Handle labour woes with care

The decision by labour unions to escalate the dispute at a Songkhla seafood plant puts new and serious onus on a wide range of government agencies.

The State Enterprises Workers' Relations Confederation (SERC) said it has asked a major US buyer to get involved in alleged violations of workers' rights at Phatthana Seafood Co. State authorities have given the impression they want to stay out of this important dispute.

Yet, with workers' rights now a major issue in the West, officials are putting the country's image at grave risk by not stepping in aggressively.

Phatthana Seafood, in Muang district of Songkhla, is one of the largest packers and exporters of Thai shrimp.

Thailand is the world's biggest shrimp exporter, and the United States is the largest importer.

Walmart is the biggest US retail chain, and the biggest single consumer of Thai shrimp from Phatthana Seafood.

These economic facts have led SERC secretary-general Sawit Kaewvarn to take the serious step of making a direct pitch to executives of Walmart.

He has written to the Ethical Sourcing Department of the retail giant to suggest that Walmart should investigate conditions at Phatthana Seafood. Like most large Western companies these days, Walmart takes such reports seriously.

Charges of labour exploitation hurt companies' bottom lines in the West, and cost-cutting Walmart is often on the receiving end of criticism and even boycotts. Walmart claims it investigates its suppliers to ensure workers "are treated with dignity and respect".

The problems at the factory have been festering for a long time. They came to a head last month. A list of complaints alleged that Phatthana Seafood refused to pay salaries due to workers, violated labour regulations, and seized the passports of foreign workers, most of them from Cambodia and Myanmar.

A meeting on April 23 brought company executives face to face with Cambodian ambassador You Ay. The local chief of the employment department of the Labour Ministry attended. Factory officials "rectified the misunderstandings", they claimed.

Phatthana Seafood insists its treatment of workers meets international ethical standards. Mr Sawit apparently disagreed, and now has officially attempted to involve Walmart in the disputes.

It is common for workers to complain about their treatment, and it is almost mandatory for businesses to try to dismiss such complaints as old and solved.

The Phatthana Seafood case, however, has resulted in the direct involvement of a foreign ambassador and now, probably, inquiries from the world's largest retail seller. If Walmart or foreign countries such as Cambodia press the issue, it will cause embarrassment to Thailand.

One hopes that the Labour, Commerce and Foreign ministries are pursuing this high-profile case already. The recent attention given to criticism of Apple and Chinese factories must be considered. The government is responsible for ensuring that Thailand-based factories treat all workers _ Thai and foreign alike _ in both a correct and humane manner.

Misunderstandings are likely, especially when thousands of foreign workers are involved. Officials must fully understand such issues.

Foreign trade is not just another part of our economy. It is a lynchpin of growth, affecting the entire economic chain. The government cannot afford to take a back seat on an issue where the face and image of Thailand may be put on public trial.