06 January 2012

Flooding in Thailand has devastating impact on CAL workers

The devastating floods which killed more than 600 people in Thailand have had a serious impact on the livelihoods of CAL workers. Many agency workers were not paid as plants have been shut down since the crisis began in October 2011. As the flooding continued in November and December, hundreds of thousands of agency workers were laid off.

The electronic sector, which employs a high proportion of precarious workers, has been amongst the hardest hit by the flooding. In the Ayutthaya and Pathumthani provinces, north of Bangkok, thousands of electronic factories located across several industrial estates remain swamped by more than two metres of water. Several companies have announced lay-offs and plans to relocate production facilities from Ayuttaya to Malaysia.

 

The Thai government is providing a package to assist companies to retain their workforces. Companies that commit to a policy of no lay-offs, maintain the same level of worker benefits, and pay workers no less than 75% of their wages are eligible for this relief package.

Some unionised companies have continued to pay wages – from 100% of wages in the first month, to 75% and 50% for November and December. The Goodyear Tyre company paid full wages to both regular and fixed-term workers since its only plant in Rangsit, north of Bangkok, was hit by the floods on 21 October.

Production has not yet resumed at the plant but management and the union are working hand in hand in the recovery process. Workers on fixed term workers at Goodyear whose contracts came to an end on 30th November 2011 did not have their contracts renewed.

At the same time, several companies in the eastern seaboard which were not directly affected by the flood have used the flood as an excuse to delay CBA negotiations or to avoid implementing CBAs.

print this article