Thai / English

Quality products, not cheap labour, Pheu Thai policy: Jaruphong

Pheu Thai secretary-general Jaruphong Ruengsuwan said his party's election promise to increase the daily minimum wage to a flat Bt300 would help labourers stand on their own feet.

07 Jul 11
The Nation

"From now on cheap labour will no longer exist in Thailand, and with this policy, skills of workers will be upgraded and a policy to make only high-quality products adopted, to accommodate a party policy - Year 2020," he said.

Asked whether this policy would result in foreign companies migrating from Thailand, he said the Pheu Thai-led government would subsidise operations of Thai firms in other countries where labour is cheap.

Citing a study by the International Labour Organisation, he said the daily minimum wage should be Bt441 - a rate he said would by sufficient to feed and support a labourer with a wife and a child in one day.

Jaruphong dismissed criticism that the Pheu Thai Party would want to scrap the wage tripartite structure, saying it would want to make the Wage Tripartite Committee truly represent employees.

The highest minimum wage is now Bt215 paid in Bangkok. An adviser to the WTC said on Tuesday that the most practical increase would be Bt7, which could be approved by October at the earliest.

He said another promise to pay a minimum salary of Bt15,000 to government officials at entry level would continue, and could be implemented by October. Personal income tax could be lower by January.

Caretaker Labour Minister Chalermchai Sri-on warned against approving the flat Bt300 rate, saying it would result in a higher cost of living and higher commodity prices.

He said the Bt15,000 promise would also affect the entire financial structure and burden fiscal policy, because those now receiving less than Bt15,000 would not accept new officials getting more than they did, and would demand equal or higher salaries.