VZCZCXRO3236
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #2767/01 3020938
ZNR UUUUU ZZH
R 290938Z OCT 09
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 8765
INFO RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHC/DEPT OF LABOR WASHINGTON DC
RULSJGA/DEPT OF TRANSPORTATION WASHINGTON DC
RHMFIUU/DEPT OF HOMELAND SECURITY WASHINGTON DC

UNCLAS SECTION 01 OF 02 BANGKOK 002767 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ETRD TH
SUBJECT:  TRAIN ACCIDENT REVEALS UNION WOES AND MAY LEAD TO RAIL 
SERVICE RESTRUCTURING 
 
¶1. (SBU) Summary and Comment:  Seven people were killed when an 
overnight Bangkok-bound express train derailed earlier this month. 
Citing the train crash as an example of the poor state of trains in 
Thailand, unionized railway workers in the deep South suspended 
local services, claiming that their action was in the interest of 
passenger safety.  The government, however, saw the crash as 
evidence of a moribund rail system and called for a renewed effort 
to restructure the State Railway of Thailand (SRT).  A subsequent 
confrontation between police and union members in Southern 
Thailand's Hat Yai rail hub was met by widespread public and media 
condemnation and threats by SRT management to fire the workers 
involved.  The efforts of the once-powerful rail workers union to 
have its political voice heard is weakened by the failure of 
unionists to gain support from the mainstream political parties. 
End Summary and Comment. 
 
Train Derails, Kills Seven 
-------------------------- 
 
¶2. (U) Seven individuals, including one young child, were killed 
when a train derailed early in the morning of October 5th. 
Eighty-some individuals were injured when the overnight 
Bangkok-bound express train travelling in excess of 100 kilometers 
an hour (more than 63 miles per hour) jumped the tracks in heavy 
rain.  The incident happened about eight miles south of Hua Hin, a 
popular tourist getaway and the location of Wang Klai Kang Won 
Palace, where Thailand's king spends much of his time.  The accident 
was one of the deadliest in Thai railway history.  Damage and lost 
revenue is estimated to be in excess of 100 million baht 
(approximately 3 million USD). 
 
¶3. (U) A fact finding committee found that the derailment was mainly 
caused by human error.  The committee concluded that the driver 
dozed off after taking antihistamines and fever relief medication 
while on duty and violated train driving regulations.  SRT fired the 
driver and cut salaries of other staff following the determination 
that the train's engineer and train attendant had failed to help 
monitor signals to ensure the safety of the train.  The government 
seized on the report as reason to press forward with a restructuring 
of the entire railways system. Prime Minister Abhisit told the press 
on October 21 that he wanted to overhaul the SRT as soon as 
possible. 
 
Labor Union Struggles 
--------------------- 
 
¶4. (U) The SRT labor union leader, Sawit Kaewwan, said that it was 
unfair to blame the train accident on the driver alone.  A 1998 
cabinet resolution limiting the SRT's recruitment had led to staff 
shortages, he said, and this led to staff members being forced to 
work every day and to often work double shifts.  He and the train 
driver placed additional blame on a faulty alarm system. 
 
¶5. (SBU) Sawit's unionists are already reeling from a poor public 
image and the fact that the union was cut out of the only new rail 
project in the last decade: the soon-to-open high speed Bangkok 
airport link.  With no new SRT hiring allowed under the 1998 cabinet 
resolution, the airport rail link was given special exemption to 
hire 500 non-union affiliated workers for the showcase, high-tech 
project. 
 
¶6. (SBU) Comment: The rail workers labor union has historically been 
one of the most active of the state enterprise unions (private 
sector unions are almost non-existent).  Current "Yellow Shirt" 
political leader Somsak Kosaisook was a former rail workers union 
head.  Somsak put the Thai labor movement in opposition to then 
Prime Minister Thaksin because of Thaksin's efforts to privatize the 
state enterprises.  Now with the Democrat-led government also 
opposing union positions, the labor movement in Thailand is 
struggling to find any home in the current political landscape.  End 
Comment. 
 
Move to Rail Service Restructure Revitalized 
-------------------------------------------- 
 
¶7. (SBU) Following the crash, the movement to overhaul Thailand's 
train system was once again brought to the fore.  The SRT is one of 
the worst performing state enterprises with annual losses of 
billions of baht.  In June, a plan to restructure the SRT was 
approved by the Cabinet.  Under the plan, the SRT would be 
responsible for investment in the rail system and depots (i.e., 
train stations or freight storehouses/warehouses) and the government 
would provide financial support for operations.  In addition, two 
companies, wholly owned by the SRT, would be created.  One would 
operate rolling stock and the other would manage land owned by the 
agency.  The rolling stock company would be divided into three 
units, one to operate the airport rail link, one to operate 
passenger transportation, and the last to operate cargo 
 
BANGKOK 00002767  002 OF 002 
 
 
transportation.  Recognizing that a main goal of the restructuring 
was to free rail operations from union-controlled labor, labor 
leaders led a work stoppage shortly after the Cabinet decision.  The 
plan was then shelved.  A labor advocate told Econoff that the union 
is against the restructuring plan as the union is convinced that the 
plan is not meant to solve the SRT's financial troubles but rather 
to divert government benefits to companies with political 
connections. 
 
Southern Rail Service Suspension Gains Little Support 
--------------------------------------------- -------- 
 
¶8. (U) On October 16, railway workers suspended local train service 
in southern Thailand, in some cases leaving passengers stranded. 
The head of the local SRT labor union cited concerns about passenger 
safety as the reason for the temporary stop in service.  He told the 
press that the train derailment in Hua Hin was an example of the 
poor state of the trains, many of which have malfunctioning safety 
systems and locomotives in poor condition.  (NOTE: The union was 
careful to say that the interruption of service was not a strike, 
but a "temporary suspension of service" aimed at ensuring that the 
trains passed maintenance checks before resuming service. 
Thailand's State Enterprise Labor Relations Act (SELRA) prohibits 
strikes by state enterprise workers.  End Note.)  The suspension was 
also aimed at unseating SRT governor Yutthana.  Workers burned an 
effigy of him at the Hat Yai station, saying that he had failed to 
run the railway system efficiently.  They also pointed to his 
indictment earlier this year for involvement in a suspicious leasing 
agreement, signed without any bids, as proof of his unsuitability. 
 
 
¶9. (U) According to polls, the public is not supportive of the 
strike.  The press reported lost revenues from tourism, shipment 
delays, increased shipment costs, and decreased income for taxi and 
tuk-tuk drivers who typically transport rail passengers from the 
train station to their final destination.  The union has gained the 
support of a few groups, but no political party has come to its 
defense.  A southern chapter of the People's Alliance for Democracy 
(PAD) announced its support as did the Campaign for Popular 
Democracy and the People's Network Coordination Center.  The State 
Enterprise Labor Relations Confederation (SERC), the umbrella group 
of all of the state enterprise unions, lent its support to the 
workers' anti-privatization stance.  The SRT union, however, could 
not even get SERC backing for the suspension of service. 
 
Police Attempt to Restore Service 
--------------------------------- 
 
¶10. (U) On October 26, in an attempt to restore service to the three 
southernmost provinces, more than 100 armed railway police and 
volunteers took possession of one train that was being held at Hat 
Yai station by union members.  Amidst yelling from union members, 
but no physical resistance, the driver successfully drove the train 
out of the station.  On October 27, a similar attempt was made to 
drive a train out of the Hat Yai station, which nearly resulted in a 
collision.  The told the press that the union members had used the 
stationary train to block his route and had tampered with a switch 
that could have derailed his train.  An hour-long confrontation 
followed between railway workers and police.  Following the 
incident, SRT management halted negotiations with the union and 
announced plans to fire key union members involved for severe 
misconduct.