1,400 laid off as Samsung shuts plant

July 20, 201510:38 am305 views
1,400 laid off as Samsung shuts plant
1,400 laid off as Samsung shuts plant

MORE THAN 1,400 people have been put out of work as Samsung Electro-Mechanics (Thailand) has shut down its operations in Nakhon Ratchasima or Korat, and laid off employees because of low orders.

It was the factory’s second round of job terminations this year.

The company says it is accelerating the compensation process for this round and will finalise it next week.

Pongwut Petchwichien, of Nakhon Ratchasima’s Employment Department, said the agency had provided a service centre to assist the unemployed.

The centre will enable them to submit the relevant documents to get the compensation from the company.

More than 300 employees have applied for the compensation since the centre was established.

The company has been supplying hard-disk motors to Samsung’s factories both in Thailand and other countries.

The motors are used in the production of computer devices.

Because of low orders, the company previously announced the shutdown of its factory in an industrial zone of Nakhon Ratchasima province in April.

About 600 employees voluntarily resigned, and the company has already compensated all of the former workers.

Then on Wednesday this week, the company laid off more than 1,400 employees.

About 500 of them have already received compensation, and the rest are expected to apply for it by next week.

One of the laid-off employees said he had been working with the company for more than eight years. After the shutdown was declared, the company initiated the compensation process in an effective manner regarding the employment laws, and the employees were satisfied with the compensation and the firm’s actions.

The provincial Employment Department said those whose job contracts were terminated could apply for compensation as stated in the employment laws within 30 days after the termination.

The employees can contact the department by calling 044-355-266 extension 104 during government working hours.

news source & image credits: nationmultimedia.com & samsung.com/th
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