Rail union may go on strike

The State Railway of Thailand labour union has threatened a strike to pressure the government to revoke the Cabinet's approval in principle of the SRT's rehabilitation plan. The union claimed that the rehab plan could pave the way for a private firm to gain benefits and influence SRT decision-making.

According to the plan, SRT subsidiaries are allowed to join with private firms in railway operations. Moreover, they can engage in some business transactions that do not have to obtain Cabinet approval.

A source at the Transport Ministry earlier expressed concern that politicians might try to find some way to appoint their own people to run the two SRT subsidiaries.

The Cabinet gave approval in principle to the state agency's rehabilitation plan on June 3.

About 100 union members, led by Pinyo Ruenpet, went to the Transport Ministry yesterday to hand in a letter requesting that the approval for the SRT rehab plan be revoked. The plan includes the establishment of two SRT subsidiaries, which, the union said, could pave way for private firms to benefit from the state agency.

Pinyo said the union also handed in a copy of the letter for the attention of Prime Minister Abhisit Vejjajiva.

The union leader accused the ministry of undue haste in submitting the plan for Cabinet approval. It argued that the plan did not conform to an agreement between the SRT and the union, under which the agency has to obtain approval from the union for any change in the SRT's structure.

The union also said in a statement that train users would be affected by the rehabilitation plan. It claimed the plan required the SRT to increase fares by 10 per cent next year and an additional 10 per cent every three years after that.

A ministry source said the union had made a similar strike threat two years ago during the tenure of prime minister Surayud Chulanont, which prompted the then transport minister to put the implementation of the rehabilitation plan on hold.

However, another source, who wished to remain anonymous, said the plan was still opposed by some factions within the union.

According to the rehab plan, the SRT would pursue its business restructuring through the formulation of two subsidiaries to manage its train operations and assets.

The SRT would have a 100-per-cent holding in both entities, which would have to be set up within 30 days of the Cabinet's approval of the plan in principle.

The SRT committee would determine the registered capital of both subsidiaries before submitting the details to the Cabinet within 150 days of receiving approval.

The government would be responsible for the SRT's future investment in railway infrastructure. The Finance Ministry, the Budget Bureau and the National Economic and Social Development Board would work with the SRT on its future investment plans.

The Finance Ministry would also work with SRT and the Budget Bureau on a plan to provide a loan to clear the SRT debts, while the SRT and its subsidiaries would jointly repay the principal loan and interest to the Finance Ministry.