Thai labour unions criticise new daily minimum wage

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The Thai Labour Solidarity Confederation (TLSC) and State Enterprises Workers’ Relations Confederation (SEWRC) expressed disapproval of the new daily minimum wage of 400 baht approved by the tripartite wage committee. The wage increase is only applicable to some areas in 10 provinces, initiating a wave of criticism from the labour unions, who argue that this decision is unjust.

According to the unions, this wage discrepancy among workers within the same province will generate inequalities. They argue that despite the cost of basic commodities and services remaining consistent across the provinces, the wage disparity will create an unfair system. They urge the government and Labour Ministry to eliminate wage inequalities and maintain a uniform daily minimum wage of no less than 400 baht (US$11), ideally 492 baht (US$14).

In a statement issued by the unions, they categorically labelled the adjustment as the worst change to the country’s wage system. They proposed the minimum wage to serve as the entry-level compensation, insisting on a structured wage system that provides incentives to workers across all businesses. They hinted at possible further action if their demands aren’t met.

Sitthipong Sitthipatprapa, a leading figure among hotel operators in Songkhla’s Hat Yai district, also voiced concerns over the wage increase. He argues that the wage increase will negatively impact businesses, especially since the room prices and service charges in the 10 provinces affected by the wage increase vary.

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The hotel association in Hat Yai-Songkhla is planning a discussion over the wage increase and is considering submitting a plea to the government for a review of the decision.

Pairoj Chotikasathien, permanent secretary for the Labour Ministry and chairman of the committee, clarified that the wage increase would apply to tourism-related businesses and four-star hotels with a minimum of 50 employees, reported Bangkok Post.

The wage increase is set to be effective from April 13 and will be implemented in specific areas including Bangkok’s Pathumwan and Watthana districts, Chiang Mai’s Nakhon Chiang Mai municipality, all of Phuket, the area under the jurisdiction of tambon Ao Nang administrative organisation in Krabi, Songkhla’s Hat Yai municipality, Surat Thani’s Koh Samui district, Phang Nga’s tambon Khuk Khak municipality, Pattaya City in Chon Buri, Prachuap Khiri Khan’s Hua Hin municipality and Rayong’s tambon Ban Phae.

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Mitch Connor

Mitch is a Bangkok resident, having relocated from Southern California, via Florida in 2022. He studied journalism before dropping out of college to teach English in South America. After returning to the US, he spent 4 years working for various online publishers before moving to Thailand.

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