Overview

Thailand is a founding member of the ILO. Thailand has recently made significant progress towards democracy. The year 2000 saw the continuing implementation of the new (1997) constitution, which mandates the formation of various institutions that increase citizen participation, enhance transparency, empower local communities and improve public sector governance. The national executive administration is currently a coalition government led by Prime Minister Thaksin Shinawatra, who took office in February 2001.

The financial crisis eroded gains of the previous decade when economic growth averaged almost ten percent annually. In 1998, GDP contracted by 10.4 percent, unemployment rose from near full employment in 1996 to 4.4 percent (1.42 million people). However, the Thai economy emerged from the financial crisis, with an economic growth rate of 4.1 percent in 1999, and was estimated to have had about five percent growth in 2000. With private consumption and investment indicators continuing to improve, and exports rising, a reasonably broad-based recovery is now underway.

The structural reform pattern has shifted from crisis management to strengthening medium-term competitiveness. A number of programmes have been launched to support job creation, income maintenance, social security and community initiatives. Progress has been made in financial and corporate sector restructuring. The Government's economic policy has a stipulation to accelerate the development and revival of the country's financial institutions system to enable it to support economic recovery and development. A stronger foundation for medium-term growth has been established with the passage of the new Education Act, Competitive Law, SME Promotion Act, and reforms in the trade regime.

There are significant disparities in national wealth distribution. Per capita income in the northeast, which is the poorest region, is about 52 percent of the national average and just over 20% of that in the Bangkok metropolitan area. The Government has accordingly responded by institutionalizing economic decentralization. The new social policy places emphases on public health system reform, illegal drug prevention and suppression, building family institutions, and supporting the underprivileged. The reform of the public sector institutions, aimed at providing social safety nets (in terms of enhanced opportunities for health care, education etc.) to the general public, is one of the priorities of the Government.

The Ministry of Labour and Social Welfare (MOLSW), established in 1993, aims to develop the best skilled labour force in the region, promote employment and increase income; and strengthen social welfare and social security programmes in the country. The Minister is H.E. Dej Boon-long. ILO has been working closely with MOLSW. The Country Employment Policy Review (CEPR), conducted in 1999, has provided detailed guidelines to the Government in the formulation of labour and employment policies in several areas such as labour market information, job creation and small enterprise development, social protection, skill development and gender equity. As a follow-up to the CEPR, the ILO has provided technical assistance covering a wide range of activities in different disciplines within its competence to the Government. Recently, MOLSW has requested technical assistance on the implementation of unemployment insurance scheme, following a feasibility study conducted by the ILO in 1998.

There are ten employers' confederations registered with the MOLSW, but only two of them are active and work closely with the ILO, the Employers' Confederation of Thailand (ECOT) and the Employers' Confederation of Thai Trade and Industry (ECONTHAI). However, ECOT is the only organization affiliated with the IOE. ILO technical assistance was provided to strengthen the capacity of employers' organizations in collective bargaining and dispute settlement, workplace cooperation, social security and wage issues.

There are ten trade union congresses in Thailand. The Thai Trade Union Congress (TTUC) and the Labour Congress of Thailand (LCT) are affiliated to the ICFTU. Generally, trade unions are weak, fragmented and occasionally engage in power struggles within their organizations.

Following the visit to Thailand of the ILO Director General in February 2000, Parliament passed the State Enterprise Labour Relations Bill, which provides the right to organize more than one trade union in the same enterprise as well as to join any confederation of private-enterprise trade unions, and the right to bargain collectively. An amendment to the Labour Relations Act of 1975, to improve the situation of workers, is now before Parliament.

Workers' rights, unemployment, retrenchment of workers, labour law reforms and practice, wages, occupational safety and social protection, and privatization of state enterprises are issues of main concern of trade unions. In 2000, the ILO conducted seminars and workshops for trade unions on a range of technical areas including union organization, occupation safety and health, collective bargaining, wages, and unemployment insurance schemes.

As a follow-up to the Comprehensive Employment Policy Review (CEPR) and in full consultation with tripartite constituents, ILO major activities addressed the needs as expressed by them. Key areas of technical assistance consisted of labour market information, gender equality, skills development, micro and small enterprise development, social protection and social budgeting, industrial relations, child labour, etc.

The current year's work programme includes technical advice and campaigning for ratification of C. 138, support on business cluster development and networking, study on women's entrepreneurship, technical assistance on implementation of unemployment insurance schemes, rapid assessment on HIV/AIDS at the workplace and policy workshops, occupational safety and health for home-based workers, social expenditure review and social budgeting, and effect of globalization on the labour market.

As a relatively successful middle-income country, Thailand is not a major recipient of development cooperation. Since the economy began to recover in 1999 there has been a trend towards longer-term development assistance amongst donors to ensure that Thailand's development remains steady and sustainable. ODA disbursement in year 2000 from the UN system amounted to $21.9 million, with FAO, UNHCR, UNICEF, UNDP, UNDCP and WHO as major sources. Japan continues to be the largest bilateral donor of development assistance, while Australia, Denmark and Germany also continue to provide a significant portion of bilateral assistance.

Thailand has ratified 13 ILO Conventions, including 4 core conventions (C. 29, C. 100, C. 105 and C. 182, which was ratified in February 2001). Thailand is in the process of labour law reform. To implement provisions of the Constitution, a National Human Rights Commission is being established. The Commission has a mandate to examine and report to parliament on the commission or omission of acts which violate human rights and to propose appropriate remedial measures.

Good governance was a central issue and a subject of debate during 2000. Since governance and economic reform are closely interrelated, Thailand has concentrated efforts to establish a sound foundation in the political arena as an essential component to achieving equitable and sustainable development.

ILO played an active role in raising awareness and providing information on the Declaration of Fundamental Principles and Rights at Work and its Follow-up. In the current year, our work programme includes organizing Workshop on C. 87 and C. 98; and technical advice and campaigning for ratification of C. 138.

A recent positive development was the passage of the State Enterprise Labour Relations Bill in 2000. However, an amendment to the Labour Relations Act of 1975, to improve the situation of workers, has been with the Parliament for some time.

Other important questions

Brain Drain Issue

Thailand is facing the problem of emigration of skilled workers and students (the 'brain drain'), who have been the subject of considerable educational investment of the country. It implies transfer of skills and knowledge to receiving countries. Realizing its negative impact, the Government has put in place policies and programmes to promote return migration. It is likely that Thailand will participate in a project on skilled labour migration being carried out by the ILO International Migration Branch, with funding from DFID.

Gender

Thai female labour force is among the highest in the world. The majority are still engaged in the informal sector. ILO is implementing a 3-year project on expansion of employment opportunities for Women, with funding from the Government of Japan. The project aims at increasing access to training for jobs and income generation for unemployed and under-employed women through small enterprise development programmes.

Trafficking in Woman and Children

Thailand is a major destination for trafficking of women and children from neighbouring countries. This is an issue of concern in the Mekong sub-region. To help address the Government's concern, the ILO launched a technical cooperation project involving policy dimensions, awareness, rehabilitation of victims and prevention of trafficking.

HIV/AIDS

In close consultation with UNAIDS, the ILO provides technical assistance to its constituents to develop workplace policies on HIV/AIDS, focussing on prevention, non-discrimination and care for infected workers. A project on Developing a Model on HIV/AIDS Prevention and management in Workplaces: Outreach to Factories in Rayong Province has been developed and submitted to the World AIDS Foundation for funding.