No raw materials from China forces closure of Kanchanaburi factory – 500 jobless
About 500 employees of a company in Thailand’s western province of Kanchanaburi were abruptly notified by the management on Friday that they are being laid off, due to a shortage of raw materials normally imported from China.
The employees, including Thais, Filipinos and those from Myanmar, arrived at the Zica New Materials Company in Village 14, Tambon Huey Krachao, Huey Krachao district in the morning only to find out that the gates were locked, with a notice attached from the management announcing the shutdown of the office and factory.
Provincial labour and social welfare officials, as well as officials from the Internal Security Operations Command, were sent to meet with the shocked workers, most of whom admitted that they had not been aware that the company was in trouble after six years in operation.
The notice from the management claimed that the company had run out of raw materials from China, due to the outbreak of coronavirus.
Labour officials said that the Taiwanese CEO had already flown back to Taiwan.
One of the labour officials, Mr. Pairote Panthakarn, said the management had agreed to pay 2,500 baht compensation to each of the 193 Myanmar migrant workers and arrange for buses to take them to Mae Sot district in Tak province for the journey back to Myanmar.
For the Thai employees, negotiations with the management, to settle on the severance pay issue and mediated by labour officials, are ongoing.
Mr. Pairote said labour officials would help if the Thai employees want to take a case against the management to the labour court, to seek better compensation for their abrupt termination.