US embassy cable - 05TAIPEI3525

UNCLAS TAIPEI 003525 
 
SIPDIS 
 
DEPART PASS AIT/WASHINGTON 
DEPT FOR EAP/RSP/TC 
 
FROM AIT KAOHSIUNG BRANCH OFFICE 
 
E.O. 12958: N/A 
TAGS: ECON, TW, Domestic Politics, Finance 
SUBJECT: Thai Workers Cause Riot in Southern Taiwan 
 
 
1. Summary.  A riot erupted when Thai laborers were angered 
by their Taiwanese employers late Sunday night on August 21, 
2005.  The disruption was instigated by Taiwanese employers' 
application of stringent regulations on the Thai workers. 
Executives of the Huapan Manpower Consultant and Management 
Co., Thai officials, local police, and local district 
prosecutors worked together to quickly resolve the 
situation.  Taiwan's Council of Labor Affairs (CLA) decided 
to transfer 800 Thai laborers who been catalysts of the riot 
to work at other construction sites.  Applications to 
receive 971 additional Thai laborers, submitted by the 
employer, Kaohsiung Rapid Transportation Corporation (KRTC), 
will be turned down.  The consultant firm may be fined for 
mistreating foreign workers.  The CLA stated the riot will 
not affect the labor cooperation between Taiwan and 
Thailand.  End Summary. 
 
2.  A riot erupted in Kaohsiung County, southern Taiwan, on 
August 21, 2005 when more than 1,700 Thai workers set fire 
to their living quarters and cars, and hurled rocks at 
police and firefighters who arrived to ease the situation. 
The workers had been hired to complete the construction of 
the mass rapid transit railway, which will connect Kaohsiung 
City to Kaohsiung County and to Pingtung County.  The 
project is expected to be completed by October 2007.  The 
laborers, who had long been angry at strict working rules, 
were further angered when their Taiwanese employers 
prohibited them from bringing alcohol to their worksite. 
 
3.  The workers set fire to their dormitory, cars, and 
hurled rocks at officials who arrived to control the scene. 
No injuries were reported, but it is estimated that the 
damage to the dormitory will cost Huapan Co. USD300,000. 
Soon after word of the incident spread, officials 
congregated to discuss the situation.  Negotiations took 
place and Taiwan employers agreed to ease restrictions on 
drinking and the use of mobile phones and the workers were 
granted permission to watch Thai TV. 
 
4.  KRTC was frustrated at the violence that occurred. 
According to KRTC executive Chang Hsiu-chi, KRTC currently 
has 7,600 local laborers and 1,728 Thai workers hired for 
the city's mass rapid transit railway.  According to Chang, 
the Thai workers are more willing to work overtime.  A hard- 
working Thai laborer normally can earn up to USD 1100/month 
(the basic payment of USD500/month plus overtime payment), 
which is as much as a domestic worker can earn.  Chang noted 
the Thai workers who stirred up the trouble apparently were 
upset by their treatment in general: inadequate living 
space, strict living rules, etc. According to Chang, the 
1,728 Thai workers are living in four 650-square meter 
dormitories at Gangshan, Kaohsiung County.  Thai workers 
also complained that they were not compensated for overtime 
hours, which is a report that KRTC denies. 
 
5.  Both KRTC and Huapan face punishment in the forms of 
fines for their mistreatment of workers.  The CLA has 
requested the transfer of 800 Thai workers who were involved 
in the riots to work at other infrastructure projects. 
KRTC's application for 971 additional Thai laborers also 
will be rejected.  Huapan Co. may be fined between USD 1,900 
and USD 9,500 for mistreating the laborers.  KRTC executives 
are worrying that the halt of hiring foreign laborers may 
increase costs of the project by 50 percent and may cause 
delays in completion of the project as well. 
 
6.  The Project:  Kaohsiung Mass Rapid Transit System (KMRT) 
called for construction of two (orange and red) lines 
totaling 42.7 km and 37 stations.  The system is designed to 
connect Kaohsiung City and the neighboring Kaohsiung County 
and Pingtung County.  The US$5.6 billion project, under 
construction since October 2001, is scheduled for completion 
in October 2007. 
 
7.  Information contained here came exclusively from KRTC 
and the Huapan Manpower Consultant and Management Co. 
Neither laborers' representatives nor Thai officials were 
available for contact.  AIT/K will follow up with Thai 
officials and labor representatives and report by septel.