The incoming government should review its policy to raise the daily minimum wage to 300 baht because manufacturers would not be able to carry the added labour cost, the chairman of Khon Kaen Federation of Industries said on Wednesday.
“Industrial plants might have to close down, or move their production bases to other countries,” Withoon Kamolnaruemeth said.
Mr Withoon admitted that manufacturers were truly worried about the 300 baht a day policy championed by the Pheu Thai Party.
He said no other country [in the region] had a policy for the same daily wage level nationwide. The daily minimum wage should be set in line with living costs of each province, which varies.
“The current minimum wage in Khon Kaen is 169 baht a day. If it is raised to 300 baht, the increase would be about 90%,” he said.
No manufacturer could bear such sharp increase in labour costs and they would have no option but to lay off workers, stop operations or transfer their production bases elsewhere.
Therefore, this policy should be reviewed, Mr Withoon said. The private sector would also meet soon discuss this issue and search for a solution.
He said that outside the indutrial sector, the negative impact of this policy would also be felt by ordinary people, civil servants and employees of other private firms.
They would face higher prices for consumer goods, which would rise in line with the increase daily wage.
Source: The Nation