Concern over promise for Bt300 minimum daily wage
Concern over promise for Bt300 minimum daily wage
Concern over promise for Bt300 minimum daily wage
By The Nation
Published on July 5, 2011
The new minimum daily wage has become a major concern for employers and officials at the Labour Ministry, who are awaiting word from the incoming government, which promised voters during the election campaign it would back a pay hike for workers.
Somkiat Chayasriwong, permanent secretary at the Labour Ministry, said yesterday the Bt300 wage promised by Pheu Thai Party would be also be discussed at a meeting of the Wage Tripartite Committee scheduled tomorrow [July 6].
"As a government agency, the policy on the new [daily wage] rate will need to be reported and approved by the ministry's political leadership," he said.
A labour leader, Thawee Techatheerawat, said a flat rate of Bt300 and a starting salary of Bt15,000 a month for all university degree graduates - another promise by Pheu Thai Party - would be difficult. But labour groups would advocate the Bt300 rate to start from January 2012 at a meeting on Thursday.
Another labour leader, Chalee Loysoong, said the new government would be under huge pressure if it could not guarantee the flat Bt300 rate.
Withoon Kamolnaruemet, head of the Khon Kaen chamber of commerce, claimed a flat Bt300 rate would cause a 50-per-cent jump in operating costs for of most employers. Such election promises had already caused many companies to rethink whether they want to invest in Thailand.
Small and medium enterprises would be most affected by the Bt300 rate, and half of them would be suddenly faced with losses, or eventual closure. "And that would result in 50 per cent of (SME-associated] unemployment across the country," he warned.
Three foreign business owners based in Khon Kaen were seeking advice from his chamber about possibly relocating their businesses to countries where labour costs were cheaper, as a result of the possible hike, including the flat Bt300 rate promised by Pheu Thai.
Withoon said a new rate of Bt190 in Khon Kaen, up from the current rate of Bt167, was still acceptable to employers, but Bt300 would need to be backed by other measures, which he said Pheu Thai had never discussed or revealed.