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22 February, 2012
Automotive and supplier sectors in Thailand have been booming. Some say Thailand is on the way to becoming the “Detroit” of Asia. The export oriented industry is overwhelmingly located in the cities of Bangkok, Chonbori, Rayong, Samutprakaran and Pathumthani.
Thailand’s tyre industry is made up of 16 companies, most of them multinationals, and operating in 20 factories employing 30,000 direct employees. Only nine factories are unionized, and those unions come from different sector and regional labour bodies in Thailand.
Some 33 union representatives from factories of French-based Michelin’s two plants, US-based Goodyear, Japanese-based Bridgestone and Yokohama, Taiwan-based Maxxis, and the Thai national company, Siam Rubber, came together in an ICEM workshop held 18-19 February in Bangkok. The meeting’s purpose was to organize a common union view of the tyre industry at both global and regional levels, introduce international labour standard applications, and chart the future union strategies in rubber in Thailand.
“The Thai tyre industry has developed and international’s support of the sector’s unions is a must,” said ICEM Thai Council Chair Prakob Parimon in opening the meeting. Chaiyuth Choosakul, the new President of ICEM affiliated Petroleum and Chemical Workers’ Federation (PCFT) said six out of 18 unions belonging to his federation are active in the tyre industry.
“We need knowledge, experience and support from the outside to better serve our members in the tyre industry,” said Choosakul in his initial remarks.
The workshop examined general trends, and challenges economically and socially that affect labour matters, presentations by ICEM Director of Industry and Corporate Affairs Kemal Özkan. Participants also warmly welcomed the Secretary of the European Works Council from Michelin, Cyrille Poughon, a member of ICEM’s French affiliate FCE-CFDT.
from right to left: FCE-CFDT's Cyrille Poughon, Kemal Ozkan, ICEM Thai Council Chair Prakob Parimon
Poughon provided detailed information on the French union and collective bargaining structures, as well as rubber industry collective agreements with details such as wages, work hours, labour relations in France and in Europe, as well as Michelin’s corporate situation. ICEM’s Asia Multinational Companies and Social Dialogue Project Coordinator Yoon Hyowon addressed international labour standards such ILO Conventions, OECD Guidelines, the UN’s Global Compact, and other instruments.
The participants then extensively discussed their difficulties, challenges, strong points, opportunities and future ideas on cooperation and solidarity. Widespread union de-recognition practices by employers in the sector was specifically mentioned. Differences in wages and social payments between different tyre companies, even among subsidiaries of the same companies, were noted as important challenges to overcome.
At the meeting’s conclusion, delegates unanimously agreed to form a national tyre union network for defending the interests and rights of employees in the sector. The participants further agreed that regular network activities must materialize in the near future. Continuation of ICEM’s leading role was underlined. Participants from Michelin asked French union representatives to assist them in upcoming negotiations to break the negative attitude of local management by intervening with senior management.
“The ICEM is proud to take the lead in a workers’ voice in the start-up of the Thai tyre network,” said Özkan. “Following the initiative to form a national network in India last December, ICEM will follow the same decisiveness in Thailand to ensure that effective union networking occurs in the tyre sector.”