FTI lines up relief proposals to PM
The Federation of Thai Industries is meeting with Prime Minister Yingluck Shinawatra today to ask the government to delay the Bt300 minimum wage and to offer assistance measure to manufacturers that will be hit with higher costs - like the relief package
Thaveekit Jaturajerernkul, vice chairman of the FTI, said yesterday the federation and presidents of its chapters in 74 provinces had tried to make an appointment with the prime minister today. The private sector wants to explain more about the impacts of the wage hike to Bt300 per day.
The FTI will submit a five-point proposal to Yingluck.
The first is to postpone the nationwide implementation of the Bt300 wage from early next year to December 2015, as the policy will affect the country’s competitiveness, particularly for SMEs. The minimum daily wage can be adjusted faster if the fluctuating economy drives up the cost of living of workers, but it should be reviewed from 2014-15.
Second is to allow wage adjustments to be considered by the labour committee of each province first and let them directly propose raises to the Central Wage Committee without any political interference.
Third is to pay the new minimum wage to workers who have passed Prathom four certification. Fourth is to cancel the minimum wage policy and turn to focusing on a floating minimum wage that relies on the market mechanism.
The final proposal is to extend assistance measures, such as the rehabilitation programme, as companies suffering the most from the policy need a helping hand to survive. “The government should provide fair practices to every sector like farmers getting high rice prices from the pledging scheme.
The government should prepare measures and compensation before businesses are forced to shut down from the labour cost increase,” he said.
The Joint Private Committee had planned to submit the proposal to the Joint Public Private Committee for consideration during the mobile Cabinet meeting in Samui last week, but it was withdrawn from the agenda.
“However, in case Payungsak Chartsutipol, chairman of the FTI, doesn’t agreed with the proposal, he should review his role as the FTI’s leader,” Thaveekit said.
Some manufacturers have had to fold, particularly those that are labour intensive, as production is facing high risk after the launch of the Bt300 minimum wage. More businesses would call it quits before January, he added.
