Daikin Announces "Work Shutdown" with Labor Union, Effective December 6, 2025, After Failed Negotiations
Daikin announces a work stoppage after unsuccessful talks with the labor union over bonuses and benefits. The action takes effect on December 6, 2025.
December 4, 2025 – Daikin Industries (Thailand) has announced the "work shutdown" with its labor union and members, effective December 6, 2025, following the failure to reach an agreement in labor dispute negotiations.
The primary cause of the dispute lies in the disagreement between the labor union and the company regarding annual bonuses and special payments. A key issue was the company's offer of 40,000 Baht in place of the previously promised 3 Baht of gold for long-serving employees, which the union considered a reduction of rights and a breach of the original employment contract.
On December 4, 2025, Daikin Industries (Thailand) issued a notice regarding the "work shutdown" to the Daikin Amata Rakseri Labor Union and its members, which will take effect at 08:00 AM on December 6, 2025. This follows a failure to reach an agreement during the mediation process conducted by the Chonburi Provincial Labor Conciliation Officer.
The company has stated that it received two requests from the labor union (submitted on November 17, 2025, and September 15, 2025). Despite internal negotiations, no agreement was reached, and the dispute was officially filed with the labor conciliation officer on November 19, 2025. The latest round of negotiations on December 4, 2025, ended without resolution, and the company announced the suspension of further discussions at 12:00 PM on the same day.
As the labor conciliation officer was unable to resolve the dispute, it has been classified as a "dispute that cannot be settled", prompting the company to exercise its right to a "work shutdown" with the labor union and its members.
This decision will be effective starting December 6, 2025, at 08:00 AM, with the employees involved unable to report to work or receive wages during this period.
The dispute arose from Daikin's proposal of a 5-month bonus plus 12,000 Baht, which was lower than the previous year’s bonus of 7 months and additional payments, despite the company recording strong profits of 5.9 billion Baht in the last fiscal year.
The labor union's main request during the 10th round of negotiations was a bonus of 8 months, an additional 24,000 Baht, and 3 Baht of gold for long-serving employees, as stipulated in the "old employment contracts" for employees with 10 years of service and limited to vacation leave only. The union viewed the cancellation of the 3 Baht of gold as a breach of contract.
In contrast, the company’s offer during the 10th round was a 6-month bonus, an additional 12,000 Baht, and 40,000 Baht instead of the 3 Baht of gold for employees with over 10 years of service.
However, the majority of employees disagreed with the 40,000 Baht offer, as they viewed it as a reduction from the value of the gold originally promised in the contract.
