AAT to resume production in Rayong

The move comes after reaching an agreement with the Ford-Mazda Thailand Workers' Union on Monday.

The plant's production was disrupted in several ways last November 27, including a road blockade, after its workers demanded a higher bonus.

The agreement reached stipulates the company will pay a six months' bonus plus a Bt15,000 allowance and raise salaries 6 per cent. At present, it has about 2,800 full-time employees.

Liam Benham, former vice president of Ford Asia Pacific and Africa, said the agreement would satisfy all parties. The company, which has the capacity to produce 15,000 pickups a month, did not disclose how much the settlement would cost it.

Meanwhile, AAT will commence operations at its new US$500-million (Bt17.45 billion) plant in the third quarter. The facility will have an annual production capacity of 100,000 units.

It will manufacture the Ford Fiesta and the Mazda 2. The B cars are its new hope for boosting sales this year.

Although pickup sales have fallen sharply following the economic slump in the United States, AAT still foresees good prospects domestically.

"We'll continue what we've been doing in the first half, but we believe pickup demand will continue to grow in Thailand," he said.

Amporn Nitisiri, director-general of the Labour Protection and Welfare Department, said the temporary plant closure had also affected its parts suppliers.

"About 10 parts suppliers for AAT had to suspend production and pay only 75 per cent of their workers' salary. There are about 10,000 employees in these 10 plants," she said.

Industry permanent secretary Damri Sukhotanang said his ministry would focus more on working with the Labour Ministry to assist the unemployed and develop their skills.