Wage hike call rebuffed

>> The industrial sector and the government have brushed aside the proposal of labour organisations calling for the minimum wage to be hiked to 600-700 baht per day, saying that it is impossible in the current economic situation.

A coalition of labour organisations on Friday urged the government to reconsider the minimum wage, saying the current 300 baht per day is too low and not compatible with the cost of living.

The coalition, including the Thai Labour Solidarity Committee, the State Enterprises Workers’ Relations Confederation and labour unions, suggested the wage suitable to the current economic situation would be 600 to 700 baht per day.

Chen Namchaisiri, chairman of the Federation of Thai Industries, said the wage hike proposal is not practical.

He said the proposed minimum wage of 700 baht is as high as 20,000 baht per month, which is higher than the monthly income of 15,000 baht for employees with a bachelor’s degree.

If the wage was increased to 700 baht as requested, those who will bear the brunt are businesses which rely on a large number of workers such as hotels and restaurants, while large industrial businesses have changed to using more machines and automated systems.

“It is impossible in the current economic climate to increase the minimum wage as proposed,” he said.

Mr Chen, however, said a minimum wage adjustment would depend on the decision of the national tripartite committee, consisting of representatives of workers, employers and the government. Any minimum wage hike should not be a blanket hike but should be considered area by area, he added.

Anantachai Uthaipattanacheep, spokesman of the Labour Ministry, said the minimum wage was increased by 5-10 baht nationwide last year. As a result, the latest proposal for a new hike up to 700 baht a day is impractical and the business sector is unlikely to afford it.

Sawit Kaewvarn, president of the Thai Labour Solidarity Committee, said yesterday the 700-baht minimum wage proposal derived from a committee survey which found that each worker needs 348 baht a day to cover living costs.

On average, each worker has two family members to take care of. Given the inflated cost of living, each worker needs at least 567 baht a day to support their family.

“The government should take the views of workers into account before making a decision on wage adjustment,” he said.