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22 October, 2012In Thailand over 300 workers dismissed without full severance pay at Kabinburi Pan Asia Footwear, a producer for Nike shoes, staged a demonstration in front of Prachinburi City Hall on 11 October.
According to the workers representative at Kabinburi Pan Asia Footwear the workers were not organized at the workplace but after being collectively dismissed they got together and demonstrated to voice their demands. Their demand is for 100 per cent of the legal severance pay for all the dismissed workers. The majority of the dismissed workers dismissed on 8 October are women and had been at the company for over 15 years.
Kabinburi Pan Asia Footwear Ltd is under the management of the Sahaphat Group, which is one of the largest business conglomerates in Thailand, they produce for Nike and for Hammel; a Danish sportswear company.
After a mediation meeting facilitated by the provincial labour office of Prachinburi on 8 October, the management of the company said that they would pay the workers 30 per cent of the legal severance pay, claiming that the company had to close down due to major losses. Some workers under economic pressure accepted management’s proposal but the majority of the workers are continuing to fight for legal severance pay and submitted a complaint in writing to the provincial labour office of Prachinburi on 11 October.
According to Thai labour law an employee must be given notice of termination at least one pay period or one month in advance of termination. Therefore, the workers at Kabinburi are also entitled to an additional one-month salary in lieu of notice pay.
Based on the Thai labour law, severance pay is as follows:
Period of employment | Amount of severance pay |
More than 120 days but less than 1 year | 30 days wages or salary |
At least 1 year but less than 3 years | 90 days wages or salary |
At least 6 years but less than 10 years | 180 days wages or salary |
At least 6 years but less than 10 years | 240 days wages or salary |
At least 10 years | 300 days wages or salary |
The workers are also preparing to file a court case since the employer has refused all attempts made by the workers to negotiate.