BANGKOK, 12 March 2012 – Industrial factories are planning to adjust the base salary of foremen, skilled workers and long-time workers by 15-20% to prevent possible conflicts stemming from the implementation of the government’s minimum wage hike policy.
Federation of Thai Industries (FTI) Vice Chairman Thanit Sorat has revealed that the industrial sector is currently considering a 15-20% pay raise for foremen, skilled workers and long-time workers in order to create a gap between the remuneration of this group of workers and that of low-level workers ahead of the nationwide 40% minimum wage hike and the pilot daily wage campaign of 300 baht in 7 provinces, due to start on April 1.
Mr. Thanit explained that without the planned salary adjustment, low-level workers in some factories could be paid nearly or as much as foremen and skilled workers, which could easily lead to a conflict within the factories. Additionally, skilled labour might feel obliged to quit and move to work in other high-paying factories. This group of workers accounts for 10-20% of the total industrial workforce, which now stands at 5.5 million.
With the implementation of the minimum wage hike policy, entrepreneurs will have to pay an additional 60 billion baht each year to their employees. This might also cause production cost and goods price to soar by 3-6%.
