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Daikin Industries (Thailand) Limited has temporarily suspended all its employees starting from 8 am on December 6. This decision follows unsuccessful negotiations between the company's management and the labour union regarding bonus payments. As a result, employees will not receive their salaries during this suspension period.

 

The conflict arose after Daikin employees expressed dissatisfaction with the management's offer of a 5-month bonus plus a 12,000 baht special reward. Employees argue that this offer is insufficient given the company's improved performance and profits this year. Thai labour law permits management to suspend employees if talks with the labour union fail to reach a resolution.

 

Suspended workers are not laid off, but they won't be paid, and management can hire new employees during this time. The suspended employees are not allowed to interfere with the new hires. The suspension and the company's response have drawn attention from industry experts and labour rights groups, sparking discussions about fair compensation practices.

 

Looking ahead, it remains uncertain how long the suspension will last and how the dispute will be resolved. Both parties will likely need to return to negotiations to reach an agreement that satisfies all stakeholders involved. The situation at Daikin may influence other companies facing similar labour disputes, reported Thai PBS.

 

Key Takeaways

• Daikin's suspension follows failed bonus negotiations.
• Management can hire new workers during the suspension.
• The labour dispute highlights issues of fair compensation.

 

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  Adapted by ASEAN Now from Thai PBS 2025-12-05

 

 

 

Daikin Thailand Settles Labor Dispute; Work Resumes

 

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Daikin Industries (Thailand) and its labor union have resolved their pay dispute, allowing operations to resume this morning at the Rayong manufacturing plant. This agreement, reached through discussions led by the Department of Labour Protection and Welfare, ended a three-day work suspension. Labour Minister Treenuch Thienthong expressed satisfaction with the resolution, which is effective for one year.

 

The conflict was triggered by worker demands for better pay and benefits. Negotiations had stalled until intervention by labor officials, highlighting issues in worker compensation and bonuses. The agreed terms include significant financial improvements for employees, reflecting changes essential to address worker grievances and prevent future disruptions.

 

Experts believe this agreement showcases effective mediation in labor disputes and sets a precedent for other industries. Workers will now receive a bonus equivalent to seven months of salary plus an additional 15,000 baht. Salaries will rise by 3% the following year, and a new cash reward replaces gold ornaments for long-serving employees—all aimed at improving employee satisfaction.

 

Looking forward, the focus will be on monitoring implementation to ensure all terms are honored. The agreement's one-year validity necessitates ongoing dialogue to address any emerging issues before its expiration. The company's future negotiations may serve as a model for labor relations in the region, reported Thai PBS.

 

Key Takeaways

• Daikin's new agreement includes a 7-month salary bonus and a 15,000 baht payment.
• Salaries will increase by 3% next year, with improved holiday allowances.
• A shift from gold ornaments to a 50,000 baht cash reward for tenured workers.

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  Adapted by ASEAN Now from Thai PBS 2025-12-09