Hundreds of Myanmar labourers at Golden Prize Tuna Canning, a processing plant in Samut Sakhon that sells fish to markets around the globe, have spent months seeking compensation for exploitative working conditions.
Thailand is the world's third-largest seafood exporter, but the industry is plagued with rights abuses and fuelled by trafficked labour from neighbouring Myanmar and Cambodia.
The sector has come under heightened scrutiny from foreign governments over the past year, with the European Union currently weighing an all-out ban on Thai fishing products.
Rights groups say Golden Prize workers had long been subject to unlawfully low salaries, supervisor abuse and a lack of compensation for machine accidents on the 25-acre processing sites.
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Following a more than 1,000-strong worker strike last week, company representatives joined negotiations with military officers, government officials and migrant worker leaders, reaching an agreement late Monday evening.
"The company began paying 1,100 workers last night involving money of 48 million baht ($1.3m)," Boonlue Sartpetch, the head of the province's labour department, told AFP Tuesday.
Golden Prize Tuna Canning, whose 2,000 workers hail mostly from Myanmar, declined to comment.
The junta that seized power in a 2014 coup has struggled to revive Thailand's flagging economy and is desperate to avoid any costly sanctions on the multi-billion dollar seafood sector.
It remains to be seen how Washington will enforce its new legislation on slave-produced goods.
But the US labour department currently lists Thai fish and shrimp as products the government has reason to believe are manufactured by slave labour.
Thai officials say they have moved fast to clean up the industry with new laws and crackdowns on traffickers and fish factories.