Federation threatens to rally if wages aren't hiked

A workers' federation has threatened to stage a rally unless the 300-baht minimum daily wage goes into effect in January as planned.

Thailand Autoworkers Federation (TAW) president Yongyuth Mentapao said workers have closely followed progress of the 300-baht daily wage policy.

The federation was waiting to see if the wage rise would be launched across the country in January as promised by the government.

Labour Minister Padermchai Sasomsap has promised to forward the wage hike proposal to a cabinet meeting next Tuesday for endorsement so the boost will take effect in the remaining 70 provinces in January.

If the minister fails to bring the wage policy to the cabinet, workers across the country will be mobilised to stage rallies, Mr Yongyuth said.

However, many employers want the hike to be delayed, saying it will threaten their businesses with going under.

The federation president said he understood the increase would hit some businesses hard. But as the wage hike was government policy, the administration must implement it and find ways to cushion effects on employers.

"The 300-baht minimum daily wage is not much when compared to the cost of living.

"Actually, the minimum wage should have been increased to 400 baht," Mr Yongyuth said.

Federation of Thai Industries (FTI) vice-chairman Tanit Sorat said small- and medium-sized enterprises (SMEs) would be hit hard on Jan 1.

Businesses would face rising production costs and many small enterprises might not survive the ensuing financial crunch, he said.

Mr Tanit said he believed the wage increase would force businesses to adjust their product prices in the second quarter of next year.

Thawee Piyapattana, another FTI vice-chairman, warned the nationwide 300-baht minimum wage posed a danger to the economy, particularly SMEs which would have to struggle hard to keep afloat.

Negative consequences from the wage boost would be seen after April next year, he warned.

The labour minister stood firm yesterday that he would not review the policy despite calls by business operators.

Mr Padermchai defended the wage hike, saying the government had carefully studied all aspects before moving ahead with the policy.

Measures have also been worked out to help businesses, he said.

Opposition leader Abhisit Vejjajiva said the government is pitting the workers who support the policy against the businesses which will feel the pressure.

The government needs to have clearer measures to keep businesses going once the policy is implemented.