• 
• 

Published on November 2, 2007

Rail workers who took "sick leave" on Wednesday would not be liable to civil or criminal punishment, even though they caused financial damage to the State Railway of Thailand and inconvenienced passengers and corporate clients, according to an agreement between officials and the labour union.

SRT employees went back to work at midnight on Wednesday, following negotiations between the union, Deputy Transport Minister Sansern Wongcha-um, and board chairman Siva Saengmanee. The talks focused on six complaints by the union.

The SRT said yesterday the 12-hour stoppage, involving 200 train drivers and 194 mechanics, cost the agency Bt10.45 million.

That was because 37 of the 80 available trains were halted and thousands of passengers and cargo loads were left stranded.

The SRT said ticket refunds cost some Bt5.3 million and bus transfers for passengers cost a further Bt571,000. It also lost Bt4.6 million from delayed cargo shipments.

While the workers avoided any government backlash, the authorities also gave several promises that satisfied the union and got employees back to work.

Officials promised to reveal the Council of State's decision on the Central Group's bid to lease SRT land in Bangkok within a month.

It also promised to launch legal action against a politician in Buri Ram over the alleged issuance of false land-title deeds. It would also review whether Chief Finance Officer Arak Ratboriharn's qualifications were in line with Finance Ministry regulations.

In regard to charges that the lack of compensation for low fares caused the SRT to suffer accumulated losses of Bt23 billion, Sansern promised to forward the matter to the Finance Ministry and Cabinet within two months.

Within the same period, Sansern would also ask the Transport Ministry to amend a Cabinet resolution from July 28, 1998 that puts a limit on workforce numbers.

Sansern also promised to consult the union before making any changes to the SRT Act and the Transport Administration Act. At present, the Council of State is screening proposed changes.

Importantly, it was agreed that consent would be sought from workers before private companies would be allowed to operate transport services on the SRT rail network.

Lae Dilokvidhyarat, director of the Labour and Management Development Centre at Chulalongkorn University, said the SRT executives should be blamed for the strike because of incomplete discussions with the union. "It's reasonable for them to stage a protest to protect their interests. If the restructuring must happen, their participation is necessary."

However, an SRT director, who asked for anonymity, said he was surprised by the strike, given the labour union had been informed of all possible changes as its representatives were present at meetings with the board.

He also said the SRT needed an overhaul or it could not properly serve the public due to rising debt and inefficiency. "The planned restructuring will require the government to continue investing in infrastructure such as the rail tracks - and shoulder the debt of Bt39 billion," he said.

Under the restructuring plan, SRT would set up three subsidiaries to separately manage its assets, transport service on the Eastern route, and an electric train network. The SRT would remain a state enterprise and a regulator.

Entirely owned by the state, the subsidiaries would be allowed to enter into joint ventures with private companies for new investment projects, like procurement of new locomotives and carriages. Private funds were necessary due to the high costs.

The source said SRT planned to spend Bt124 billion on infrastructure over the next seven years to replace single track with double rail lines and increase logistic facilities. The new train system was an integral part of national logistics, and officials wanted reduce the high the cost of transporting goods by road.

Investment in locomotives and rolling stock from this year until 2011 is estimated at Bt13 billion, while investment in commuter projects, including the Red Line electric train and short routes between Bangkok and neighbouring cities, is put at Bt146 billion.

Currently, SRT had debts of Bt52 billion and unfunded pension costs of Bt153 billion, the director said.

Business Reporters

 The Nation