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Daikin locks out 1,300 Thai workers after bonus talks fail
Gold for long-serving staff among sticking points in talks with Japanese appliance firmPUBLISHED : 5 Dec 2025
www.bangkokpost.com
Daikin Industries (Thailand) Co has locked out about 1,300 workers, effective from Saturday, after talks with its labour union over annual bonuses and other benefits failed. It says the move does not constitute termination of employment.
The Japanese air-conditioner manufacturer based at the Amata City Chonburi industrial estate issued the notice to the Daikin Amata Rak Seri Labour Union and the Chon Buri provincial labour dispute conciliation office on Thursday.
The company said it was invoking its legal right to lock out employees after mediation efforts failed to resolve the dispute. The lockout will take effect from 8am on Dec 6 until further notice.
The dispute arose from the company’s decision to grant an annual bonus equivalent to five months’ salary plus 12,000 baht. The union demanded a higher payout, citing improved company performance with profits of 5.9 billion baht in the last fiscal year.
The union also voiced concerns over the cancellation of a long-standing tradition of awarding gold to long-serving staff.
Negotiations between the company and the union have been ongoing since September, with the latest round on Dec 4.
The union was caught off guard by the company’s lockout announcement, president Manit Piyang said on Friday, noting that another mediation meeting — the 12th since talks began — is scheduled for Dec 8.
During the negotiations, the union demanded a bonus of 8 months, an additional 24,000 baht, and 3-baht weight of gold for long-serving employees, as stipulated in the old employment contracts for employees with 10 years of service.
While the union had asked for eight months’ bonus plus 24,000 baht, the final figure would likely be lower, Mr Manit said during an interview on the Kammakon Khao Khui Nok Jor news programme on Channel 3.
3% salary increase
He said the company had approved only a 3% salary increase, compared with the union’s request for 6%. Many employees earned just over 10,000 baht a month and need a larger adjustment, he added.The company argued it must retain cash due to economic conditions and competition, but the union maintains Daikin’s performance continues to improve annually.
“From the union’s perspective, even if the company faces competitors, its performance has increased every year. We believe the company can afford to pay,” said Mr Manit.
The union also viewed the cancellation of the 3-baht-weight of gold for long-serving staff as a breach of contract.
In the latest round of talks, the company offered a 6-month bonus, an additional 12,000 baht, and 40,000 baht cash instead of 3-baht weight of gold for employees with over 10 years of service.
The majority of employees disagreed with the offer, noting it was a significant reduction compared with the value of the gold originally promised in the contract.
Gold prices have risen 55% since the end of 2024. At current prices, 3-baht weight of gold is worth 192,000 baht.
Mr Manit said the gold incentive was an individual agreement between employees and the company, not the union.
Under company rules, employees who work for five years or more without absences or tardiness are entitled to one baht-weight of gold, with higher amounts given over time.
The scheme was designed to incentivise attendance, but any changes must be discussed directly with employees, he said.
Daikin said that under the 1975 Labour Relations Act, a lockout is a legal right available to employers when labour disputes cannot be settled through negotiation.
During the lockout period, affected employees are barred from entering the workplace and will not receive wages until the order is lifted or a mutual settlement is reached, the company said in a statement.
The Eastern Labor Relations Group, an association of trade unions and labour rights advocates in the Eastern Seaboard industrial region, on Friday condemned Daikin’s use of a lockout against union members.
It called on the employer to immediately lift the lockout and publicly disclose its financial performance to demonstrate that meeting the union’s demands are not beyond its financial capacity.
The group also urged labour conciliation officials to expedite efforts to resolve the dispute and reach a settlement as quickly as possible
Daikin first entered Thailand as Siam Daikin Co Ltd in 1975. In 1991 it opened a major manufacturing hub and changed its name to Daikin Industries (Thailand). The company currently employs about 5,000 people in Thailand, most of them at Amata City Chonburi.
