Report Thai Hotels Challenge Minimum Wage Hike in Court

[snoop1130]

Photo courtesy of The Pattaya News

 

The Thai Hotels Association (THA) is gearing up to file a lawsuit against the recent minimum wage increase, which they say is placing undue financial pressure on hotels in less-visited areas. The move comes after the tripartite wage committee’s decision to implement a 400 baht minimum wage, effective since 1 July, sparked concerns within the hospitality sector.

 

The THA president, Thienprasit Chaiyapatranun, stated that the association’s committee has agreed to pursue legal action, awaiting finalisation from their members during a meeting today. This potential lawsuit seeks to overturn the contentious Section 2 (1) of the wage committee’s announcement, which mandates this minimum wage specifically for hotels under the Hotel Act across all provinces.

 

The THA’s objection stems from the belief that a uniform wage increase doesn’t account for the varied economic landscapes across Thailand. Hotels in secondary tourism regions, where tourism traffic and income tend to be lower, are disproportionately affected. These areas include provinces where operational costs, including wages, constitute about 30% of the overall expenses.

 

Many hotels are still navigating the choppy waters of post-pandemic recovery, facing dwindling tourist numbers and rising operational costs. The first half of the year saw a dip in foreign visitors, attributed partly to regional tensions and a perception of decreased safety, yet to be effectively tackled by the government.

 

The THA has advocated for a province-specific wage structure or adjustments based on employee skill levels. They argue that such an approach would better reflect local economic conditions, offering a lifeline to smaller establishments, particularly those with fewer than 50 rooms, which are grappling with the increased labour costs.

 

Hoteliers in Thailand’s western region have suggested the government consider revising wages just once annually. This approach would provide businesses ample time to accommodate changes in their financial planning and operations.

 

So far, the government has yet to address these disparities, maintaining that the wage increase is a necessary step to improve workers' livelihoods. The wage committee, tasked with such implementations, holds strong on the uniform application, citing fairness and the aim to uplift wage standards across the board.

However, the THA has pointed out that this is the second wage increase announcement this year, which they find unreasonable without allowing sufficient time for businesses to adapt.

 

The unfolding situation comes at a pivotal time as Thailand’s economy strives to regain its footing in the global tourism market. The resolution of this issue may set a precedent for future decisions affecting the hospitality sector and its workers.

 

As the THA prepares its legal challenge with compiled objections from all eight of its chapters, the industry waits to see if the court's decision will favor a more flexible and economically sensitive approach to wage adjustments. The outcome could influence how Thailand balances fair labour practices with business viability, especially in its cherished yet economically varied tourism-driven regions.

 

  Adapted by ASEAN Now from The Thaiger 2025-08-20

 

[Gottfrid]

So, then they have to higher the prices.