Read this article in:
14 August, 2005ICEM News release No. 02/2004
A week before the Thai government holds a public hearing on privatisation of the Electricity Generating Authority of Thailand (EGAT), the 20-million-member ICEM has again questioned the logic of privatizing an essential service and is asking for specific criteria if the government's plan moves forward.
In a call to all 400 ICEM affiliates in 120 nations to protest the spin-off of the public power industry into shares of a holding company-and in a second letter to Prime Minister Dr. Thaskin Sinawatra-the ICEM has again reinforced the position of Thai affiliate EGAT-LU that it be heard on the matter. The ICEM's Asia-Pacific Region has already urged affiliates comprising the ICEM's Asia-Pacific Electric Power Network to voice opposition.
"It is a matter of public record that our affiliate strongly desires that EGAT remain a state-owned utility with a public mandate to provide a reliable, affordable and accessible service," wrote ICEM General Secretary Fred Higgs to Dr. Sinawatra.
Thailand's government is acting to privatise electric power under its 1999 Corporatisation Act, a measure designed to satisfy an economic reform programme designed by the International Monetary Fund following the Asian economic fallout of the mid-1990s. But the government had refused to meet with leaders of EGAT-LU over the issue until late last year when it set up a tripartite committee. The Finance Ministry's representative to this committee had no real decision-making power, the union quickly learned.
The public hearing set for 25 January is seen as a final effort to appease the union representing the interests of 17,600 workers employed by the utility. The government has set a target date of first quarter 2004 when the holding company will be officially registered and shares of it are listed on Thailand's stock exchange.
Higgs, in reaffirming EGAT-LU's position on the inevitable, said a set of principles must be adhered to in the structural transfer of the power industry: the process must be transparent and democratic; Thailand retain a majority equity of EGAT; domestic investment be encouraged and made a priority; price regulation be stable and affordable to workers and the poor; job security be guaranteed; EGAT-LU be fully involved in the transition; Union leadership be given the facilities to consult freely with workers and to report to workers on negotiations over the transition; and full agreement be reached before the new policy is implemented.
Higgs added: "… our members and the public at large oppose your current policies and are extremely concerned. The ICEM fully shares these concerns and together with our brothers and sisters in the Asia-Pacific Electric Power Network, we are keenly awaiting the outcome of your consultations and negotiations with EGAT-LU. We believe if your government follows the above recommended approach of dialogue, your policies stand a better chance of achieving credibility …"
EGAT-LU is planning to have over 1,000 workers attend the public hearing. The union and other unions representing public sector employees will conduct a mass rally on 30 January seeking government revision of some 11 economic reform bills in which privatisation aspects are part of.
Higgs is asking all ICEM affiliates to register opposition to Thai privatisation initiatives and voice support for EGAT-LU's position. The global union federation is specifically calling on energy and power affiliates in some 65 countries-representing 9 million workers-to make a stand against privatisation with EGAT-LU.