Southern Industrial Council opposes 400 baht minimum wage rise

The Southern Industrial Council opposes the proposed 400 baht minimum wage increase, advocating for region-specific adjustments instead. Businesses face high costs for electricity and oil, alongside competition from Chinese investments.

Adisorn Tanaengchuan, President of the Southern Industrial Council and executive member of the Federation of Thai Industries (FTI), expressed concerns regarding the Labour Wage Committee’s meeting today to consider the third minimum wage adjustment for 2024.

The government’s policy aims to raise the minimum wage to 400 baht, effective from October 1, pending approval by a two-thirds majority vote. Despite employer representatives abstaining, the new government continues pushing for the 400 baht increase.

The private sector maintains its opposition to the blanket wage hike. Adisorn emphasised the importance of the government considering feedback from business representatives, employees, and public agencies. He noted that employees do not uniformly support a nationwide 400 baht wage.

Adisorn highlighted that an enforced 400 baht minimum wage would significantly impact the industrial and overall economic sectors, particularly small and medium enterprises (SMEs) already burdened by rising costs. He pointed out the increasing trend of factory closures each month due to these challenges.

The manufacturing sector is currently grappling with soaring costs in energy, electricity, and oil. Moreover, Chinese products flooding the Thai market further strain SMEs. Adisorn warned that a nationwide 400 baht wage hike would severely affect SMEs and urged the government to consider sector-specific adjustments.

The Southern Industrial Council president suggested that some industries might not be as adversely affected and could accommodate the wage increase.

He called for the government to evaluate the manufacturing sector and industries that build upon agricultural outputs, typically characterised by low technology and labour-intensive processes.

Economic conditions and GDP growth rates vary across provinces, and the government should consider this in its decision-making, adhering to the tri-partite subcommittee’s guidelines where appropriate.

“We want the government to listen to the voices of business representatives, employees, and public agencies. Currently, even employees do not want a blanket 400 baht wage hike across the country.”

Adisorn reiterated that the Southern Industrial Council stands firm against the proposed wage increase. He stressed the need for the government to consider the diverse economic conditions across different regions and industries, rather than imposing a uniform wage hike that could lead to further economic strain and business closures, reported KhaoSod.