[asia-apec 194] Eden Update

[Maureen and Somyot, TIE - Asia]

EDEN UPDATE # 3		Friday October 25, 1996
EDEN Update will be sent out on a regular basis, while the dispute at the
Eden Group Company continues in Bangkok, Thailand. Please distribute as
widely as possible, or contact this office if you wish to be put on the
distribution list. Eden Update is available via fax, or the text can be
sent via email. For further information contact TIE - Asia, or CLIST at:
+66-2-586 0158 ph/fax or tieasia at ksc8.th.com

WHY DO WE ASK FOR 15 MONTHS COMPENSATION? 
WHY DO WE NEED SOCIAL SECURITY FOR UNEMPLOYED?

Introduction
The government always tell us industrialization will create more jobs and
improve our living standard.  Every government talks about how to make Thailand
the next tiger of Asia, to become a newly industrialized country (NIC)
without taking 
into account the suffering of people, most of whom are factory workers. The
lust to
becomea NIC of Thai government  has forced workers into inhuman working
conditions - low wages, long hours, unreasonable risks to health and safety,
lack of
job security, and overwhelming struggle.

The reality is painful.  During economic boom factory workers are those who keep
working hard to increase productivity, but they are also the first to be
fired in the
time of economic decline. This experience has repeated over and over again, and
has deeply wounded the spirit of  the Thai working class.

When we fight, when we ask for our basic rights as a human beings, what we
receive is the capitalist exercises his economic power to suppress us by closing
down the factory.The price of this is only to pay 6 months compensation
required by 
law. One example is the case of Thai Melon Polyester factory. In 1984, the
company shut down its plant in response to the strike, bringing the union to
the 
end.  And GS Steal closed down its factory simultaneously against the strike
led by 
the factory-based union in 1990. Another case is Thai Patraporn which closed
down
in 1993 responding to the long-running strike (more than 10 months) organised by
Aporn Thai Union. And many more cases that the companies  got away by
dissolving their business and avoided  their responsibility of compensation
payment.

Dissolving business has far been a very easy thing to do because the
compensations required by law has been too low.  It is too low for workers
whom no
one wants to employ because they are over 30 years of age.  It is too low
because
the capitalist can easily get rid of  dedicated militant union leaders by
firing them
and pay the low price.

As for the case of Eden Group, the real story is not that the company wants to
dissolve their business, nor they are bankrupt!  But the story is they want to
maintain the certain level of profits by reducing costs of production.
Without any
morality, the company has been subcontracting works out to independent
subcontractors, and be able to avoid the employer's obligations.  Subcontractors
use child workers whom they can easily buy at Hua Lam Pong railway station, or
agents who buy/sell labour for profits.That is why we cannot agree to accept
compensations according to the labour law, but we are asking for 15 months, one
time higher than required by law. 

THE REASONS ARE AS FOLLOWS:
1. Most of the dismissed workers are aged between 30-40 years old, and are
unable to get a new job as most employers only want hire those under 25 years of
age. As a result, they need a higher compensation for their living and
family during
the search for a new employment or to be used in starting their own business. We
only ask for compensations required by law and a special sum to relieve our 
economic losses. More importantly, these dismissed workers bear family
responsibility- tuition fee, rent, etc. 15 months compensation is an
equivalent of
68000 Baht which is not a great amount comparing to the high living costs in the
present.

2. The Eden Group has generated great profits. In the company's business
catalog,
the management reveals that the company is one of the biggest garment producers
and exporters and its consolidated worldwide revenues topped US$ 70 million or
1750 million Baht in 1991 and 5000 million Baht  in 1993.  The total amount
of 15
months compensation which we ask for is only 21 million Baht, and the company
should not have any problems paying this amount.

3. The company has not dissolved its business, but subcontracted works out to
subcontractors in the informal sector to avoid labour laws. These
subcontractors also exploit child and migrant workers, in which  we have
evidences and witnesses.
Child workers in a sweatshop of subcontractor for Eden Group are aged between
12-15 years old. The children work for free, because the subcontractors paid
a sum
to their parents. They are not different from slave labour.

4. 15 months compensation is also to be a lesson for the capitalists and
TNCs not to take advantage of Thai workers. And the company cannot easily get
away from their responsibility by laying of workers and  paying a cheap
price. More
importantly, this would help prevent the company attempting to destroy workers'
unions.

5. 15 months compensation is an average of international standards. The
longer period workers render their service to the company  is  the more
compensations they receive. This is keen especially the case of  Thailand where
social security is not yet  provided  to unemployed.  A special sum in excess of
legal compensations is  necessary to help  the workers survive during the
search for 
a new job.

6. Garment workers create goods, product values, profits, generating a
high gross domestic product (GDP) of several hundred thousand million Baht per
year. They deserve protection when dismissed or laid off. They deserve social
security when unemployed. Compensation redundancy and a special assistance
are thus the responsibilities of the employer and the government.
       
By the Garment Industry Workers Union  and  CLIST

SOME ANSWERS TO COMMON QUESTIONS

* The 345 dismissed workers are demanding for just compensation and not
for re-instatement because of unsuccessful attempt to be re-instated was
made before in March this year when 800 workers were laid off.

* The 800 workers laid off in March this year received 10 months
compensation - 6 months required by law and a special sum of 6 million
Baht to be shared among old ages workers ( on average 800 workers received
10 months each ).  This time, 345 dismissed workers are also willing to
receive 10 months compensation if the company agrees to pay right away.
But the problem is that the company has never wanted to negotiate with the
Union.
15 months compensation is favorable but not definite!  The workers are
willing to
negotiate and lower their demand if the company negotiates with them.

* At the beginning of the Eden dispute, when 345 workers were given
notices terminating their employment on September 13, 1996 to be effective
on 14 Sep., the Union was trying to negotiate with the company for just
compensation. Since then six attempts for negotiation have been made by
the Union, but the employer has never turned up. The company instead sent
someone who had no decision-making power to the negotiations and thus they
failed. 

* The company has been trying to get away ; at first it did not want to
pay any compensations at all; instead it made up a situation that it was
going bankrupt, machinery at the plant was taken by the company's raw
material suppliers; when the union discovered that such a situation was
only a set up, and that the company had been subcontracting works out to
independent subcontractors and home workers, which made the situation of
bankruptcy even more apparent because the company wouldn't need to keep
those machines as manufacturing was no longer done in the factory ; the
company only considered the Union's demand for compensation  when it could
not tolerate much pressures received  from both local actions (workers'
rally and picketline) and international campaign against the company's
product brandnames; then it offered the amount of legal compensation - 7
months ( 6 months compensation + 1 month damage for termination without a
notice ) required by Thai labour law to the dismissed workers.
Importantly, 345 workers were unfairly dismissed !!

* In Thailand, social security for unemployed does not exist !!  Dismissed
workers only receive compensation payments and that's it ! Dismissed Eden
workers had been paid at the level of minimum wage ( 5.8 US$ / day ) even
though they had rendered their service to the company for more than 10
years.  

* We have evidence of child labour exploitation in a sweatshop of
subcontractor for Eden Group. The children are aged between 12-15 year
olds. They are bought by the subcontractor who paid a sum to their
parents. The children thus work as slave labour : without pay and long
hours.

* By subcontracting its operation out which involves child labour
exploitation, the company unfairly dismissed workers who are aged between
35-45 and unlikely to find a new career.     

The above reasons are to explain why workers demand 15 months. The most
important thing to keep in mind  is that 15 months is not important in
itself but the company must negotiate with the workers/Union who are
willing to accept reasonable compensation.