FTI protests as ministry pushes for hike

The Labour Ministry will go ahead and ask Cabinet to approve a hike in the minimum daily wage despite protests from the Federation of Thai Industries (FTI).

If Cabinet gives the increase the green light today, workers nationwide will get between Bt8 and Bt17 more each day.

"I want to deliver this wage hike as a New Year's gift to workers," Labour Minister Chalermchai Sri-on said yesterday.

However, the FTI expressed doubts about the Central Wage Committee's decision to approve the hike at a rate much higher than that proposed by provincial wage committees.

"If possible, the government should review the plan," FTI president Payungsak Chartsutipol said.

The federation convened a meeting to discuss the "controversial" plan yesterday, and later asked the government to explain why the Central Wage Committee's rate of increase was much higher than what was proposed by provincial wage committees.

"The provincial committees have only proposed a hike of between Bt2 and Bt10," an informed source said.

For instance, the provincial wage committee proposed a Bt2 daily wage increase in Pattani, but Central Wage Committee approved a Bt11 hike.

The same source said the Central Wage Committee was also seeking to award Bt8 more than the amounts proposed by the provincial panels for workers in Yala, Phang Nga, Trang, Surat Thani, Ratchaburi, Chumphon, Krabi, Phatthalung, Satun, Nakhon Si Thammarat and Songkhla.

Sing Tangjaroenchaichai, who heads the Federation of Industries in the Central region, said the Central Wage Committee didn't just listen to the provincial wage committees, it also paid attention to recommendations made by a newly established academic panel.

"That's why the rate has been distorted. If we allow this to happen, the country may lose its appeal in the eyes of foreign investors," Sing claimed.

He said the much higher minimum daily wage would definitely hurt entrepreneurs in the food-processing and apparel sectors.

"We will send a letter directly to Prime Minister Abhisit Vejjajiva," FTI vice-president Taweekij Jatujarernkhun said, adding that if the rate was too high, some businesses may have to lay off workers.

However, Chalermchai said he did not believe the wage hike, sought by the Labour Ministry based on the Central Wage Committee's recommendation, would adversely affect business owners.

"If any employer feels his or her business is going to crumble because of the pay hike, then they should step forward with evidence," the minister said.

Chalermchai said employers should not complain about the hike, but focus instead on how to use the higher pay to motivate their workers to become more productive and efficient.

Meanwhile, Thai Labour Solidarity Committee rep Wilaiwan sae Tia said the proposed rates were in fact still lower than what workers wanted. "But the offer is not too bad," she said.

However, Wilaiwan urged the government to control product prices because if the cost of living rose too high, the wage hike would do nothing to improve workers' quality of life.