Labour unions oppose privatisation

The State Enterprises Workers' Relations Confederation and the State Enterprises Workers' Federation of Thailand are moving against the government's plan to privatise PTT Plc and the national flag carrier.

They yesterday submitted to Deputy Transport Minister Chatt Kuldiloke a joint statement protesting against the policy.

The labour unions are concerned that privatisation of the giant energy conglomerate and of Thai Airways International (THAI) would in the end adversely affect the public, said Sawit Kaewwan, head of the SERC.

If PTT becomes a totally private company, the state mechanisms to ensure the accountability of the company, collection of state revenues from it and intervention in energy prices would become impossible, he said.

This could lead to price rises for both natural gas and oil that would eventually result in uncontrollably high costs of living, said Mr Sawit.

As for THAI, it is the national airline established with the taxpayers' money, he said.

To sell all shares of the airline to the private sector would be equivalent to denying the public the opportunity to benefit from the state's holding of THAI shares, he added.

In the long term, both PTT and THAI have the potential to make profits and pay off their current debts, which should not be regarded as non-performing debts, said Mr Sawit.

PTT union chairman Apasorn Krisana said PTT's labour union's stance was that PTT should remain as a state enterprise.

Any privatisation of PTT would not occur in the near future even if the government presses ahead with its policy because it would take time for the PTT to study the government's policy before implementing it, she said.

More importantly, the privatisation policy remains a government idea only as PTT executives have not yet had their say on the proposed privatisation, said Ms Apsorn.

She said the union had already set up an informal committee to look into the government's privatisation plan for the energy firm.

After receiving the protest letter from the SERC and the SEWFOT, Pol Lt Gen Chatt said he would have to discuss the matter with Transport Minister Jarupong Ruangsuwan and Prime Minister Yingluck Shinawatra before the next cabinet meeting.

He thought the government should explain more why it was necessary to privatise PTT and THAI because more than 20,000 employees of the two state enterprises were extremely worried about their future.

Most people, meanwhile, disagreed with the idea of selling PTT shares and voiced concerns over possibly higher energy bills, according to the latest Bangkok Poll.

In the poll, about 77% of 1,160 people interviewed in Bangkok and neighbouring provinces oppose the share sales, which would see PTT lose its status as a state enterprise. Only 23% agreed with the share sales.

The poll also found nearly 52% believe there is a hidden political agenda behind the sales. Also, 44% are worried about high energy costs in the future and almost 63% want PTT to maintain its state enterprise status.