Thread: Minimum wage raise not affecting goods prices: Commerce Minister

NONTHABURI, 18th January 2018 (NNT) – The Commerce Minister, Sontirat Sontijirawong, said the planned minimum wage increase will subtly affect costs of producing goods and services but will not have an impact on their retail prices.

Regarding the government's plan to increase the minimum daily wage nationwide in the range of five to 22 baht, Mr. Sontirat said initial talks between the state and private sectors have reached the conclusion that the changes would only cause the increase of manufacturing costa at the maximum of 0.1 percent, making it unnecessary to raise retail prices of commodities and goods.

The Ministry of Commerce is asking private companies to retain the same retail prices of goods to help maintain the living costs of the general public. Affected companies from the raise of minimum wage can contact the Department of Internal Trade for the review of possible pricing changes according to the actual situation.

The general public can make complaints regarding unusual pricing by calling the 1569 hotline. Sellers who sell overpriced goods can face seven years of imprisonment, or up to 140,000 baht fine, or both.

National News Bureau Of Thailand | Minimum wage raise not affecting goods prices: Commerce Minister

Originally Posted by misskit

subtly affect costs of producing goods and services but will not have an impact on their retail prices.

Yes because companies are well known for not passing on costs, and taking the hit themselves.

When they issue unsubstantiated statements be it "this measure won't affect street prices" or denying something...they are more often than not proved wrong

Traders asked to peg product prices after wage hike

BANGKOK, 24 January 2018 (NNT) – Ahead of a planned minimum wage hike, the Ministry of Commerce has called on producers and vendors of products not to increase prices as only a minor impact on production cost is expected.

Minister of Commerce Sontirat Sontijirawong has convened a meeting with representatives of the Board of Trade of Thailand, the Federation of Thai Industries and 12 trade associations, including the Thai Rice Packers’ Association, as well as more than 100 producers, wholesalers and retailers from all industries. The meeting was aimed to discuss possible effects from the minimum wage rise and to collect relevant opinions from the attendees.

On this occasion, Mr Sontirat requested cooperation from all sides to refrain from adjusting up the prices of their goods. He claimed studies have indicated that a wage hike of 5-22 baht would affect the cost of production by merely 0.0182-1.0225 percent since most products are made by machinery. Should any operators see the need to increase their prices following the wage adjustment, the minister suggested they notify the Department of Internal Trade (DIT) of the matter and consideration will be given on a case-by-case basis.

DIT officials will be sent out to inspect product prices in a bid to prevent consumers from being taken advantage of. Complaints against unfair pricing or unauthorized price increases could be lodged with DIT Hotline 1569. Violators would be subject to a jail term up to seven years and/or a fine up to 140,000 baht.

National News Bureau Of Thailand | Traders asked to peg product prices after wage hike