More than 800 people have been thrown out of work by the abrupt closure of audio-video equipment manufacturer Funai (Thailand) Co in Nakhon Ratchasima.
The company recently announced it would shut down its factory and terminate all staff, starting on Nov 14, after its Japanese parent, Funai Electric, received court approval for its bankruptcy plan on Oct 24.
The Thai subsidiary now cannot import materials used in production, according to a statement issued by Funai (Thailand) Co in Nakhon Ratchasima’s Pak Chong district on Nov 8. So the factory is being closed down.
On Wednesday, the Pak Chong district office, Nakhon Ratchasima provincial labour office and the provincial security office set up booths at the factory where laid off employees could register for benefits.
Hundreds of workers arrived at the factory on Wednesday morning to register with labour officials. None had so far received any compensation from the company.
Apichart Suethuen, 52, a senior production manager, said Wednesday was the last working day for all 831 workers, including himself. All affected workers would register for unemployment benefits on Wednesday.
The company itself had said it did not have the money to pay them all off on Wednesday, he said.
A woman who gave her name as Pucharas said she had worked at the factory for more than 19 years. On Monday she received a letter from the factory’s human resource department saying she would receive 190,000 baht in compensation. She did not know when the payment would be made.
The firm had earlier said compensation would be paid within 90 days.
Ms Pucharas said workers would converge on the provincial labour office if the compensation payments were not made within the 90 days.
“We deserve to get compensation money, but what we get is only a piece of paper and the abrupt shutdown of the factory. All of us are badly affected because we have families and obligations. Some workers are old and don’t know how to find a new job,’’ Ms Pucharas said.
Other workers also complained they had still not received the compensation due them under the labour law. They had heard the company did not have the money to compensate them.
A total of 831 workers are being laid off, according to Thai media reports.
Funai (Thailand) Co, an audio and video equipment manufacturer in Pak Chong district, Nakhon Ratchasima, is shutting down on Nov 14, putting 831 people out of work. (Photo: Chaeng Khao Theenee Pak Chong Facebook page)