The Thai Chamber of Commerce is opposing the government's plan to increase the daily minimum wage to 400 baht for workers nationwide, expected in October.
Poj Aramwattananont, vice-president of the chamber, held a press conference on Tuesday to voice opposition to the plan. The event was joined by representatives of 54 associations, including those from the tourism and hospitality sectors.
A list of opponents is scheduled to be submitted to the Labour Minister on May 13, with more than 100 associations expected to sign on, said Mr Poj.
Wage hikes increase production costs, severely affecting the agricultural and service sectors such as logistics, wholesale and retail, and small and medium-sized enterprises (SMEs) that are still recovering from the pandemic, he said.
Chambers of commerce and trade associations for labour-intensive industries agree with a wage hike, but the adjustment should be in accordance with Section 87 of the Labour Protection Act, said Mr Poj.
The government should hold comprehensive public hearings among wage committees before determining a new nationwide rate, he said.
Wage adjustments should be based on workers' skills and apply only to businesses and provinces that are prepared to pay higher wages, said Mr Poj.
The proposed minimum wage rate would increase production costs by 21% in some provinces, he said.
Mr Poj said while some businesses can pay a higher minimum wage, many provinces not ready for this jump.
Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, said the timing of the wage hike may not be appropriate, nor does it align with the principles of the International Labour Organization, which would only apply if workers are underpaid.
The minimum wage hike in 2020 from 215 to 300 baht resulted in more than 50% of entrepreneurs being unable to adjust, reducing their workforce while posting lower profits, he said.
These businesses were also unable to increase product prices, while 40% said they could adjust because they already paid a high minimum wage, said Mr Thanavath.
The proposed wage hike to 400 baht nationwide is considered a campaign promise, based on unsound economic principles that could aggravate the sluggish economy, he said.
Prime Minister Srettha Thavisin yesterday defended his plan to introduce the wage hike as necessary to spur economic growth.
"This is about the lives and livelihoods of people at the grassroots, which is an important gear to drive the economy. Their livelihoods are important," Mr Srettha said.
Wages have risen just over 10% over the past decade, he said.