800 Workers To Be Laid Off By Toyota Thailand


The unit of Toyota Motor Corporation that is located in Thailand is already starting a program called voluntary redundancy. The program’s goal is to lay off around 800 subcontractors that are working in Thailand because of the economic issues that they are facing not just in the Southeast Asian country but also in other units of the company abroad.

According to a statement released by Toyota Motor Corporation in Thailand, there are various factors that have impacted the automotive industry both in domestic sales and exports. Some of the factors include the economic slowdown that Thailand is currently experiencing as well as the global economy which is getting more uncertain over the last few months. The impact on the automotive industry has started to be felt in the beginning of 2016.

The statement also added that because of the said negative impacts, the volume that is regularly produced by the company has reduced in considerable amount. It has also affected the overtime hours that the workers have to put in as well as the amount of the monthly salary that they are receiving.

According to the president of the Union of Toyota Thailand Worker, Phupal Samata, the company proposed the redundancy package to about 800 subcontractors but the number of workers who claimed the package is more than 800. He added that it may have been caused by the fact that there is no payment for the workers working overtime and majority of the subcontractors are finding it more beneficial to take the compensation package being offered by the company and find other more stable job instead.

Toyota covers about one third of the auto market in Thailand and it currently has 18,000 workers under its employment in the country. Out of the 18,000, 40 per cent of these workers are only subcontractors.

Thailand is the regional production unit of Toyota and the hub when it comes to export of the top carmaker in the world. The automotive sector makes up the 10 per cent of the total gross domestic product of Thailand. The domestic sales of the automotive products have decreased monthly based on the yearly data beginning May of 2013. This was caused by the car subsidy scheme that was ended in the year 2012. Now more people will be looking for a job in Bkk because of the lay off.