jobless next year 'could run into millions'

Caretaker Labour Minister Uraiwan Thienthong said yesterday that the country's jobless could climb into the millions next year. She said the Suvarnabhumi Airport seizure was just one of the factors forcing manufacturers to shut down operations.

The minister said that 519 firms closed in recent months, laying off 44,794 workers. She said the ministry knows of about 2,000 other employers who are considering laying off more than 80,000 workers.

The ministry expects an increase in the number of jobless as a result both of the internal political chaos and the global financial crisis.

Uraiwan said the ministry would accelerate implementing urgent measures to solve the job crisis. It plans to propose a Bt1.53-billion budget for Cabinet approval.

Pongsak Assakul, vice chairman of the Thai Chamber of Commerce, said that the chamber has asked its members who have been affected by the economic crisis to seek all possible other solutions before laying off workers. There are many possible cost reductions, she said, such as decreasing working days from six days to two shifts of four days each.

He said members of the chamber who know that they have to lay off staff and those looking to recruit should get together and see if workers can be transferred.

Pongsak said the government should not use public funds to train the expected one million unemployed next year but instead use the funds to assure the financial liquidity of businesses, especially manufacturers, with low-interest loans and a search for new markets.

He said that the chamber forecasts that some factories will lay off workers and delay products for delivery in January because the operators cannot bear the burden of the lack of liquidity.

"Next year customers are likely to decrease orders from manufacturers, which will see operators competing furiously to keep orders by offering long-term credits to customer. Finally the operators will have to lay off workers to survive," he said.

Somchai Suttikulpanich, deputy senior manager of Thai Beverage Marketing, the maker of formula energy drink Wrangyer, said that vendors have lower stock because of lack of confidence and purchasing power and the decline in customers.

The workers' situation directly affects Wrangyer because workers are its target group of consumers.

About 56 workers at Sribanpai, a subsidiary of Advance Agro, the Double A paper manufacturers, yesterday protested against a salary reduction. The move came after the company reduced salaries by 50 per cent and told employees not to come to work for three months, said Tawatchai Namchiengtai, eucalyptus purchasing manager of the company.