Minimum wage hike 'will hurt economy'

Minimum wage hike 'will hurt economy'

Calls for a steep increase in the minimum daily wage will hurt the economy as it will drive investors away, according to a senior official at the Labour Ministry.

Responding to Thai Labour Solidarity Committee leader Sawit Kaewwan, who is campaigning for the minimum wage to be lifted to 712 baht a day, Viwat Jiraphanvanich, the ministry's inspector, said: "Such calls can be made, but no one will hire them [the workers]."

He likened the demand to putting a high price on a product, which subsequently results in no one buying it, adding: "Such a demand is useless".

As the country's economy is recovering, with both domestic and foreign investors keen to do business in Thailand, steep wages would make them reconsider this, according to Mr Viwat.

He said Labour Minister Sirichai Distakul told the ministry's executive committee responsible for considering the wage hike to think carefully and fairly to make a decision that would benefit all sides.

The committee is made up of three parties, representing employers, workers, state agencies. These representatives can voice their demands to other panelists, said Mr Viwat, insisting the ministry has no authority to direct and interfere in the wage decision.

The ministry, he said, believes the minimum daily wage serves as protection for those who first enter the labour market from being treated unfairly or receiving unreasonably low salaries.

According to Mr Viwat, the ministry is focusing on boosting vocational skills among labourers, so wages would vary according to workers' skill levels.

The Department of Skill Development has been instructed to formulate training courses and knowledge-enhancing workshops for Thai workers so they will be able to develop their work skills and become more competitive, he said. Once they obtain these skills, they would get paid more than the minimum wage.

So far, the ministry has provided certificates for skill training programmes for more than 68 types of work, resulting in skilled workers seeing their daily wage rise to 815 baht a day, Mr Viwat said.

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