BANGKOK — Daikin Industries (Thailand) Ltd. and the Daikin Amata Raksa Seri Workers’ Union reached a settlement early Tuesday after more than 12 hours of negotiations over bonuses, wage increases and long-service benefits.
Talks began at 1 p.m. Monday and concluded at about 12:30 a.m. Tuesday at a Bangkok hotel, where mediators from the Labor Ministry oversaw the discussions. One key item was the company’s proposal to replace its long-standing 10-year gold-gift benefit with a cash payment.
Labor Minister Treenuch Thienthong welcomed the agreement, saying the ministry will continue to safeguard the rights of both employers and employees. The negotiations were led by labor inspector Prasit Patangkaroh and officials from the Chonburi Provincial Labor Protection and Welfare Office and the Department of Labor Relations.
Terms of the Agreement
Under the deal, the two sides agreed to the following terms:
— A 2025 annual bonus equal to seven months of salary plus 12,000 baht ($370) and an additional 3,000 baht ($95).
— A 3% wage increase for 2026 based on the midpoint of Grade C pay levels.
— A change to the long-service award, replacing gold gifts with a 50,000-baht ($1,570) cash payment for employees with at least 10 years of service.
— An increase in the daily shift allowance from 150 baht to 160 baht.
— An extension of holiday periods in 2026, including nine days for Songkran and nine days for New Year’s.
The agreement will be in effect from Dec. 8, 2025, through Dec. 7, 2026. Union members are expected to return to work at 8 a.m. Tuesday.
Background and Dispute
The dispute began after workers rejected Daikin’s earlier offer of a five-month bonus, a 12,000-baht payout and a 2% salary increase. Employees argued the package did not reflect the company’s strong performance, citing nearly 6 billion baht ($188 million) in profit and robust cash reserves.
Tensions also rose over Daikin’s plan to discontinue gold gifts for 10-year employees. With gold prices surging, the company proposed replacing the gift with a 40,000-baht ($1,255) payment and reallocating savings to the general bonus pool. Some workers opposed the change, prompting Daikin to offer a higher bonus of seven to eight months if employees agreed to end or convert the tradition.
After 11 failed rounds of talks, workers staged a protest last week outside the company’s factory in the Amata City Industrial Estate in Chonburi before the two sides finally reached a compromise.
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