Labour crisis in Chon Buri as 20,000 workers face unemployment

A significant labour crisis looms in Chon Buri as 20,000 workers face potential unemployment due to financial strain on 16 subcontractor companies. This situation has put 60,000 family members at risk, with unpaid wages persisting for six months.

The Federation of Refinery Contractors TOP Clean Fuel Project (CFP) gathered yesterday, October 15, at the Holiday Inn & Suites Si Racha Laem Chabang, Chon Buri to address the pressing issue.

This consortium, comprising 16 Thai subcontractors, is spearheaded by Chatmongkol Khemaphirat, Assistant Managing Director of SCC Ltd., alongside Yutthana Kanjanaram, CAZ Corporate Coordinator, Weerapol Ocharos, Managing Director of CKC, Chanint Setaaputra, CEO of IETL, and Natthawut Ratchaisit, Director and Deputy General Manager of TREL. Together, they highlighted the severe impact of delayed payments by the main contractor, affecting the operations of smaller subcontractors.

The press conference underscored the dire consequences of not receiving contractual payments for over six months. Not only has this delay hampered the financial liquidity of several subcontractors, hindering their ability to meet project deadlines and maintain quality but it has also affected budget allocation for labour and material procurement.

Without immediate resolution, these companies risk failing to fulfil their contracts, which could lead to a cascade of problems, including:

• Unpaid wages causing worker protests.
• Financially strained companies potentially laying off their entire workforce soon.
• Approximately 20,000 site workers face unpaid wages and compensation, indirectly affecting 60,000 family members.
• The Clean Fuel Project’s potential failure to meet its construction deadlines if subcontractors are forced to halt operations.

The subcontractors continue working despite not receiving payments due to contractual obligations preventing work stoppages under any circumstances. Non-payment is not considered a breach justifying work suspension or contract termination. Any legal disputes would need to be resolved in Singapore under English law.

The press conference aimed to:

• Demand clarity from the project owner on how they will handle subcontractors’ inability to sustain their workforce without pay for over six months.
• Identify who the subcontractors can claim unpaid wages from.
• Prevent exploitation of Thai subcontractors by foreign contractors.

If the project owner fails to provide a clear action plan following the official press conference, the subcontractors are prepared to mobilise management and staff from all 16 companies. They plan to march from Boonjitt Wittaya School to the refinery’s front to submit a letter to the management on October 18 at 9am.

Further actions include seeking justice from Suchart Chomklin, Deputy Minister of Commerce, and Thawatchai Srithong, Governor of Chon Buri, to support the affected businesses and workers. If unresolved, the next step involves appealing to the Ministry of Energy and Industry, reported KhaoSod.

The Clean Fuel Project, valued at US$4,825 million (approximately 158,404 million baht), began in 2019 and was expected to be completed by 2023.

Located in Si Racha, Chon Buri, the project involves 16 subcontractors including CAZ, CKC, CMG, FSC, IETL, ITE, LHL, RCS, RMC, SCC, SBD, STECON, SWOT, TJEL, TREL, and VAP, all of whom are now seeking urgent intervention and assistance.