TCC blasts wage hike plan
The Thai Chamber of Commerce (TCC) is opposing the government’s plan to increase the minimum daily wage to B400 for workers nationwide, expected in October.
Poj Aramwattananont, vice-president of the TCC and the Board of Trade of Thailand, described the proposed hike as a double-edged sword, with both negative and positive effects.
“Some businesses can afford to increase wages, but some may face adverse impacts. The proposed hike will cause problems in several provinces that are not ready such as Phrae and Nan where there are very few industrial plants and hotels [to accommodate tourists],” he said.
Mr Poj said that wage hikes should be applied to industries with more Thai workers than immigrant workers. Otherwise, money will flow out of the country.
“The hikes will also impose financial burdens on business operators. This is a major issue, and I will discuss it with the Labour Ministry,” he said.
He added that the TCC’s provincial chapters nationwide were to hold a press conference to voice opposition to the plan. The event will be joined by representatives of about 30 associations including the construction, hospitality, retail and wholesale, logistics and rubber sectors.
Sangchai Theerakulvanich, president of the Federation of Thai SMEs, also said he disagreed with the proposed hike.
He said small and mediumsized enterprises (SMEs) are struggling to recover after reeling from the effects of geopolitical tensions on the global economy.
“SME operators have to control costs. Wage hikes will also hurt about 2.7 million micro-enterprises, which employ about 5.5mn workers,” he said.
The hike to B400 a day was approved by the tripartite committee on Mar 26 and took effect in parts of 10 provinces on Apr 13.
It has been applied to tourism-related businesses and four-star hotels with at least 50 employees, according to Pairoj Chotikasathien, permanent secretary for the Labour Ministry and chairman of the committee.
The hike applies in Bangkok’s Pathumwan and Watthana districts, Chiang Mai’s Nakhon Chiang Mai municipality, all of Phuket, the area under the jurisdiction of tambon Ao Nang administrative organisation in Krabi, Songkhla’s Hat Yai municipality, Surat Thani’s Koh Samui district, Phangnga’s tambon Khuk Khak municipality, Pattaya City in Chon Buri, Prachuap Khiri Khan’s Hua Hin municipality and Rayong’s tambon Ban Phae.
However, critics have blasted the move, saying it only benefits workers in the tourism sectors of select regions and, therefore, discriminates against other types of businesses nationwide.
Labour Minister Phiphat Ratchakitprakarn previously said the B400 minimum daily wage that has been promised for workers nationwide will likely be implemented on Oct 1.
He said the tripartite wage committee ‒ comprising representatives of the government, employers and employees ‒ agreed at its last meeting on Apr 17 that there would still be another adjustment made this year.
He said the next meeting of the wage committee is scheduled to be held on May 14, when further discussions will be carried out on the B400 daily wage proposal.
The minister, however, said the final decision will rest with the committee, adding he does not have the authority to order it to approve the proposal.
Mr Phiphat also urged employers who think they cannot bear the cost to seek the government’s help.
Prime Minister Srettha Thavisin has pushed for minimum wage increases for other areas and business types after promising a B400 rate during the election campaign, much to the chagrin of businesses that claimed they would make the country less competitive.
The daily minimum wage was raised for all Thai workers on Jan 1, with the new rates varying by province, from B330 to B370. Those increases ranged from B2-16, or an average of 2.37%.