Labour party (re)formed
* Thailand As Thailand convulses under its worst economic turmoil in decades, a group of union leaders are organising what the political spectrum here has always lacked: a party to represent labour interests. The party will target low wages, a central plank of the Thai elite's "competitive" strategy. Given Thailand's long history of repression of working class movements, the party faces an uphill climb in a political scene dominated by big business and the military. Satya Sivaraman*
The new organisation, called the Thai National People's Party, is a reincarnation of the Labour Party that made its debut in the general elections of November 1996, but failed to win any seats. Party leaders blame their poor performance on obstacles like late registration by government officials. Under Thailand's complex electoral laws, the Labour Party has to seek fresh registration since it did not win seats in the last elections.
The new party does not have the money or muscle of Thailand's 10 mainstream political parties, which are either part of the ruling coalition or in the opposition. But it comes at a what may be the right time -when a major crisis is looming on the country's labour front.
Many workers have been laid off or forced to take pay cuts since early 1996, when the Thai economy slowed down after nearly a decade of fast-paced growth. The flotation of the Thai baht on July 2 led to the currency's devaluation by nearly 25% and spurred fears of runaway inflation.
The Thai Ministry of Labour expects more than 40,000 workers to be laid off during 1997 alone. The figure is projected to more than double next year, when the full impact of the economy's troubles will
While traditional industries like textiles are shedding jobs due to a fall in exports, many companies in newer sectors like property and finance are expected to declare bankruptcy due to excessive exposure to foreign and domestic debt.
"We are very apprehensive about the future and feel that the best way to represent workers' interests is through a new political party - mere trade unionism is not enough any more," says Pakdee Tanapura, advisor to the new party and the National Labour Congress of Thailand (NLCT). 24 International Viewpoint #292
Apart from overcoming obscure laws that prohibit unions from undertaking political activities directly, the party will help clear misconceptions about the true nature of workers' problems, he said. Wages are the central question
Thai businessmen and foreign investors have repeatedly blamed what they see as high minimum wages for falling exports. But union leaders argue business costs have gone up more due to corruption among politicians and government officials and less due to minimum wages, which after the devaluation are less than five dollars a day in the Bangkok metropolitan area and even lower in the provinces.
In May, union leaders like Chin Thubplee, founder of the new party and NLCT chair, demanded a hike of 64 U.S. cents in minimum wages across the country. These demands are likely to rise because of the baht's devaluation and inflationary pressures on prices.
The Bank of Thailand recently reported that the minimum wage in nominal terms rose by only 7% between 1985 and 1995. "Wage restraint: was a main factor in the price competitiveness of the manufacturing sector. Still, Thai businessmen, particularly in labour-intensive industries like footwear, toys and garments, successfully lobbied the government to allow the import of large numbers of even cheaper foreign labourers.
Competition from migrant workers, estimated at one million over the past decade, is resented by Thai unions. Activists fear that if not properly controlled, such anger may boil over into anti-immigrant violence as the economic crisis worsens. Decades of repression
In the 1930s and 1940s, Thailand had an active labour movement with several large strikes, a labour federation claiming 70,000 members and an active communist party. But since the late 1940s, successive dictatorships have either suppressed unions or manipulated them for political aims by showering them with privileges. To prevent the politicisation of workers, military rulers passed special laws banning unions' association with political parties. "Historically successive Thai governments have prevented any mature political leadership from emerging within the country's labour movement," Voravidh Charoenlert, labour economist at Bangkok's Chulalongkorn University. Thai bureaucrats and managers have traditionally viewed unions as a "fifth column" for communist party activists.
The political space open to the labour movement has expanded only since the late 1980s, due to the changing political and economic climate. Given the chance to vent grievances for the first time in decades, the number of strikes in the private sector has also risen sharply since then. Still, Thai unions lack unity nationwide. This weakness that means workers are unable to monitor implementation of labour laws, and to take full advantage of the new political freedoms.
Thailand's rate of unionisation remains one of the world's lowest. Even in the industrial sector, only 1.7% of some 16 million workers are organised. The figures are even lower in agriculture, which employs more than 17 million people. Even these small number of unionised workers do not have a single voice. According to Thailand's Ministry of Labour and Social Welfare, by the end of 1995 there were 19 labour union federations and eight labour union councils.
"With the new political party we hope to unite labour under a common platform to address the various problems facing us," says Chin. He admits the task will not be easy. But he believes more workers are frustrated with current leaders and want new political
At the same time, union leaders fear that any increased political activity by workers' groups could become an excuse for authoritarian measures by conservative elements in the Thai government and military against unions and activists. Political assassinations were routine in the sixties and seventies. And even in the nineties several Thai worker and farmer leaders have been assassinated by suspected police agents. Chin says the Thai government has already drawn up a list of 10 union leaders, including him, for the police to keep watch on. Such harassment could be the prelude to increasing conflict between workers and the authorities, especially if Thailand's economic woes worsen. * The author works for InterPress Service. Source and Copyright: InterPress Service (1997).
Solidarity against the World Bank/IMF parallel activities. Gerard Greenfield*
Whose money? Whose crisis? The campaign is particularly important
The Hong Kong coalition Against the World Bank/IMF issued the following because the World Bank will release two new statement concerning IMF "aid" to Thailand reports during the Hong Kong meeting. The first report, China 2020, will be released on September 16th. This report celebrates the success of China's market reforms while demanding even more deregulation and privatisation over the next two decades. The widespread privatisation of state- owned enterprises in China in 1997 alone will see 50 million workers laid off. At the same time, the social security system is being commercialised and privatised, and migration from villages to the cities is being encouraged as the solution to growing unemployment! There are already 100 mıllion floating migrant workers looking for work!
These neo-liberal policies are underpinned by the fact that China is now the World Bank's biggest debtor. Many of the reforms being imposed on workers this year (including privatisation, the dismantling of the social security system, and the end of job security) conform to the specific demands made by the World Bank in its report on China last year. The WB/IMF has found a real partner in the Chinese government in their campaign to generalise neo-liberal
Thailand/Hong Kong
Hong Kong's Chief Executive Tung Chee Hwa's has announcement that Hong Kong will commit US$1 billion to "rescue" the Thai economy from crisis. This money will be lent to the IMF, which will lend the money to the Thai government.
The IMF conditions are strict. The Thai government must promise to privatise public enterprises and public utilities and sell state assets, including land The government must cut its spending on health, education and social welfare. Thailand must open up its economy to even more foreign investment and give foreign investors even greater freedom to destroy the environment and exploit workers. Government must cut subsidies to farmers and remove any protection of small farmers from big agri-business. Finally, the government must agree to réduce workers' wages to make the economy more "competitive"
What sort of "rescue" package is this? How will raising the cost of living and
Hong Kong than in any other country in the region. The majority of the people of Hong Kong are finding it more and more difficult to earn a living wage and are struggling to maintain their livelihood Housing rights are still denied to many people in poverty, while thousands more people are still waiting for decent public housing.
Workers who lost their jobs when factories shut down and moved to Guangdong [in mainland China] several years ago are still not able to find decent jobs with reasonable wages. Every year thousands of workers undergo "retraining" and after they have finished what awaits them? More unemployment. Young workers face low wages and endless part-time jobs, without learning any skills for their future. Older workers are discriminated against because of their age, and their skills and experience are completely ignored
Does this sound like a place so rich that it can hand over money to the IMF attacks on the working class. making more workers and farmers un- for its business dealings? The working
A second report will deal with poverty in East Asia. While admitting that poverty is increasing in East Asia, the World Bank argues that effective poverty alleviation requires even greater privatisation of social welfare. The bank denies any contribution of labour market deregulation and unemployment to this new poverty.
The campaign organised by Solidarity against the World Bank/IMF will also focus on Hong Kong. In the World Bank's celebration of the "East Asian miracles". , the Bank has argued that structural adjustment in the former British colony was a painless experience for workers. It is claimed that all of the workers who lost jobs under the mass plant closures in the 1980s easily found jobs in the service sector!
The campaign will highlight the real crisis faced by unemployed workers in Hong Organisers welcome letters of solidarity, which will be publicised as part of the campaign. Please send messages to: Fax: 852 2454 6094 (Attention Au Loong Yu) or <auly@chevalier.net> *Gerard Greenfield works at the Asia Monitor Resource Center in Hong Kong employed solve the problems faced by the Thai people?
This "rescue" package will only benefit the wealthy - rich landowners, business tycoons, bankers and financiers and foreign multinationals. Financial stability will protect their interests and their profit. But when this is all over it is the ordinary Thai people who will have to pay this money back, through higher taxes and government charges in the future.
In other words, Tung Chee Hwa pledged US$1 billion for the IMF to blackmail the Thai government. The deal will only postpone the current financial crisis and create an even greater crisis when the people of Thailand are forced to repay the loan.
What about the crisis here in Hong Kong? Every year the number of people in poverty is increasing. In the last 10 years the rate of inequality grew faster in people of Hong Kong and Thailand face serious social and economic problems. But the solution is not to pretend that Hong Kong is so wealthy that it can gamble with the IMF. This money is better spent on increased social welfare, pensions, public housing, unemployment support and job creation in Hong Kong
Most important of all, Hong Kong should not be financing a scheme in which the people of Thailand are threatened and forced to follow the policies of the IMF. The IMF's policies will only lead to more poverty and unemployment in Thailand, and make people's daily struggle to earn a living even more difficult.
Hong Kong should not be lending money like some sort of gangster state involved in the IMF mafia's threats and bribery. Such policies will only lead all of us further down the road to crisis. *
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