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Auto industry insists Thai jobs safe after Japan crisis

Employers in the automobile industry say they will not lay off workers and are trying to ensure they survive the repercussions from the situation in Japan. Yongyuth Mentaphao, president of the Federation of Automotive Labour Unions, said the disaster has affected the auto industry in Thailand, a major base for car parts production, as certain parts have to be imported from Japan. Plants in Japan could not produce car parts because of limitations imposed on electricity usage in Japan after last month's earthquake and tsunami and the continuing nuclear crisis. This has affected the assembly line and workers in the car industry in Thailand, Mr Yongyuth said. There are about 500,000 workers in the Thai auto industry. He said these employees are not being offered overtime, but there are no plans to lay them off. He believed Japan will recover from the situation soon, and when the situation picks up, production capacity is expected to increase two to three-fold because a lot of orders have been placed. The orders have not been cancelled despite the crisis, Mr Yongyuth said. Chalee Loysoong, president of the Confederation of Thai Electrical Appliance, Electronics, Automobile and Metal Workers, said the confederation has asked employers in the car parts industry not to dismiss workers. Once the situation returns to normal, the industry will be hit by staff shortages and it will be difficult to find skilled and experienced workers, he said. Amporn Nitisiri, director-general of the Labour Protection and Welfare Department, said about 300 factories in the car parts and car assembly industry and more than 100,000 workers have felt the effects of the crisis in Japan. Some have been laid off temporarily and received only 75% of their compensation payments, Ms Amporn said.