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Divergent Stance Between Employees and Employers on Wage Increase

Divergent Stance Between Employees and Employers on Wage Increase

Photo credit: Ministry of Labour

Representatives from both employees and employers had conflicting views on the proposed minimum wage increase during a meeting with the labor minister on Monday, just before the tripartite committee’s scheduled meeting on Tuesday.

The Thai Labour Solidarity Confederation and the State Enterprises Workers’ Relations Confederation voiced their support for the government’s recent decision to raise the daily minimum wage to 400 baht in October at upscale hotels and resorts in 10 provinces. However, employee representatives emphasized the need for a nationwide increase in the minimum wage due to the rising cost of living across the country.

Minister Pipat Ratchakitprakarn acknowledged the differing perspectives and highlighted that the implementation of the 400-baht minimum wage nationwide might face challenges, but assured that efforts would be made to support it. Additionally, he mentioned the government’s plan to further raise the daily minimum wage to 600 baht by 2027.

On the other hand, representatives from the Federation of Thai Industries, the Board of Trade of Thailand, and small-and medium-sized enterprises met with Minister Pipat to express their opposition to the nationwide wage hike in October. FTI vice president Suchart Chantaranakaracha raised concerns about the feasibility of the 400-baht nationwide rate, particularly citing weak export conditions and potential financial strain on businesses.

The tripartite wage committee, consisting of government, employee, and employer representatives, is set to discuss the minimum wage in their meeting on Tuesday. The agenda will focus on addressing the differing views and reaching a consensus on this important matter.

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