Part 2 – Labour Relations in Thailand

Introduction:

In this second article on labour relations in Thailand we will continue examining key aspects and principles of the Labour Relations Act (LRA). In following on from our previous article which looked into employee’s committees, strikes and lock-outs, this second installment will review various aspects of labour unions including their powers, how they are formed, their internal regulations, their membership, authorized roles/activities and other key issues relevant to business owners and workers alike.

Labour Unions – Establishment & Registration:

To begin with, one should be aware that in order to legally establish a labour union in Thailand there are a number of steps which need to be fulfilled. Chief amongst them being that the union and its internal regulations must be registered with the official registrar at the Department of Labour. When applying to set up a union, at least ten (10) employees who have the right to establish the union must, as promoters of the union, submit a written application to the registrar along with three (3) copies of the draft regulations of the proposed union. The application to the registrar must also provide details on the names, ages, occupations and addresses of each promoter.

Once the registrar receives an application they will review it to ensure that it complies with the law (especially sections 86, 88 and 90 of the LRA and the associated regulations), moreover the registrar will also consider whether the objectives are not contrary to public order. If the application is deemed to comply with the legal requirements then the registrar will accept the application and then issue a certificate of registration to the labour union. If however the registrar decides that the application or the draft regulations breach the law then they can order the promoters that the relevant documents be amended; if amendment corrects the problem then the registrar will accept the registration and issue the necessary registration certification.

If the registrar determines that an application cannot be accepted because the objectives of the proposed labour union are against public order then they can refuse the application and must notify the applicants of their decision along with their reason(s). If the applicants disagree with the decision of the registrar they have legal recourse in that they can lodge an appeal to the Minister of Labour by submitting it in writing via the registrar within thirty (30) days of being notified of the registrar’s refusal to accept the registration of the proposed labour union. The Minister must consider the appeal and issue a decision on the matter within thirty (30) days of receiving the appeal. However, if the Minister refuses to allow the proposed labour union to be registered then the applicants can then escalate the matter to the Labour Court to have them determine the issue.

In terms of who can establish a union is also important to note that this can only be done by employees working for the same employer or employees with the same description of work (i.e. metal workers, fruit pickers or fishermen) whether or not they work for the same employer. Moreover, one should also be aware that labour unions in Thailand can only be established by Thai nationals.

Membership of a Labour Union:

In relation to who is legally able to join a labour union, section 95 of the LRA provides that only the following types of persons are able to join:

1. employees working for the same employer; or
2. employees with the same description of work as the promoters of the labour union.

This section also lays down other restrictions on who can join by stating that in order to join a labour union, a member must be at least 15 years of age. Moreover, it is also worth noting that employees and management who fall under the jurisdiction of the State Enterprise Labour Relations Act are not able to join a union formed under the LRA.

If an employee is a supervisor with the power to hire, reduce wages, terminate employment, issue rewards or take disciplinary action against other employees then they are not legally permitted to join a labour union that has been established by other employees or has employees as members.

It is worth noting that the LRA provides that membership of a labour union terminated upon death, resignation, dismissal by the general meeting or in accordance with the internal regulations of the labour union.

According to section 104 of the LRA, a labour union must provide a register of its membership according to a prescribed form and such register must be kept at its office for inspection during office hours.

General Meeting of a Labour Union:

Following the official registration of a labour union, there are a number of important steps that the promoters must comply with; one of the most important is that within 120 days of the registration, the promoters must convene the first general meeting of the union in order to:

1. Elect the committee;
2. Assign all matters to the Committee (roles and responsibilities); and
3. Approve the draft regulations which were previously submitted to the registrar when the union’s registration application was being considered.

Once the general meeting has elected the new committee members of the labour union and has duly passed the internal regulations of the union, it must register the following with the registrar within fourteen (14) days of the resolution of the general meeting:

1. A copy of the approved regulations; and
2. The name, address, occupation or profession of each committee member.

Workers and business owners alike should be aware that the general meeting of a union has an important function in that such meeting can do arrange of key activities such as amend the unions regulations, elect committee members and an auditor, certify the union’s balance sheet, annual report and its expenditure, dissolve the union, amalgamate labour unions as well as allocate funding or property for the welfare of its members or for the public benefit. Arguably one of the most important things the general meeting can vote on is whether to go on strike, should a labour dispute be unable to be settled according to section 22 of the LRA. If the general meeting wishes to do this, it requires a secret ballot of the members and support from at least half of the total membership of the labour union.

Labour Union Committee

A labour union must have a committee to carry out its functions and act as a representative of the union when it interacts with a third person. To this end, a labour union committee may authorize one of more of its committee members to act on its behalf. Moreover, the main committee can appoint a sub-committee to carry out an assigned task.

In respect to the persons who are eligible for election or appointment to a committee or a sub-committee, section 101 of the LRA provides that such persons must meet the following qualifications:

1. Be a member of such labour union;
2. Have Thai nationality by birth; and
3. Be at least 20 years of age.

Business owners should be mindful of the fact that according to the Labour Relations Act a committee member has the right to take leave from work to conduct the activities of their union in their official capacity as a representative of the employees in order to negotiate, settle or participate in the arbitration of a labour dispute. Such leave is legally regarded as a working day provided that such committee member informs their employer in advance of the reason for their leave and provides any relevant documents.

It is worth noting that the registrar has the power to dismiss one committee member or an entire committee in a number of circumstances, including:

1. If a member or the entire committee commits an unlawful act which obstructs the performance of duty of a conciliation officer, labour dispute arbitrator or the Labour Relations Committee;
2. If a member or the entire committee carries out activities which are in breach of the unions’ objectives thereby violating the law or being contrary to public order to risking the economy or security of Thailand.

However, such decisions by the registrar can be appealed to the Minister of Labour within fifteen (15) days of receiving such order. The Minister is legally required toconsider such appeal and notify the appellant of their decision within thirty (30) days of the appeal being received by them. If the appellant is dissatisfied with the ruling of the Minister they can proceed to take the matter to the Labour Court for a further ruling.

Powers and Duties of a Labour Union:

According to the law, a labour union shall have the following powers and duties:

1. Collect membership fees from its members in accordance with the union’s internal regulations;
2. Provide welfare services for its members or for the public’s benefit that the general meeting considers appropriate;
3. Provide information to members regarding employment opportunities;
4. Manage and carry out activities for the benefit of its members in accordance with the respective union’s internal regulations;
5. Provide advice to members for solving problems or disagreements regarding administration and working methods; and
6. Demand and negotiate working conditions with an employer or an employer’s association regarding the activities of its members.

Labour Union Regulations:

Union regulations can cover a range of issues such as voting, rights of members, restrictions and other issues deemed important to the members; however as a bare minimum, the Labour Relations Act requires that such regulations must contain the following details:

1. The name of the union, which is legally required to contain the accompanying words “Labour Union”;
2. Its objectives;
3. Regulations concerning management, disbursement, custody and maintenance of money and other property of the union as well as the keeping and examination of accounts;
4. The address of its office;
5. Regulations concerning the general meeting of the union;
6. The method for admitting new members and terminating members of the union;
7. Regulations concerning the rights and duties of members;
8. Regulations concerning the number, election, term of office and retirement of Committee members;
9. Admission fee(s), dues and payment method thereof; and
10. Determination on strike procedure and approving a working conditions agreement.

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