The chairmen of the Thai Chamber of Commerce (TCC) and the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) recently voiced their support for enhancing the income levels of Thai workers but did not endorse the proposed nationwide minimum wage increase to 400 baht.
Sanan Angubolkul, the chairman of the Thai Chamber of Commerce, expressed concerns about the proposal to set the daily minimum wage at 400 baht across the country.
He highlighted the challenges posed by global and domestic economic instability, triggered by geopolitical events, which could impact Thailand and its various business sectors.
Instead, Sanan proposed a more context-sensitive approach to adjusting the minimum wage, considering the economic and social dynamics within the country and their potential effects on different industries.
He pointed out that the suggested uniform minimum wage fails to take into account the varying economic and social conditions found in different provinces.
More than 90% of the provincial subcommittees on minimum wage adjustments, comprising employer, employee, and government representatives, oppose the proposal, with 30% rejecting any increase in wages.
Sanan warned that a substantial wage increase might escalate production costs, diminish competitiveness, and negatively affect employment, particularly during the current fragile economic period.
He cautioned that businesses might react by reducing their workforce, pausing new hires, stopping operations, or shifting to informal systems, which could lead to layoffs.
Sanan also mentioned that both Thai and foreign investors find it unsustainable to base their operations in Thailand and are considering relocating to other countries.
In light of these concerns, the Joint Standing Committee on Commerce, Industry, and Banking offered several recommendations:
Adjust wages based on the insights of provincial subcommittees and in line with economic indicators.
Apply the Tripartite Wage Committee mechanism for wage adjustments, ensuring they align with the factual economic and wage analyses provided by provincial subcommittees.
Limit wage adjustments to no more than once a year, guided by clear economic indicators and adhering to stringent legal standards.
Perform sector-specific readiness assessments before applying targeted wage increases to prevent disruptions in supply chains.
Promote skill-based wages according to the guidelines of the Skill Development Promotion Committee, with a focus on enhancing worker skills through upskilling and reskilling initiatives.
Accelerate the establishment of skill-based wage standards across all 280 occupational categories under the national skill standards framework, an increase from the current 129 categories.
Implement strategies to lessen the cost of living impact on low-income groups and provide support to businesses to sustain their competitive edge.
