With the last payment, management hopes to completely close its manufacturing plant in Thailand. Last month, the company paid more than Bt 90 million for statutory severance payments. The payment was in accordance with Thai labour law, but did not satisfy the labour union.

However, the latest development will raise a new round of controversy between the company and those employees who are not union members. Non-union members, who previously voluntarily resigned after receiving the severance payment package, may ask for additional compensation as they have always supported the company. In addition, some union members will not receive additional compensation as they quit before the protest came to an end.

The company has sketched a draft joint statement for the union leader to sign.

Duangjai Muangthong, president of the union, told The Nation yesterday that she had not signed the joint statement but needed to read it in detail and double-check the legal wording.

"We have to be careful reading the details to ensure our members' maximum benefit. We don't want to see a tense situation, but we will fight to protect workers under the Thai labour law. We want to see Thai labour have more protective measures," she said.

Duangjai added that the union was satisfied with the company's offer so far, although the extra payment is worth about three months less than its demand of six months.

The union has a total of 1,327 members to whom the additional payments have to be paid depending on their period of employment.

The union also asked for a proportional bonus, annual perfect-attendance and seniority gold awards, an extra six-month payment, an extra 45-day compensation for pregnant women, and severance payments which some workers had not received at the proper amount.

However, the company agreed to pay only annual perfect-attendance gold awards, compensation for pregnant women, which will help complete the amount equivalent to the total 45 days, and extra relief compensation equivalent to 30 days wages.

Hong-Kong based Clover Group International, the parent company of Ginaform Bra, has tried to end the controversy for months by injecting millions of baht into the compensation package. The company decided to move from Thailand to Cambodia due to higher production costs and financial pressure here.

In September, Ginaform Bra announced that it would shut its Thai plant and pay compensation in accordance with Thai labour law.

Andy Fung, vice president for manufacturing (offshore) of Clover Group, said the company hoped for a satisfactory conclusion since the parent company was concerned about the wellbeing of its 20-year Thailand workforce.

"Despite the difficult decision of closing down the facility, the company and the group wish for a smooth ending and the satisfaction of the workers," said Fung.

Achara Pongvutitham

 The Nation