TOT to ask 3,500 employees to retire early in order to retrench

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BANGKOK, 7 April 2015, TOT (Public) Company’s executive board has approved of an early retirement plan for up to 3,500 of its senior employees in 2015 – 2016. The program will cost the company 6 billion baht to implement.

The company currently has 16,500 employees on its payroll. TOT has assigned its executives to look into the details of the scheme before proposing it to the board tomorrow.

Initially, certain terms and conditions of the plan have yet to be clarified, such as those who choose to join the retire plan cannot be rehired in future by companies under the TOT network, the minimum number of employees each department needs to maintain, those eligible must be 45 years old of age and have been with the TOT for at least 15 years, and those who join the plan would receive compensation worth 35-40 times their final salaries.

According to the company, the scheme is aimed at reducing its workforce size and cutting costs. It also expressed concern that the management would resort to more outsourcing, which would render the plan fruitless.