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Published on January 25, 2008

Labour Protection and Wel-fare Department Department director-general Padungsak Thephasdin na Ayudhaya said the international economic situation could see businesses suffer from a lack of liquidity. And any rise in the baht could see foreign demand for Thai goods and services fall.

The department would develop measures to try to mitigate the impacts on the domestic economy, he said.

It said clothing, textiles, agricultural products, seafood, food and drinks and furniture exporters were most at risk, while some SMEs would encounter difficulties.

Padungsak said provincial labour-protection and welfare offices reported 153 companies closed, leaving 29,900 people out of work last year.

A third of those companies were in the Central region with 54, followed by Bangkok and surrounding provinces with 33.

Most were clothing, furniture, jewellery, food and drink, textile and rubber and plastic companies. Most employed between 50 and 299 workers.

However, on a positive note, 208 other companies employed an additional 19,400 workers at the same time.

The department is advising companies to cut costs with savings on utilities and administration. It is advising employers to reduce or cancel overtime, shorten shifts or give up on annual staff parties as ways to save costs other than lay-offs.

Unions or worker representatives are being encouraged to participate in cost cutting and effectiveness planning, Padungsak said.

If companies must resort to downsizing, it should be accomplished with the minimum of effects on staff, ideally through early retirement or voluntary redundancy.

The Nation