permanently - as a result of the floods. The authorities have pledged they will urge factories and other workplaces to re-employ those workers who were laid of because of shutdowns, but in reality many of these workers still feel insecure about their prospects for re-employment. This is especially the case for unskilled and older workers, who believe that the chances of their employers calling them back are slim.

In a survey conducted from October 24 to November 7 by the Thai Labour Solidarity Committee, a majority of workers who had been employed in Ayutthaya, Pathum Thani, Samut Sakhon and Nakhon Pathom provinces were not certain the government's assistance measures would assure jobs for them.

More than 200,000 workers in Ayutthaya province may not be eligible for assistance programmes because they were temporary workers who came from other provinces. This is also the case for workers in other provinces, because the government's assistance programme focuses on people residing in the provinces first.

The concern of these workers reveals the downside of the Thai labour market. While high-skilled labourers are almost certain to be re-hired after their companies resume production operations, the future for low-skilled workers is uncertain.

Companies tend to take good care of skilled workers because of their abilities. Thus, these workers can often rely on their employers to take care of their welfare needs without having to rely on the government. Some skilled workers have even been transferred to other facilities overseas, including Japan.

But the prospects for low-skilled workers are dim. Some employers have simply shut down their plants or plan to replace these workers with machines. In other cases, companies can easily move to neighbouring countries, where the labour costs are cheaper.

The Thai Labour Solidarity Committee has called for the government to provide immediate assistance programmes including compensation money to help workers survive while their factories are still shut down because of the flooding.

This disaster should provide an opportunity for the government, employers and workers' representatives to improve the labour market in a sustainable manner. Otherwise, low-skilled workers will always be vulnerable to job cuts, even after the flood water subsides.

Low-skilled workers don't have the bargaining power to negotiate with employers to raise their wages, and thus have to desperately rely on the minimum wage. As a result, the minimum wage issue has at times been politicised. Still, these workers do not get the benefits that they should be entitled to.

In addition, retraining is essential, particularly to help older workers find new employment. Some factories may not be suitable for older workers or those with low skill levels. Therefore, the labour agencies should cooperate with employers to discuss how to assist these workers through retraining.

The Labour Ministry should now look into ways to help workers stay in the job market. But it has to be done in a sustainable manner, by providing them with new skills and counselling.

It is unfortunate that the minimum wage has so far dominated the discussion regarding the welfare of local workers. The minimum wage should not be the only factor in determining their worth; their skill and potential should be considered as well.

Workers should be able to negotiate with dignity. And they will enjoy stronger bargaining powers when they are equipped with skills and knowledge that employers cannot afford to lose.

This is the key challenge for Thai workers, and the Labour Ministry must seriously begin to address the issue to ensure sustainable employment opportunities for all Thai people.

-- The Nation 2011-12-17

[Bakseedaa]

Everyone wants something for nothing... !! If I could move my business to another country ..I sure would...

[BKK22]

Such a nice and peaceful country. too bad the leaders couldn't make it grow upto its potential.

[givenall]

Everyone wants something for nothing... !! If I could move my business to another country ..I sure would...

This government has no clue about the economy and the waythe supply and demand works. They raise the min wage without really thinking that the non-skill labors just don't worth 300bth per day.

In our case, we will just reduce the commission to compensate for the salary increase because we know that the skills don't justify the increase

Edited December 17, 2011 by givenall

[wxyz]

"No guarantee that workers will be re-employed"

the only guarantee in life, is death

[marstons]

personally if my business was trashed here i would move it else where, stable goverments, no riots etc. there is not much skill needed in what most of the production lines require and the goverment seem to be on overdrive to make it difficult to make business, and thefore jobs for Thai people.

[finnomick1]

Judging by the continous parties here in our village, mainly by migrant workers who are home from Bangkok I don't think they're really bothered about re-employment

[tukkytuktuk]

It starts at the bottom and works its way up. If people who had job before the flood can't find work because of cost cutting companies, then things will only get worse for Thailand. The government should step in and help these people who are loyal, hardworking and keep Thailand prosperous. Don't sit back and watch, do something, we've made it through the worst flood in living memory, now give people the hope and security they need.

[pattayaorganic]

The Thai government needs to do nothing other than let the market work. If you want to have a better lifestyle for Thailand's poor, unskilled workers, try investing in educating them. But no! If they really get educated they may see through the Lies and actually not sell their vote to the highest bidder.

Economics 101, Minimum Wage policies cause unemployment. Just look at what the above article says about the skilled workers and how well the companies take care of them.

[tukkytuktuk]

I don't think its education these unemployed workers need, its their jobs back. What skills do you need for manual labour? Without a job what future is there for these peoples childrens education? As they said to me when I was at school, "they'll always be jobs for factory workers". So give them their jobs back, invest in people not profit.

[tukkytuktuk]

I think these companies are lucky to have previous workers wanting there old job back. To help clean up the mess this flood has made, who know what there doing without being trained, who are prepared to help their company in times of trouble. Give them their jobs back! If there is trades union for these people then make your voices heard. You don't give up, you stand up and shout. Companies that aren't doing their bit for Thai workers should be boycotted by Thai consumers. You can hurt the poor but don't hurt the dreams of their children.

[Oberkommando]

Such a nice and peaceful country.

More than 5000 deaths in the South in the last 8 years says different.

[Yme]

After 12 days this month and 6 days last month of ToT not being able to supply internet to us in Jomtien I fired all of the staff and am now in the process of moving to Cambodia where reliable 3G internet covers the entire country, where businesses can be 100% foreign owned (total cost using an agent $1,600) and where there's no BS with work permits, no restricted occupations or 90-day reports, or any of the other drama's associated with being based in Thailand, and where license and permit fees are levied at reasonable prices and where there is a serious attempt to stamp out corruption.

Thailand used to be an Asian tiger but now it's just a 3rd world nation trying to pretend it's developed and making life as difficult for foreign-owned companies as possible and where the administration is a combination of One Flew over the Cuckoos Nest, The Adams Family and Archie & Jughead.

Dusty and crowded Phenom Penh may be, but on the numerous visits I have made there in the last two months I've yet to strike the "gouge the foreigner as much as possible" attitude prevalent i Thailand, but rather a country where English is widely spoken, where services that are paid for are actually provided, where inquiries at government offices are met with helpful answers and where overall costs are considerably less than in Thailand.

That 2012 will see a return to street protests and possibly coup number 13 is, on the balance of probability almost a given, while various changes to business laws makes Thailand an undesirable location to base a business out of for me.

I have already located the staff I need for our business in Cambodia, all well educated and apparently knowledgeable in our field of business, and in various meetings and social encounters with them have found they lack the arrogance of Thais, a readiness to accept doing business the foreign way as opposed to the "Thai way", or the propensity to drink them self to the point of vomiting in the potted plants as several of my previous Thai staff did at functions held in four and five star hotels in Thailand simply because there was an open, unlimited bar.

While these are only early days and the reality long-term may not live up to the initial impressions, it's so far looking very promising.

RIP Thailand, you've had your days of glory.

[JurgenG]

"No guarantee that workers will be re-employed"

the only guarantee in life, is death

And taxes

[swerver]

Judging by the continous parties here in our village, mainly by migrant workers who are home from Bangkok I don't think they're really bothered about re-employment

And your Village is not the ONLY one having parties every night. Travel around Thailand like my neighbor did from Eastern Seaboard to Buirmese border in the North and it was parties all the way.

Lets take a realistic look at the Thais:

The Thais have no halftones in their register of vision.... They exclude compromise and pursue the logic of their ideas to its absurd ends, without seeing the incongruity of their opposed conclusions.

Their convictions are by instinct, their activities intuitional....

[tukkytuktuk]

So if you don't like the Thai way of doing things, why not go somewhere else. Oh and good luck in Cambodia, one of the worlds poorest countries. And whats parties around Thailands villagesgot to do with unemployed workers in Bangkok. Your one of these foreigners that comes to Thailand, hates the food, hates the culture, hate the language and now hates Thai people. It's time you went home, don't you think!

[wxyz]

"No guarantee that workers will be re-employed"

the only guarantee in life, is death

And taxes

depends where you live, work, invest or keep your money

the wealthy don't pay taxes, just ask the greeks

[Beetlejuice]

Lets be honest, is anything guaranteed in Thailand?

In Thailand it`s wise to always keep in mind, that when things are running smooth, than it`s really good, if things turn pear shaped, than we are completely left on our own to deal with it.

So for those that rely on employment or just luck in order to survive here, are taking a great risk, because there are absolutely no safety nets if you do topple down.

Thailand is the land of the financially secure and the healthy. Lose your wealth or lose your health, then it`s good luck and nice to have known you.

[Chopperboy]

According to one report a few weeks ago all the factories were meant to be back up and running by mid December - what happened to that? Reality settled in yet? Most of the flooded computerised machinery will need to be scrapped. That leaves 4 walls and a roof, so at the point of completely re-equiping a factory wouldn't it be prudent to ask "shouldn't we be doing this elsewhere?"

[IsaanUSA]

According to one report a few weeks ago all the factories were meant to be back up and running by mid December - what happened to that? Reality settled in yet? Most of the flooded computerised machinery will need to be scrapped. That leaves 4 walls and a roof, so at the point of completely re-equiping a factory wouldn't it be prudent to ask "shouldn't we be doing this elsewhere?"

However the workers are already trained, and processes are already in place. So it's not just "oh lets move to another building", but more like "ok now we have to train 2000 workers, we have to have a highway to transport to the seaport, and start new relationships with new governments and officials".

I think factories that have branches in other locations have it best...they can just expand current factories and close their flooded factories. Infrastructure is already in place, just need to expand the building and move old workers / train new workers.

[Thai at Heart]

"No guarantee that workers will be re-employed"

the only guarantee in life, is death

And taxes

depends where you live, work, invest or keep your money

the wealthy don't pay taxes, just ask the greeks

I think it was largely a case of The Greeks as a whole not paying taxes.

[Thai at Heart]

According to one report a few weeks ago all the factories were meant to be back up and running by mid December - what happened to that? Reality settled in yet? Most of the flooded computerised machinery will need to be scrapped. That leaves 4 walls and a roof, so at the point of completely re-equiping a factory wouldn't it be prudent to ask "shouldn't we be doing this elsewhere?"

However the workers are already trained, and processes are already in place. So it's not just "oh lets move to another building", but more like "ok now we have to train 2000 workers, we have to have a highway to transport to the seaport, and start new relationships with new governments and officials".

I think factories that have branches in other locations have it best...they can just expand current factories and close their flooded factories. Infrastructure is already in place, just need to expand the building and move old workers / train new workers.

Many will move out of Thailand. The Thai factories for many of these companies are already 10 to 20 years old, are overcrowded and have older machinery. Many of the companies have brand spanking new factories in Vietnam and Cambodia with machinery that is more efficient, and quicker, with cheaper labour.

There is absolutely no logic in resurrecting a damaged factory when you can move to a newer, more efficient, cheaper environment. These industrial estates will slowly wither and die, and I fear this will really make a long term dent in Thailand's economic development. IT only takes a few major end of the line buyers in any industry to move, for all the suppliers in the entire chain to move. One large factory moving makes for dozens of smaller ones going too.

[Chopperboy]

Many will move out of Thailand. The Thai factories for many of these companies are already 10 to 20 years old. There is absolutely no logic in resurrecting a damaged factory when you can move to a newer, more efficient, cheaper environment. It only takes a few major end of the line buyers in any industry to move, for all the suppliers in the entire chain to move. One large factory moving makes for dozens of smaller ones going too.

I couldn't agree more with you...

We'll see what happens over the next year or so.

[harryfrompattaya]

Everyone wants something for nothing... !! If I could move my business to another country ..I sure would...

This government has no clue about the economy and the waythe supply and demand works. They raise the min wage without really thinking that the non-skill labors just don't worth 300bth per day.

In our case, we will just reduce the commission to compensate for the salary increase because we know that the skills don't justify the increase

You are a cheap charlie to complain that a worker is not worth 300 Bth per day. In you case I would suggest you leave Thailand at once you are a slave master and should have been born 300 years in England. I bet you think you are better than most people. Wake up and smell the Roses.

[IsaanUSA]

Everyone wants something for nothing... !! If I could move my business to another country ..I sure would...

This government has no clue about the economy and the waythe supply and demand works. They raise the min wage without really thinking that the non-skill labors just don't worth 300bth per day.

In our case, we will just reduce the commission to compensate for the salary increase because we know that the skills don't justify the increase

You are a cheap charlie to complain that a worker is not worth 300 Bth per day. In you case I would suggest you leave Thailand at once you are a slave master and should have been born 300 years in England. I bet you think you are better than most people. Wake up and smell the Roses.

Obviously Harry does not have any factory experience. Harry are you retired by chance?

My family are factory workers. I have worked this kind of job before. To the upper managers and to the owners, the workers are nothing but a number on a paper. If they could train a monkey to do the job then they would. The pay is absolute minimum because the job is absolute minimum. Anybody with an eye and a hand can do it. Factory work is not glamorous, does not require any education, and often times is dangerous. The higher ups don't care. You're free to quit because there is somebody else who will take your place.

This is not a Thai thing. It is a corporation trying to maximize profits. That's how the job market is now. Workers are just numbers and there is no compassion.