SRT and union on the warpath

The State Railway of Thailand's legal action against striking workers signals its intent to bring the long-standing conflict at the state enterprise to an end, despite the risk of a head-on collision with its rebellious labour union.

The union's audacious strike launched last Friday, leaving thousands of passengers stranded and casting more gloom on the depressed economy, has tarnished the labour movement's image and backfired on its controversial campaign to block any restructuring plan, which was drafted without the union's participation.

The past three years have seen three major strikes - in October 2007 during the Surayud government, in June of this year and the current one. All stem from the union's resistance to the restructuring plan, which will welcome private operators and generate greater returns on the SRT's property assets to offset its debt of over Bt70 billion.

The current work stoppage takes place as the Transport Ministry is submitting the restructuring plan for Cabinet approval.

The union has the power in its hands to manipulate nationwide train services. Most engineers and mechanics are members of the union, particularly those posted at southern stations.

Particularly in the South, the union has won strong backing from a group led by a retired southern worker who became a leader of the People's Alliance for Democracy.

Deputy Prime Minister Suthep Thaugsuban insisted that though the union is part of the PAD, the current strike has no political implications.

However, the connection boosts the labour union's power in bargaining for more benefits from SRT management, the Transport Ministry as well as the government.

Their campaign is well organised. Key members of the union always take part in board meetings to press their demands. If they fail to win approval, they would then initiate a resistance movement. Petitions are normally submitted to the Transport Ministry, and if their demands remain unmet, they would kick off strikes in the sections under their control.

The dispute has intensified under SRT governor Yuthana Thapcharoen, as his subordinates do not represent the union.

However, the current strike has apparently won fewer supporters. Troubled commuters have threatened to sue the SRT, and politicians who have lost face will be lashing out. It's an egg in the face of the Democrats, who despite their political domination of the South have failed to avert the railway stoppage in the region. SRT insiders believe that the strike has gathered support only from PAD members.

Those insiders noted that so far, SRT workers have been convinced by the union that the restructuring plan is not meant to solve the debt problem but will instead divert government benefits to companies with political connections.

The union has convinced all that it acts on behalf of all workers, urging sympathetic workers to join the rebellious moves and asking the others to stay aside.

The SRT plans to invest over Bt300 billion in laying a double-track rail network, and more on locomotives, equipment and other assets. Finance Minister Korn Chatikavanij also mentioned that much of the Bt1.2 trillion investment under the economic stimulus programme will go to the rail network. Financing is ready, but the restructuring does not proceed due to internal conflict and inefficient management, he said.

Due to the feuding, a subsidiary could not be established on time to run the Airport Express, so the SRT had to go out and hire Deutsche Bahn.

Railroads are playing a major role in lowering logistics costs and boosting regional trade. Thailand's logistics costs run high at 19 per cent of gross domestic product, as most shipments go by road. That has long been a big economic question as the country imports 90 per cent of the energy it consumes.

Korn joins most analysts in believing that without upgrading the railroad system, Thailand's competitiveness will not be improved.

Due to the huge stakes, all parties - the government, politicians, potential investors, SRT management and the labour union - want to take part in shaping the SRT's future. Still, the uneven benefit allocation is blocking potential development, as all parties are sticking to their demands, claiming to safeguard the general public's interest.

In the past two strikes, no participating workers were punished. Without penalties, more strikes are in sight and commuters as well as the entire economy will again be the hostages. Despite risking a collision course with an unruly labour union, the Abhisit government has no choice but to tackle this strike and forge ahead with the restructuring because inaction would only make matters worse.