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Daikin Lockout Stirs Thai Workers Amid Bonus Dispute

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Picture courtesy of Laem Chabang-Bowin Chon Buri Sahaphat network Facebook page

 

Daikin Industries (Thailand) Co has initiated a lockout affecting approximately 1,300 workers after negotiations over annual bonuses failed with the labour union. This action, starting Saturday, stems from unresolved talks with the Daikin Amata Rak Seri Labour Union and Chon Buri’s labour dispute office. Although the lockout removes workers from the site, it is not considered termination of employment.

 

The conflict arose after Daikin proposed an annual bonus of five months’ salary plus 12,000 baht, which the union rejected, pushing instead for a higher payout. The union also protested the cancellation of a traditional reward system involving gold for long-serving staff amidst Daikin’s declared profits of 5.9 billion baht. Mediation efforts have been ongoing since September, with talks scheduled to continue.

 

Despite a proposed mediation meeting on December 8th, the lockout surprised union members. Union President Manit Piyang questioned the company's financial reasoning, noting improved company performance and profitability would support meeting the union’s demands. Daikin’s 3% salary increase offer also fell short of the union’s 6% request, with many workers earning just over 10,000 baht monthly seeking larger raises.

 

The company cited economic constraints and competition for its conservative financial stance, emphasising the need to keep cash reserves. In response to union demands for an eight-month bonus and additional benefits, Daikin offered a compromise of a six-month bonus and a cash payment instead of the gold previously promised. Union dissent centres on this change, arguing it breaches individual agreements between employees and Daikin.

 

Lockouts are legally permissible under Thailand’s Labour Relations Act of 1975 when negotiations fail. During this period, locked-out employees will not receive wages. The Eastern Labor Relations Group condemned the lockout, demanding transparency of Daikin’s financial status and an end to the lockout, urging for a swift settlement facilitated by labour officials.

 

This situation has had significant implications for Daikin’s Thai operations, an entity that’s been present in Thailand since 1975. Despite the company’s contributions to employment and the economy in the region, the ongoing labour disputes highlight tension between company policies and union expectations, reported the Bangkok Post.

 

Key Takeaways

 

Daikin locked out 1,300 workers after failed bonus talks with the union.

The union requested higher bonuses and opposed changes to long-standing gold rewards.

Legal lockouts mean workers won't be paid until disputes are resolved.

 

image.png  Adapted by ASEAN Now from Bangkok Post 2025-12-06

 

 

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  • scubascuba3
    scubascuba3

    Unions killing jobs again

  • Thailand should take note of western countries where the unions killed industry!

  • What a ridiculous demands.. I worked in a bankoffice for 26 years and we got paid a so called 13th month salary in December  as a bonus. So a 5 month extra payment and a extra 12k is very generous. Ok

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I never came close to getting a bonus of that size during my working life.. sounded quite generous. There used to be talks of bonus' being integrated into salaries, ie hourly rates but the union still wanted a bonus next year. 

Used to be a more generous time in years gone by, my mother and father always came home with Christmas packages that included bottles of booze and foodstuffs. 

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What a ridiculous demands.. I worked in a bankoffice for 26 years and we got paid a so called 13th month salary in December  as a bonus. So a 5 month extra payment and a extra 12k is very generous. Ok the monthly wages are not so high, but the union could better focus on a higher monthly wage instead of the big bonus of about 62k in 1 time..And 3 Baht gold for people who work for a long time is totally over the top. When I celebrated my 25th work anniversary I got an extra month paid on the day and I could have a dinner for 10 people. But Thailand is greedy and nobody has ever enough...

It is perfect that Daikin propose that if the workers and or union are not satisfied with this generous proposal they could better find a new job or company that will have better conditions. 

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4 hours ago, webfact said:

The conflict arose after Daikin proposed an annual bonus of five months’ salary plus 12,000 baht

That seems like a healthy bonus. 

Thailand should take note of western countries where the unions killed industry!

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I used to work for a company that was as tight as tight can be.  Then again, the staff turnover was tiny so they were getting most of the other stuff right.  We had a union, and they were far more bothered about safe working conditions than a penny or 2.  Overall, a good balance I think.

 

My last employer did the month 13 bonus thing at Chinese New Year, and then did a profit share bonus 6 months later.  They stopped that profit share for no good reason (other than corporate greed; the profits were rising), and lots of staff left.  I wonder if the Daikin Thai staff are looking at the profits and wondering where their cut is, and if there are other things that are tipping the balance (like a-hole managers - that's what made me leave the above-employer).

 

My current company has been going for around 6 years, staff of around 25 just now.  We've only ever had 1 person leave and the job she went to was always her dream job.  We knew that, and she went with our best wishes.  Nobody else has left.  We don't have a union, we simply use common sense and listen.  Daikin is likely too big for this though, it's hard to keep a-hole managers out of a medium to large business.

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Many Big Thai companies like PTT, Chevron, Thai Oil, and many others pay very generous annual bonuses, including gold for long serving staff, to their staff, pretty much in line with what Daikin offered, this is nothing more than a Union rattling their fist - which in this case is biting them in the erse!

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3 hours ago, TedG said:
7 hours ago, webfact said:

The conflict arose after Daikin proposed an annual bonus of five months’ salary plus 12,000 baht

That seems like a healthy bonus. 

 

Yeah.  Right up until this, from the OP:  ...with many workers earning just over 10,000 baht monthly seeking larger raises. 

 

In that case, the bonus amounts to about $1,500.  Living in Thailand may be cheap, but $300 a month isn't really a living wage in the more expensive areas like the Eastern Coast.

 

 

 

 

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4 hours ago, jacko45k said:

I never came close to getting a bonus of that size during my working life.. sounded quite generous. There used to be talks of bonus' being integrated into salaries, ie hourly rates but the union still wanted a bonus next year. 

Used to be a more generous time in years gone by, my mother and father always came home with Christmas packages that included bottles of booze and foodstuffs. 

 

I doubt that you worked in a country where a general bonus was worth 5 months of pay. That type of payscale  for non sales workers suggests that base wages are non competitive and low. Depending upon the structure of the bonus, it means that the employer can minimize pension and benefits contributions and minimize lax liability.  In plain language, it looks like the employer is screwing around.

"...Daikin proposed an annual bonus of five months’ salary plus 12,000 baht, which the union rejected, pushing instead for a higher payout."

The concept of paying (relatively) huge bonuses makes little or no sense to me. The bonus would encourage binge 'I won the lottery spending' I would guess. The sensible plan would be to raise the monthly wage by 41% (5/12ths) plus additional 1000 baht a month.  

My ex worked for a firm with year end bonus... BUT she had been hired in middle of the year so they gave her NO BONUS.... "not here long enough". If that bonus was worked into monthly pay, that problem wouldn't exist.... hmmm trusting soul that I am, perhaps devious firms might fire workers in early December to pocket that bonus....

5 months and 12k is big money. The company can have financial issues in the future with this kind of expense. 1 month plus 12k might be normal?

The 3 Baht gold bonus was done way back when gold prices did not increase a great deal. In the early 2000s gold was around $400 an ounce, but today it is $4200.  It seems to me that greedy Thai workers are doing exactly what the greedy workers in the West started doing in the 80s  - demanding more money - which increase costs - which increases prices - which make workers demand increased wages - and on and on the cycle goes. That is why not much manufacturing business exists in the west - far cheaper to make stuff overseas.

 

Thailand is heading in that direction - and Vietnam, Malaysia and Indonesia are smiling as they welcome more and more global companies to build factories and facilities in their countries.  What we have ben seeing since Covid is the beginning to middle stages of the inevitable decline in Thailand.  As per Google AI - prosperity leads to decline.

 

Periods of wealth and success often sow the seeds for future problems, manifesting as complacency, greed, wealth concentration, apathy and economic instability (cyclical booms/busts), all leading to societal breakdown. This concept highlights the fragility of fortune and the potential for abundance to foster negative traits or conditions that ultimately cause downfall, creating a cyclical pattern in civilizations, economies, and individual lives.

 

China is the only surviving Ancient Civilisation (5000 years) and they have achieved that by avoiding the decline that has occurred in all other great and small civilisations. But they are certainly greedy people, so the question is how did they do it?  IMO it is because of an extremely strict control of the People - starting with a 'Royal' class which would change Dynasty to Dynasty, and most recently by a centralised Communist Government. 

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8 minutes ago, TroubleandGrumpy said:

It seems to me that greedy Thai workers are doing exactly what the greedy workers in the West started doing in the 80s  - demanding more money - which increase costs - which increases prices - which make workers demand increased wages - and on and on the cycle goes. That is why not much manufacturing business exists in the west - far cheaper to make stuff overseas.

You have to be quite retarded if you actually think that is what caused the economy to be what is today. Wages globally ware way lower than where they should be if you factor in real inflation over all the years. Not to mention jobs for 30-40 years in general are a horrible deal on a short life.

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Unions helped create a genuine middle class in the West as it developed.  Don't equate what they have become there with the importance of unions in developing countries.  And don't assume from that article that it is the union's greed that led to the stalemate.  

 

The question is how to keep workers from exploitation from far more powerful employers while maintaining enough of a free market to encourage investment and growth.  If you think unfettered, unregulated capitalism does that, well, then I think you are an idiot.  

 

 

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Many posters here aghast at the size of the bonus.

 

This is normal in Thai industry, low wages and a bonus of several months' pay. This is to ensure that attendance and performance is really incentivised.

 

Those comparing Western pay structures to Thai pay structures will completely fail to understand how it works here.

It will also have a knock effect to companies and workers in the supply chain who may also loose earnings and productivity bonuses.

2 hours ago, ChaiyaTH said:

You have to be quite retarded if you actually think that is what caused the economy to be what is today. Wages globally ware way lower than where they should be if you factor in real inflation over all the years. Not to mention jobs for 30-40 years in general are a horrible deal on a short life.

I think you have to be retarded to not understand that was what drove up prices in the west - huge increases in salaries and thus costs to businesses which was passed on to customers.   Likewise, only a retard thinks that having a career or a business and working for 30-40 years is a bad thing.   

Please note the definition of the use of the word retard - it does not mean someone is handicapped - it means they should be mentally capable for understand basic things but they don't - and they think silly irrational things.  

1 hour ago, Briggsy said:

Many posters here aghast at the size of the bonus.

 

This is normal in Thai industry, low wages and a bonus of several months' pay. This is to ensure that attendance and performance is really incentivised.

 

Those comparing Western pay structures to Thai pay structures will completely fail to understand how it works here.

3 Baht of gold is worth almost 200,000 Baht today - are you serious??  At that rate using your logic of several months bonus, that means their annual salary is over 1 Million Baht.  You need to think before you leap.    

7 hours ago, TroubleandGrumpy said:

3 Baht of gold is worth almost 200,000 Baht today - are you serious??  At that rate using your logic of several months bonus, that means their annual salary is over 1 Million Baht.  You need to think before you leap.    

Your post makes no sense mathematically.

9 hours ago, TroubleandGrumpy said:

I think you have to be retarded to not understand that was what drove up prices in the west - huge increases in salaries and thus costs to businesses which was passed on to customers.   Likewise, only a retard thinks that having a career or a business and working for 30-40 years is a bad thing.   

Please note the definition of the use of the word retard - it does not mean someone is handicapped - it means they should be mentally capable for understand basic things but they don't - and they think silly irrational things.  

No one should have to endure the indignity of labor just to survive. It is time to impose a fair tax on billionaires and implement Universal Basic Income, ensuring that every individual has the financial security they deserve.

12 hours ago, ChaiyaTH said:

You have to be quite retarded if you actually think that is what caused the economy to be what is today. Wages globally ware way lower than where they should be if you factor in real inflation over all the years. Not to mention jobs for 30-40 years in general are a horrible deal on a short life.

 

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13 hours ago, Briggsy said:

Many posters here aghast at the size of the bonus.

 

This is normal in Thai industry, low wages and a bonus of several months' pay. This is to ensure that attendance and performance is really incentivised.

 

Those comparing Western pay structures to Thai pay structures will completely fail to understand how it works here.

 

Company I work for pays upto 6 months.

3 months fixed.

3 month variable (performance based).

3 hours ago, nick supreme said:

No one should have to endure the indignity of labor just to survive. It is time to impose a fair tax on billionaires and implement Universal Basic Income, ensuring that every individual has the financial security they deserve.

You sound like you're struggling to find work?

19 hours ago, Patong2021 said:

 

I doubt that you worked in a country where a general bonus was worth 5 months of pay. That type of payscale  for non sales workers suggests that base wages are non competitive and low. Depending upon the structure of the bonus, it means that the employer can minimize pension and benefits contributions and minimize lax liability.  In plain language, it looks like the employer is screwing around.

I had to call to get Daikin  Service out a few times, they were not cheap. As to where I have worked, a friend in Abu Dhabi  got a profits share out bonus that would buy a semi. I was in the wrong game. 

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5 hours ago, CallumWK said:

 

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How can you endorse right-wing talking points? Every individual deserves a living wage, and it’s crucial to recognize that poor people are not the cause of inflation. Instead, inflation stems from the greed of corporations. We must demand accountability from those driving prices up, not scapegoat vulnerable communities.

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