Discussed: 16 Jul 2024 at 18: 57
Given the current economic conditions, the Federation of Thai Industries (FTI ) in Chiang Mai has argued that raising the national minimum wage to 400 baht is excessive and inappropriate.
The private sector, according to Chakrin Wangwiwat, chairman of FTI in Chiang Mai, is concerned that the decision to increase the daily minimum wage from May 1 to October 1 does not align with current economic conditions, particularly for small and medium-sized businesses ( SMEs ) with limited financial resources.
According to him, the change may cause SMEs to undergo temporary or permanent blackouts as a result of economic strains.
Now, the minimum wage in Chiang Mai stands at 352 ringgit per day. According to Mr. Chakrin,” an increase in the minimum wage will result in a 10 % increase in production costs, higher social surveillance efforts, and higher product costs,” which will ultimately lead to an increase in the cost of living.
At present, most sectors such as the electronics, appliances, telecommunications and agricultural running sectors have now increased the maximum regular salary for skilled workers.
The authorities suggested that the government should slowly raise wages, such as lowering Chiang Mai’s minimum wage from 352 to around 355 or 360 baht.
Also, the government should take steps to compensate small business owners, particularly those who work in the SMEs industry.
In order to boost business profitability, they include lowering the costs of water, energy, and other public resources.
He argued that the government should control foreign investment, especially from Chinese traders who set up low-cost electronics and appliance manufacturing facilities without certification under the professional standards. ” This poses a risk to consumers”.
In terms of quality and price, the Board of Investment ( BOI ) should support SMEs and increase their competitiveness with neighboring countries.
According to him, the wage increase should take into account firms ‘ readiness for the global stage and level of competition. A discussion with members of the tripartite wage committee is required to determine the most appropriate minimum wage increase that wo n’t stör the economy. In Chiang Mai, over 1, 000 smaller firms have shut down, Mr Chakrin said.