Changes ‘jeopardise’ the future of SMEs
The Move ahead Party (MFP)-led House committee on labour is proposing an amendment to the Work Protection Act targeted at abolishing temporary plus daily employment and upgrading the status of workers to assist them make ends meet.
Better labour rights protection is definitely cited as the major reason behind the shift, but EconThai, a vital association of companies, is opposing the amendment for what it believes is a change that will do a lot more harm than great to many businesses, especially those in the production sector and small- and medium-sized corporations.
By having an upgraded status beneath the bill, labourers might have better opportunities to enhance their abilities, said Suthep Ou-oun, MFP MEGA-PIXEL and chair from the committee.
Employers will ultimately benefit from the improved work efficiency of their employees, he said.
Citing information obtained from the Commerce Ministry, Mr Suthep said wages to get daily and short-term employees currently make-up between 2% and 3% of complete production costs.
Currently, up to 41% of workers are paid lower than 10, 000 baht a month and 25% less than 15, 000 baht, meaning 66% of workers today earn less than sixteen, 783 baht, the estimated average monthly salary needed for them to live, he mentioned.
Workers who are paid among 15, 000 plus 30, 000 baht per month account for only 24% of all employees and those who are compensated 30, 000 baht or higher account for 10%, he said.
“Dedicating their own time and energy to their work, these workers end up struggling to make payments while dealing with crippling debt, ” this individual said.
The improvement to the quality of life of these workers, considered to be a vast majority of individuals in society, will greatly contribute to the country’s overall advancement, the parliamentarian stated.
If passed, changes may also be applied to contract function and all types of short-term employment in authorities organisations and condition enterprises, he mentioned.
The weekly working hrs of employees will also be capped at 40 hours for general work and 35 hours for work together with increased health risks in order to workers, he stated.
This individual said that under the modification, each worker will have at least two days off and won’t need to work back-to-back for further than five days, adding maternity depart will also be extended from 90 to 180 paid days.
Naowarat Songsawatchai, chair of the Employers’ Confederation of Thailänder Trade and Industry (EconThai), said her group is not the only one opposing the plan since the Federation of Thai Industries (FTI) can also be strongly against this.
EconThai and the FTI have already submitted a mutual statement opposing the particular amendment, while a lot more than 40 pro-labour organisations have submitted claims supporting it.
“More times off and smaller working hours means substantial missing manufacturing hours while companies are still paying their workers for simply no improved productivity, inch Ms Naowarat stated.
“We can never live this way, ” she added.
Microsoft Naowarat described the opposition party’s move as an attempt to woo voters ahead of the next general election, one which would jeopardise the continuing future of businesses, especially small- and medium businesses that currently be aware of up to 80% of businesses in the country.
Currently, work is an agreement attained between employers plus employees with all costs of production becoming taken into consideration to ensure companies gain sufficient income to remain afloat, the girl said.
The proposed modifications in our bill would furthermore come as an disturbance in the tripartite team system, which is used designed for calculating minimum daily wages, comprising the employers, employees plus government, Ms Naowarat said.
Bodies sitting on the national wage panel include the Bank of Thailand and the Ministry of Commerce, which have the balanced information necessary for making the particular employment wage prices realistic, she stated.
Actually, many workers are already hired for 10 to 15 years under a short-term work contract that provides them fewer work benefits than those offered to permanent staff, said Sia Champathong, leader of an union of workers in the textile industry.
“Most manufacturers attempt to keep labour costs as low as possible to increase their profits, that is unfair and can be observed as a form of work abuse, ” this individual said.