Resilient, Inclusive and Sustainable Supply Chains Asia (RISSC) in Thailand

About RISSC

• Leading automotive producer-exporter in ASEAN; 10th largest in the world; capacity to produce over 2 million units per year.
• Accounts for approx. 10 per cent of Thailand’s GDP
• Generates exports worth US$ 10.9 billion in 2021, with key markets mostly in Asia and the Pacific region.
• Industry led by approximately 30 lead OEM (assembly) firms, mostly Japanese and European (but with growing Chinese investment)
• Whole sector employs 850,000 people, manufacturing alone employs some 520,000 people.
• More than 80 per cent of the workforce in manufacturing are registered in the social security system (50% of whom are female).
• Ambitious plans to be a leading producer of zero-emission and e-vehicles by 2030, with 30,000+ specially trained workers.
• Opportunities to advance decent work and responsible business are available through –among others– improved compliance, tackling inequality & discrimination, and strengthening social dialogue at enterprise & industry level.

Decent work challenges and opportunities

• Social dialogue and representation at enterprise and industry level
• Informality, insecurity and non-standard forms of employment
• Occupational Safety and Health (OSH)
• Skills gaps / shortages and access to skills
• Other decent work deficits – particularly lower tiers and informal parts of the supply chain

Project objective

To help build a more resilient and sustainable automotive manufacturing supply chain in Thailand by addressing human & labour rights risks and seizing opportunities to expand decent work and responsible business practices.

In particular, the project expects that by 2025:

• Constituents and industry stakeholders have a better understanding of decent work gaps and opportunities, and are adopting actions and policies to address key challenges (with ILO tools and support)
• Responsible business practices (including due diligence) are more widely understood and applied in the Thai automotive manufacturing supply chain.

Project approach

Grounded in international labour standards and tripartism, the RISSC project will conduct:

1. Supply chain research and analysis to help industry partners understand decent work gaps and opportunities, and inform joint actions in the sector
2. Industry tools and advice to close these gaps and drive responsible business practices
3. Policy advocacy to support Thai constituents to build an enabling policy environment for decent work and responsible business
4. Helping Thailand and other industry stakeholders to meet new and existing national business and human rights commitments (including due diligence)

Target beneficiaries

• Employers and workers in the automotive manufacturing sector
• Policymakers
• Other key industry stakeholders – both nationals and multinationals (especially Japanese)

Constituents and stakeholders

• Thai Government: Ministry of Labour, Office of the National Economic and Social Development Council, Ministry of Industry
• Representative organizations of employers: Employers' Confederation of Thailand (ECOT), Federation of Thai Industries (FTI) and Thai Auto-Parts Manufacturers Association (TAPMA)
• Representative organizations of workers: Thai Trade Union Congress (TTUC), Labour Congress of Thailand (LCT), National Congress Private Industrial of Employees (NPCE), State Enterprises Workers' Relations Confederation (SERC), Automobile Labour Congress of Thailand (ALCT) and Confederation of Thai Appliances Electronics Automobile and Metal Workers (TEAM)
• Japanese industry stakeholders
• Other national stakeholders: Thailand Automotive Institute (TAI) and The Eastern Economic Corridor Office of Thailand (EECO)