Jobs Lost: Subcontracting jobs in Thailand worrisome

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BANGKOK, Aug 1 — Although the overall economy in Thailand is recovering steadily, several subcontracting firms have reduced the number of their employees, aimed at reducing their operational costs, said Suvit Sumala, deputy director-general of Labour Ministry’s Labour Protection and Welfare Department.

Mr Suvit said most businesses in the kingdom are performing normally as the general economy is improving following the May 22 military takeover.

However, certain businesses such as electronic production for automobile and electrical appliances are still cutting production and overtime work in order to cope with the sluggish global economy as well as enabling them to compete in international trade and in preparation for the launching of the ASEAN Economic Community, he said.

Besides that, a number of subcontracting firms have reduced the number of their employees, said  Mr Suvit.

For example, a factory producing auto spare parts in Samut Sakhon province has terminated about 800 workers and another factory producing electronic parts has laid off some 600 workers.

Both factories have compensated the employees under the Labour Law.

According to Mr Suvit, there are about 300,000 workers hired in subcontracting firms in the country.

In another development, Sumet Mahosot, director-general of the Ministry’s Employment Department, said the National Council  for Peace and Order has issued an order saying that registration centres for Cambodian workers in the border provinces of Chanthaburi and Sa Kaeo would operate until October 31.

Two other centres in Surin and Trat provinces bordering Cambodia closed on July 25 as scheduled.

One-Stop Service Centres, aimed at facilitating migrant workers from Myanmar, Laos and Cambodia in the registration process, have been opened in 53 provinces.

They will operate until March 31 as more migrant workers are expected to come and work in the fishery industry in this country, Mr Sumet added.