Construction workers endured the scorching heat last year as they tirelessly worked on completing an inter-city motorway project in Nonthaburi province. It was an arduous task under the blazing sun, but their determination was unyielding. (Photo: Apichart Jinakul)
Fast forward to today, and Labour Minister Phiphat Ratchakitprakarn is optimistic about a significant change on the horizon. He is confident that a new daily minimum wage increase to 400 baht nationwide could be rolled out on Oct 1, alongside measures designed to support businesses that might feel the strain. Speaking on Wednesday, the minister’s assurances come amid anticipation surrounding the upcoming meeting of the tripartite wage committee on Friday. It is here where the proposed 400-baht minimum wage will be debated.
The wage committee, a blend of employees, employers, and government representatives, met on Monday to advance the government’s 400-baht minimum wage policy. However, five employer representatives were conspicuously absent, citing prior commitments. This has led to a rescheduled meeting on Friday, specifically addressing companies or factories with at least 200 workers.
Minister Phiphat remains unfazed by the employers’ representatives’ potential absence in the forthcoming meeting. He emphasized that the discussion will proceed regardless, as a two-thirds majority in the committee is sufficient to greenlight the 400-baht wage policy.
“I’ll do my best to have it implemented,” Mr. Phiphat asserted. “I believe the employers are anticipating the pay rise. I understand the wage increase’s impact on the employers. I come from the business sector, and the companies in our group, which include around 30,000 employees, will be significantly affected, with the wage applicable to 20,000 of them. However, we accept the situation,” he shared candidly.
Mr. Phiphat also expressed his hope that employers’ representatives would join the discussion. “The proposed wage increase is the best option with minimal impacts on businesses. Moreover, the Finance Ministry is poised to unveil relief measures on Oct 1,” he explained.
The prospect of the wage hike facing legal challenges doesn’t concern Mr. Phiphat. He is ready to accept the consequences, knowing that the policy is being advanced in good faith.
Meanwhile, the business sector has voiced its reservations. Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), stressed on Wednesday that government representatives should carefully consider suggestions from provincial sub-committees regarding the wage hike. He emphasized the importance of weighing economic indicators and national competitiveness in such deliberations.
Mr. Kriengkrai revealed that the FTI has engaged in dialogues with businesses. He warned that the wage hike might push already vulnerable enterprises to the edge, potentially leading to closures and undermining confidence. To counter this, he proposed a “pay by skill” approach and urged agencies to enhance worker skills to meet market demands.
“Half of the industries aren’t labour-intensive and are prepared to offer 700-900 baht to skilled workers, though finding such skilled labor is challenging. We should engage in dialogue and fine-tune this policy to prevent it from becoming a contentious issue,” he suggested.
Defending the employers’ representatives who missed Monday’s meeting, Mr. Kriengkrai explained that the Sept 16 meeting was called at short notice. Those representatives had prior commitments and simply couldn’t attend. He debunked rumors of the employers intentionally skipping the meeting.
Raising the daily minimum wage forms a cornerstone of the Pheu Thai-led government’s election promises. The goal is to increase wages to 400 baht during the government’s first year and elevate them further to 600 baht by 2027.
In a precedent-setting move, the tripartite committee had already approved a 400-baht daily wage on March 26, which came into effect in parts of 10 provinces on April 13. This included areas like Phuket, Koh Samui in Surat Thani, Pattaya in Chon Buri, Chiang Mai City, and certain districts in Bangkok. The policy applied to tourism-related businesses and four-star hotels with at least 50 employees, marking a significant milestone in the wage reform journey.
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