In a twist straight out of a corporate drama, workers have been staging an intense protest along Sukhumvit Road, directly in front of Thai Oil’s Refinery in Si Racha District, Chonburi Province. The agitation, spanning from the 24th to the 26th of July 2024, arose from unpaid wages by the contractors. A deep dive by Thai Oil Public Company Limited (the “Company”) uncovered that these workers are enlisted under One Turn Ten Company Limited (“One Turn Ten”), EMCO LTD (Thailand) Company Limited (“EMCO”), and Thai Fong Engineering and Construction Company Limited (“Thai Fong”). Now, the plot thickens as these three firms are not the principal contractors but mere subcontractors for Sinopec Engineering Group (Thailand) Co., Ltd. (“Sinopec”). In turn, Sinopec is a cog in the subcontracting machine of the Unincorporated Joint Venture of Petrofac South East Asia Pte. Ltd. (“Petrofac”), Saipem Singapore Pte. Ltd. (“Saipem”), and Samsung E&A (Thailand) Co., Ltd. (formerly Samsung Engineering (Thailand) Co., Ltd.) (“Samsung”) (collectively, the “UJV”). Yes, it’s a subcontractor inception! However, the primary responsibility for the construction of the Clean Fuel Project (CFP) rests with the UJV, and the workers have converged to claim their dues from One Turn Ten, EMCO, Thai Fong, Sinopec, and the UJV.
The crux of the issue: non-payment. The consortium of complaints stems from the fact that Sinopec hasn’t disbursed payments to the trio because, lo and behold, the UJV itself hasn’t settled dues with Sinopec! It’s a domino effect that leaves unpaid workers in its wake. Despite this conundrum, Thai Oil has honored its payment obligations to the UJV as stipulated in the Engineering, Procurement, and Construction (EPC) contract. However, due to the intricate web of over 60 subcontractors, including Sinopec, the onus of resolving the financial deadlock and bringing workers back into their construction boots falls squarely on Sinopec and the UJV.
Amidst the turmoil, Thai Oil is well aware of the struggles workers face and has been actively brokering discussions among all parties involved. These dialogues have drawn in representatives from the subcontractors, concerned government entities, and the UJV. Following a round of negotiations on the 26th of July which, while not reaching a solid agreement, did foster a mutual understanding among the various stakeholders. There’s a sliver of hope that an agreement is on the horizon, with another much-anticipated negotiation set for today, the 30th of July 2024. After the promise of further talks, the weary workers dispersed at 20:30 hours on the 26th of July.
Tensions are high as today, the 30th of July, sees the workers rally once more, eager for updates from the ongoing joint deliberations involving Sinopec, the UJV, the workers’ employers, government officials, and labor representatives. To maintain a semblance of order and safety, Thai Oil has ramped up security measures at the refinery, ensuring staff are in place and working in coordination with government agencies. Comprehensive emergency plans are on standby, with 24-hour surveillance enforcing stringent access controls to ensure the protests remain peaceful and minimally disruptive to the local community.
These workers deserve their pay! It’s outrageous that they have to protest to get what they’re owed.
Absolutely right, Anne! But let’s not forget, subcontracting works in layers. It’s a tangled mess!
True, but responsibility still lies somewhere. If companies can’t pay their workers, they shouldn’t take the contracts!
Michael, exactly! It’s irresponsible and unethical to put workers in such a predicament.
Why is Thai Oil not directly intervening more? They should have a better handle on their subcontractors.
David, perhaps because the web of subcontractors is too large for one company to manage everything directly. It’s complicated!
This is why investing in such companies is so risky. Too many layers of contractors and subcontractors.
Well, it’s more about the project’s scale. Big projects need extensive subcontracting, but there has to be better oversight.
Elena, precisely. Oversight is key, and it’s clearly lacking here.
Why can’t Sinopec just pay up? They must have the funds from previous payments.
It’s not always that simple, Charlie. Payments can get held up for many reasons, sometimes even bureaucratic ones.
Still, the workers shouldn’t suffer. They have families to feed!
The real issue is the exploitation of workers by these large corporations.
But is it really exploitation if they signed contracts knowing the risks?
Bruce, they might know the risks, but it doesn’t excuse non-payment. Workers are the backbone of these projects.
Where is the government in all this? Shouldn’t they be stepping in to regulate and ensure workers get paid?
You’re right; labor laws need to be enforced better. Government intervention is crucial in such cases.
It’s amazing how companies always find a way to blame someone else down the chain.
It’s scapegoating, Mike. No one wants to take responsibility.
If I were those workers, I’d be demanding my money right on the spot. This is modern-day slavery!
That’s a strong statement, but I get your point. They should at least get some compensation immediately.
So much for globalization helping workers…
Globalization has its pros and cons. In this case, it’s the workers who suffer because of a lack of local oversight.
My cousin works in construction and this is unfortunately very common. They often get paid late, if at all.
That’s sad to hear. There should be protective measures for these hardworking individuals.
Bill, totally agree. The system needs an overhaul to ensure worker rights are prioritized.
At least Thai Oil is trying to mediate. We can’t blame them entirely.
True, but mediation isn’t enough if workers are still going unpaid. Action is needed.
Absolutely, Hannah. It has to go beyond just talk. Real solutions are needed.
How does this affect the local community? Are there any disruptions?
Probably, Tim. These kinds of protests can disrupt local life, especially if they block roads.
This paints a grim picture of the construction industry. Is it the same worldwide?
Unfortunately, yes. Construction work globally tends to have similar issues. It’s a systemic problem.
Jules, thanks for the insight. It’s really eye-opening.
I hope the workers find a resolution soon. Living without pay must be extremely stressful.
This is just a small part of a larger issue with how these major projects are managed.
I’m curious to see how the next negotiations will pan out. Do you think they will reach an agreement today?