Thread: Thailand : Factories laying off workers

ECONOMIC DOWNTURN

Factories laying off workers
SUPAMART KASEM
Tuesday October 21, 2008

Manufacturers in Tak province are laying off thousands of workers after losing six months' worth of orders. Chaiyut Senitantikul, president of the Federation of Thai Industries in Tak, said yesterday thousands of both Thai and foreign workers in the province were likely to be laid off as local manufacturers had not received orders for this year's last quarter or next year's first quarter.

Since many manufacturers in Tak were cutting production, those who have not laid off their workers have asked them to take a vacation, saying they would be called back to work when new orders come in.

About 10,000 of 27,000 workers in Tak were ordered to take leave, said Mr Chaiyut, who owns a ceramics factory in Mae Sot district.

He explained that normally manufacturers in the province would by now have received orders for deliveries in the first quarter of next year, but none have been placed with them yet.

More than 100 factories that produce brand-name goods were even told to postpone the delivery of old orders until next year.

He blamed the situation on the economic downturn in the US and Europe.
''Under these circumstances, export-oriented manufacturers, both large and small, will lack liquidity because they have no revolving funds. It is difficult for them to borrow,'' said Mr Chaiyut.

Export-oriented manufacturers in Tak produce clothes, leather items and ceramics. In the past three quarters of this year, their revenues had dropped by about 30%, or about two billion baht, Mr Chaiyuth said.

He coceded it was difficult for the manufacturers to find substitute markets because their brand-name products attracted only middle-class and high-end customers in developed countries. These products would hardly be able to compete in low-end markets, he added. Mr Chaiyut predicted the economic situation next year would be even worse than the 1997 economic crisis.

bangkokpost.com

Anyone happen to know if factories are legally obliged to compensate workers when they're laid off?

Originally Posted by Mid

Manufacturers in Tak province are laying off thousands of workers after losing six months' worth of orders.

More than 100 factories that produce brand-name goods were even told to postpone the delivery of old orders until next year.

Whatever unravels the thai economy is all good news for the visitor. Better exchange rates, a new crop of sweeties and good cheap goods to be sold in markets everywhere.

^

a very short sighted view

^If the cuntry disintergrates, will the Bars be required to shut early?

Originally Posted by Mid

^

a very short sighted view

However, as the famous economist Keynes noted:

"In the long term we are all dead"...

Originally Posted by Mid

Manufacturers in Tak province are laying off thousands of workers after losing six months' worth of orders.

Well, I don't order anything from Tak province, but I have abandoned all new export orders from Thailand for min. 6 months also.

who was it to say , leave it a better place than you found it ?

^
Hitler?

Thorm: "This country's biggest problem isn't the global downturn. It is the idiotic political uncertainty." Isn't it more the case that the lack of a effective government makes it even more difficult (impossible) to deal with the global economic crisis? Like the US, only somehow even worse.

Tud: Will the "disintegration" of Thailand, or shall we say things falling apart (first stanza The Second Coming - Yeats ), come before or after an attempt to install a military dictatorship? What form will the chaos take? (TIT, forgive the contradiction in terms.) I think two mitigating factors will be that most Thais seem to lack the kind of strong convictions or dedication to ideology that would lead them to risk their own lives (when it comes to risking the lives of others it is a different story) for anything intangible. I think there is still a real disconnect in the lives of most people here between the public/political and one's private life, although this seems to be changing. It seems to me as well that given the fundamental conservativism of most Thais if things do get too wild the majority will welcome any force that can restore order, even if it means sacrificing civil rights.

Then again, and perhaps most frighteningly, what is it that holds this place together anyway? What has for decades has constituted the final barrier to things getting too far out of hand? Furthermore, will there even come a time when people come to question what it means to be Thai? One encounters an awful lot of empty nationalist sloganeering and propaganda here, and to me that always signifies insecurity. Lacking (thankfully) a unifying racial or ethnic identity, there seem to be three pillars of "Thai-ness"- the unifying effect of the Thai language, Buddhism, and most importantly, love of the king. The first is a real strength- if Thailand were divided linquistically like Belgium or Canada it would never hold, superficial differences in Isaan, the use of English and Chinese in business, etc., notwithstanding. Buddhism in Thailand remains profoundly apolitical, with the exception of Santi Asoke, and there don't seem to be any senior monks around with the kind of moral authority to make a difference. What political and moral authority is to be found in Buddhism brings us to the most important third pillar, or leg of the Thai table. I don't think one can question that the genuine love of Thais for the King remains undiminished- if anything, it is stronger than ever. If one can liken the nation to a family He is its Father in the moral, spiritual, and political sense. I do think that we are seeing the early stages of jockeying for position in anticipation of Thailand losing his steady hand and calming influence. I think it is clear that Thailand is even less prepared for that sad inevitability than it is proving to have been for the global economic shocks. I won't say more, for obvious reasons, but I do recommend having a look at the article linked to by Bangkok Pundit. Bangkok Pundit: Royal Succession

Having made that longwinded post, I realize this may not have been the right thread for it- sorry if it seems I am derailing the conversation.

Originally Posted by Thormaturge

There is even a new UK-Thailand double taxation treaty waiting to be ratified by Parliament. Well, when the politicians can get into the building and vote that is....

didn,t know that,mmmhh

Originally Posted by robuzo

Will the "disintegration" of Thailand, or shall we say things falling apart come before or after an attempt to install a military dictatorship?

Difficult to say considering there is an attempt to install a military dictatorship once every decade or so, not forgetting the constant undermining of the democratic process by the 'Institution'.

Thailand at the moment is like a patient that is ill but while acknowledging the illness refuses to see a doctor or take medication, allowing the illness to continue to ravage his body.

Originally Posted by robuzo

Thailand losing his steady hand and calming influence

What concerns me is that the King commands such respect and love, when he has gone as he surely wll one day, will his successor recieve the same adoration??

Originally Posted by robuzo

Thorm: "This country's biggest problem isn't the global downturn. It is the idiotic political uncertainty." Isn't it more the case that the lack of a effective government makes it even more difficult (impossible) to deal with the global economic crisis? Like the US, only somehow even worse.

I sort of agree, but the way I see it is that every country is affected by the global situation, so everyone is in the same kind of boat. Thailand's boat is, however. leaking due to the political problems.

Originally Posted by TSR2

Originally Posted by robuzo

Thailand losing his steady hand and calming influence

What concerns me is that the King commands such respect and love, when he has gone as he surely wll one day, will his successor recieve the same adoration??

To put it plainly, nope.

I had an airfix model TSR2 a long time ago.



..and don't worry too much about the new treaty, it has been sitting about since before the coup.

That's not the airfix model
It looked like this



Keep talking. Just keep the subject away from the King

Originally Posted by Thormaturge

I had an airfix model TSR2 a long time ago.

Long ago 1964 , I witnessed Roland Beaumont flying into Warton Preston to resume testing from there, christ it was noisey, like the same noise as if it were taking off, I asked my friend who worked at B.A.C Warton why, Blown Flaps , air taken from the engines and blown over the wing to give low speed lift ,so you need high engine revs so the noise , expect you new that already

^^Doesn't his son fly one like that?

Originally Posted by keda

Anyone happen to know if factories are legally obliged to compensate workers when they're laid off?

Yes... It's clearly spelled out in Thai Labour Law.

^I find anything in Thai script anything but clearly spelled out.

Originally Posted by bkkandrew

^I find anything in Thai script anything but clearly spelled out.

A complete English version (6-page pamphlet) is available from the Department of Labour. Apparently it is also on their website (so I'm told).

Originally Posted by watterinja

A complete English version (6-page pamphlet) is available from the Department of Labour. Apparently it is also on their website (so I'm told).

Didn't do you much good though, did it?

Originally Posted by mrsquirrel

Originally Posted by watterinja

A complete English version (6-page pamphlet) is available from the Department of Labour. Apparently it is also on their website (so I'm told).

Didn't do you much good though, did it?

A green is on its way...