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Thai Railway Union strikes, trains halt
Source from
Bangkok Post: 22 Jun 2009
Thailand's trains at a standstill; State Railways chief meets with disgruntled union leaders

Update: 12:56:28 BANGKOK, June 22 (TNA) – Thailand’s railway commuters are struggling to find alternative routes and carriers to their offices and workplaces as disgruntled State Railway of Thailand (SRT) labour union members went out on strike early Monday, closing down rail services across the kingdom.

All trains have been suspended throughout the country as the State Railway of Thailand (SRT) labour union is protesting the proposed restructuring of the railways organisation.

The union opposes the Cabinet-approved SRT rehabilitation plan dividing the state enterprise into corporate units by setting up separate subsidiaries to run the SRT’s airport link project and to manage its assets.

Union chairman Sawit Kaewwan said by telephone interview during a Monday morning Modernine (TV9) television news programme on channel 9 that the union didn’t oppose the airport link but that the SRT executives and the government proceeded to establish the two subsidiaries without consulting with its membership.

Nearly three weeks ago the union submitted a letter to the government opposing the June 3 Cabinet decision adopting the rehabilitation plan but received no acknowledgement, he said.

Trains will resume service if the government puts the restructuring plan on hold and started negotiation with the union, Mr. Sawit said.

The union claims that establishment of the two subsidiaries will lead to the State Railways being run by the private sector and will cause higher fares in the future.

Meanwhile, SRT governor Yutthana Thapcharoen interviewed on the same programme Monday morning said he would meet the labour union this afternoon to negotiate.

The SRT chief said he knew about the planned strike and was scheduled to meet the union chairman Tuesday afternoon, but it was rescheduled for Monday afternoon.

He clarified that the SRT will hold 100 per cent of shares in both subsidiaries but some groups of railway employees misunderstood the national railways restructuring plan and the issue must be clarified to its employees.

The restructuring plan is aimed at creating income for the SRT, which has been running at a loss for some years, he said. (TNA)

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SRT on strike nationwide

By: www.BangkokPost.com 22/06/2009 at 10:21 AM

The labour union of the State Railway of Thailand (SRT) began a nationwide strike on Monday in protest against the state enterprise's restructuring plan.

Labour union president Sawit Kaewwan said all SRT employees had had stopped working, halting all rail services across the country.

The employees opposed the plan to allow a private company to manage their operation, he said.

The labour union had previously submitted a proposal to the SRT board on ways to improve organisation. But the board's privatisation plan would lead to higher fares, he said.

Mr Sawit said the duration of the nationwide strike would depend on negotiations with the government and SRT governor Yutthana Thapcharoen.

Mr Yutthana said he was informed of the strike plan on Sunday night. He thought some groups of employees might not understand the purpose of the restructuring plan.He would meet Mr Sawit for talks on Tuesday at 3pm.

Negotiations were possible, but railway employees must not cause troubles for the public, he said.

The governor insisted the restructuring plan would not mean the privatision of the state enterprise. It would set up two companies to oversee its assets and the Airport Link rail project.

Train travellers can call the SRT hotline at 1690 for assistance. he said.
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RELATED ARTICLE:

Airport Rail Link gives SRT new hope

By: www.BangkokPost.com June 22, 2009

State agency to be split into two companies


The State Railway of Thailand is pinning its hopes of reviving its sagging fortunes on the Airport Rail Link project.

The cabinet on June 3 approved an ambitious restructuring of the state enterprise in a landmark decision sought by the SRT for years.

The SRT, which comes under the Transport Ministry, will be split into two parts, with companies formed to run each one.

One company will provide the rail services and the other will run its assets. The government will pick up all infrastructure costs. The companies will have to be registered within 30 days of the cabinet ruling and start business within six months.

The focal point of the changes is the creation of a unit under the rail service arm, to run the Airport Link from Bangkok to Suvarnabhumi airport in Samut Prakan. The service opens on Dec 5.

"The Airport Link will decide the future of the SRT," SRT governor Yutthana Thapcharoen said.

New staff, from executives to administrators and drivers, are being recruited to run the airport line, although existing train staff can apply for a transfer to the new unit.

Railway officials said the unit would be run on business lines and attempt to make a profit. Staff would not just sit around waiting for financial support from the government, they said.

The SRT believes the Airport Link could make money from ticket sales and other commercial activities such as selling advertising and leasing space at train stations.

The SRT has never made a profit since its establishment in 1951. Debts have continued to mount and now stand at 69 billion baht. Sources say an inflexible administration, overstaffing and poorly qualified staff all contribute to the poor performance.

As a public service, the SRT is reluctant to raise fares for fear of the impact on passengers.

The last time it increased ordinary fares was 24 years ago, although it has put up other fees such as express and rapid train charges. Mr Yutthana said the SRT was charging passengers less than it needs to recover its costs.

The success or failure of the Airport Rail Link will have implications for other projects. If the SRT does manage to turn a profit from the line, the government might be willing to keep the mass transit scheme's Red Line with the SRT rather than move it to another agency, the governor said.

The Red Line suburban subway link, which will run from Taling Chan to Rangsit via Bang Sue, comes under the SRT but could be moved to another agency if the Airport Link fails to make money.

Other units under the rail service division are the passenger service, freight service and the mass transit service which includes the Red Line.

"I am confident that the unit running the Airport Link will be a new model which we can use to help develop the SRT," Mr Yutthana said.

"Although it won't turn around our finances, it should ease the debt burden."

The State Railway Workers' Union of Thailand is not convinced. It suspects the government has a hidden agenda to sell parts of the SRT and so opposes the attempt to divide the SRT into corporate units, fearing it could be the first step of a privatisation agenda. It is also worried staff could lose benefits.

In addition to the service division, another focus of the union is the asset management firm which will take care of the SRT's land.

Mr Yutthana said the SRT would hire a private company to look after the land, such as collecting rents and debts. The firm would still be part of the rail organisation, he said.

The governor denies the SRT or the government have a privatisation agenda. However, the union has threatened to stop all train services if the SRT goes ahead with the restructuring plan.

Mr Yutthana said the SRT's future would be more secure if the restructuring went ahead and the Airport Link made money.

This is the first of a two-part series. Tomorrow: The role of the labour union
 
 
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