Over 200 workers of an underwear-making company in Saraburi came out to protest yesterday against the company's abrupt closure of its factory.
The workers say the company is trying to avoid paying the new daily minimum wage rate of 300 baht.
The workers, all women, submitted a letter to Saraburi governor Thaworn Phrommeechai with the help of Boonsom Thawijit, who is chairman of a labour group in the province.
The workers complained that Vena Garments Co, located in Wihan Daeng district, shut down abruptly on Dec 30 without notifying its employees in advance.
"No one expected the factory would close down that day since we were working up until Dec 29," said one worker, who asked not to be named.
"A worker found the shutdown announcement late at night the day before the factory closed," she said.
Prior to the closure, the company's management held two meetings with employees, on Dec 25 and Dec 27, where the company agreed to pay all benefits requested by workers, she said.
Mr Boonsom said he had heard the company could not afford to start paying the 300 baht daily wage rate which came into effect on Tuesday, as required by the government.
The company could not support the wage hike on top of an increase in production costs caused by a rise in the prices of raw materials, he said.
Protesters dispersed after submitting the letter to the deputy governor.
The factory's executives could not be reached for comment.
Kittipong Laoniphon, Saraburi Labour Office chief, said the executives said a big drop in orders from foreign customers, not the 300 baht minimum wage, had prompted the decision to close the factory.
The Labour Ministry, meanwhile, warned employers against attempting to flout the rise in the minimum daily wage, which took effect in all provinces from Tuesday.
Pakorn Amorncheewin, director-general of the Department of Labour Protection and Welfare, said employers who do not abide by the wage hike law will face both imprisonment and fines.
He said there are some cases where employers have managed to get their workers to agree to postpone the rise in the minimum wage. But he said these employers would still have to comply with the law, or they could be forced to retroactively pay workers the new rate, even if they are proved guilty two years from now.
Previously, some employers who ran a garment factory in Tak province had announced they would not be able to pay the 300 baht wage as required, Mr Pakorn said.
"A significant rise in incidents of companies shutting down to avoid paying the new minimum wage rate is expected to come by mid-year," said Suwit Sumala, director of the Labour Ministry's Labour Relations Bureau.
Labour Minister Padermchai Sasomsap said he believes employers know about the implications of the nationwide wage hike and should have prepared themselves for the increase in labour costs.
He said the government had put in place 11 measures to help cushion the impact of the wage hike, including reducing the corporate tax rate by 10%.