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## Mid

*Danish Pandora jewelry considering new factory outside Thailand*
Anders Holm Nielsen
June 7, 2013




Growth can lead to new Pandora factory outside Thailands borders.  Fears of political unrest and natural disasters are taken into  consideration.

 Sales of Pandora jewelry is increasing in several key markets. It  provides bustle and consideration of new extensions at the factory in  Thailand where all of Pandora jewelry is produced today. But it is far  from certain that Pandora will be 100 percent dependent on its  production in Thailand.

 It can be risky to put all your eggs in one basket. It makes sense  to spread the risk, says Thomas Nyborg, CEO of Pandora Productions.

 Both airports in Bangkok had to close for a period in 2008 during  violent political riots. In 2010 demonstrations and street fights broke  out only 25-30 kilometers from Pandoras factory and curfew was issued,  said Nyborg.

 Recently, 61 provinces and 8.5 million people in Thailand were hit by  the worst floods the country has experienced in 70 years and Pandora  got tested its emergency response without using it.

 With so much drama in Thailand, the Pandora Board in Denmark may well  be a bit nervous about being totally dependent on production in  Thailand.

 It can have a decisive influence in a future strategic decision Pandora future of production.

 Asia is one of the areas where we expect growth, so there is a point  in getting closer to some of the largest markets here, says Thomas  Nyborg, who believes that the benefits of Thailand is so great that they  outweigh the risks.

 Among other things, Thailand has strong traditions in jewelry making.  There is also the option to expand capacity in Thailand if Pandora will  break with its own tradition not to work at night.

 There is a historical reason recommendation that it is best to  produce jewelry during the day, and it is also best for a familys daily  routine. So there is no social in it. But the night shift is widely  used in industry, and there is no strategic decided that we can not do  it here, says Thomas Nyborg.

scandasia.com

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## Mid

*No labor unions at Danish jewelry factory in Thailand*
Anders Holm Nielsen
June 10, 2013



The Danish jewelry company Pandora employs 5,000 employees at its  factory in Thailand; making it  the biggest in the country of its kind.  By placing the factory Thailand, Pandora avoids any labor unions and the  5,000 employees are left without a workers representative if they  experience unreasonable or deteriorating conditions, reports Danish  media, Berlingske.

 The management at Pandora is happy with the situation because according to them, Thai unions are difficult to work with.

 My personal opinion is that it would cause more unrest than do any  good if a union was to be involved, says head of operations in  Thailand, Thomas Nyborg to Berlingske.

 It is essential that the workers have a say, but if a union is  involved it has to take care of whatever interests the workers might  have at for example Honda or Kawasaki. That would only create perplexity  and not improve things here at the factory, Nyborg argues.

 However, should the workers choose to become organized, he cannot  object as being part of a union is a constitutional right in Thailand.

 Visiting the factory in Thailand, Danish Berlingske Business met with  the committee of cooperation. When asked about the most important  issues of 2012 and 2013 the members do not bring up salary but mention  the organizing of bus and company transport. They also state that they  have no conflicts with the management of Pandora.

 At the Danish labor union 3F, international advisor Jesper Nielsen agrees that a union is a bad idea in a country like Thailand.

 It is crucial that the workers have someone to go to other than the  management when there are difficult situations. Otherwise you will have a  situation where the workers fear of being fired will mean that they  will keep their opinion to themselves, said the Danish union  representative.

 Labor unions have tried to gain influence in the Thai jewelry  industry, but so far they have not managed to organize the workers at  Pandora.

 Basic salary at Pandora is 10,000 baht per month, according to Nyborg.

scandasia.com

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