Kata Rocks
THE PAVILIONS PHUKET BRITISH INTERNATIONAL SCHOOL, PHUKET Kata Rocks
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Fear of SME impact from minimum wage hike

Fear of SME impact from minimum wage hike

BANGKOK: Promises to hike the daily minimum wage will incentivise investors to relocate production bases to offset the higher wage burden, with financially strained small companies among those to be hit hardest, say business executives.

economicspolitics
By Bangkok Post

Thursday 21 March 2019, 09:39AM


Workers process chicken at CPF’s plant in Nakhon Ratchasima. The agribusiness giant expressed reservations about a higher minimum wage. Photo: Apichart Jinakul

Workers process chicken at CPF’s plant in Nakhon Ratchasima. The agribusiness giant expressed reservations about a higher minimum wage. Photo: Apichart Jinakul

We will have to follow government regulation [on the daily minimum wage], but generally speaking investors will relocate their production bases because neighbouring countries have lower labour costs and acceptable skilled workers,” said Sooksunt Jiumjaiswanglerg, chief executive of agro-industrial business and co-president at Charoen Pokphand Foods Plc.

If the daily minimum wage continues to increase, artificial intelligence will replace some of the work once done by the human workforce to offset the higher wage burden, he said.

Although raising the daily minimum wage can be done easily, hiking the prices of goods by 5-10% is an uphill task because several negotiations have to be made, Mr Sooksunt said.

Still, CPF has no issue if the next government decides to hike the minimum wage, he said.

Michinobu Sugata, president of Toyota Motor Thailand, said it’s too early to project any negative impact from a daily minimum wage hike proposed by several political parties during the run-up to Sunday’s election.

We have to wait for the election results and see the actual plan on labour wage issues to forecast and consider any adverse factors for Toyota’s manufacturing operations in Thailand,” Mr Sugata said.

The promises made by the parties are merely assumed figures to campaign on, he said.

The pro-junta Palang Pracharath Party has vowed to raise the daily minimum wage to B400-425, while the Pheu Thai Party has pledged to hike wages to B400 a day.

Laguna Golf Phuket

Similarly, the Democrat Party has campaigned on a minimum guaranteed salary of B120,000 a year, equivalent to B329 a day. The highest daily minimum wage is proposed by the Commoners Party, at B500.

There are currently seven daily minimum wage rates, from B308 to B330, depending on the province. The average minimum wage is B315.97.

Chon Buri, Rayong and Phuket have the highest rate, while Narathiwat, Pattani and Yala have the lowest.

The last nationwide increase was in January 2013, when a base rate of B300 was adopted by the Yingluck Shinawatra government.

Trade unions are normally proponents of the hike amid demand for a fairer wage for low-income earners, but employers have repeatedly voiced opposition on grounds that a wage hike would derail their businesses through higher costs and cause foreign investors to relocate production bases.

Yeap Swee Chuan, president and chief executive of auto parts maker Aapico Hitech Plc, said a wage hike would hit small and medium-sized enterprises harder than big corporates and affect parts makers more than assemblers because the former employ a greater number of workers and use sophisticated technology.

 

Read original story here.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Kurt | 21 March 2019 - 11:28:21

Wage hike or not, in Smart countries you see increasing use of automatic systems/artificial intelligence replacing low educated workers. That will go to happen in Thailand too. Thailand, invest in your work force. Educate them. Can not make a Smart country with greedy Hi-So's only. Those only think their own wallets. Any smart social thinking is strange to them.

 

Have a news tip-off? Click here

 

Phuket community
Phuket water-supply pipeline from Phang Nga approved by Cabinet

The water supply pipe line to Phuket should already have been there. Now we start first a few years ...(Read More)


Phuket water-supply pipeline from Phang Nga approved by Cabinet

It would seem that creating new and enlarging existing reservoirs in Phuket would be much more effic...(Read More)


TripAdvisor blocks 1mn fake reviews

Comical. There's a pricey restaurant here in Kamala that was getting mixed reviews back in the ...(Read More)


Patong bar owner ‘Sia Auan’ gets life for double murder

Petty jealousy and 'little boys' with guns. Life is cheap here....(Read More)


Phuket water-supply pipeline from Phang Nga approved by Cabinet

Looking like more poor planning here...just robbing Peter to pay Paul, while doing little to address...(Read More)


NACC busts school kickbacks

About accused of criminal activities 'school directors/officials', what is happening next? C...(Read More)


Thai Navy seize IUU boat off Phuket

It is remarkable that always the highest thai generals/admirals/Colonels show up at press conference...(Read More)


Pa Khlok powerless as electricity poles collapse

When we witness how deep power poles are placed ( better say: 'shallow') no one wonders anym...(Read More)


Europe trade body wants end to TM30

In the name of National Security! National Security?? Only on Immigration working days from 08:30...(Read More)


Thai Navy seize IUU boat off Phuket

Have a look at OneOcean's 3rd World European Website. It is a Not For Profit Non-Government outf...(Read More)