Automobile manufacturer General Motors is currently planning to lay off around 1,500 employees in Thailand by June this year. The recent development comes after the company had announced the sale of its production plants in the country.
According to a Reuters report, General Motors on Monday said that it would sell its two plants in the eastern industrial province of Rayong to China’s Great Wall Motor. The company’s recent move to retreat from Asia also includes winding down operations from Australia and New Zealand.
Adviser to the Minister of Labour – Thai Government, Jak Punchoopet told the agency that, all of the Rayong plants’ employees would be laid off under the terms of GM’s sale agreement with Great Wall.
He said, “The agreement was only for the sale of the plants and didn’t include the transfer of employees.”
He further added, “Their plan is to lay off 1,000 employees in the auto parts manufacturing line in June, and then around 300 to 400 in the assembly line in October,” Jak said. The rest of the staff at the two plants would be let go towards the end of 2020. Everything will be done by the end of the year.”
Jak asserted that GM will abide by Thai labor law and provide severance pay for the affected employees, Jak said, adding that the company will also grant an additional four-month bonus to all employees.
Chinese automaker Great Wall Motor, is the country’s biggest Sport-Utility-Vehicle maker. It plans to use the Thai base to sell cars as part of its plans to go global and tap the Southeast Asian automotive industry. The company is also entering the Indian market from this year and had showcased its line-up at the Auto Expo 2020.
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