Egat Update: Egat board postpones privatization-pro privatization TV ads pulled

April 2004

Although the Electricity Generating Authority of Thailand (EGAT) privatisation protests have been pushed toward the back pages of Thailand’s English press in the second month of the struggle, the workers resolve has only increased. In the lead up to May Day the state enterprises workers and private sector workers unity is unprecedented. With growing support from the general public, NGO’s, academics and trade unions and activists from all over the world, this year’s celebration has historic potential.

April 21 was the 60th day of unabated protest at EGAT headquarters in Bangkok. Many analysts predicted the struggle would wane and eventually die out, with the union accepting a few financial concessions offered by the government. Sirichai Maingam, chairman of the Egat Labour Union, said “thanks the Egat staff. It has been sixty days for the union to stay together in the fight against privatization. The workers are doing it for the nation, not for their own gain, as privatization would have many negative consequences for the people.”

The government has bowed to certain demands of the EGAT union that they be given shares equal in value to eight months of their salaries. Other indications that the government is attempting to placate the union is that it has upped the proposed amount of state ownership in Egat after the initial public offering (IPO) to 75 percent from 50 percent. In an attempt to allay fears that the elite class of politicians and businessmen will gobble up Egat shares in the IPO, measures have been drawn up where no investors could mount a take-over by restricting each investor to holding a maximum 5 percent of Egat’s registered capital. In addition, foreign investors would not be allowed to hold more than 25 percent of the company in aggregate.

In an attempt to address the unfair distribution of shares which has been the case in past privatisation of PTT, Airports of Thailand and Thai Olefins, the government also stated first priority would be given to small investors who reserve between Baht 10,000 and 100,000 in shares. The shares would be distributed randomly.

Despite these assurances and concessions from the government, the strength and vitality of the protest is only increasing, much to the surprise of foreign and domestic analysts. The reason for this is quite simple: the government has yet to address the protesters key demands that EGAT not be privatized, that a referendum on privatization be held so the public can make the decision, and that all bills drafted under the instruction of the IMF due to loan engagement conditions be cancelled, as Thailand has already paid off the IMF debt.

April actions

On April 23 the Egat board, in a meeting with Sirichai and representatives of nine labour unions, declared that the privatization of Egat should be postponed unitl a new legislative and regulatory framework is in place. According to EGAT's chairman, Chai-anan Samudavanija, the 1999 State Enterprises Act, which enabled the privatisation of state enterprises and utilities, will be scrapped and new legislation will be drafted. (The Nation, April 23 2004) the state enterprises development act of 2001, which agrees state enterprises privatization should not be pursued, should be utilized.

Sirichai said that protests will continue, despite the positive Egat board decision, as the workers don’t yet have guarantees from the government.

The Egat union and the State Enterprises Workers Relations Confederation (SERC) have repeatedly called for the blatant propaganda to not be aired on TV. On April 22 hundreds of anti-privatisation protesters forced their way into the Energy Ministry, demanding the ads be taken off the air. Nearly 100 police officers at the Ministry retreated following a brief run in with the protesters, who brought down iron barricades.

The protesters left peacefully after they were promised by the ministry permanent secretary and an MP that a solution would be found within 3 days.

The Egat union filed a claim with the Consumers Protection Board against the ad.

On April 23 Channel 9, which acts as a coordinating HQ for the airing of the ad, agreed to stop showing the ad from that day forward, other channels have agreed to follow suit. Sirichai said the union is satisfied with this development. The state enterprises unions will monitor the pull of the ad.

The Egat and MEA labour unions said the Public Health and Energy Ministries electricity supply would be cut if they fail to pay their unpaid bills (Bt 20 million and Bt 180,000 respectively). The unions decided to start with these two ministries because their chiefs came out in support of Egat’s stock market listing.

The ministries were given notice on April 22 and were told they had one week to comply. MEA, who is in charge of distributing power and collecting bills, said that government agencies owed Bt 459 million, which has built up over the past two years.

Workers at Egat’s Mae Moh power plant in Lampang have begun a partial work stoppage to protest privatization plans. More than 480 workers at the coal-fired plant stopped work yesterday to join the protest at Egat headquarters. The workers will reportedly ‘strike’ until May Day.

Sawit Kaewan, Director of SERC Political Division, said in the lead up to May Day SERC is traveling to provinces outside Bangkok to give information to workers and the general public about privatization.

The Ministry of Labour has set aside 2 million baht for May Day celebrations at Bangkok’s Sanam Luang (near the Grand Palace). Organizers of the May Day protest have denied the offer and will gather at the Democracy Monument (less than a kilometer from Sanam Luang) and march in the opposite direction of Sanam Luang. One or two of Thailand’s nine labour congresses of Thailand will attend the government sponsored May Day.

Sirichai said the labour movement “will be stronger, in greater solidarity and will stand by itself without funding from the MOL for May Day.” He said that although privatization is the first May Day demand, many of the other demands will address problems faced by workers in the private sector. He said, “I know that the private sector has many problems which need to be solved so that the labour movement in Thailand will improve.”

For May Day up to 27,000 Egat workers will take a holiday leave from April 28-30 to prepare for the celebration and participate in protests. Sirichai stated this would not affect the nations power distribution system. He said the number of those joining in the holiday leave is not confirmed, and that all Egat union members were sent a letter inviting them to join in a “Holiday leave for the nation”.

Sirichai said that the union will continue to fight until the government stops Egat privatization.