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Published on July 22, 2007

Tempers rose until 3pm, when they tried to burst into the factory's grounds but were blocked by security officers who locked all gates on orders from the owner. No violence was reported.

The workers were frustrated as Yaowalak Unophas, owner of Thai Silp South East Asia Import Export factory in Bang Phli district, has turned reluctant to liquidate her company's assets despite their expectations.

After an all-day confrontation, with the mediation of labour authorities, Yaowalak agreed to form a team with 12 workers' representatives to inspect all marketable possessions of the company, particularly equipment and inventory.

The assessment produced an initial estimate of Bt140 million, of which Bt110 million was machinery and the rest stock.

"The real cost of the products is not yet finalised, while the figure for the machines is more accurate. There are some offers to purchase them at that expected value. But the owner doesn't want to seal a deal, waiting for a better bid," a workers' representative said.

"We have no confidence that we'll get about Bt20,000 per person, even though the company promises to pay up. We know it has big debts with financial institutions and has few assets left. But we should get something. It's important for our families," said Suphaphorn Upchakham, 26.

"I'm not moving anywhere until I get paid. If I walk out, then I might not be allowed to return to pick up my compensation money," said another worker, Pranee Phuangphaka, 34.

"Don't talk about the government or the authorities, I don't trust them. First they said they'd help bring back our jobs. Now, we're jobless again," she added.

According to local press reports, Thai Silp needs Bt150 million to pay off its workers. Its factory assets are estimated at about Bt140 million and it agreed to pay all of that to the workers, accounting for 92 per cent of the compensation due to them.

The company, however, owes Bt1.4 billion to five financial institutions: Kasikornbank, Bangkok Bank, Siam Commercial Bank, Bank of Ayudhya and HSBC.

The five creditors on Friday supported a move to keep Thai Silp in business by committing to a rehabilitation programme, which requires two months for the exporter to shape up.

Pressure from the strong baht - blamed as the real cause of Thai Silp's problems - has spread to garment factories in other provinces.

In Chaiyaphum, two factories have reportedly ceased operating, leaving workers at the remaining factories functioning in an insecure atmosphere.

"No news from my factory so far. But if has to close, we'll be in serious trouble for sure. I pray for that not to happen at our workplace," said Saengduen, 33, a worker at the Oriental Garment factory, who did not give her surname.

Theeraphol Khumsuk,

Suthiphong Setrangsee

The Nation