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Contract Labour Issue Again Surfaces at Goodyear-Thailand Ltd.

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11 August, 2009

The ICEM heralds a 20 July resolution by the Goodyear Tyre Makers’ Union in Thailand, part of ICEM affiliate Petroleum and Chemical Workers’ Federation (PCFT), to actively recruit the growing number of fixed-term contract workers in the factory. The union’s resolution appeared the very next day on the Tyre Makers’ bulletin board inside the Goodyear-Thailand Ltd. plant in Bangkok.

The union has recorded 120 workers thus far in 2009 with whom Goodyear has brought in as short-term contract employees. Most have had experience working at the tyre plant because, prior to 2009, they had been employed through a labour agency. Now they work side by side with regular workers doing the same jobs in the same production lines, such as sprays, pigments, trucking, apexing, timer, etc.

Thai law, under the Industrial Relations Act of 1975, clearly states that where there is a collective agreement – such as at Goodyear Thailand Ltd. – management cannot hire workers on individual contracts unless wages, benefits, and conditions exceed the negotiated agreement. The 120 workers, many of whom are now working directly for Goodyear on 11-month contracts, are paid significantly less than the plant’s 600 regular workers.

The collective agreement between the Tyre Makers’ Union and Goodyear excludes workers performing work under definite terms of employment, which appears to counter the law. It should be noted that Goodyear’s decision to switch from a labour agency to fixed-term contract workers came about because a portion of the Labour Protection Act of 1998 was amended to facilitate this. But Goodyear has violated the spirit of that amendment by not improving the work conditions of the contract workers. Most are paid at the Thai minimum wage.

Goodyear-Thailand has refused to consult with the union on any matters related to contract labour, and instead has persisted in defaming PCFT members who bring the company’s legal irregularities to light. Seventy-four permanent workers were sacked late in 2008, and the union has taken up cases on 62, with an Industrial Relations Court issuing unfair dismissals. But Goodyear has appealed the ruling.

Goodyear’s obstinacy over the contract labour issue is reminiscent of 2005-2006 when the union fought for, and mainly won, a case involving 18 contract workers in the warehouse. In November 2006, the Industrial Court made Goodyear pay up to ten years’ backpay to the workers.

The ICEM commends the Tyre Makers’ Union and President Aukaphol Thongdeeleard and other trade unionists for continuing to press Goodyear on this issue, and especially with actively recruiting fixed-term workers into their ranks. The ICEM also encourages contract workers at Goodyear-Bangkok to stand up for themselves by actively joining the PCFT.

Equal rights for contract and agency workers is ICEM’s theme this year for Day of Decent Work, 7 October, and activities of the Global Union Federation will centre on worksites in Thailand and Turkey. The situation at Goodyear in Thailand is an issue that all rubber workers must mobilise around; to support the solid work being done by the ICEM affiliate, particularly with the collective bargaining agreement up for renewal this month.

The Tyre Makers’ Union at Goodyear-Thailand is also resisting a unilateral management policy that it maintains the right to dismiss any employee who has family members or relatives working for a rival company of Goodyear. Brother Aukaphol called it a violation of privacy rights and vowed the union will challenge the recent policy.