Hong Kong-Invested Companies in Thailand: Labour Relations and Practices

This article examines the labour relations and practices of Hong Kong-invested factories in Thailand. Although Hong Kong investments in manufacturing in Thailand can be traced back to the 1970s, there has been little research on Hong Kong firms in Thailand. This article reports on a survey and interviews conducted in 25 Hong Kong-invested plants, seeking the views of factory managers. It was found that most surveyed firms do not comply with Thailand's national labour law. Unionisation is weak and, even in the few unionised factories, there is little regular consultation between unions and management. Only one collective bargaining agreement exists amongst the surveyed firms. We conclude that a principal determinant for Hong Kong investors in maintaining their investments in Thailand is the ability to keep control over labour. This article sheds light on the role played by the industrial relations systems in host countries on the foreign investors' actions.