Wage Crisis Hits Thousands of Thai and Vietnamese Workers in Chonburi

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Groups of Thai and Vietnamese workers from three subcontractor companies gathered along Sukhumvit Road in Sriracha, Chonburi, to protest as they had not received their wages as scheduled on July 31, 2024.

CHONBURI — Over 8,000 Thai and Vietnamese workers are affected by subcontract companies that have been unable to pay their wages due to liquidity problems. Many endure the situation in the hope of being paid back wages, while some borrow money from illegal moneylenders to support their families.

Groups of Thai and Vietnamese workers from three subcontractors of a clean energy company have gathered in front of Thaioil Refinery Plant, along Sukhumvit Road in Sriracha, Chonburi, to protest as they have not received their wages as scheduled.

Mr. Pranomphorn, an employee of a Samsung subcontractor, said he was originally from Sakon Nakhon and had come to Chonburi to work, but had not been paid for two months. His Vietnamese colleagues have not been paid for six months. The situation has hit them hard as they have to support their families. He had to call his parents and ask for money because he thought the company would pay.

The problems with wage payments began in March of this year, and since then payments have been irregular. The workers have persevered due to financial obligations and in the hope of receiving back pay.

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Groups of Thai and Vietnamese workers from three subcontractor companies gathered along Sukhumvit Road in Sriracha, Chonburi, to protest as they had not received their wages as scheduled on July 31, 2024.

Recently, the company stopped payments altogether. When they asked, the answer was that there were no funds available. This led to the protests as they are demanding the wages they are owed. They have done the work, so they should be paid, especially as the company is large and reputable. They are calling on all relevant authorities to help them.

Ms. Chitlada Mornthong, an employee of another subcontractor, explained that the company has owed her wages for two months. Payments have been delayed since April and when asked, the company claimed it had no funds.

The last unpaid wages are for June and July. The great hardship caused her to demand her rights and wages, which are crucial to her monthly expenses, including rent, utilities and childcare. She has had to pawn gold to cover her expenses while she waits for back wages. She plans to keep protesting until she gets her money.

Ms. Daranee Thammanu, 27, another employee of a subcontractor, said she has been working for 2-3 years and has not been paid for two months, even though she earns 450 baht a day. The reason for her protest is extreme hardship as she cannot pay her monthly rent of 2,500 baht, utilities and food.

“My child is sick and I have no money for medical bills or household expenses. It’s heartbreaking to work and not get paid. Recently I had to borrow money from illegal lenders at 20% interest, which is expensive, but I had no choice. I hope the employer has compassion for the struggling workers,” she said.

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Groups of Thai and Vietnamese workers from three subcontractor companies gathered along Sukhumvit Road in Sriracha, Chonburi, to protest as they had not received their wages as scheduled on July 31, 2024.

Mr. Prasit Patankaro, Welfare and Labor Protection Officer of Chonburi Province, pointed out that in cases of unpaid wages or wrongful dismissal without fault, a TR 7 complaint is filed with the relevant province to resolve the problem, which is then investigated and action is taken.

If the officials decide that the employer must pay and the employer disagrees, it can appeal to the labor court. If the employer accepts the order but does not pay, the labor inspectors will take criminal action, and the employees can file a civil suit for judicially enforced payment. This process can be lengthy and undesirable. Affected workers can sign complaints at the office to assert their rights.

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On July 29, the Kasikorn Research Center published a report predicting an increase in industrial plant closures in Thailand, with Chonburi seeing the most closures in the first half of 2024 with a total of 118 factories. This is followed by Samut Prakan with 45, Bangkok with 44, Pathum Thani with 36 and Ayutthaya with 28. Most closures are in the stone crushing and grinding, mining, food and beverage, primary rubber production/rubber products, metal and steel and metal sectors.

The sectors with the most layoffs are wood processing/paper products, electrical appliances and equipment, textiles and garments, primary rubber and plastics, and steeland metal.

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