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Friday 13 April 2012

Strikes break out in wake of wage policy [Thai company agreed to Cambodia workers' demands after pressures from Wal-Mart?]

Published: 13/04/2012
Writer: Achara Ashayagachat
Bangkok Post

Two strikes have broken out at large processing companies in the past week as employers respond to the government's minimum wage policy with what workers say are cutbacks in conditions.

Almost all the 800 Cambodian workers
who staged industrial action at a seafood company in Songkhla went back to work yesterday after their employer agreed to reinstate their conditions following a four-day stoppage, Cambodia's ambassador to Thailand said.

She said about 90% of the Cambodian workers who staged the strike at Phatthana Seafood in Songkhla province have agreed to go back to work after their bonuses were reinstated.

Meanwhile, in Kanchanaburi, thousands of workers have stopped work at Vita Food Factory, a pineapple canning factory, since the new minimum wage took effect.

Few details were immediately available, but this stoppage is also thought to be related to cutbacks imposed since worker pay was increased.

Both firms are big food exporters.

The 800 Cambodian workers at the Songkhla factory, which also hires workers from Myanmar and Thailand, began their strike on Sunday.

Workers said their bosses at Phatthana Seafood Co deducted 20 baht per day from them for food, and cut their hard-work bonus from 400 baht every two weeks to 300 baht a month. They say their employer imposed the cuts after implementing the government's minimum wage policy, which resulted in their pay increasing 40% on April 1.

Ambassador You Ay told the Bangkok Post yesterday that she had ordered CDM Trading Manpower, the broker that brought in the 800 workers from Cambodia to work with Phatthana Seafood, to settle the dispute quickly and smoothly or face the withdrawal of its licence in Phnom Penh. "Now 90% of the protesters have agreed to settle," she said.

'Those happy with the working and wage conditions can stay, but CDM will help those who want a new job to find one," Ms You Ay said.

You Ay has advised workers to respect the labour law and not resort to any violent means.

Phatthana Seafood said the strike was mainly caused by a communications breakdown due to language differences.

"We have rectified any misunderstanding with the Cambodian workers. We have also communicated with local authorities and the Cambodian embassy regarding our labour policies and practices which comply with laws and regulations," the company said.

"We have always treated workers in compliance with the international ethical standards applicable."

A worker representative said the company and CDM have since sent back a few hundred Cambodians who wanted to return home. Phatthana Seafood is a key exporter of seafood to Australia, the United States and Europe.

Meanwhile, at Vita Food Factory, sources said a stand-off between factory management and the thousands of workers it employs from neighbouring Myanmar remains tense, and police were called in to keep the peace. Vita is a food exporter to the US and Europe.

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