Daikin Industries (Thailand) Limited, manufacturer of Daikin air-conditioners, has temporarily suspended the employment of all its employees, effective from 8am on December 6, after talks between management and the labour union on a bonus issue failed to reach agreement yesterday.
The company issued an announcement yesterday, informing its employees of the management’s decision to suspend their employment.
Under Thai labour law, the management has the right to suspend its employees as a last resort, if management and employees or the labour union representing the employees fail to achieve a resolution to their labour dispute.
This does not mean that the employees are laid off but they will not get paid during the suspension period. The management has the right to hire new employees to work during the period. The suspended workers are prohibited from obstructing the new employees.
The labour conflict stems from the employees’ dissatisfaction with the 5-month bonus, plus a 12,000 baht special reward, offered by the management, claiming that the company’s performance and profits have improved this year and that their demands for additional bonus payments and the special reward are justified.
