Labour department to mediate in dispute at Daikin Thailand
The Department of Labour Protection and Welfare will step in to mediate the current dispute between the union and management at Daikin Industries (Thailand) on Monday.
Pongthep Petchsom, deputy director-general of the department, said that the two sides remain locked in dispute over one key issue after 11 rounds of failed talks. At dispute is the ‘special reward’ in the form of gold ornaments for outstanding employees, on top of the bonus.
The management issued an announcement on Thursday suspending the employment of all workers, effective December 6th, after the latest talks with the labour union broke down. It said it has the right to hire new staff to replace the suspended workers during the suspension period.
Pongthep explained that the sharp increase in gold prices this year, which has nearly doubled since the agreement was originally reached between the management and the labour union, has made the management reluctant to fulfill the promise.
Although the agreement is legally binding, he said that it can be amended with the consent of both the management and the labour union.
Besides Daikin Industries (Thailand), Pongthep said there are a few companies in the energy sector that offered ‘special rewards’ in gold to their staff, as a productivity incentive.
Sriprai Nonsee, a labour unionist in the Rangsit area, said that there are several other companies in the area which are in the process of negotiating with their unions, seeking to amend their agreements on gold rewards, due to the significant increase in the price of gold.
David Welsh, country director of the Solidarity Centre in Thailand, said that the management has the right to offer or not to offer a ‘special’ bonus in the form or cash or gold to the workers but, if the workers have fulfilled the conditions set by the management, they should receive the special bonus.
He said he is surprised that the employees at Daikin Industries faced a public backlash when they demanded that to which they are entitled.