BANGKOK, July 18 (TNA) – A leading private sector group says it opposes the wage hike policy of the Palang Pracharath Party
(PPRP) which leads the new coalition government.
After Prime Minister Prayut Chan-o-cha’s Cabinet officially
sworn in this week, the Federation of Thai Industries (FTI) issued a warning of
the foreseen impacts of the daily minimum wage hike.
Raising daily minimum wage to 400 baht is one of the PPRP’s
campaign promises in the March 24 election.
FTI Chairman Suphan Mongkolsuthee said on Thursday that if
implemented the hike would force SMEs out of business, massive layoffs and hurt
the farmers.
“Only 3.2 million foreign workers will benefit and bring the
money out to their countries,” he said.
Suphan said the current minimum wage was suitable and the
government should consider “pay by skill” system which remunerate workers based
on their productivities and skills.
Employers have already voiced their concerns over the PPRP’s
core policy and adverse impacts. They
urged the government to bring the proposal to the tripartite committee on
labor, which consists of employers, employees and the government.
Any wage hikes should be done via existing joint provincial
committees on wage and applied in their respective province because economic
conditions vary, the FTI has said.
It has also warned that a wage hike will result in higher
living costs, consumer good prices and the country’s competitiveness.(TNA)
