Host country perspective on the free movement of workers in an economic community : Germany and Thailand

Abstract

To examine the perspective of Thailand as a host country on the future free movement of workers in the ASEAN Economic Community (AEC), which will be established by 2015, focusing on unskilled workers from Cambodia, given that in the AEC only the free movement of skilled workers will be permitted at least initially. It investigates Thailand’s perception of economic, demographic and social impacts that could result from the possible future free movement of workers. Future push and pull factors behind the migration movement from Cambodia to Thailand are also considered. In addition, lessons that Thailand could learn from Germany after the EU Eastern enlargement in 2004 are examined. This study is a qualitative study using data obtained from in-depth-interviews with government officials, experts, NGOs, employers, workers and migrant workers in Rayong province, Bangkok and Munich conducted from March to May 2012. The results show that the overall perspective of the informants is positive especially in regard to the economic impact because Cambodian migrant workers could fill in labour shortages resulting from the expansion of the Thai economy and the aging society. Although social problems might increase, good management of migration flows and related issues would help tackle problems that may happen in the future. Though the free movement of workers in the EU and future AEC are in different context, implications resulting from the restriction that Germany put on the free movement of workers from new member states mainly Poland give rise to lessons that Thailand can learn. The seven-year restriction imposed by Germany resulted in (i) an increase in undeclared workers mostly in unskilled jobs because of the high demand for workers, (ii) economic losses as the undeclared sectors could escape from paying taxes, and (iii) losses of potential migrant workers as they change their destination countries. Even after Germany opened its borders for the free movement of workers in 2011, there was not influx of migrant workers except the double increase in the first month mainly because of language barriers, and economic developments in the home countries. Thus, since Thailand and ASEAN are moving to the same direction of creating a single market, and since labour mobility cannot be prevented, preparations for the free movement skilled and unskilled workers should be taken into consideration. This can be done by adopting appropriate policies on migration issues, providing a safety net for migrant workers, and integrating them into the society.