Fears B400 maximum had struck competitiveness
The Thai Chamber of Commerce (TCC ) is opposing the government’s plan to increase the minimum daily wage to 400 baht for workers nationwide, expected in October.
Poj Aramwattananont, sin- chairman of the TCC and the Board of Trade of Thailand, described the proposed climb as a dual- edged sword, with both negative and positive effects.
” Some firms can afford to raise pay, but some may experience negative impacts. According to him, the proposed hike will have negative effects on several provinces that are n’t ready, including Phrae and Nan, where there are n’t many hotels and industrial facilities [to accommodate tourists ].
According to Mr. Poj, wage increases may be imposed on sectors where there are more Thai employees than immigrants. Usually, cash will flow out of the nation.
The increases will even burden business owners financially, according to the authors. This is a big problem, and I did discuss it with the Labour Ministry”, he said.
He added that the TCC’s municipal pages globally will carry a press conference on Tuesday to voice their opposition to the program. The event will be joined by members of about 30 organizations including the structure, kindness, retail and wholesale, transportation and plastic areas.
Sangchai Theerakulvanich, chairman of the Federation of Thai SMEs, even said he disagreed with the proposed climb.
He claimed that despite feeling the strain caused by geopolitical tensions, small and medium-sized businesses ( SMEs ) are struggling to recover.
” SME users have to control expenses. Income hikes may even hurt about 2.7 million microscopic- enterprises, which employ roughly 5.5 million workers”, he said.
The bilateral committee approved the 400 baht per evening increase on March 26 and became effective in some 10 regions on April 13.
It has been applied to hospitality- relevant companies and four- sun hotels with at least 50 employees, according to Pairoj Chotikasathien, permanent director for the Labour Ministry and chairman of the committee.
The climb applies in Bangkok’s Pathumwan and Watthana districts, Chiang Mai’s Nakhon Chiang Mai town, all of Phuket, the place under the authority of tambon Ao Nang operational company in Krabi, Songkhla’s Hat Yai city, Surat Thani’s Koh Samui area, 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.
The 400-baht minimum daily wage, which was promised to employees nationwide, will likely be implemented on October 1, according to Labour Minister Phiphat Ratchakitprakarn.
He claimed that the tripartite wage committee, which included government, employer, and employee representatives, agreed that a new adjustment would be made this year at its previous meeting on April 17.
He stated that the next wage committee meeting is scheduled for May 14 to bring up the 400-baht daily wage proposal for discussion.
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.
Additionally, Mr. Phiphat urged businesses to turn to the government if they believe they ca n’t afford the cost.
After promising a 400-baht rate during the election campaign, Prime Minister Srettha Thavisin has advocated for other sectors and business types, much to the dismay of those who claimed it would reduce the nation’s competitiveness.
The daily minimum wage was raised for all Thai workers on Jan 1, with the new rates varying by province, from 330 to 370 baht. Those increases ranged from 2 to 16 baht, or an average of 2.37 %.