Thai auto business to revive from Japan disaster by Oct 2011


BANGKOK, 4 May 2011  – Negative impacts on the Thai automotive industry caused by the twin deadly disasters in Japan are likely to ease off in October 2011, according to the Automobile Workers Union (TAW). 

TAW Chairperson Yongyut Mentapao stated that the production volume in the domestic automotive industry has decreased by more than half of the original figure as a consequence of the catastrophe in Japan.

According to Mr Yongyut, many car manufacturers have since March been trying not to lay off their workers , adding that some companies have resorted to reducing their working hours due to the low production volume; as a result, workers are now receiving 75% of the wages.

Nevertheless, the chairperson expressed his opinion that workers’ pays should not be reduced given the issue was caused by the economic crisis. Besides, there was also a backlog order of more than 30,000 cars; the TAW thus demanded that the government step in to take care of this issue.

Mr Yongyut added that the situation of Japanese car manufacturers has improved and many companies have resumed their auto parts production. In addition, while waiting for parts from Japan, auto workers have been sent to car assembly seminars and have undergone training to enhance their knowledge for the benefit of the companies.

The chairperson also pledged that the TAW will monitor the situation closely, so employees in the domestic automotive industry have nothing to be worried about. He believed the problems would be eliminated by the end of October this year.