Call to hike minimum wage

LABOUR LEADERS have demanded an increase in the country’s minimum wage to Bt360 per day from the current Bt300 along with better welfare and other benefits.

 Speaking yesterday at a press conference ahead of Labour Day today, Wilaiwan sae-Tea, the chairwoman of Thai Labour Solidarity Committee (TLSC), said the tripartite Labour Wage Committee expects the wage raise to be finalised in October this year so that it would be effective in January 2016, as a New Year’s gift to all workers.

The TLSC will today hold its activities at Democracy Monument while a network of 14 labour unions and employee committees will hold their activities from morning to 10pm at Sanam Luang, beginning with a march from Makkhawan Rangsan bridge near Government House.

Members of TLSC and the influential State Enterprises Workers' Relations Confederation (SERC) will converge outside Parliament building and hold joint activities at Democracy Monument, she said.

Khin Wyn Jay, a leader of Myanmar workers in Ranong, said Myanmar workers would also seek an increase in daily wage to Bt360, as the rising cost of living in Thailand was affecting all low-income earners.

A former chairwoman of the chamber of commerce in Ranong, Naruemol Khorraphoom, said the Bt60 raise should be alternatively provided to Myanmar workers, as a hike would mean less business competitiveness, which puts Thailand at a disadvantage with neighbouring countries. The Bt300 wage granted to all labourers in Ranong has forced more than 30 per cent of local businesses to shut down, she added.

Meanwhile, blue-collar workers earning monthly salaries of up to Bt15,000 or the Bt300 minimum daily wage, are the biggest group with rising debt burden, as they cannot cover the higher cost of living amid the economic slowdown, according to the University of the Thai Chamber of Commerce.

 

Debts at record high

The university’s April business poll found that the combined low-income workers’ debts hit a record high of Bt117.83 billion, surging 10.9 per cent from the year before. 

The survey showed that 94 per cent of all workers are indebted, with only 6 per cent debt-free.

Higher debt among labourers is caused by the increasing cost of living and prices of consumer goods. The economic slowdown has also eroded their incomes because factories have cut down on overtime payment.

“The figure clearly indicates that low-income people are having serious cashflow problems mainly due to the fact that their incomes do not match the rising cost of living,” said Thanavath Phonvichai, director of the university’s Economic and Business Forecasting Centre.

The survey covers 1,197 responses nationwide from April 20-27. On Labour Day, the poll also found that despite the long weekend, workers would spend less due to their high concerns for their future income.

During the five-day holiday, spending is expected to increase only 1.7 per cent year on year to Bt1.99 billion, the slowest in seven years.

With low income, most labourers said they have to be more careful about spending money, and even have to borrow money from financial institutions and underground lenders.

Of their total debt, 40.4 per cent is owed to banks and financial institutions charging an average interest rate of 4.3 per cent, while 59.6 per cent came from illegal lenders charging 17.9 per cent a month.

“Low-income earners have turned to borrowing more from loan sharks this year because they have faced problems accessing the banking system,” he said. 

About 81 per cent of the respondents said they have difficulties keeping up with their loan instalments and need to delay payments by two to three months.

On average, Thai labourers need to pay Bt7,377 per month to repay their loans, which mostly cover daily expenses, other debts, house rental expense, vehicle expenses, and medical expenses.

Workers are asking for a hike in the minimum wage to as much as Bt398.89 per day, while the government is asked to help lower the cost of living, reduce unemployment and debt problems, upgrade labour skills and provide support for retirees.

In three years, workers expect that the minimum wage would reach Bt491 a day, and Bt561 a day in five years.