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THAILAND: Garment factory offered new loans

BANGKOK:  The Thai Slip South East Import Export Co. has declared its intention to go out of business on August 7.  Many banks which have provided loans to the company earlier have offered additional loans to the troubled garment factory.

The company management has decided the closure in the face of a Bt 1.4 billion loss. But Kasikorn Bank, Bangkok Bank, Bank of Ayudhya, Siam Commercial Bank, HSBC and the Kasikornbank, have come together to give more loans for the factory.

About 6,000 employees had lost jobs after the factory’s sudden closure last fortnight. The Labour Ministry had earlier pledged to help find jobs for the unemployed factory workers who are yet to receive overdue wages and severance pay.

Workers at heavily-indebted Thai Silp South East Asia Import Export Co have vowed to fight to the end until the garment firm pays them their wages in full. Thousands of workers yesterday gathered at Thai Silp Co's factory in Samut Prakan province to protest against the company's decision to shut down following a brief reopening.

Following protests by the workers and approaches by government authorities, the factory reopened last Friday. But the firm made clear on Thursday that it was going out of business after failing to secure new loans to sustain its operations.

With only nine million baht available, the company offered to pay its 5,000 workers half of their wages first. For the other half and their severance pay, it promised to pay the workers later after the machines in the company's three factories were sold off.

However, the workers demanded the company pay them all their wages first.

Labour Minister Apai Chanthaehulaka and the Samut Prakan governor yesterday held a meeting with worker representatives and the company's owners to discuss the salary payments.

Creditors of the firm yesterday held a meeting to discuss measures to help the debt-ridden company.

Source: Agencies • News Courtesy: BharatTextile.com