Scientists and labor activists have increased their calls for the government to raise minimum regular wages for employees globally on Wednesday in response to increases in parts of 10 provinces that started with the April 13 increase.
The bilateral pay committee on March 26 approved the most recent increase to 400 baht per day.
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 is applied to 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 city, Pattaya City in Chon Buri, Prachuap Khiri Khan’s Hua Hin municipality, and Rayong’s tambon Ban Phae.
However, critics have blasted the latest climb, saying it only benefits personnel in the hospitality areas of limited regions and, consequently, distinguishes against other types of businesses nationwide.
Additionally, they argued that the government should develop programs to help employees lower their living costs and increase their digital skills.
Special measures
Kiriya Kulkolkarn, a lecturer at Thammasat University’s faculty of economics, told the Bangkok Post that apart from an increase in daily wages, the government must come up with other measures to improve workers ‘ quality of life.
These include reducing workers ‘ expenses, controlling the prices of consumer products, and offering incentives to attract foreign investment, she said.
The industry sector needs restructuring to boost the capacities of small and medium-sized enterprises ( SMEs ), modernize businesses, and increase employees ‘ digital skills, she said.
Ms Kiriya said that while the 400- baht wage hike benefits employees, it will hurt SMEs that lack sufficient financial resources.
Moreover, as the economy slows, foreign investors, who are forced to pay higher wages, may decide to move their production bases to other countries with lower rates, Ms Kiriya warned.
In response to the wage hike, employers are expected to hire workers on a temporary basis or resort to labour contracting, which will lead to job insecurity, she said.
She said that minimum daily wage rates in Thailand are higher than those in Cambodia, Laos, Myanmar and Vietnam, but Thai workers ‘ skills, particularly digital skills, cannot compare with those in Singapore, Malaysia and Indonesia.
The government must promote digital skills among employees and provide incentives to attract foreign investors into modern industries, she said.
Kiriya: Industry rejig needed
Across the board
Chalee Loysoong, an adviser to the Thai Labour Solidarity Committee, told the Bangkok Post he disagreed with the 400- baht wage hikes only made in certain parts of the 10 provinces.
The hike should be applied to all career types in all provinces, he said.
” If the government wants the economy to improve in every province, it should hike wages nationwide. People will be able to spend at the same wage rates.
He argued that the government should be more active in job counseling to help employees make wiser career choices, and that digital upskilling is necessary in the digital era.
Chalee: Universal hikes lacking
Following the wage increases, Vijit Dasantad, president of the Phuket Federation of Hotel and Service Labour, told the Bangkok Post that the government should intervene to stop the rising costs of consumer goods.
He claimed that some vendors had already raised prices after learning about the wage increase.
” Wages should be in- creased in all professions, and the government should curb the prices of goods. That would be a true gift for workers,” he said.
Vijit: Inflation the real problem
The daily minimum wage was raised for all Thai workers on Jan 1, with the new rates varying between provinces, where they range from 330 to 370 baht, according to the tripartite wage committee.
Before Jan 1, the rates were between 328 and 354 baht. The increases range from 2 to 16 baht, or an average of 2.37 %.
Srettha Thavisin, the prime minister, previously stated that the government would push for increases in the minimum wage in other industries and types of businesses.
Pheu Thai raped businesses who said it threatened to make the nation less competitive after promising a 400-baht rate during its election campaign last year.
A recent survey suggested if the minimum daily wage rose to 400 baht nationwide, GDP could grow by 2.6 %.