The Coronavirus in China has caused the layoff of about 500 employees of a Thai company in western Thailand. The Thai and foreign staff ware laid off due to a shortage of raw materials from mainland China.
The employees, including Thai, Filipinos and Burmese, arrived at the Zica New Materials Company in Kanchanaburi only to find out that the gates were locked. A notice attached from the management announcing the shutdown of the office and factory.
Provincial labour and social welfare officials, were sent to meet with the shocked workers. Even more most admitted that they had not been aware that the company was in trouble. Zica New Materials Company had been in operation for six years.
Thai company ran out of raw materials
The notice from the management claimed that the company had run out of raw materials from China. Above all due to the outbreak of coronavirus. Labour officials said that the Taiwanese CEO of the Thai company had already flown back to Taiwan.
One of the labour officials, Mr. Pairote Panthakarn, said the management had agreed to pay 2,500 baht compensation to each of the 193 migrant workers. The company would also arrange for buses to take them to Mae Sot for the journey back to Myanmar.
Labour officials said they were in negotiations with the company over the Thai employees severance pay.
Mr. Pairote said labour officials would help if the Thai employees want to take a case against the company to the labour court. Above all to seek better compensation for their abrupt termination.
Businesses in China not to resume work
Meanwhile, the majority of China’s growth hubs have delayed the resumption of business by at least a week as the country tries to control the spread of a new coronavirus that has killed more than 300 people.
As of Saturday afternoon, at least 21 provinces, municipalities and other regions in China have told businesses not to resume work. That’s according to publicly available statements from the governments.
Last year, those parts of China accounted for more than 80% of national GDP, and 90% of exports.
As a result, these delays in getting back to work could have a significant impact on the growth and international trade of what is now the world’s second-largest economy.
It’s unclear yet to what extent these virus-related disruptions will have to China’s full-year economic growth. The Chinese government has also mandated that provinces resume the production of medical resources. In most regions, businesses involved with public utilities, supermarkets or other essential industries are to remain open.