Thai business group opposes suggested increase in minimum wage

[snoop1130]

 

The Thai Chamber of Commerce (TCC) is currently at odds with the government regarding a proposal to raise the minimum daily wage to 400 baht for all workers in the country. The new wage initiative is expected to come into force in October.

 

The Vice-President of the TCC and the Board of Trade of Thailand, Poj Aramwattananont, described the proposed wage increase as a potential issue for businesses. He explained that while some might manage to pay the increased salaries, others could face negative consequences.

 

He also raised concerns that the wage increase could cause problems in provinces such as Phrae and Nan, which are not ready for such a change, considering their lack of industrial plants and tourist accommodations. Poj recommended that wage increases be introduced in industries with more Thai workers than immigrant workers to prevent money from leaving the country.

 

“The wage increase will place financial pressure on businesses. This is a significant issue, and I plan to discuss it with the Labour Ministry," he said.

 

Additionally, the TCC's provincial chapters are set to hold a press conference tomorrow, May 8, to express their disagreement with the plan. The conference will include representatives from about 30 associations across various sectors such as construction, hospitality, retail and wholesale, logistics, and rubber.

 

Sangchai Theerakulvanich, President of the Federation of Thai SMEs, is also against the proposed wage increase. He mentioned that small and medium-sized businesses (SMEs) are still trying to recover from global economic pressures.

 

“About 2.7 million small enterprises, employing around 5.5 million workers, will also be negatively affected by the wage increases,” he added.

 

The proposed daily wage of 400 baht was approved on March 26 and implemented in parts of 10 provinces on April 13. The wage increase applies to businesses in the tourism sector and four-star hotels with at least 50 employees.

 

But, this initiative has been criticized for benefiting only tourism-based workers in certain regions, thus excluding other businesses across the country.

 

Labour Minister, Phiphat Ratchakitprakarn, stated that the promised national minimum daily wage of 400 baht is expected to be implemented on October 1, but the final decision will rest with the wage committee.

 

Prime Minister, Srettha Thavisin, supports wage increases but businesses are worried that this could affect the country's competitiveness.

 

Earlier this year, the daily minimum wage was increased for all Thai workers, with new rates ranging from 330 to 370 baht per province. These increases ranged from 2 to 16 baht, averaging at around 2.37%.

 

File photo for reference only. Courtesy of Google

 

-- 2024-05-07

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[Rampant Rabbit]

do a time and motion study then decide.............that'll sort the wheat from the chaff

[mommysboy]

If you want a horse to work you have to at least feed it. 

 

Poor peoples RPI index has increased much more than others.

 

Some times I think many businesses exist because of wage theft. 

 

If they can't/won't pay then probably we're looking at zombie businesses, which are terrible for the economy.

 

The taxpayer ends up paying for sXXX wages.

[hotchilli]

15 hours ago, snoop1130 said:

The Thai Chamber of Commerce (TCC) is currently at odds with the government regarding a proposal to raise the minimum daily wage to 400 baht for all workers in the country.

Of course they are, screw the workers to stay competitive.

[nobodysfriend]

15 hours ago, snoop1130 said:

a proposal to raise the minimum daily wage to 400 baht for all workers in the country.

 

Still a ridiculous amount for an 8 hour work day .

They want the economy to grow and progress , but they won't give the working people money to spend ...

Thai way of thinking ...

[Sydebolle]

Whoa, doubling the salary in 10 years must result in double the output - or am I seeing something wrong again as usual?

Needless to say, that with pocket money like 400 Baht per day, a Thai can barely exist but does not live. One of the reasons possibly, why the motivation for work has gone out the window looooong time ago. 

The 1% of the oligarch elite keeps creaming off the cake so conveniently provided for by 75% of the population. The writing is on the wall and bigger international employers will reconsider staying or potential employers to stay away completely! 

[bkk6060]

It is disgusting really.  So selfish and 3rd world thinking.

Can't blame any of the workers in the bars and massage shops just trying to support families.

[itsari]

Over manning is evident everywhere in the large stores. I have often thought that if they managed with half the employees there wages could be increased substantially.

[G Rex]

22 hours ago, snoop1130 said:

Poj recommended that wage increases be introduced in industries with more Thai workers than immigrant workers to prevent money from leaving the country.

 

More Thai xenophobia.

This is wrong on so many levels.

A fair wage for a fair days work for ALL workers...

(though a walk around BigC will reveal a lot of people being  paid to do nothing)

[john donson]

what is the difference between low worker and ceo... in the west it is easy 1000-2000x

 

where the ceo gets 3 years salary or more, PER DAY of the lowest worker...

 

insane... but here you have mega wealthy people with monopolies exploiting the very poor