Wage hikes stir discontent
Critics blast ‘discriminatory’ policy as they mark Labour Day, writes Supoj Wancharoen
To mark International Labour Day today, academics and labour activists have stepped up their calls on the government to increase minimum daily wages for workers nationwide following rises in parts of 10 provinces that took effect on April 13.
The latest hike to 400 baht a day was approved by the tripartite wage committee on March 26.
It has been applied to tourismrelated businesses and four-star hotels with at least 50 employees, according to Pairoj Chotikasathien, permanent secretary for the Labour Ministry and chairman of the committee.
The hike is applied to Bangkok’s Pathumwan and Watthana districts, Chiang Mai’s Nakhon Chiang Mai municipality, all of Phuket, the area under the jurisdiction of tambon Ao Nang administrative organisation in Krabi, Songkhla’s Hat Yai municipality, Surat Thani’s Koh Samui district, Phangnga’s tambon Khuk Khak municipality, Pattaya City in Chon Buri, Prachuap Khiri Khan’s Hua Hin municipality, and Rayong’s tambon Ban Phae.
However, critics have blasted the latest hike, saying it only benefits workers in the tourism sectors of select regions and, therefore, discriminates against other types of businesses nationwide.
They also said the government should devise measures to help workers cope with the rising cost of living and improve their digital skills.
SPECIAL MEASURES
Kiriya Kulkolkarn, a lecturer at Thammasat University’s faculty of economics, told the Bangkok Post that apart from an increase in daily wages, the government must come up with other measures to improve workers’ quality of life.
These include reducing workers’ expenses, controlling the prices of consumer products, and offering incentives to attract foreign investment, she said.
For long-term measures, the industry sector needs restructuring to boost the capacities of small- and-mediumsized enterprises (SMEs), modernise businesses and increase workers’ digital skills, she said.
Ms Kiriya said that while the 400baht wage hike benefits employees, it will hurt SMEs that lack sufficient financial resources.
Moreover, as the economy slows, foreign investors, who are forced to pay higher wages, may decide to move their production bases to other countries with lower rates, Ms Kiriya warned.
In response to the wage hike, employers are expected to hire workers on a temporary basis or resort to labour contracting, which will lead to job insecurity, she said.
She said that minimum daily wage rates in Thailand are higher than those in Cambodia, Laos, Myanmar and Vietnam, but Thai workers’ skills, particularly digital skills, cannot compare with those in Singapore, Malaysia and Indonesia.
“The government must boost workers’ digital skills and offer incentives to draw investment from foreign investors in modern industries,” she said.
ACROSS THE BOARD
Chalee Loysoong, an adviser to the Thai Labour Solidarity Committee, told the Bangkok Post he disagreed with the 400-baht wage hikes only made in certain parts of the 10 provinces.
The hike should be applied to all career types in all provinces, he said.
“If the government wants the economy to improve in every province, it should hike wages nationwide. People will have the same wage rates to spend.”
He said the government should play a greater role in job counselling to guide workers in making better career choices, adding that digital upskilling is essential in the digital age.
Vijit Dasantad, president of the Phuket Federation of Hotel and Service Labour, told the Bangkok Post the government should step in to curb the rising prices of consumer goods following the wage hikes.
“Some vendors raised their prices beforehand when they heard about the wage hike,” he said.
“Wages should be i ncreased in all professions, and the government should curb the prices of goods. That would be a true gift for workers,’’ he said.
The daily minimum wage was raised for all Thai workers on Jan 1, with the new rates varying between provinces, where they range from 330 to 370 baht, according to the tripartite wage committee.
Before Jan 1, the rates were between 328 and 354 baht. The increases range from 2 to 16 baht, or an average of 2.37%.
Prime Minister Srettha Thavisin said earlier that the government would push for minimum wage increases for other areas and business types.
Pheu Thai promised a 400-baht rate during its election campaign last year, rattling businesses that said it threatened to make the country less competitive.
A recent survey suggested if the minimum daily wage rose to 400 baht nationwide, GDP could grow by 2.6%.
Today’s Labour Day celebrations could have been even merrier as the government made a solemn promise over two weeks ago to raise the universal minimum daily wage to 400 baht across the nation. However, spirits were dampened after Labour Minister Pipat Ratchakitprakarn abruptly postponed the schedule last Friday.
The government, as it turns out, still has to await the outcome of the tripartite committee meeting on May 14.
Labour Minister Pipat recently admitted that the hike would be implemented on a gradual basis to avoid harshly impacting the economy.
Such hiccoughs have become a pattern when it comes to implementing labour policies under the Srettha Thavisin government.
In fact, this has been characterised so far by the elected parties struggling to realise their pledge to raise the daily minimum wage. In last year’s election campaign, the ruling Pheu Thai Party vowed to raise this to 600 baht.
Hiking the daily wage is easier said than done. In Thailand, the decision to set the amount is made by a tripartite committee comprising representatives of employers, employees and officials, with the use of an approved calculation formula.
Therefore, the government, especially Pheu Thai and PM Srettha who are used to fast and flexible business operations, found itself frustrated after the committee chose not to accommodate its wage hike promise.
The Srettha government spent seven months cajoling and hectoring the tripartite committee to raise wages, with limited success.
To be fair, though, the panel did approve a gradual wage hike. For example, on April 13, the minimum daily wage in 10 tourist areas was raised to 400 baht.
This, of course, prompted workers in other fields to lament the lack of an equal playing field, while many budget or lower-cost hotels complained this would eat into their margins and hurt their business.
Labour experts have also warned the government that it must let the market and the tripartite mechanism determine the true or fair labour costs.
Indeed, there are many things the government and labour ministry should have done better to improve workers’ lives.
One labour problem that policy makers and governments often ignore is taking care of the rights of workers who have been laid off or dismissed unfairly. This means the disgruntled former workers must resort to protests or court cases.
The government, especially the labour minister, must order labour officials to provide a sound legal service to ensure laid-off workers are fairly treated and taken good care of.
Another ignored labour issue is pollution in workplaces such as factories. A glaring example is workers at recycling factories in Samut Prakan and Bangkok, who have been exposed to toxic cadmium tailings.
Such hazardous work conditions would not exist if the government had imposed a mechanism to audit workers’ health and welfare in risky workplaces. But that is not the case in Thailand. Whenever there is a crisis, the responsible ministries and administrations prefer to pass the buck.
The economic conditions in Thailand may not favour a quick and substantial wage rise. But that does not mean the government can fail to improve workers’ lives. The elected political parties must strive to boost the welfare of workers first and foremost.