State enterprise unions smell privatisation

State enterprise unions smell privatisation

State enterprise workers see the future of their labour unions hanging in the balance as a new state enterprise management bill makes progress. (Photo by Patipat Janthong)
State enterprise workers see the future of their labour unions hanging in the balance as a new state enterprise management bill makes progress. (Photo by Patipat Janthong)

Public-sector labour leaders on Tuesday opposed a bill they allege will lead to the privatisation of state enterprises and eventually the dissolution of state-enterprise workers' unions.

Key figures from the State Enterprises Workers' Relations Confederation (Serc) gathered at a Bangkok hotel to come out against legislation the government's State Enterprises Policy Commission, or "superboard", approved in principle July 17.

Although Prime Minister Prayut Chan-o-cha has insisted that state enterprises will not be privatised, some superboard members suggested state enterprises should be downsized and some responsibilities shifted to the private sector. To Serc, that sounds like privatisation, Serc secretary-general Sawit Kaeowan said.

He also claimed that state-enterprise workers' unions would likely be dissolved because the superboard's initiative would not subject to the State Enterprise Labour Relations Act, which guarantees the existence of unions.

"The government should keep state enterprises as tools to protect the public interest," Mr Sawit said.

On the same occasion, labour academic Narong Phetprasert called privatisation of state enterprises an easy way out for governments facing economic hardship and a tax shortfall.

"Twelve state enterprises have been incorporated, including Thailand Post and Mcot. Although the Finance Ministry is initially required to hold majority stakes to maintain state-enterprise status, it is very easy to reduce shareholdings. The example is PTT," Mr Narong said.

State enterprise workers could be encouraged to buy cheap shares of their employers. When share prices increase, they can sell the shares, which will finally end up in investors' pockets, he explained.

Sirichai Mai-ngam, president of the labour union at the Electricity Generating Authority of Thailand, said there were always attempts to privatise Egat and they included plans to separate the important operations of power transmission and control centres.

The separation would transform Egat into a small electricity producer, he said.

Although protest rallies are currently prohibited by law, it was necessary to communicate the union's concerns, said Mr Sirichai, explaining Tuesday's gathering.

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