NAKHON RATCHASIMA — In a sudden turn of events, 831 employees at Funai Thailand’s Pak Chong factory in Nakhon Ratchasima Province face unemployment without severance pay following their parent company’s bankruptcy in Japan.
The factory, which will permanently close its doors on November 14, 2024, initially announced a temporary one-month suspension of operations from November 1-30 due to raw material procurement issues.
The closure announcement came as a shock to employees, who were only informed on November 12 that the factory would permanently shut down two days later. The company has agreed to pay only the final month’s wages on November 13, leaving long-term employees without severance packages or compensation.
“We’ve dedicated 19 years of our lives to this company,” said Napapat Thundee and Punyasami Salakkham, two affected employees who earned approximately 17,000 baht monthly. “We don’t know how we’ll support our families without severance pay.”
Local authorities have mobilized to assist the affected workers. The Nakhon Ratchasima Provincial Labor Office, along with various government agencies, has set up registration points opposite the factory on Pak Chong-Lamsamphung Road to help workers access unemployment benefits.
Wanicha Ketkaew, Head of the Pak Chong Branch of Nakhon Ratchasima Social Security Office, explained that they set up registration desks today to clarify benefits available to insured workers. For unemployment due to termination, the Social Security Office will pay 50% of wages for 180 days or until the insured person finds new employment.
For insured workers aged 55 and above, officials will guide them in applying for old-age pension benefits. As for those currently receiving child support of 800 baht monthly, they will be advised to register under Article 39 of the Social Security Act to continue receiving this benefit.
Senior Production Manager Apichat Sueathuean revealed that foreign executives cited financial inability to provide severance packages. “When foreign companies operate in Thailand, there should be guarantees protecting workers in case of closure,” he urged.
The parent company, Funai Electric, received court approval for its bankruptcy plan on October 24, 2024, with liabilities reaching ¥46.1 billion ($303.6 million). The Osaka-based manufacturer, founded in 1961, struggled with North American market decline and Chinese competition following the 2008 financial crisis.
Sirasit Loertduanglab, MP for Nakhon Ratchasima’s 14th district from the Pheu Thai Party, has pledged to raise this issue in parliamentary committees to address the workers’ plight.
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