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Asia Pulse - Analysis Thai Factorie



Subject: Asia Pulse - Analysis Thai Factories Hit by Expulsion of Myanmar Workers

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Monday, December 13 12:37 PM SGT=20
Analysis Thai Factories Hit by Expulsion of Myanmar Workers
(Analysis from Asia Today, Australia's regional business magazine. =
Contact: asiatoday(at)compuserve.com=20
BANGKOK, Dec 13 Asia Pulse - Around the middle of October, Paniti =
Tangpasri, president of the Tak Chamber of Commerce, was angry at the =
Thai government. By the time November arrived, he was furious. Paniti =
wasn't the only one. Factory owners all over his province, which borders =
Burma, are livid over a sudden crackdown on, and deportation of, illegal =
foreign workers - most of them Burmese.=20

"A lot of factories have basically shut down because they don't have =
workers," Paniti says. "Unless the government comes to its senses, many =
will go out of business." Many of the dozens of factories in Tak and =
other border provinces are joint ventures with Taiwanese and Hong =
Kong-based garment firms. Most of the goods they produce are shipped to =
the United States to major chains such as Walmart and The Gap, according =
to sources in the Thai labor movement. Even media-giant Time Warner is =
apparently involved, as some goods are patterned with its licensed =
Looney Tunes characters.=20

Thai authorities are known for going the extra mile to please foreign =
investors, and some businesses now affected have received incentives and =
privileges from the Board of Investment. Pleasing foreign investors is =
not a concern this time. This crackdown is payback, and the object of =
Thailand's revenge is neighbouring Burma and its ruling generals.=20

During the past two months, relations between Thailand and Myanmar have =
plunged to their lowest level in more than a decade. The rift came when =
five Burmese student rebels invaded Burma's embassy in Bangkok and held =
more than 40 diplomats and foreign visitors hostage for 25 hours - =
demanding that Myanmar's military government release political prisoners =
and open a dialogue with the democratic opposition. Thailand's Deputy =
Foreign Minister, Sukhumband Paribatr, negotiated an end to the crisis, =
exchanging himself for the hostages and allowing the gunmen to be flown =
to the border, where they escaped into a rebel-held area in the Burmese =
jungle.=20

Myanmar's generals went ballistic. They accused the Thais of conspiring =
with the hostage-takers, and demanded their arrest, despite the fact =
that they were now inside Myanmar. The regime closed the entire 2,100-km =
border and cancelled all contracts with Thai fishing vessels, forcing =
them out of Burmese waters. "Thai businesses are losing about 40 million =
baht (US$1 million) a day because of the border closure," Paniti says. =
"The Burmese are suffering also. I don't blame the Burmese government. I =
blame the hostage-takers and the Thai government."=20

Thai diplomats have negotiated to get the border open, but the Burmese =
have refused to budge. Hla Maung, Myanmar's ambassador to Thailand, said =
the border would not reopen until the gunmen were brought to justice. =
While much of the Western world has shunned Myanmar's military =
government because of its appalling human rights record, Thailand has =
been the chief proponent of constructive engagement, a policy of =
expanding diplomatic and business ties with the regime in Rangoon in the =
hope of moderating the generals.=20

After a month of intransigence from Myanmar, the Thai government decided =
to hit back. Ever since the economic crisis struck in 1997, Thailand's =
labor minister has been advocating sending the one million or so illegal =
workers in Thailand home in order to make jobs available for unemployed =
Thais. But with inflation pushing wages higher over the years, many =
labor-intensive businesses have come to rely on illegal immigrants - no =
secret, and various Thai governments have looked the other way. =
Meanwhile, thousands of Thai laborers have been working for better wages =
in the Middle East and other locations.=20

Factory owners have said that most Thais don't want the jobs, and if the =
government forces them to pay the minimum wage of Bt130 (US$3.25) a day, =
it will eat into their competitive pricing, which is already =
diminishing. Business lobbied against the labour repatriation plan, and =
slowly the government began granting more exemptions until the policy =
became meaningless.=20

Now, Prime Minister Chuan Leekpai has decided to put the policy into =
full effect, and tens of thousands of mostly Burmese illegals have been =
rounded up in Tak and other provinces for repatriation. Burmese army =
units have told the Thais they will shoot anyone who comes across, =
Burmese or not, and Thai police have been dumping the illegals in =
isolated spots away from Burmese checkpoints or military bases. Many =
Burmese have then been sneaking back into Thailand.=20

Prime Minister Chuan says the deportations will continue. As for Thais =
not wanting the jobs, labor activist Phil Robertson disagrees. "There =
are plenty of Thai families in the rural provinces that would send their =
sons or daughters to work there for the minimum wage and benefits. But =
these factory owners were paying half that with no benefits. They would =
still be competitive if they were paying the minimum wage."=20

Robertson adds that the composition of the illegal workers, who are also =
employed in the gem polishing industry among others, would surprise =
many. "These aren't all people with fourth grade educations," he says. =
"While there are many Karen and Mon, there are also Burmese from Rangoon =
and Mandalay who were second-and third-year university students, but the =
junta has shut down all the universities. The fact that they would =
travel so far to work illegally in a Thai factory for less than the =
minimum wage shows just how desperate the situation in Myanmar is."=20

The Thai government is well aware of that. And it is hoping that by =
sending the Burmese workers home, the junta's decision to shut the =
border will backfire. In mid-November, Thai Foreign Minister Surin =
Pitsuwan said he thought there would soon be some progress in reopening =
the border.=20

Analysts in Thailand said the reason was the upcoming ASEAN ministerial =
meeting. ASEAN has stood behind Thailand in its handling of the embassy =
siege, and if Myanmar maintains its stance of attempting to punish the =
Thais over the issue, it could find itself isolated within the only =
international grouping that has welcomed it as a member.=20

ASIA PULSE=20


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<DIV><FONT face=3DArial size=3D2><B>Monday, December 13</B> 12:37 PM SGT =

<H2><FONT size=3D4>Analysis Thai Factories Hit by Expulsion of Myanmar=20
Workers</FONT></H2>(Analysis from Asia Today, Australia's regional =
business=20
magazine. Contact: asiatoday(at)compuserve.com=20
<P>BANGKOK, Dec 13 Asia Pulse - Around the middle of October, Paniti =
Tangpasri,=20
president of the Tak Chamber of Commerce, was angry at the Thai =
government. By=20
the time November arrived, he was furious. Paniti wasn't the only one. =
Factory=20
owners all over his province, which borders Burma, are livid over a =
sudden=20
crackdown on, and deportation of, illegal foreign workers - most of them =

Burmese.=20
<P>"A lot of factories have basically shut down because they don't have=20
workers," Paniti says. "Unless the government comes to its senses, many =
will go=20
out of business." Many of the dozens of factories in Tak and other =
border=20
provinces are joint ventures with Taiwanese and Hong Kong-based garment =
firms.=20
Most of the goods they produce are shipped to the United States to major =
chains=20
such as Walmart and The Gap, according to sources in the Thai labor =
movement.=20
Even media-giant Time Warner is apparently involved, as some goods are =
patterned=20
with its licensed Looney Tunes characters.=20
<P>Thai authorities are known for going the extra mile to please foreign =

investors, and some businesses now affected have received incentives and =

privileges from the Board of Investment. Pleasing foreign investors is =
not a=20
concern this time. This crackdown is payback, and the object of =
Thailand's=20
revenge is neighbouring Burma and its ruling generals.=20
<P>During the past two months, relations between Thailand and Myanmar =
have=20
plunged to their lowest level in more than a decade. The rift came when =
five=20
Burmese student rebels invaded Burma's embassy in Bangkok and held more =
than 40=20
diplomats and foreign visitors hostage for 25 hours - demanding that =
Myanmar's=20
military government release political prisoners and open a dialogue with =
the=20
democratic opposition. Thailand's Deputy Foreign Minister, Sukhumband =
Paribatr,=20
negotiated an end to the crisis, exchanging himself for the hostages and =

allowing the gunmen to be flown to the border, where they escaped into a =

rebel-held area in the Burmese jungle.=20
<P>Myanmar's generals went ballistic. They accused the Thais of =
conspiring with=20
the hostage-takers, and demanded their arrest, despite the fact that =
they were=20
now inside Myanmar. The regime closed the entire 2,100-km border and =
cancelled=20
all contracts with Thai fishing vessels, forcing them out of Burmese =
waters.=20
"Thai businesses are losing about 40 million baht (US$1 million) a day =
because=20
of the border closure," Paniti says. "The Burmese are suffering also. I =
don't=20
blame the Burmese government. I blame the hostage-takers and the Thai=20
government."=20
<P>Thai diplomats have negotiated to get the border open, but the =
Burmese have=20
refused to budge. Hla Maung, Myanmar's ambassador to Thailand, said the =
border=20
would not reopen until the gunmen were brought to justice. While much of =
the=20
Western world has shunned Myanmar's military government because of its =
appalling=20
human rights record, Thailand has been the chief proponent of =
constructive=20
engagement, a policy of expanding diplomatic and business ties with the =
regime=20
in Rangoon in the hope of moderating the generals.=20
<P>After a month of intransigence from Myanmar, the Thai government =
decided to=20
hit back. Ever since the economic crisis struck in 1997, Thailand's =
labor=20
minister has been advocating sending the one million or so illegal =
workers in=20
Thailand home in order to make jobs available for unemployed Thais. But =
with=20
inflation pushing wages higher over the years, many labor-intensive =
businesses=20
have come to rely on illegal immigrants - no secret, and various Thai=20
governments have looked the other way. Meanwhile, thousands of Thai =
laborers=20
have been working for better wages in the Middle East and other =
locations.=20
<P>Factory owners have said that most Thais don't want the jobs, and if =
the=20
government forces them to pay the minimum wage of Bt130 (US$3.25) a day, =
it will=20
eat into their competitive pricing, which is already diminishing. =
Business=20
lobbied against the labour repatriation plan, and slowly the government =
began=20
granting more exemptions until the policy became meaningless.=20
<P>Now, Prime Minister Chuan Leekpai has decided to put the policy into =
full=20
effect, and tens of thousands of mostly Burmese illegals have been =
rounded up in=20
Tak and other provinces for repatriation. Burmese army units have told =
the Thais=20
they will shoot anyone who comes across, Burmese or not, and Thai police =
have=20
been dumping the illegals in isolated spots away from Burmese =
checkpoints or=20
military bases. Many Burmese have then been sneaking back into Thailand. =

<P>Prime Minister Chuan says the deportations will continue. As for =
Thais not=20
wanting the jobs, labor activist Phil Robertson disagrees. "There are =
plenty of=20
Thai families in the rural provinces that would send their sons or =
daughters to=20
work there for the minimum wage and benefits. But these factory owners =
were=20
paying half that with no benefits. They would still be competitive if =
they were=20
paying the minimum wage."=20
<P>Robertson adds that the composition of the illegal workers, who are =
also=20
employed in the gem polishing industry among others, would surprise =
many. "These=20
aren't all people with fourth grade educations," he says. "While there =
are many=20
Karen and Mon, there are also Burmese from Rangoon and Mandalay who were =

second-and third-year university students, but the junta has shut down =
all the=20
universities. The fact that they would travel so far to work illegally =
in a Thai=20
factory for less than the minimum wage shows just how desperate the =
situation in=20
Myanmar is."=20
<P>The Thai government is well aware of that. And it is hoping that by =
sending=20
the Burmese workers home, the junta's decision to shut the border will =
backfire.=20
In mid-November, Thai Foreign Minister Surin Pitsuwan said he thought =
there=20
would soon be some progress in reopening the border.=20
<P>Analysts in Thailand said the reason was the upcoming ASEAN =
ministerial=20
meeting. ASEAN has stood behind Thailand in its handling of the embassy =
siege,=20
and if Myanmar maintains its stance of attempting to punish the Thais =
over the=20
issue, it could find itself isolated within the only international =
grouping that=20
has welcomed it as a member.=20
<P>ASIA PULSE </P></FONT></DIV></BODY></HTML>

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