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HUMAN RESOURCE MANAGEMENT AND EMPLOYEE RELATIONS บริษัท เอ็มอาร แอนด ทีเอส จํากัด : ที่ปรึกษากฎหมายแรงงานและแรงงานสัมพันธ 160/240-2 อาคารไอทีเอฟ ชั้น 15 .สีลม บางรัก กรุงเทพฯ 10500 ตู ..10-1036 กรุงเทพฯ 10311 (662) 267-7906, 237-2421 แฟกซ.(662) 233-7416 MR & TS Company Limited : Labor Laws and Labor Relations Consultancy Company 160/240-242 ITF Bldg., 15 th Fl., Silom Rd., Bangrak, Bangkok 10500 P.O.Box 10-1036 BKK 10311 Tel : (662) 267-7906, 237-2421 Fax : (662) 233-7416 Email : [email protected]

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Page 1: HUMAN RESOURCE MANAGEMENT AND EMPLOYEE RELATIONS … · HUMAN RESOURCE MANAGEMENT AND EMPLOYEE RELATIONS ... Good employee relation will lead to a work place ... provisions in the

HUMAN RESOURCE MANAGEMENT AND EMPLOYEE RELATIONS

บริษัท เอ็มอาร แอนด ทีเอส จํากัด : ท่ีปรึกษากฎหมายแรงงานและแรงงานสัมพันธ 160/240-2 อาคารไอทีเอฟ ชั้น 15 ถ.สีลม บางรัก กรุงเทพฯ 10500 ตู ป.ณ.10-1036 กรุงเทพฯ 10311 (662) 267-7906, 237-2421 แฟกซ.(662) 233-7416

MR & TS Company Limited : Labor Laws and Labor Relations Consultancy Company 160/240-242 ITF Bldg., 15th Fl., Silom Rd., Bangrak, Bangkok 10500 P.O.Box 10-1036 BKK 10311 Tel : (662) 267-7906, 237-2421 Fax : (662) 233-7416 Email : [email protected]

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HUMAN RESOURCE MANAGEMENT AND EMPLOYEE RELATIONS

Presented by Supachai Manusphaibool

Foreword The objective of this “two in one” presentation is to emphasise the “Employee Relations” as an important aspect in the management of human resource. Refer to the chart on division of work in the Human Resource Department. Good employee relation will lead to a work place where each and everyone cares to do the right thing for each other, in full compliance with the law, employment regulations, and code of behaviour – a place we work in harmony. There is no need for a trade union to discuss or bargain with us what we should do or what not. Ideally, we want a workplace where staff rush to work and walk home at the end of the day, rather than vice versa where employees have to come simply for money, and run away at their first opportunity. Enlightened management and HR professional can make it happen. Be positive and proactive rather than concentrating on regulatory functions. Protests and disruptions are the result of the management’s lack of concern for employees’ feelings and grievances, the failure to create a corporate or the “WE SPIRIT”. A trade union is established then to defend and expand workers’ rights. The demands for more money are used to mobilize support of the majority who are otherwise concerned with their job security, and a fair pay for a fair day of work. Normally when the causes of ill feelings are removed, trade unions will become a history. With the limitation of time, the presentation will be one hour with reference to the labor situations in the current economic situations. This will leave ample time for participants to discuss points of their particular interest, or ask any question. Participants are urged to study the handouts i.e.

1. Selected HR issues and their legal implications. 2. A short note on trade union activities and industrial disputes.

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HANDOUT I SELECTED HR ISSUES AND THEIR LEGAL IMPLICATIONS.

By Supachai Manusphaibool, MR & TS Co., Ltd. Contractual relationship between employers and employees are regulated by the company’s employment regulations, employment contract, provisions in the collective bargaining agreement with the union, and to some extent, established or traditional practices. All are within the framework of the laws. The followings are errors commonly found in many companies. Corrections should be made to avoid unnecessary costs and litigation. Subscribe to MR & TS publication. “Thai Labor Chronicle” (monthly and “ALERT” (fortnightly), to keep well informed. 1. Employment regulations.

The law requires a work place with 10 or more employees to have employment regulations registered with the Ministry of Labor, and displayed clearly at the place of work. See section 108, Labor Protection Act B.E.2541 and check if your employment regulations cover all issues specified. The regulations should be written in simple, easy to understand language, and not too lengthy.

Our advice is to put details of fringe benefits out of the regulations, and put it in some sort of staff manual for convenience in updating.

2. Flexibility clauses to exercise management’s right to introduce

changes. It is necessary to state that employment conditions, particularly work hours, rest time, may be changed by the management to suit the varying needs. In some cases, the employees successfully opposed the order to put them on night shift, simply because the work hours were rigidly stated to be during the day, part of the employment conditions agreed when recruited.

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3. Minimum age for job applicants.

Employment may be offered to young people aged 15 and older. What is needed for this group of young employees is to submit a list of names for the record to the Labor Office, and to arrange rest time after 4 hours of work. They cannot be put to work outside normal hours. Excluding the 15-18 years old group mean cutting out a good supply of young people who completed junior/senior high school level and lack the mean for further education. Students are good for part timers and short timers Labor ordinance allows employment of students up to 7 hours at Baht 25 per hour. As they have to be back to classes, there is no need for employment termination.

4. Offering employment as daily or monthly employee.

Even it is a permanent job, most job applicants prefer to be monthly salaried staff rather than daily waged employee. This is the reason why there is a high rate of labor turnover among daily waged employee, and a frequent demand by unions for upgrading their members to be monthly staff. There is a common misunderstanding that daily waged employees are casual or temporary employees without job security. In fact the difference is only the non payment for the weekly day off. Under the law, daily waged employees are similarly entitled to payment for traditional holidays, and paid sick leave. Those with senior high school or higher education always insist on employment as monthly employees.

5. Minimum wage is to be paid in cash.

A part of the “take home pay” is wage. On top of that could be overtime, holiday work pay, productivity incentive, and other allowances. Minimum wage rates are decided to vary among different areas by the Central Wage Committee, based on the recommendations of Provincial Wage Subcommittee. It goes up almost every year in January by the percentage point a little lower than the increase in the consumer price index of the preceding year. Monthly employee will receive a daily minimum wage rate multiplied by 30 days.

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6. What is counted as wage, and what not

This is a contention point, particularly for many companies who usually provide many types of compensation. Under the law, wage is money only. Many types of financial compensation are not counted as wage. Those counted as wage are cost of living allowance, position allowance, while incentives such as diligence allowance, shift allowance, bonus etc are not. Others e.g. meal allowance, travel allowance are fringe benefits. Those counted as wage must be added to wage rate (base pay) to calculate overtime payment, social security payment and severance payment.

7. Fixed period employment contract is not for work of permanent

nature. Many companies engage employees in a fixed term contract hoping not to pay severance payment at the end. They were surprised when told by the Labor Inspector, and the Labor Court to pay employees severance payment at the expiry of the contract. Ref section 118, last para. Ref.Dika Court Decision No.5883/2545 Section 118 of the Labor Protection Act B.E.2541 need to be studied carefully to find out that a fixed term contract is possible only for seasonal work, or work of a temporary nature, not a core business, and the contract period shall not be more than 2 years. There is no provision for extension beyond the set period, no early cancellation.

8. Probation period.

Since the law requires severance payment to be given to employee who is terminated without fault after working 120 days, the probation period should be less than 120 days. This will allow time for processing the performance appraisal and termination to be done in time to avoid severance payment of 30 days wage.

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9. Advance notice for employment termination.

Section 17 of the Labor Protection Act B.E.2541 specifies that an advance notice of not shorter than one pay period (counting from one payday to the next) be given when terminating employees on redundancy ground (not a disciplinary action). Most people are mistaken to specify one month as advance notice period. Wage in lieu of advance notice may be given instead, so as to let go employee immediately.

Remember that advance notice required for termination is not one month, but not shorter than one pay period (can be 15 days). If the notice is given a day after the payday, it will stretch to the payday after the next.

10. Employee terminated during probation has to be given advance

notice too. Contrary to earlier belief that employees during probation may be released any time without reason, advance notice is required too, or else wage in lieu of advance notice must be provided. (See High Court decision no.2324/2545 Khun Sunee vs Watcharakanya Co., Ltd.)

11. Reason for employment termination must be given in writing.

It is very common for employers to verbally terminate employment of employees, with or without reason, or without sufficient reason. Despite providing severance payment under the law, employers may be liable to pay compensation for damage, if the Labor Court decided on the former employee’s plaint that the termination was an unfair dismissal. Validity of the claim is 10 years. (See High Court decision no.4495/2547 Sakdi vs Essilor Manufacturing (Thailand) Co., Ltd.)

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Therefore, termination should be done in writing giving details of wrongdoings which are the reason for the termination. This applies also to employees who did not resign but did not return to work for unknown reason. See MR & TS Co., Ltd., publication “ALERT” 6/07 : The resignation that never was.

12. Partial wage payment during temporary closure.

If it becomes necessary to cease the operation temporarily, employers must notify the Labor Inspector, and their staff. Payment no less than 50% of regular wage must be maintained for workers suspended.

13. Forfeiting right to take paid vacation.

Stop believing that employees cannot accumulate their unused paid vacation. It is a wage payment in arrear which has a validity period of 2 years. Employees will lose their vacation right only if they still come to work during their assigned vacation. It is the duty of employers to make sure their employees benefit from their paid holiday.

14. Swapping work days with holidays.

It may be a win-win situation for both employers and employees to swap workdays with weekly holidays. For instance, when a single work day is between a weekly holiday and a traditional holiday, many people will either arrange to have a vacation, or call in sick. In this case it is of mutual interest to have a few consecutive days off in a stretch. This happens mostly at yearend, and Songkran (13th-15th April) Employers may sound out worker’s preference and announce in December each year the arrangement of work days and days off of the following year. If necessary, obtain workers’ consent. Study Labor Ministry Announcement No.4 carefully and reviewed how Tesco Lotus went wrong. (it is not advisable to cancel or change traditional holidays because of their religious and cultural significance.)

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15. Similar treatment for work of similar nature.

Regardless of sex, race or religious beliefs, employers shall treat employees working on similar jobs with similar compensation and employment conditions. A pending labor protection law amendment will stop the exploitation of indirect employees who have been deprived of many fringe benefits available to direct employees only.

16. No sexual harassment.

The law prohibits any conduct of sexual harassment towards minors or subordinates.

17. Restrictive covenants.

Employment contract may include provision against. - disclosure of confidential information - solicitation of staff or suppliers - competitive employment But there must be limitation of time period and geographical areas.

18. Eligibility or non eligibility for overtime payment, and holiday

wage. Employees with the authority to hire, to deduct wage, to suspend or to terminate employment are not eligible to receive payment for work done outside normal work hours. Other employees who agree to work outside normal hours will receive 1.5 times their average wage per hour, and will receive 2 times their wage rate when required to work on their days off. (100% in addition to their normal wage) If assigned and agreed to work extra hours on their day off, wage for overtime work on their day off is triple normal rate. To calculate average wage per hour we divide Monthly salary 30 days x 8 hrs.* * To be lawful this has to be the number of work hours.

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For daily rated workers who are not paid on their weekly day off, double pay will be given to those who are required to work on their weekly day off. Their average wage per hour is derived from Daily wage Number of normal work hours

Remember while the law recognizes employee’s right to reject overtime work (which is a painful industrial action to pressure the management to agree to worker’s demand), it is the management’s right also to contract out some part of work, or arrange workers of someone else to come in as casual replacement. The pending amendment of the Labor Protection Act will remove differences in the pay and fringe benefit between direct employees and workers brought to work by outsource companies. Employers may choose to regularly assign overtime work to those who need extra money and cooperate, while not giving problem workers any chance. This is an effective tool against overtime ban.

19. Compensation for long work hours in certain types of work.

There are some types of work requiring long hours but not physical efforts, e.g. security guards, driving, etc Labor Ordinance issued by virtue of the labor law specifies that their hours beyond 8 shall be compensated for on a flat rate, i.e. 1.0 rather than 1.5 time hourly rate. That is why security guards are mostly put on 2 twelve hours shifts.

20. Provident Fund.

It is quite common for employees to ask employers to set up provident fund so as to have monthly contributions from employers and employees set aside as employee’s means of living after work. The return on investment by Fund Manager entrusted with the management of the Fund is very low. The employers’ money could be better spent as staff loans at low interests. It is not advisable to put away more than 5% of monthly salary to the PF, considering another 5% every month to Social Security.

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21. Group insurance.

Though employees are covered by social security when killed, falling ill, or injured outside work. (and by Workmen Compensation Fund if because of work), many employers provide additional benefits via group insurance. It is advisable to pay a little extra to have group life and accident, rather than accident only. Medical or Health insurance is not necessary, and not worth the costs.

22. Financial loans for staff.

Many employees fell victims of loan sharks. Everyday bunch of incoming mail comprises notices from Aeon, Capital OK, City Bank, etc flooded the mail boxes. No matter how much money employees earn from work and long overtime hours, debt servicing take the lion share, leaving them little to live on. We don’t recommend company sponsored staff loans, but set up Staff Owned Credit Club where employees who become members will benefit from small regular savings each month, and cheap and convenient loans from their club. This self help and mutual help contributes so much to the improvement in staff-management relations. Trade union becomes meaningless.

23. Retirement age.

The labor law does not specify retirement age. Employers are free to decide for themselves. Retirement age must be same regardless of sex, race, religion. Decide on it and announce it, otherwise it shall be considered a life long employment. Severance payment is also required even for employee leaving because of reaching retirement age.

24. Disciplinary actions.

A fair hearing should be provided. Employees suspected of wrongdoings should be heard their side of the story. If work suspension is necessary for proper investigation, the law allows 7 days for which the employee shall receive 50% wage. The balance will be paid if he is found not guilty at the conclusion of the investigation.

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In case a verbal warning is decided, record it in the personnel folder. For a more serious offence, a written warning must detail the wrongdoings, and contain a clause warning him of a heavier disciplinary action if similar wrongdoing occurs within a year. Get the employee concerned to acknowledge the action, or else a signature of a witness will be needed. With appropriate and timely action, employment termination may be rare. Termination without advance notice and without severance payment is possible if the wrongdoings are any of the 6 offences given in section 119.

25. Termination of employment.

In case of excessive or redundant manpower, or to switch to more work contracting, do it carefully so as not to - Become unfair practice (against union people), a breach of the

Labor Relation Act B.E.2518 sections 121-123. - Become an unfair dismissal when the Labor Court decided that

there is no justifiable cause for the termination. (Labor Protection Act B.E.2541 Section 49)

- Become a breach of law. If the employee to be made redundant, or to be dismissed on any ground is a member of the Employee Committee, an approval if the Labor Court is required.

Except for a disciplinary dismissal, a severance payment is required from 30 to 300 day wage equivalent. If necessary to achieve competitive production cost, freeze new recruitment, introduce mutual separation program for employees to volunteer to leave in exchange for financial assistance. With the money equivalent to severance payment many could be persuaded to join the scheme. If an employee tenders a resignation letter in advance, respect the proposed effective date. Employer may stop such employee from coming to work but wage must be paid until the effective resignation date.

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Don’t state the purpose of termination to be cost saving. It usually backfires.

26. Employment conditions in case of merger or takeover.

As companies tend to merge in the attempt to restructure business, employers must be aware of what will happen to employees of the companies involved. Section 13, of the Labor Protection Act B.E.2541 requires that employees shall continue on with their pre merger employment conditions, with ongoing service years. Redundancy, therefore, must be handled prior to effect merger date.

27. Keeping employment record.

Since liability for severance payment and compensation for damage in case of unfair dismissal is 10 years, proper keeping of record is advisable. Remember, most manufacturing firms have seen hundreds of workers not returning to work after the payday. Employers’ writing them off as de facto resignation is not as credible as a verbal dismissal without cause. Termination on the ground of neglecting duties for 3 consecutive work days is fine, but there is no record of any valid reason.

28. Service employment contract as an alternative to employer-

employee contractual liabilities.

If work does not have to be done over the prolonged hours on a regular basis, many types of work could be better completed by service providers rather than full time staff. It is also cheaper in the long term. Service providers get paid for the task completed, not by the hours they clock in and out. Service providers do not come under employment regulations or supervisory control, but work as freelancers. The recommendation above is not an endorsement of the exploitation of thousands of workers under contract with labor suppliers to render labor service at many manufacturing plants at half the cost of directly employed workers.

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The above issues are often overlooked by employers and HR professionals, resulting in financial burden in compensation, and create poor management credibility. MR & TS Co., Ltd., has been reporting many disputes and final decisions of the Labor Court and the High Court in its monthly “Thai Labor Chronicle” for the past 30 years, and later also in the fortnightly “ALERT”. Our advice is to subscribe to these publications and read them carefully.

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Appendix I

MANPOWER & EMPLOYMENT COMPENSATION & FRINGE BENEFITS

HR CENTRAL ADMIN. STAFF DEV. IND.RELATIONS

HUMAN RESOURCE DEPARTMENT

- Recruitment - Wage & Salary - Pers. Records - Skills Trng. - Disciplines - Subcontracting - Wkman Comp.Fund - Postal & Tel. Services - QC Circle - Counselling - Manpower Analysis & Control - Soc. Sec. - Vehicles & Bldgs - 5 S - Communications - Provident Fund - Govt. Contact - ISO - Recreation - Med Care - Adult Ed. - Staff activities - Insurance - Mgmt Seminar - Union Relations - etc. - Govt. & Communit

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A tip on what to do, and what not, to assure compliance with employment laws.

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I. Staffing 1.1 Employ just enough people, not more.

So that they are occupied with work, rather than personal matters. Occasional overtime does not hurt. Termination on redundancy ground is avoided.

1.2 Employ new graduates with learning attitude. Everyone already in

has a common responsibility to help develop new recruits. 1.3 Employ people who need the job and the pay, not just a place to

spend their days. Recruit carefully. 1.4 Check job applicant’s credentials, i.e. pay slip, tax report, education

documents. 1.5 Have it all in writing, i.e. employment contract, job description,

suspension or transfer order, warning for serious misbehaviour, termination letter, etc.

II. Regulations and Disciplines 2.1 Include policies on human resource management e.g. compliance

with the law, a learning organization, equality of opportunities, no sexual harassment, no termination without cause, fair hearing for alleged offenders, pay for performance, career advancement through performance and continuous development, etc.

2.2 Cover all points required by section 108 of the Labor Protection Act

B.E.2541. 2.3 Include workable grievance procedures. 2.4 Wordings must be clear, while flexibility in the execution of

management’s responsibilities is clearly stated in response to varying business circumstances.

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2.5 Most of the employees should be employed directly as monthly rated,

rather than daily rated. Minimize the use of outsourced or contracted workers.

2.6 If you need part timers, employ students at ฿25/hour up to 7 hours a

day. They will leave when their time is up without the need for severance payment.

2.7 Allow leave without pay during probation so that employee do not

have to fake their illness. 2.8 Put attendance in training programs, or development courses as

condition for career advancement or promotion, so that staff enthusiastically attend training programs outside work hours without claiming O/T payment.

III. Compliance 1.1 Compliance with the laws. 1.2 Compliance with company’s regulations. 1.3 Compliance with collective bargaining agreement (if any). 1.4 Compliance with established practices (though not legally binding). 1.5 Appraising performance and give a raise or bonus on due dates.

Reasons for giving small, late, or not giving at all should be timely explained.

Fairness and Consistency principles must be adhered to.

IV. Fringe benefits that cost little 4.1 Arrange for medical doctor’s visit 1-2 hours each day where a large

number of employees work in distant locations. 4.2 Set up staff owned credit club to mobilize members’ regular monthly

savings as low interest loans to needy members.

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4.3 Help act as broker in arranging accommodation for many workers in

places close to work, or cheap to transport them to and from work. 4.4 Staggering meal break. Food subsidy, at least free boiled rice is

necessary. 4.5 Rest and recreation should be provided in various forms e.g. indoor

games, books and study facilities, sports equipments and facilities. 4.6 Opportunities for continuing education should be provided, along

with the opportunities to participate in company’s activities, e.g. TQC, 5S, best idea award, etc.

V. Termination of employment 5.1 Define retirement age for staff to gracefully leave the employment. 5.2 Provide timely counseling or development program to maintain

staff’s morale and productivity so as to make termination unnecessary.

Proper manpower arrangement, coupled with natural attrition should make employment termination unnecessary. It is not only severance payment, but compensation for unfair dismissal could be ordered by the Labor Court.

5.3 Redundant and incorrigible staff should be persuaded to accept

financial compensation in exchange for their tendering resignation letter. Avoid, if possible termination outright. The severance payment should be paid in the form of financial assistance.

5.4 Staff with gross misconduct, or serious disciplinary wrongdoings

may be arbitrarily fired without any compensation (wage in lieu of advance notice, severance payment).

5.5 Beware of employee committee members. Any disciplinary action

against any of them requires prior approval of the Labor Court.

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HANDOUT II A SHORT NOTE ON TRADE UNION ACTIVITIES AND INDUSTRIAL DISPUTES. Trade union activities More organizing activities are clearly detected in the eastern seaboard areas. When possible, a house union, or a union with membership confined to a single employer, is registered. Almost without exception, companies with ineffective people management are known to have workers lodging complaints with local labor inspector, sueing employers for unfair dismissal at the Labor Court. They are likely to set up a trade union soon after. Workers with similar accumulated grievances sign their names in support of a list of demand calling for the management to negotiate improvement in their employment condition. While negotiation is ongoing, another group of 10 employees will submit documents for union registration. Various company unions will later seek affiliation with their relevant industrial federations. There are also movement by strong trade unions to spread their influence to small plants by recruiting membership for industrial union. This is a difficult task and often face serious obstacle (Ref : the case of the AAT Union representing Summit Autobody workers, the Hotel Worker’s Union of Thailand campaigning for membership among employees in non-unionized hotels). Automobile and autoparts manufacturers are facing difficulties with the unions’ rising bargaining power. The organizing efforts are spearheaded by OLUC or Organizing Labor Union Committee, with continuous support from the American Center for International Labor Solidarity (ACILS)

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Most effective weapons of the trade unions to force employers to agree to their demands (mostly high bonus, shift allowance, wage raise, etc) are overtime ban and go slow tactics. Apart from losing at the plant levels, many employers also lose in the litigation at the Labor Court. This indicates ineffective employee relations measures, and a failure in human resource management which are often directed by their head office. Company unions will choose to affiliate with industrial federation, while the attempt to bring workers under industrial union will not succeed. Companies with intelligent employee relations strategies have nothing to fear. Employers simply need to become more proactive and do not take worker for granted just because of the provision of regular job with high pay. They are not just workers. They are human brings who respond positively to the right motivation, and negatively to injustice. Industrial Disputes Apart from fighting it out at the negotiation table at 1-3 year interval of union negotiation, individual disputes are fought out at the Labor Court in a peaceful manner. It is advisable to audit each firm’s employment practices, assess employee’s satisfaction and develop managers to be able to manage their people, and not just routinely manage their work. Industrial disputes may be numerous but small. They can be prevented, as well as solved if only the management cares and are seen to be caring for the well being of their employees. Though Thailand’s labor situation 2007 has not been too difficult, we should be prepared for a change in employment practices brought about by the pending amendment of the Labor protection Act. The ability to pay lower bonus may also bring in another round of labor disputes. Even when the unions resort to damaging industrial actions such as a go slow or overtime ban, handle the situation coolly. Most workers want to work overtime and do not want to lose their jobs.

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Proposed ER strategies

Identify past and potential grievances and deal with them rather than waiting for grievances to be formally submitted in writing according to the established grievance procedures. Formal grievance procedures are always ignored.

Open more channels of communication, formal as well as

informal.

Develop interpersonal skills among supervisors and up.

Create strong corporate spirit among staff.

Provide more opportunities for workers to participate in activities beneficial to them, such as becoming a member of the Credit Club, Blood Donation Group, etc.

Never agree to the union’s request to maintain a trade union

office at the work place, nor agree to deduct worker’s pay for union membership.

Continue the dialogue directly with staff, as well as the union

leaders.

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Issues for further discussion 1. Labor Turnover. 2. Tardiness, clocking in time is given diligence incentive even though

they start working behind the time, and knock off 10-15 min. before closing time.

3. Daily rated employees want to be monthly salaried men. Once

upgraded wage on weekly day off has to be paid. 4. Fixed term contract is incorrectly used for regular employment. 5. Employment of casuals.

Employment of employees supplied by labor contractor on short term contract becomes a regular conflict between the union and the management.

6. Miscommunication or lack of it. 7. Employees’ indebtedness through cash cards. 8. Establishment of Welfare Committee

Worker Committee Trade Unions

9. House Union, Industrial Union, Federation, labor Congress are not

clearly understood by HR professionals. 10. Industrial actions short of strike (go slow, O/T ban, rallies). 11. Weaknesses of HR Management. Still ineffective in performing

conventional functions, but under pressure to implement key performance index, balance score card, modern concepts.

12. Advance notice of employment termination is misunderstood to be

one month. Even employees during probation have to be given advance notice too.

13. NGOs are checking employment practices. 14. Application of fair employment practices, and SA 8000 may back fire.

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MR & TS Co., Ltd. 21

Appendix II Collective bargaining procedures specified in the Labor Relations Act B.E.2518

Agreement in writing to be

registered within 15 days Appeal withing 7 days

To Labor Minister

Compulsory Arbitration by labor

Relations Commission Disputes under

article 23

Disagreement

Voluntary Arbitration By jointly appointed

arbitrators

24 hours notice for intended strike

or lockout

Resumption of Bargaining with or Without conciliator

Compulsory Arbitration by

Labor Minister’s order

Acknowledging Appointing

representatives Starting negotiation

within 3 days

Employees/Union Or

Employer Submit Proposed

Improvements 60 days prior to expiry date

of existing CBA

Notify labor conciliator with 24

hours after Failure to negotiate or unsuccessful

negotiation

Registration Of Award

with 15 days

Ending of strike or

lockout by order of Labor

Minister

Back to Negotiation

table During a strike or lockout

Conciliation to be concluded within 5 days

Agreement reached through conciliation to be registered within 15 days

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Supachai Manusphaibool Education - BA (Econ) University of Western Australia 1967 - MSc (Econ. Dev.) University of Wisconsin 1971 - Certificate in Manpower Planning. International 1973 Manpower Institute USA. - MSc (Labor Law and Industrial Relations) 1976 London School of Economics and Political Science. Employment Supachai Manusphaibool taught Economics, Personnel Management, Industrial Relations, and Labor Laws at Chulalongkorn University for 15 years after which he served as resource person and consultant to many organisations both in the public and private sector, in Thailand as well as overseas. He was also appointed as the Secretary-General of the National Labor Development Board, and as a member of the Labor Relations Commission during 1974-1975. In the private sector, he was Vice President and Manager of the Personnel Department, Siam City Bank, then Vice President and Manager of the Public Relations Department, Bangkok Bank Ltd., and later on served as a member of the board at the Krung Thai Bank Ltd., where he also chaired the joint Union-Management Committee. Lecturing and Consultancy Currently he lectures Labor Law for Chulalongkorn University’s International Graduate Program in Labor Economics and Human Resource Management, and is retained as consultant on labor laws and labor relations by many manufacturing companies. Publications His publications includes monthly Thai Labor Chronicle, and fortnightly ALERT, as well as 3 volumes of Questions and Answers on Employment Laws and Practices Accessibility MR & TS Co., Ltd. 160/240 ITF Silom Palace Bldg., 15th Silom Rd., Suriyawong Bangrak, Bangkok 10500

Telephone (662) 237-2421, 267-7906, 081-912-7454 Fascimile (662) 233-7416

Email [email protected]

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MR & TS Co., Ltd.

A Cross Cultural Management Company Established Since June 1980 160/240-242 ITF Bldg. Floor 15, Silom Road, Suriyawongse, Bangrak,

Bangkok 10500 [email protected],[email protected] Email :

Services and Fees

1. Placement Service : Fee is 1.5 month of basic pay Areas of specialisation : Personnel Managers, Accountants Secretaries etc. (No advertisement expenses except for certain position/locations) 2. Consultation at site in Greater Bangkok Areas : 25,000 baht/day or 15,000 baht/ 1/2 day 3. Management Seminar (Group) : 30,000 baht/day 4. Cross Cultural Management Seminar (Group) : 40,000 baht/day 5. Labor Court Litigation : minimum 80,000 baht/case 6. Retained Consultancy Service on HR, ER : 40,000 baht/month Strategies and Labor Laws 7. Retained Consultancy Service on : 90,000 baht/year Compliance with Employment Laws 8. (Fortnightly) ALERT Newsletter : 3,000 baht/year (Thai or English) 9. (Monthly) Thai Labor Chronicle (English) : 1,800 baht/year (Thai or English) or Pramual Khao Rangngarn (Thai) 10.Translation : Thai to English ฿1,000/page

English to Thai ฿800/page 11.Wage/Salary Restructuring : Fee is negotiable for each case Supachai Manusphaibool

M MRR && TTSS CCoo..,, LLttdd.. Tel : 662-237-2421, 662-267-7906, 662-634-3101

Emergency : 081-912-7454 Fax : 662-233-7416

Email : [email protected],[email protected]