VZCZCXRO4490
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #0072 0120933
ZNR UUUUU ZZH
P 120933Z JAN 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC PRIORITY 5618
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC PRIORITY
RUEHC/DEPT OF LABOR WASHDC PRIORITY
RHEHNSC/NSC WASHDC PRIORITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC PRIORITY
INFO RUEHCHI/AMCONSUL CHIANG MAI 6064
RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS BANGKOK 000072 
 
SENSITIVE 
SIPDIS 
 
EAP FOR EAP/MLS AND DRL/ILCSR 
DEPT PASS TO USTR 
COMMERCE FOR EAP/MAC/OKSA 
LABOR FOR ILAB 
 
E.O. 12958: N/A 
TAGS: EINV ETRD ELAB PGOV TH
SUBJECT: EMBASSY ADVOCACY HELPS SETTLE FORD'S PROLONGED LABOR 
DISPUTE 
 
REF: BANGKOK 3757 
 
¶1. (SBU) Ford Motor Company and Mazda's Thailand joint venture, the 
Auto Alliance Thailand (AAT), was shut down by a labor stoppage as a 
result of employee contract negotiations breaking down in late 
November, 2008.  In addition to the work stoppage at the plant in 
Rayong province, protesting employees blocked access to the AAT 
plant, destroyed production equipment and disabled engines.  Of 
greater concern, the protestors at times restricted the movements of 
AAT management in and out of the plant.  Ford management reported 
that employees on the premise feared for their safety and that local 
police initially appeared either unwilling or unable to intervene. 
 
 
¶2. (SBU) Upon hearing the initial reports from Ford, the Commercial 
Counselor called the provincial governor of Rayong and asked for his 
assistance in ensuring that local police protect Ford assets and 
ensures the safety of Ford's management.  In addition, RSO contacted 
the chief of police in Rayong to inquire about the situation and 
press the local police to take Ford's concerns more seriously.  The 
RSO was advised that the Governor of Rayong had asked the chief of 
police to intervene in the negotiations between labor and 
management. The Labor Officer subsequently contacted a Bangkok-based 
labor advocate familiar with the AAT incident.  After speaking with 
leaders of the protesting workers, he confirmed they blocked access 
to the plant and restricted the movement of management, and noted 
with surprise these "unprecedented" tactics. 
 
¶3. (SBU)   Ambassador John during his December courtesy calls with 
the new Prime Minister, Foreign Minister, Finance Minister and 
Commerce Minister stressed the need for the Thai government to 
protect foreign investors.  In each meeting, while making it clear 
he was not taking sides in the labor dispute and expressing the 
importance of internationally recognized workers rights, the 
Ambassador stressed the negative impact that the illegal labor 
actions, along with the lack of police protection, were having on 
Thailand's reputation with foreign investors.  Coming on the heels 
of the airport shutdown, this could deeply hurt foreign investment 
sentiment. 
 
¶4. (SBU)   Ford executives reported January 7 that following a 
meeting with the Minister of Industry, the labor dispute had been 
resolved and that AAT would resume normal operations on January 12. 
Ford thanked the Ambassador for his personal attention, noting "it 
is always very valuable to have the Thai Government know that the US 
Government is giving an issue such as this some oversight". 
 
¶5.  (SBU) Comment: The threatening tactics taken by the AAT workers 
were out of the norm, but not isolated.  There are recent additional 
cases of threatening and/or violent tactics being undertaken by both 
management and labor.  For example, the Thai media reported January 
8 that sub-contracted workers at an electronics assembly company in 
Ayutthaya blocked the factory's entrance, and that to break their 
ranks, a company driver plowed a truck into the group and injured 
one individual.  As the global financial crisis works its way 
through Thailand's real sector, layoffs and production slow-downs 
will surely increase stress on already strained employee-management 
relations.  End Comment.