6.1 Legislation in brief
The Labour Relations Act is the key piece of legislation that deals with industrial relations, trade unions, employers’ associations and industrial action. The Act provides a framework for the making of labour demands and the settlement and arbitration of labour disputes, and also imposes limitations on the circumstances in which strikes and lockouts can be called.
6.2 Role of trade unions and collective agreements
Trade unions
Historically, Thailand has never had a strong trade union movement. Modern industrial relations in Thailand are still in relative infancy. However, the government has been promoting industrial peace and tripartism as the means towards that end.
The Labour Relations Act provides for 2 types of labour unions, namely company labour unions and industrial labour unions.
Collective agreements
The Labour Protection Act provides that an employer who employs 10 or more employees must have work rules and regulations dealing with certain prescribed matters.
The Labour Relations Act provides that a business with 20 or more employees must prepare a written ’Employment Terms Agreement’.
The legislation recognises that the Employment Terms Agreement required by the Labour Relations Act may be constituted by work rules prepared in accordance with the Labour Protection Act.
The Labour Relations Act also provides for the setting up of an employee committee in places of business with more than 50 employees.
Collective bargaining in Thailand is generally conducted at the enterprise level rather than the industry level. Unorganised workers have the same rights and privileges to bargain collectively as do unionised workers, since employees comprising not less than 15% of the total employees of an establishment can demand improvements in their employment conditions.
6.3 Industrial action and disputes
The Labour Relations Act establishes procedures for labour negotiations, mediation by the Department of Labour Protection and Welfare officials, and arbitration by the Labour Relations Committee.
A labour dispute can be referred to a Conciliation Officer, who will mediate the dispute. During a labour dispute period, if the settlement fails, the employer may effect a lockout or the employees may go on strike, subject to certain restrictions on some businesses (eg essential services affecting the general public, railways, telephones, etc.).
Where the negotiations and mediation by the Conciliation Officer fails, the employer and employee may agree to appoint an arbitrator to rule on the labour dispute relating to the conditions of employment. Alternatively, the matter will be referred to the Labour Relations Committee for determination. The Committee’s decision can be appealed to the Minister of Interior within seven days from the date of receipt of the decision.