FTI, Labour Ministry discuss wage hike

TUESDAY, SEPTEMBER 06, 2011
FTI, Labour Ministry discuss wage hike

Some 5.5 million people working in factories, trade and services sectors are entitled to receive the government's minimum wage of Bt300 per day, according to the Ministry of Labour and Social Welfare.

The figure was disclosed to Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol in an informal discussion with the ministry's permanent secretary Somkiat Chayasriwong and Skill Development Department director-general Jiraporn Kesornsujarit.
Federation of Thai Industries (FTI) chairman Payungsak Chartsuthipol said his office agreed with the wage rise, but the Labour Ministry should have strategies to help entrepreneurs, particularly small and medium-sized enterprises (SMEs), affected by the matter.
He also said the SMEs' wage bill rise should be eligible for tax deduction.
The FTI also wanted an adjustment period of 3-4 years for the wage hike in order to adapt to the market mechanism. 
Padungsak said he conveyed the message during a meeting with Labour Ministry's representatives on Tuesday.
The ministry and the FTI initially agreed to work together on orientation for new workers and skill development training for existing workers. Increasing labour potential would be a medium-term strategy.
However the ministry and FTI still differently define "income", he said.
The ministry views it as the daily wage, whereas FTI feels it should include other welfare offered to workers as part of earnings.
As many entrepreneurs already provide some welfare to their workers, the chairman is of the opinion that they would face difficulties in adjusting to the new wage and would not agree if any existing welfare was to be cut.