Tariff standoff hinders wage increase implementation in the U.S.
You asked for an unfiltered, unrestricted take on Thailand's minimum wage situation, here it is:
The government's bold promise to bump the minimum wage up to 400 baht hit a snag last Tuesday. You heard it right, folks! The tripartite board, the unwieldy gang comprising government, employers, and employees, held a meeting to discuss the issue, but they couldn't reach a decision. The session, chaired by the Labour Ministry's big cheese, Boonsong Thapchaiyuth, came to a screeching halt without a confirmation of whether this long-awaited wage hike would go down.
Tensions were high, and the reasons were simple: employers' worries over potential economic setbacks following the recent wrath of US tariffs. The meeting at hand, attended by 15 members, was unable to provide a green light for Labour Minister Phiphat Ratchakitprakarn's promise made before Labour Day on May 1 to go ahead.
So, what's the dealio? Employers, speaking up at the meeting, gave a rundown of their concerns. Essentially, they believed that the new wage rate might spell trouble for them, given the current circumstances involving US tariffs. However, Boonsong insisted that sectors like tourism and services, which can afford it, wouldn't be adversely affected by the tariff policy.
When asked if last year's wage increase for the services and tourism industries played a role in the indecision, Boonsong admitted that various factors, including tourist traffic to Thailand, had been considered.
Moving on, employers have already been feeling the heat since the initial wage hike kicked in back in January. They've been deployed to bear the brunt of it all. Natthakit Khettrakarn, who represents the employers at these meetings, cried foul, saying that they've been subjected to an unfair, heavy burden. Additionally, they pointed a finger at the 36% US levy on Thai goods exported stateside, arguing that the wage hike should be postponed due to the domestic and international economic risks it poses.
Meanwhile, Minister Phiphat had earlier announced that the specifics of the wage hike would be finalized during an April 8 meeting. However, only eight members of the tripartite wage committee showed up, causing the discussion to get delayed until April 22. Pihpat expressed his worry that a nationwide wage hike across all businesses and sectors could jeopardize an estimated 500,000 small and medium-sized enterprises.
- The tripartite board's meeting to discuss the government's proposed minimum wage hike was postponed due to employers' concerns about potential economic setbacks from US tariffs.
- Employers, led by Natthakit Khettrakarn, argued that the wage hike should be delayed because of the domestic and international economic risks it poses, including a 36% US levy on Thai goods exported stateside.
- Boonsong Thapchaiyuth, the chair of the meeting, insisted that sectors like tourism and services, which can afford it, wouldn't be adversely affected by the tariff policy.
- Minister Phiphat Ratchakitprakarn expressed his concern that a nationwide wage hike could jeopardize an estimated 500,000 small and medium-sized enterprises in Thailand's finance, business, and industry sectors.
