Wage hike will begin in only 7 provinces

The Pheu Thai-led government risks raising the ire of blue-collar workers by lifting the minimum wage to Bt300 next year in just seven provinces, not at once across the whole country.

"The immediate hike in the minimum daily wage across the country was a highlight of the Pheu Thai Party's election campaign," Wilaiwan sae Tia, vice president of the Thai Labour Solidarity Committee (TLSC), said yesterday.

"If the Pheu Thai Party fails to keep its word, its empty promise may be considered public deception. We will consult with legal experts and academics about the issue," he said.

Labour Minister Padermchai Sasomsap said the party's hallmark policy would be implemented first in Bangkok, Samut Prakan, Samut Sakhon, Pathum Thani, Nakhon Pathom, Nonthaburi and Phuket.

More than three million workers are expected to benefit.

Somkiat Chayasriwong, permanent secretary of the ministry, said the plan was possible because the current wage rate in those provinces is now quite close to Bt300, so employers should not be too bothered.

In Phuket it is Bt221 and in the other provinces Bt215.

All parties must discuss the issue with the Central Wage Committee in the middle of the month before coming to any conclusion, he said.

"I think things should become clear by October. We hope to see the new wage take effect on January 1," he said.

The minimum wage in other provinces may rise by 40 per cent first and to Bt300 later, he added.

TLSC is not happy about this, though.

TLSC president Chalee Loysoong said all workers around the country were suffering from the rising cost of living and deserved a similar wage.

In Phayao, the rate is just Bt159.

On Monday, Chalee would present information on inflation, workers' income and household expenses at a press conference to make clear why the Bt300 wage should be applied to all workers.

On September 14, the Central Wage Committee will meet to discuss the wage-hike plans.

Pannapong It-atthanon, who sits on the committee as a representative of employers, said small businesses would incur severe problems dealing with the government's move.

"If the government takes sides with workers, it will be hard for us to do anything. The representatives of employers may walk out the first time the Central Wage Committee considers this issue but our boycott won't mean anything when the committee picks up the issue again.

"Our walkout for the second time won't affect the quorum," he said.

Now, employers could only pin their hopes on the representatives from the Finance Ministry, National Economic and Social Development Board and Commerce Ministry, who should recognise the ramifications of the big jump in minimum wages, he added.

Somkiat said the government would consider remedial assistance for those employers experiencing the greatest difficulties.

"The labour minister will hold discussions on the measures with Deputy Prime Minister Kittiratt na Ranong and Commerce Minister Thirachai Phuvanatnaranubala late this week," he said.

Yongyuth Chalamwong, director of labour research at the Thailand Development Research Institute, said the government might use tax relief to cushion the blow to employers.