November 29th, 2006
Subject: Notification about the Starting up Production.
To : The President
The Stock Exchange of Thailand (SET)
As there is the dispute, which comes from the demand of UMI Labor
Union Saraburi mainly about 60 days annual bonus payment, increasing salary
at the rate of 5 percent, attendance payment, increasing leave days with
permit and the other matters. For the past 3 years, the Union Mosaic Industry
Public Company Limited ("The Company") had the profit from operation, so the
Board of Directors of the Company had approved the payment of 60 days bonus
annually. But this year, the Company has faced operation loss of 73 Million
Baht for the past 9 month's performance. Therefore, the Company could not
comply with the union's demand. However, the Board of Directors of the
Company has already made the resolution that the Company shall pay 15 days
of bonus and increase the salary at the rate of 3.5 percent. This is led to
the labor dispute, as the agreement can not be reached. The labor union has
been on strike, so the Company has to stop the production process according
to the letter dated November 22nd, 2006, which the Company has already
informed the Stock Exchange of Thailand (SET).
Finally, both the Company and UMI Labor Union have agreed to appoint
the arbiters from the Department of Labor Protection and Welfare, which the
result of arbitration is that the Company has to pay 60 days bonus without
taking into the consideration the present performance of the Company, and
the salary should be increased at rate of 4.8 percent.
Moreover, the Company has estimated the loss from this production
stoppage to be about 16 Million Baht. As the result of arbitration has been
reached, the Company will open the operation by starting the production from
November 30th, 2006.
Please be informed accordingly.
Yours Sincerely,
(Miss. Paweena Laowiwatwong)
Chairman of the Executive Board of Directors
