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April 28, 2011

A Measured Approach


Thailand has long been viewed as an attractive option for foreign investors in the manufacturing sector. The country has already positioned itself as a regional leader in automotive assembly and parts production, while the electronics and textile industries are also well-established strengths. One of the reasons for Thailand’s competitiveness in these areas is the country’s relatively low rate of unionization, which currently stands at less than 10%. But as the recent wave of labour unrest in China has shown, the level of labour militancy can shift quickly, especially as investment continues to pour into a growing economy. For this reason, companies that are investing in Thailand need to familiarize themselves with the legislative framework for dealing with unionized employees. This article introduces and addresses some of the most common issues that arise between employers and employees or unions under the Labour Relations Act.

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