Employers concerned over wage hike

BANGKOK, Jan 8 (TNA) -- Employers have voiced their worries over proposed wage hikes, saying that it will adversely affect more than one million SMEs in the country. Somchai Pornrattanacharoen, president of the Wholesale and Retail Association stated that the proposal to introduce a further 2 - 15 baht per day minimum wage hike will directly affect more than a million small businesses and hold back GDP growth. He recommended that the government should instead focus its attention towards promoting and developing labour skills. Last year, 69 out of 77 provinces were given a 5-10 baht hike. Employers in Bangkok and the metropolises on average currently pay workers 300 - 310 baht daily which means that further increases would result in increased overheads for small businesses. This is turn will slow economic recovery and directly result in the contraction of GDP growth in 2018. Mr Somchai said the government would be better off focusing on developing labour skills to improve their market value. Furthermore, he wants to see policies to help small businesses such as tax breaks instead granting low interest loans which in the long run put them deeper in debt and severely undermines their survivability. On top of this, the government should also be looking at ways to advocate retirees to start small businesses of their own. With the inevitable onset of an ageing society this will create increased employment opportunities in the labor market and ensure sustainable economic growth. The national tripartite committee, consisting of representatives of workers, employers and the government is expected to meet before Jan 15 as the prime minister wishes to give workers the raise as a new year’s gift. (TNA)