Laid-off workers at a garment factory in Samut Sakhon have demanded their ex-employer speed up compensation payments after the textile company, which went bankrupt last month, said it will pay them in six months.
A total of 107 workers, employed at British-Thai Synthetic Textile Co Ltd in Samut Sakhon's Krathum Baen district, were shocked when the company announced without notice that it would cease operations, citing financial losses.
The company packed up on March 1, and laid off 85 Thai and 22 Myanmar workers.
Though the company assured them they would be given lay-off compensation as required by law, it told them the compensation would be paid in eight monthly installments, with the first to be paid on Oct 1.
This has sparked outcry from the workers who are on low incomes and fear such a long wait will make life hard for them.
"We'll have to wait for six more months. Now, we have no job, no money," said one.
"How can we afford to eat over the next six months? We are also not sure if we will get the compensation when the time comes," the worker, who asked not to be named, told the Bangkok Post.
Nipa Mongphetch, leader of the British-Thai Synthetic Textile labour union, said that the company had suspended all workers for three days in late February and had told them to return to work on March 1.
The staff went back to work only to find the factory's gates were shut, with an announcement saying the company had terminated operations, she said.
"All workers are having a tough time. They are out of work and still have not received compensation. The six-month wait for the financial compensation is too long and unfair," she said.
Many laid-off workers are now in their 40s and 50s and other factories are unlikely to employ them, Ms Nipa said, adding that it would be difficult for these workers to find jobs in different industries given that all they know is cloth-making.
Ms Nipa and the workers recently petitioned Labour Minister Gen Sirichai Distakul to hold talks with the company to speed up the payments.
They also urged the Employee Welfare Fund Committee to arrange for a quick disbursement of money from the fund to help the workers.
Each worker is entitled to about 20,000 baht assistance from the fund, Ms Nipa said, adding that the fund committee will later seek to recover the money from the employer.
Ms Nipa, 52, who worked at the company for 34 years, said the workers had also filed a complaint with police asking them to take legal action against the company for failing to pay the lay-off compensation immediately.
Workers who had been with the company for between 20-30 years are each entitled to about 100,000 baht compensation.
For those who worked for three years or more will get only about 10,000 baht, Ms Nipa said.
The daily wage of the workers was between 315-341 baht, she added.
Set up in 1972, British-Thai Synthetic Textile Co has now been declared bankrupt and its assets frozen, Ms Nipa said, adding that the company had experienced financial problems since the 1997 economic crisis
A lack of liquidity had left the company cash-strapped and unable to pay wages on time, she said.
The company's financial department explained that the company has been declared bankrupt and gone into receivership and the banks which are its creditors have become the owners of its assets.
In light of this, the company said it could not give any assurances to the workers, though it said it was trying to find ways to help them.
However, Manas Kosol, chairman of the Employees' Labour Development Council, said that employers are required by law to pay the lay-off compensation immediately upon the retirement of employees or the termination of employment.
He noted that some employers tend to pay lay-off compensation in installments or delay the payments.
Mr Manas also stressed the need for labour leaders and employers to educate employees about their rights and to work together on solutions such as setting up funds to help laid-off workers.
Sakdina Chatkul na Ayutthaya, a labour academic, said that the Labour Ministry must press the company to pay the compensation as quickly as possible.
The Labour Ministry must step in to help these workers by training them in new work skills and help find new jobs that are suited to their interest and ability, he said.
Charanchai Korsripitakkul, an officer in charge of labour welfare and protection in Samut Sakhon, said that he has issued an order for the company to pay the compensation worth about 10 million baht to the workers within 30 days.