A looming labour crisis in Chon Buri threatens to leave 20,000 workers jobless as financial strain grips 16 subcontractor companies involved in the Clean Fuel Project (CFP). With unpaid wages persisting for six months, the crisis also endangers the livelihoods of 60,000 family members.
On October 15, representatives from the Federation of Refinery Contractors gathered at the Holiday Inn & Suites Si Racha Laem Chabang to raise concerns about severe delays in contractual payments. The meeting featured senior subcontractor executives, including Chatmongkol Khemaphirat, Assistant Managing Director of SCC Ltd., and Yutthana Kanjanaram, CAZ Corporate Coordinator, alongside key representatives from CKC, IETL, and TREL. They underscored the grave impact of non-payment on financial stability, project timelines, and the ability to retain workers.
The subcontractors reported that the main contractor’s delayed payments have impeded their ability to cover labour costs, procure materials, and meet project deadlines. Without swift action, these companies face potential workforce layoffs, risking the shutdown of operations on the Clean Fuel Project, which could miss its completion targets.
Key Challenges Outlined by Subcontractors:
- Worker Protests and Layoffs: 20,000 workers remain unpaid, with potential layoffs looming.
- Ripple Effect on Families: 60,000 dependents are affected by the wage crisis.
- Project Delays: Halting operations could disrupt the project’s timeline, initially set for completion by 2023.
Despite not receiving payments, subcontractors continue working under binding contracts that prohibit them from halting operations. The agreements, governed by English law and enforceable through Singaporean courts, do not recognize non-payment as grounds for suspension or termination.
The subcontractors issued an urgent call for clarity from the project owner, demanding an actionable plan to address wage arrears. They also raised concerns about potential exploitation of Thai contractors by foreign counterparts. If no resolution is reached, subcontractors plan to march on October 18, starting from Boonjitt Wittaya School to the refinery’s headquarters, to deliver a formal letter to management.
Further appeals for intervention are being directed toward Deputy Minister of Commerce Suchart Chomklin and Chon Buri Governor Thawatchai Srithong. If no progress is made, the subcontractors intend to escalate the matter to the Ministry of Energy and Industry, as reported by KhaoSod.
The Clean Fuel Project, valued at approximately $4.8 billion (158,404 million baht), was initiated in 2019 and slated for completion in 2023. Located in Si Racha, Chon Buri, the project involves 16 subcontractors, including companies such as CAZ, CKC, and STECON. All are now seeking urgent intervention to prevent further financial fallout and ensure the project’s survival.
