Key industrial body opposes government's THB400 minimum wage plan
A major business organisation representing key sectors of the economy is opposing the government’s plan to raise the daily minimum wage to 400 baht across the board nationwide.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) resolved on Wednesday to oppose the plan, Kriengkrai Thiennukul, president of the Federation of Thai Industries, who chaired the meeting, said.
The JSCCIB brings together the FTI, the Thai Chamber of Commerce (TCC) and the Thai Bankers Association (TBA).
Earlier, the chamber had expressed its opposition after Interior Minister Anutin Charnvirakul and Labour Minister Pipat Ratchakitprakarn announced on May Day that the daily minimum wage nationwide would be raised to 400 baht for all jobs and businesses.
Earlier this year, the tripartite wage committee had adopted the policy to approve wage increase in specific areas and for businesses that were ready to cope with the additional financial burden. As a start, the wage panel approved a 400-baht daily wage for tourism businesses in tourist provinces from April 13.
But on May Day, the government announced that effective October 1, the increase would take effect across all sectors and nationwide.
Kriengkrai said the JSCCIB saw the Thai economy as still troubled by several fluctuating factors, such as depreciating currency, energy prices, international trade wars that also affected Thailand’s exports.
He said the industrial sector was still struggling while the economy had not yet fully recovered. He said the manufacturing production index of Thailand in March had contracted for the 18th consecutive month and this pointed to volatility in Thai industries.
Kriengkrai said the JSCCIB agreed with the government’s intention to increase workers’ income, but it must be based on the provisions of Article 87 of the labour protection act of 1998.
The article requires the wage committee, which has representatives from the government, employers and employees, to take into account living cost, inflation rate, living standards, manufacturing cost, capability and GDP before deciding on the new daily minimum wage.
He said the JSCCIB resolved to disagree with the 400-baht rate and wanted the new rate to be considered by provincial subcommittees of the wage committee.
He said the provincial panels must consider the new rates based on economic data from each province, GDP, inflation, employers’ financial status and efficiency of labourers.
He said the JSCCIB also wanted wages to be paid on a “pay by skills” basis, encouraging the employers and employees to retrain them for better skills and higher pay.
He added that the JSCCIB also called on the provincial subpanels of the wage committee to conduct comprehensive hearings involving all stakeholders before deciding on the new rates.
The JSCCIB also proposed that the government enact measures to reduce the cost of living for workers, such lowering the cost of instant food and consumer goods, as well as travelling cost and power bills.
He said the JSCCIB would soon forward its official resolution opposing the 400-baht wage plan to the Labour Ministry.
