THAI union vows to oppose status change

THAI’s union has pledged to “oppose to the end” a possible reduction of the Finance Ministry’s stake in the national carrier that would end its state-enterprise status. Nares Puengyam, president of the union, on Monday issued a statement on the union’s position regarding the restructuring plan. According to the statement, THAI employees agreed with the proposal by the Transport Ministry on debt restructuring under the supervision of the central bankruptcy court. “We are confident the company can be rehabilitated under this proposal. The plan would benefit the company, which will be back in business with improved competitiveness,” read the statement. But the group disagreed with the ministry’s proposal for the Finance Ministry to reduce its stake in the airline by 2%, citing two reasons. First, as the company will be restructured under the supervision of the court, the downsizing of the stake by the Finance Ministry could lead to creditors opposing the restructuring and using the bankruptcy law as a tool. Second, the union continued, the stake reduction beyond 50% of all shares would automatically dissolve the union, leaving employees unprotected at this critical time when staff numbers would be cut and their benefits trimmed.<br/>