electronic, auto-parts maker to cut most jobs

The Nation

Shin-Ei High Tech laid off 650 workers at its plant in the Suranaree Industrial Estate, Nakhon Ratchasima as the global economic crisis continues to severely deplete its orders.

The plant formerly employed about 1,700 workers. About 400 were laid off in October. Another 350 are expected to lose their jobs next week.

Workers said orders for electronics and auto parts had dropped more than 50 per cent since October. Moreover, the company will merge the production at the Suranaree plant with that of another one, in the Navanakorn II Industrial Zone, in the province's Muang district.

Kwanruan Padklang, a victim of the lay-offs, said she had prepared herself for this but did not expect it to come so soon. Though all affected workers received full compensation, she would have preferred to maintain her employment status. With two children, the single mother, who received about Bt20,000 in compensation, will need to save until she can find a new job.

Established in 1994, Shin-Ei started the production of mould-making, die-casting and machining of hard disk drives and automotive parts at the Nakhon Ratchasima plant in the following year.

Japan-based Shin-Ei Group operates four plants in Thailand: two in Suranaree, one in Navanakorn II Industrial Zone, and one in Wang Noi, Ayutthaya. Shin-Ei Precision (Thailand) was established last year to run a new plant in the Rojana Industrial Estate in Ayutthaya, which has not yet started manufacturing.

Since October 2008, about six plants in Nakhon Ratchasima have laid off over 3,000 workers. Prior to that, about 20,000 were unemployed.

Meanwhile, the Labour Ministry's Employment Department director-

general, Phichai Ekphithak-damrong, announced yesterday that Thailand would not extend employment to over 500,000 Burmese workers who illegally sneaked into the Kingdom, saying the priority was to take care of Thai workers.

"Employers need to give a chance to Thai workers first, due to the economic crisis," he said.