About 500 workers of Ginaform Bra Ltd yesterday used well-known lingerie brands to protest in Bangkok against the company’s recent announcement that it will shut down operations next month.

About 1,600 workers of Ginaform Bra Co Ltd will lose their jobs on October 31 as its parent company in Hong Kong has decided to shut the plant in Bangkok and move to such countries as China and Cambodia.

Owned by the Hong Kong-based Clover Group International Ltd, Ginaform has been planning to close down for months. Earlier, the company moved its two state-of-the-art cutting machines to Cambodia and 600 sewing machines to China.

The Clover Group believes production costs in Thailand are no longer competitive, compared with its manufacturing bases in China and Cambodia. Thailand's minimum wage is Bt184 a day, whereas in Cambodia it is just Bt70.

The garment industry here pays about Bt250 a day for skilled labour. Since the industry is labour-intensive, rising minimum wages are bound to affect manufacturing costs.

Ginaform Bra announced to its workers on Monday that it would permanently close in October and that compensation would be paid under Thailand's labour law.

It has manufactured medium to high-end lingerie under global brands such as Victoria's Secret, Calvin Klein and AB Lindex.

The company's labour union, together with 500 workers, marched to Government House yesterday to submit a letter to caretaker Prime Minister Thaksin Shinawatra. They want Thaksin to investigate the reason behind the closure plan - whether the company really wants to move the plant or whether it is seeking to teach the union a lesson.

Duangjai Muangthong, union president, said they had sought a meeting with the company's management but the request had been turned down. The union wants to ensure compensation is paid and all appropriate assistance is given to workers to guarantee their social welfare.

Sathaporn Jarupha, director of the Labour Protection Office, said yesterday that the office would hold a meeting with the union and the company's management tomorrow.

He said the workers were concerned over whether compensation - about Bt70 million - would indeed be paid as the company has been gradually moving the sewing machines to China.

They want it to keep the machines at the manufacturing plant until October 31 as they believe that would guarantee them 100-per-cent compensation.

A garment industry source said yesterday that operations were being shut down due to mismanagement rather than increasing labour costs.

The manufacture of medium to high-end products needs highly skilled labour and technicians to ensure productivity, the source said. In addition, the company has subcontracted out some of its manufacturing. As a result, the price and margin per piece are lower than for made-to-order production.

Ginaform Bra was unavailable for comment yesterday.

Achara Pongvutitham

The Nation