10,000 workers

More than 10,000 workers in Lamphun could be laid off next year if manufacturers are faced with a continuous decline in orders, Manus Kiatcharoenwat, president of the Federation of Thai Industries in the northern province, said yesterday.

In the immediate future, an estimated 2,000 people will lose their jobs. Meanwhile, manufacturers may terminate the contracts of 3,000-4,000 subcontracted workers, who are mostly residents of Lampang, Phrae, Nan and Phayao.

"They are not being laid off because of liquidity problems. However, the companies are suffering from a fall in orders," Manus said. "Nearly 100 per cent of all 60 plants in the province's industrial estate are export-oriented, and their main markets are the US, Europe and Japan," he added.

The sectors most hit by the global economic downturn are electronic parts, auto parts and jewellery. It is expected that within the next three to six months, if there are no new orders, another 10,000 jobs would be terminated. There are about 50,000 workers in the estate at present.

Despite the gloomy employment outlook, Manus said some factories, particularly those owned by European investors, were paying out year-end bonuses thanks to accumulated profits from earlier in the year. Hence he did not expect labour conflicts like in other parts of the country.

Meanwhile, Japanese plants, which account for 70 per cent of the total, have already cut overtime payments and the number of workdays. From one day of rest per week, now they work only four or five days a week. Yet, no plant is expected to be shut down, as most investors are foreigners, who have the capability to continue the business but are suffering from low demand.

"Public agencies and the private sector in Lamphun will discuss preparatory measures to cope with lay-offs early this year. So far, we have tried to convince the operators to delay lay-offs," Manus said.

Meanwhile,Supha Manopanya, the province's labour official, said about 10 businesses in the province would be shut down in the near future, which would affect about 2,000 workers. Mostly, they produce electronic parts and gem-cutting devices.

Employers are encouraged to reduce workdays or temporarily suspend employment. Once their orders pick up, the workers could be recalled.

The Labour Office is working with the agricultural office in the province to shift workers from the manufacturing sector to the agricultural sector. Training sessions are being prepared and the workers will be informed of the expected demand for each crop.