ASEAN KEY DESTINATIONS
Wage increase proposed by Thai Democrats
Thailand's Democrat Party's promise to boost the daily minimum wage by 25 percent is drawing scrutiny. Prime Minister Abhisit Vejjajiva promised to lift the daily minimum wage by 25 percent nationwide as part of a four-point policy package for the ruling Democrats' election campaign. The prime minister announced the package on February 27 to a group of 200 young people who wanted to work with the Democrats at the Chatuchak weekend market.
Out of the total 38 million laborers in Thailand, 21 million are freelance workers, such as farmers and taxi drivers, who will not be affected by minimum wage hikes.
The core of the issue, may be in increasing the efficiency and productivity of workers which would naturally generate higher income in line with market mechanisms. On the other hand, if productivity did not improve, the private sector should not raise wages.
There may be problems that might arise from an increase in both the minimum wage and energy costs simultaneously.
Sombat Teekasap, chairman of the Federation of Thai Industry's renewable energy industry club, said that industries currently face problems concerning not only labour, where the trend is heading towards using automated systems instead, but also higher energy costs.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below