Real Estate Associations Take Action to Prevent Labour Shortages

Three Real Estate Associations in Thailand have filed requests to the Ministry of Labour in an effort to prevent labor shortages in Thailand, as well statements addressing the fact that it is extremely difficult for workers to switch jobs. Currently, workers must be approved by former employers in order to join new contracts.

Mr. Athip Peechanon, President of the Housing Business Association, said he believes that after the National Council for Peace and Order (NCPO) solves and reduces labour problems, the economic recovery in Thailand will influence labour demands in all sectors, especially in the construction and real estate industries. Previously, only solutions for individual, one-off issues were addressed. To date, there has been no comprehensive integrated solution to the problems that the labour force currently experiences.

Mr. Athip added that recently the Thai Real Estate Association which consists of the Housing Business Association, Thai Condominium Association and Thai Real Estate Association, has brought the shortage of labour in construction and real estate to the attention of the Ministry of Labour.

It is predicted that if the government initiates projects to enhance Thailand’s infrastructure, a labour shortage will take place just as the demand will begin to increase as a result of the upcoming ASEAN Economic Committee (AEC) liberalization. It is predicted that engineers will be the most prominent shortage. There are currently about 700,000 workers in construction and real estate, which is still sufficient for the present-day construction needs of Thailand. However, this number will be insufficient should there be an investment expansion from both government and private sectors. In order to avoid a labour shortage in this situation, there should be 80,000 – 100,000 more workers.

The issues such as ‘no worker could change one’s employer without permission’ was previously stated, when employers legally brought in workers which cost around 20,000 Baht, workers usually ran away for higher salaries.  While relocation is available only between districts, some employees demand relocation to other provinces. Relocation, even between different sides of a road, costs money. This would have a severe impact on construction, property, and fishery industries because employees must be relocated to the construction/working sites which might be located far from the employee shelters.

To solve this problem, the opponent suggests that if relocation in 4-5 districts can be completed with one permission and only one payment is required, areas surrounding the construction site would start to become valuable land purchases. If relocation between provinces is available, entrepreneurs will have more options.