AAT Thailand Statement December 17, 2008

AutoAlliance Thailand (AAT) implemented a temporary shutdown in response to a production disruption that occurred on November 27 at our Rayong facility. We took this action to protect the health and safety of our employees and protect our facilities from any potential damage. While production remained halted, AAT continued to negotiate in good faith with the FMT Workers Union leaders with the hope of gaining a mutually-agreed resolution. On November 26, during a fourth round of negotiations, AAT made an initial counter offer to the FMT Workers Union leaders' proposed settlement. This proposed settlement was excessive in light of the current deteriorating economic environment in Thailand and globally. Under the direction of the leaders of the FMT Workers Union, members of the labor union proceeded to intentionally block the parking lot exits of AAT and prevent buses carrying staff from leaving the plant. On the following day, November 27, 400 people walked off the job in an unlawful work stoppage. Labor union leaders continued with a directive to blockade the AAT entrances, which began to directly affect AAT's ability to ship stock vehicles from the premises, as well as interfere with parts shipments both in and out of the facility. AAT was granted a court injunction from the Rayong Labor Court on Thursday, December 4 stating that the union could not block specific gates at AAT which enable it to operate as normal. An execution officer from the Rayong Court, accompanied by Rayong provincial police, served the injunction to the FMT Workers Union leaders on Monday, December 8, implicitly making the union's actions illegal. The FMT Workers Union leaders initially disregarded the Rayong Court's order and continued with their illegal blockage. On December 9, AAT management declared the negotiations over. As required by law, FMT Workers Union leaders acknowledged the dispute with the Ministry of Labor within 24 hours. This allowed for a Ministry-appointed Conciliation Officer to enter the negotiations as a third-party mediator between AAT and the FMT Workers Union. On December 10, FMT Workers Union members discontinued their blockage of the AAT facility. AAT was able to resume shipment of stock vehicles on December 12, following an inspection of the facility and inventory. The gates are now unobstructed, but production remains halted while negotiations are ongoing. A fifth round of negotiations on Monday, December 15 – the first round involving the Ministry-appointed Conciliation Officer – were unsuccessful. The next round of negotiations is scheduled for Thursday, December 18, at the AAT facility in Rayong. We estimate the financial ramifications to AAT, our employees, our suppliers and the local economy to be in the millions of baht per day. Nov 4 FMT Union presents AAT Management with union demand Nov 5 First Union/Management negotiation Nov 26 4th negotiation - AAT management offer provided to Union Nov 26, 5-7pm Uniondisrupts dayshift employee transportation to home - buses leave approximately 1 hour late Night shift of Nov 26 Production Sabotage Nov 27, 10am Work Slowdown - approximately 400 people walk out Nov 27, AAT management announces production shutdown, production response days for Nov 27, 28 & Dec 1 and start of Section 75 labor law provision Dec 2-4. late afternoon Unionblockades AAT facility - not allowing dayshift employees to leave (approximately 2000) - mgmt 'held hostage' until 10pm - midnight Nov 28 blockade of key facility points of ingress/egress - employee entrances, shipping gates, receiving gates Dec 4 Chonburi court issues injunction against FMT union leadership requiring removal of blockades Dec 5- Dec 7 no change to demonstration activities Dec 8 Court Execution Officer, accompanied by Pluakdaeng police, go to AAT site in Rayong to enforce court order - FMT Union President acknowledges order and indicates removal of blockages to start in the evening Dec 9 7th FMT/AAT negotiation - AAT management declares stop to further negotiation (to force dispute) Dec 10 FMT union declares dispute to Rayong Labor Ministry (required by law within 24 hours of dispute) Dec 11 FMT union moves vehicles from in front of key gates Dec 11 AAT management attempts resumption of shipping operations - FMT union blocks vehicle transport with people. Dec 12 FMT Union fully unblocks entrances. AAT is able to resume shipments of stock vehicles. First dispute resolution meeting with AAT, Union and Rayong Labor Office representative Dec 15 Second dispute resolution meeting with AAT, Union and Rayong Labor Office representative Dec 18 Third dispute resolution meeting with AAT, Union and Rayong Labor Office representative is scheduled โทร. 0 2205 6653 อีเมล์ [email protected]

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