
Chindalak Vadhanasindhu, director of the Graduate School of Public Administration (GSPA) of National Institute of Development Administration, said that the unions will take care of employees' welfares and they could be financed by contributions from all members. However, private companies are reluctant to lend supports, fearing that the unions would be used as a negotiation tool.
"Labour unions in Thailand are not quite welcomed by business operators or employees, though they could mitigate unemployment impacts. Once companies lay off employees, the unions will have to find new jobs for the laid-off or pay allowances during the unemployment period. This would also help reduce the government's burden," Chindalak said.
She said the measure is necessary given that many workers may be laid off as overseas orders drop following the global economic crisis.
About 1 million workers are expected to be laid-off next year, as businesses cut production or are shut down.