Thai labour minister embroiled in minimum wage dispute
The labour minister found himself in the midst of a heated debate today as employee and employer representatives presented their contrasting views on a proposed minimum wage increase. The conflicting opinions were expressed ahead of a crucial tripartite committee meeting scheduled for tomorrow, May 14.
The Thai Labour Solidarity Confederation and the State Enterprises Workers’ Relations Confederation were the first to meet with Labour Minister Pipat Ratchakitprakarn, at the Labour Ministry, at 8.30am. They were in favour of the government’s decision last month to increase the daily minimum wage to 400 baht, effective in October. This wage increase would be applicable at upscale hotels and resorts in ten provinces.
Yet, they argued that the increasing cost of living necessitated a similar rise in the minimum wage across the entire country. Minister Pipat responded by stating that the implementation of a 400-baht minimum wage nationwide may not be feasible. However, he vowed to advocate for it and revealed the government’s plan to raise the daily minimum wage to 600 baht by 2027.
At 10am, the minister found himself sitting across from representatives of the Federation of Thai Industries (FTI), the Board of Trade of Thailand and various small and medium-sized enterprises who vehemently opposed the minimum wage hike set for October. FTI Vice President Suchart Chantaranakaracha expressed his concerns, stating the 400-baht nationwide rate would be unaffordable for employers, particularly given the country’s weak export sector.
Suchart also dismissed the idea of tax incentives as a plausible solution, arguing that a nationwide wage increase of such magnitude could plunge many businesses into a significant loss.
The tripartite wage committee, consisting of representatives from the government, employees, and employers, is slated to deliberate on the minimum wage issue during their meeting tomorrow, reported Bangkok Post.
In related news, Prime Minister Srettha Thavisin’s agenda for a three-day tour to three Thai provinces has been revealed. Government Spokesperson Chai Wacharonke made known that the 62 year old PM’s inspection tour of the three provinces: Suphan Buri, Kanchanaburi, and Ratchaburi.
