18.02.09 GM Thailand axes 790 workers
Source: Bangkok Post
GM Thailand is laying off 790 workers after its
offer to production staff of temporary leave on 75% wages failed to
help allay the effects of the economic downturn.
The company recently introduced a voluntary retirement programme
offering production staff 11 months in severance pay, in line with the
labour law, plus another 15,000 baht. The layoffs at GM are a blow to the local automotive industry following
similar actions by a number of Japanese car makers including Toyota and
Mitsubishi.
The US car maker earlier shut its factory in Rayong for two months
to avoid an inventory buildup in the face of weakening orders from home
and abroad.
Local orders until last month were down 56% compared to the same period last year.
Since only 700 workers came forward to join the voluntary retirement
programme, forced layoffs have been introduced for another 90 staff.
Some 50 workers who were forced to resign have lodged a complaint
with their union demanding action against GM Thailand's management.
GM Thailand's Rayong plant employs about 3,000 workers.
The company has issued a statement saying the layoffs were unavoidable after it fell victim to the economic downturn.
It said the economic crisis was affecting all industries, including
the automotive sector, and GM had to restructure its operations to get
through the slump.
"Unfortunately, this restructuring plan is affecting the
organisation in terms of reduced human resources," the company said in
the statement.
"That's why we have had to implement the voluntary layoff programme.
Production staff joining this programme would receive payment packages
in accordance with the labour law.
"However, with the crisis we're all facing, the company may have to
implement another restructuring option if the voluntary programme
doesn't yield sufficient reductions.
"Nevertheless, all employees who resign under any options of the
restructuring plan will surely receive compensation packages consistent
with the requirements of the Thai Labour Act."
Staff have been told layoffs were happening worldwide and in all industries.
It said the temporary leave programme turned out to be an
unrealistic solution to the problems faced by the company as employees
received only half or less of their salaries over a short period.
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