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Labour Minister Monitors Labour Issues in All Dimension and Confirms Panasonic Moving Partial Production Bases; It will Compensate Terminated Employees According to the Law

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          The Labour Minister is monitoring the employment situation in all dimensions. In the case of Panasonic that announced the closure of operations and workforce reductions in Thailand to merge into Vietnam, he confirmed that the closure was the electrical appliances business in Thailand; there are production bases for other businesses. The company has paid employees following their rights according to the laws for the termination of employment.
          On November 1, 2020, Labour Minister Mr. Suchart Chomklin revealed that Prime Minister General Prayuth Chan-ocha closely monitored the labour situation. He has shown concern for Panasonic employees, following news that the company closed its business in Thailand and moved its production base to Vietnam. He urged the Ministry of Labour to investigate the facts, which found that Panasonic announced the closure of its electrical appliance factory in Thailand, to combine production with larger factories In Vietnam. The move aims to increase efficiency even further. The closure is only for the electrical appliance business in Thailand; there are still other types of factories continuing to operate in Thailand. The company has paid employees following their rights according to the law as for the termination of employment.
          Mr. Suchart said that from the initial investigation, the company announced the closure of the factory to employees on April 10, 2020, with the layoffs effective in September and October 2020. The factory to be closed produces refrigerators and washing machines. In March 2021, all factories will be closed, including the research and development center in Wellgrow Estate, where the company has laid off employees and contract workers, for a total of almost 800 people. The impacted employees will be compensated according to the law, amounting to 200 million Baht.
          “I have urged all departments under the Ministry of Labour, both in central and regional areas, to work proactively and closely monitor the labour situation. Prime Minister General Prayuth Chan-ocha has shown concern for this issue and has assigned the Ministry of Labour to integrate proactive work in all dimensions, to strengthen relationships between employers and employees,” concluded Mr. Suchart.

Division of Public Relations
1 November 2020

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