A massive layoff plan was announced in July 2009 by Triumph International, a leading lingerie brand. According to the plan, nearly 4,000 workers in Thailand and in the Philippines would be retrenched by the end of August. The economic downturn and consequent reduction in sales and demand have been cited as reasons for the layoff. However, the company failed to show finance record as evidence to support its argument. Moreover, other Triumph factories without unionised labour were not affected, such as a Triumph plant in Nakorn Sawan province, Thailand and the two Triumph plants in China.

The widespread recession and consequent reduction in sales and demand have been used as the main explanation for massive layoffs and factory closures in Asia. Conveniently, the first factories to be closed are those with strong workers’ unions and the first workers to be removed are leaders of strong unions who have recently either won a collective bargaining agreement or are in negotiations with management. Moves of factory closure and retrenchments by multinational companies have been a blatant to gag and undermine the trade unions in their factories. The ruse of the financial crisis and its impact on the company is being used as a smoke screen, to enable them to relocate and through this neutralising the strong worker’s unions which have been demanding fair wages, outstanding payments and better working conditions.

Trade unions in Thailand as well as in other countries are demanding their governments to set up committees for investigation of factory closure cases to ensure the rights of workers and unions. Very few governments in Asia had announced any protection plans to jobs and wages of their workers, though many announced massive stimulus packages.

The Thai government had already spent 1.43 trillion Baht on the economic stimulus package since the end of 2008. Yet 1,003 factories had been shut down between 1 January and 7 May, putting 84,876 workers out work. The Ministry of Labour forecasted that 184,250 more workers in 429 factories are likely to be affected, with 61,319 at high risk of being dismissed and 122,931 receiving lower bonuses. In South Korea, the unemployment rate has climbed to a seasonally-adjusted 3.5 per cent, chalking up the highest rate in almost three years. It is estimated that there will be a possible loss of 200,000 jobs this year despite the 14 USD billion stimulus packages on top of the 120 USD billion bailout packages. There is a great need for Asian governments to listen to their workers and develop policies to meet the needs of the workers.

Building strong and progressive trade unions with a labour friendly policy are essential to protect the rights of workers. Towards this end, Committee for Asian Women is organising a conference on “Protecting Job and Wage Security in Time of Financial Crisis: Policy Responses and Coping Strategies of Manufacturing and Production Workers in Thailand” to bring together trade unionists and workers in the discussion of retrenchment, wage cuts, and the analysis on coping strategies of workers and the protection mechanisms of union rights. The results of the conference will be presented to the Thai Ministry of Labour.

The conference will take place at Student Christian Centre (SCC), Bangkok on 14 August 2009.9:00am-1:00pm. Lunch will be served.

The conference is free of charge for participants. Please contact CAW (Tel: 029305634 or email: cawinfo@cawinfo.org ) to make a reservation.

Downloads:

Concept Note and Programme (in English)

Invitation (in English and in Thai)