Business leaders say wages can’t rise at same rate countrywide

Kalin Sarasin, chairman of the government’s Joint Standing Committee on Commerce, Industry and Banking, told reporters on Tuesday businesspeople were “confused” by a report suggesting the minimum wage increase nationwide between Bt2 and Bt15. 
He said his committee had recommended alternative wage adjustments to the Labour Ministry.
“The committee agreed that wages should be revised up annually, but not be at the same rate across the country, and nor are the new rates too high,” Kalin said.
He pointed out that economic conditions vary from province to province. Authority over wage hikes should be given to provincial committees made up of businesspeople, labour representatives and state officials, he said.
Kalin said three million small and medium-sized enterprises may be unable to absorb the impact of the proposed wage rise.
Also, the economy has not yet fully recovered and is subject to such volatile factors as the baht strengthening and crude oil prices rising globally.
He said the government should put more effort into developing workers’ skills and their wages would be adjusted accordingly.
Federation of Thai Industries vice chairman Suchart Chantaranakaracha said representatives of business, labour and government would make a decision on the wage increase on January 15.
Suchart said workers saw their wages rise by Bt5 in 49 provinces last year, by Bt8 in 13 provinces, by Bt10 in seven provinces and not at all in eight provinces.
He put total employment last year at 37.72 million – 12.05 million in the farming sector, 14.79 million in manufacturing and 10.88 million in trades and services .
Trade unions in December demanded wage hikes at same rate across the country and proposed a daily wage of Bt360 to keep pace with the rising cost of living and address high household debt.
The Labour Ministry had already indicated that the minimum daily wage would not rise at the same rate nationwide.