Impact of Trade Liberalisaton on the Workforce: FTA, ASEAN and Thailand
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Impact of Trade Liberalisaton on the Workforce: FTA, ASEAN and Thailand Asian Regional Workshop on FTA: inclusive trade policies n post-crisis Asia 9 December 2009 Sources articles: Race to the Bottom: Exploitation of workers in the global garment industry ORGANIZING UNDER THE NEOLIBERAL TRADE POLICY OF Special Economic Zone Thai Labour Campaign Annual Review 2007 ‘Voter’s Uprising’ that is changing perceptions in THAILAND ASEAN: Past, Present and Future Labour Trafficking Business www.timeupthailand.blogspot.com www.thailabour.org Junya Yimprasert Thai Labour Campaign Network Against Exploitation & Trafficking of Migrant Workers - NAT Migrant Workers Union email: junya@thailabour.org Who responsible for workers? Thai Democracy! Since 1932 the people of Thailand have had to face more than 20 attempted or successful military coups. The people have had to deal with 18 constitutions and 27 Prime Ministers, most of them military generals. In the 77 years since 1932 only one elected Prime Minister has managed to complete the full 4-year term (the now self-exiled, convicted, embattled Thaksin Shinawatra) Thailand and FTAs Thailand has always fully participated in the regional and global trade. Look back in the history, in 1855 Thailand was forced to sign the Bowring’s Treaty with the UK, which was in effect for over 70 years. After signing with the UK, Thailand had to conditionally sign the same kind of treaties with 14 other countries: US, France, Denmark, Portugal, Netherlands, Germany, Sweden, Norway, Belgium, Italy, Austria-Hungary, Spain, Japan, and Russia. Thailand workforces According to the 2003 National Statistic Survey, Thailand has 67,941 villages with 9,388,780 households, in which 5.3 million Households are farmers, mostly small scale farmers. In November 2009, the Matichon Newspaper gave figures stating that 86.7% of Thai farmers are indebted: 42.8% from agricultural investments and 22.8% from household needs, with an average debt / family of 243 000 Baht (5,000 Euro) , of which 44% of the debt is with private moneylenders. ◦ Thailand has 146 million acres of land, of which 60 million is farmland.The average holding per family is 10 acres, but most small-scale farmers attempt to manage with 5 acres. The economic cycle of small farmers in North-East Thailand ASEAN is different from the EU Thailand as an example Thailand labour division of labour force, 36 millions civil servants 6% unemployed 3% business sector 1% farmers 35% unprotected employment 31% protected employment 24% EU is totally rely on employment protection and market economy but ASEAN are rely on living on the natures and food sovereignty culture EU labour forces, total of population of 500 millions farmer 4% others 9% unemployment 9% civil servant 5% employment 65% business/SMEs 8% Most figure is from Eurostat, except on the civil servants, which is using estimate figure , the same as of Thailand gambling with other people’s lives CLIMATE CHANGE CLIMATE 100 YEARS of . . . . . . . . . .TRADING . . . .worsening poverty Foreign Direct Investment / Export Oriented Industrialisation EOI ‘GREEN REVOLUTION’ deforestation, dams, forced irrigation, cash-crop mono-cultures /GMO EEC FTA IMF + World Bank World War I World War 2 1914-1918 1939-1945 Revolution in Russia 1960ies GATT World Trade Organisation WTO Neo-liberal capitalism War against civilians 1970ies 1989 struggle struggle fall for for of the independence democracy Berlin Wall League of Nations ILO Cold War NAFTA & AFTA 1992 1995 struggle against corporate power 2001 ?? 2003 strengthening grass-root solidarity UNITED NATIONS UNIFEM GENDER MAINSTREAMING THAILAND under NEO-LIBERAL FREE-TRADE ? ? •The relocation game of Transnational Corporations (TNCs) has pushed many governments in the producing countries to compete with each other and provide better incentive promotion programmes for the garment industry. •Power is mostly in the hands of the many TNCs who have tried to cut costs as much as possible, and change their production chains to be more effective in achieving shorter production times, faster delivery, less risk, less overproduction or overstock, and cheaper overall production costs. Corporate supply Chain Family C Subcontract Family - B Family D Family -E Factory A in Bangkok Sub-contract Sub-contract Bangkok Sub-contract Bangkok Sub-contract Mae Sot Sub-contract Bangkok Sub-contract Mae Sot Sub-contract Bangkok Sub-contract Korat Current Outsourcing pattern of global Brands! Agents BrandBrand Brand CSR – Codes of Conduct Gov’t only to facilitate trade & investment Factories GOV’Ts Asia GOV’Ts Africa GOV’Ts Latin America Just in Time production Cheaper/ faster/ longer hours Li&Fung Supply chain management Li & Fung model of agents For this kind of customer, we might have to buy fibre from a Korean factory, then dye and weave in Taiwan; thus, we must select fiber and then send it to Taiwan. For a Japanese company, they have the best zip and button but it’s manufactured in China. So we go to YKK, a big zip company in Japan, to order Fibre from Korean factory, dye and weave in Taiwan, Zip from directlyChina, from factories Then, weand consider thecondition]. quota system and labour produce in in China. Thailand [quota working situation, so we choose that final production and garment should be done in Theso brand tag says ‘Made in Thailand’ but they’re Thailand, we send all the materials to Thailand. Sincenot ourThai customers need on products. time delivery, we divide orders among five Thai factories…. Within five weeks after receiving the order, 10,000 clothes reach stores or shops in Europe. All the clothes“We aredo thenot same the material it’s from wantquality to be and an important partseems of the like factory. Just only 30 one factory.percent This iscan a new typeusofthe value added. It is a real production of the world make biggest customer of the factory. Another which aspect we havewenever before.so The ‘Made Thailand’ but needseen is flexibility webrand need tag not says to have anyinfactory they’redepend not Thaionly products. on us. 80We also gain interest from the factory if it has 80 other Supplycustomers.” Chain Management: Hong Kong Style, Harvard Business Review, sept October 1998 Foreign Direct Investment in Thailand FTA = SEZs = Economic Corridor Freedom of association – Collective Bargaining Power Wage floating Majority of workers are under ‘unprotected working environment’ Energy policies - Conflict in the local areas Relocation of manufacturing Make-up figures – no people in the pictures Access and control over natural resources Thailand/ASEAN FTA www.thaifta.com FDI Promotion and workers’ rights BOI said that it has finalized its plans to support investment in Body Fashion (Thailand) Ltd., a lingerie and swimwear manufacturer operating under the Triumph trademark, that now ranks of among Thailand’s most essential productive forces.Triumph is also the biggest manufacturer in the Asia Region.The company plans is to increase its productive force of clothes (i.e. lingerie, swimwear, etc.) to two million items, with a 75.5 million THB in investment in the Nakhon Sawan Factory. Naew Na Newspaper, World Business News Brief-July 8, 2008 Triumph Thailand laid off 1,951 high wage/unionised /old age workforce, while receiving BOI’s support with the reason to give employment of 2,000 workers in the cheaper zones/ununionised factory, 300 kms north of Bangkok FTA and Labour rights The freedom of Association HIGHEST PROFIT/ CHEAPEST COST FLEXIBILITY •Employment in temporary, part-time, contract system Reducing risks, using fewer workers, cheapest wages, no liability, no responsibility, no direct employment, etc. CAPITALISTs/ •SUPPLY CHAIN MANAGEMENT • Increase Production • Outsourcing, • “Just in time” • Informalisation home based workers • Multi-skill • Subcontracting, pressure on workers/ • Target/ piece rate system • Investment privilege package, EPZs • Deregulation of labour law for investment WTO, FTA, regional/ bilateral trade agreement, • Increase speed, work like machine, less time to eat, to pee, or to rest. To much OT. No time for education and organizing/ USING VULNERABLE WORKERS, CHILDREN, IMMIGRANTS, PRISONERS Wage scale in Thailand, 1993 - 2009 7.5 USD 6 USD 4.5 USD 3 USD Average wages of textile and garment workers in Thailand in difference wage systems 1 2 ,0 0 0 .0 1 0 ,0 0 0 .0 8 ,0 0 0 .0 6 ,0 0 0 .0 S e r ie s 1 4 ,0 0 0 .0 2 ,0 0 0 .0 e a r n in g s w ages e a r n in g s w ages e a r n in g s w ages e a r n in g s w ages - b a h t/d a y b a h t/m o n th b a h t/m o n th b a h t/m o n th d a ily m o n th y p ie c e w o r k A ve ra ge Daily Monthy Piecework baht/day baht/month baht/month wages earnings 160.5 188.2 wages 8,612.8 earnings 9,747.6 wages 2,930.9 earnings 3,064.2 Average baht/month wages earnings 5,364.3 Source: Labour Standard Department, Ministry of Labour, Thailand 6,100.5 Building Alternative Sustainable Livelihoods! Labour force 36 mils State Enterprises workers 500,000 prs. = 1.6% state employed workers 2 mils = 5% Industrial workers- 6 mils Company/services [hotel, bank, department stores, etc] 4 mils = 10 mills 27% Level of benefit & security • Highest/ monthly wage • welfare/benefit – family, housing, subsidies • pension program • Credit to commercial bank loan • 5 days/week/ many holiday •Monthly wage for white collar •mostly minimum wage • minimum welfare and benefit, not cover family • mostly, no pension program Subcontracted labour/ home-base - 10 mils = 27% Seasonal – farmers/farm 14 mil], construction [2 mil], drivers[1 mil] - 13 mils = 36% Migrant workers – 2 mils =5% Unemployed + elders –1.5+2 mils = 4-5% • not credit to commercial loan paying 5-20% interest • Daily wage – minimum/underpaid • irregular working hour/ • valuable for all kind of exploitation and cheating • no welfare & benefit • no bargaining rights • no credit to commercial loan paying 5-20% interest Set back Privatisation Stop pension system Outsourcing/ subcontracting Forward Looking Welfare State People Party Democra tisation Right to hire & Dismiss fully in the hands of employers Social security system Most attempts to CBA are cracked down Regulate labour laws Labour protection & relation laws are outdated Not covered by labour relation/ protection laws No CBA rights Protect environment Control mean of food production Self-reliance Agriculture FTA & ASEAN Free Trade – SPZs o of the Greater Makong Subregion (GMS) ASEAN Economic Community – ASEAN three pillars AEC ASEAN High level members gov’t Gov’t + big officers economic Business nations sectors ASEAN Human Rights body Military generals USA welfare, education?? High level gov’t officers ASEAN Security Community – ASC 2 environment Civil society 0 Labour protection 0 rights ASEAN Social 3 Cultural Community ASCC Capitalism indicator of richness Country Top GDP/capita Singapore Gross domestic product2/ at current prices Population US$ million persons Gross domestic product per capita at current prices US$2/ US$ million 2008 49,338 2007 31,550 2008 22,802 14,146.7 0.4 35,623 48,180 260 239 222,057.2 27.9 7,970 13,748 8,401 7,318 420,314.6 33.1 40,212 30,359 273,728.6 66.5 4,117 8,218 11,238 9,835 Indonesia 511,174.4 228.5 2,237 3,943 6,928 7,919 The Philippines 166,772.8 90.0 1,844 3,507 2,916 1,520 Viet Nam 90,700.8 86.0 1,053 2,817 6,739 8,050 Sub total Low Lao PDR 1,042,376.6 471.0 27,821 27,323 5,289.0 5,8 918 2,407 324 228 Cambodia 11,081.6 14,6 756 1,910 867 815 Myanmar 27,182.0 58,5 465 1,166 258 715 43,552.6 78.90 1,504,235.8 584.00 5,253 1,449 69,482 1,758 59,440 Sub total ASEAN 2008 US$ million 2008 37,629 Sub total Middle Thailand 2008 US$ PPP 3/ Foreign direct investments inflow 4,8 Brunei Darussalam Malaysia 2008 182,102.7 % 6% 81% 14% 100 2,577 Eco-economic indicator of richness Total land area Country km2 Population density1/ persons per km2 2008 Lao PDR Total population1/ 2008 2008 236,800 5,8 mils 24 5,765 0.4 mil 69 Cambodia 181,035 14,6 mils 81 Malaysia 330,252 27.9 mils 84 Myanmar 676,577 58,5 mils 86 Indonesia 1,860,360 228,5 mils 123 Thailand 513,120 66,5 mils 130 Viet Nam 331,212 86 mils 260 The Philippines 300,000 90,mils 302 707 4,8 mils 6,844 4,435,827 583,651 132 Brunei Darussalam Singapore ASEAN ECONOMIC CORPORATION Culture and information Investment ASEAN economic ministers Labour Legal cooperation Narcotics Finance and banking Social welfare Education Agriculture and Forestry Industry Science and technology Environment Youth Women Health Investment Transport Telecommunication/IT ASEAN Treaties/Agreements And Ratification No. Of meetings 9 10 42+ 6 AEM 20 6 21 13 6 42+4 ASED 29 53 12 10 5 18 8 10 6 3 First meeting/ dialogue 1969 1969 1975 1975 1975 1976 1977/2001 1977 1977 1979 1980 1980 1981 1983 1988 1980 1969 1996 2001 276 (as off Sept. 2009) To win the support of the people the ASEAN needs to focus on . . Ensuring that the ‘economy first strategies’ of the last 40 years are replaced by ‘Democracy First Development Strategies’; Promoting education in the principles, tasks and objectives of democracy, with special attention to empowerment of women; Leading the way in helping people overcome violent, intraregional conflict; Supporting the working-class movement for human rights with programmes of re-employment that are aimed at returning dignity to the lives of all workers Facilitating a major shift from mass-manufacturing of cheap industrial artefacts based on exploitation of the poorest-of-thepoor to making South-East Asia one of the world’s ‘Organic Food Banks’; Assisting the tens of millions of small-farmer families and dislodged farming families, who still represent the majority of the population, in developing organic markets and building intra-regional solidarity around increased organic productivity. 100 years of Capitalism UNIFEM CSR IWC 1886 1919 Farmers Capitalism 1948-49 1960’s 1975 1990 1998 2000 2015 ORGANIC FOOD FOR THE WORLD BIODIVERSITY PEOPLE’S DEMOCRACY GENDER EQUALITY Pro-Poor policies Freedom of Assembly Social welfare ASEAN Cross-Cultural Institute Cross-cultural education SOLIDARITY Land reforms Subsidies for organic farming ASEAN International Women’s Day 2011 Gender education MOBILISATION
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