Thai construction giant ITD begins clearing overdue wages amid liquidity woes
Italian-Thai Development (ITD), Thailand’s largest construction company, has begun paying overdue wages to 30% of its workers after receiving support from banks to resolve its liquidity crunch, Labour Minister Phiphat Ratchakitprakarn said on Monday.
Phiphat said ITD had assured him that all of its workers would receive their overdue pay by next month.
ITD informed the Stock of Exchange of Thailand on March 13 that it was unable to pay salaries due to a liquidity shortfall, prompting workers to quit or lay down tools.
The news came after the company announced in January it was deferring payment on its debentures worth a total 14.45 billion baht for two years.
Following reports of ITD workers failing to get paid, the Labour Ministry stepped in to negotiate.
The company informed the ministry that it has paid overdue wages to 6,626 Thai and migrant workers, or around 33% of its workforce. The rest would be paid in full before the end of April, it said.
Most of the 6,626 labourers work in Rayong, Pathum Thani, Chiang Mai and Nakhon Ratchasima. The overdue wages paid so far total over 30 million baht, Phiphat added.
ITD told the Labour Protection and Welfare Department (LPWD) that its workforce comprised 20,188 workers on 155 construction projects nationwide.
Banks have provided financial support for 79 of its projects and ITD was seeking additional loans for the remaining 36 projects, it told the ministry.
LPWD director-general Sopha Kiartniracha said her officials were collecting complaints from ITD workers who are working without pay.
The LPWD would monitor the situation closely until all the workers get their overdue salaries in full, she added.
