LOEI, Thailand – Chairman of the Upper Northeastern Chamber of Commerce (Udon Thani, Loei, Nong Bua Lamphu, Nong Khai, Bueng Kan), Natthaphon Luangwongpaisan, Sep 9, has voiced opposition to the government’s plan to implement a nationwide minimum wage hike to 400 baht per day starting October 1. He argues that the wage increase should be adjusted according to the economic conditions of each region, rather than applied uniformly across the country, as local circumstances vary greatly.
The policy, introduced by Prime Minister Paetongtarn Shinawatra’s government, targets businesses with at least 200 employees, but concerns are growing over the potential economic consequences, particularly for small provinces. Natthaphon, who also owns a construction company and Big Home department store in Loei, expressed that while the private sector supports raising wages, the increase should be implemented based on each area’s economic infrastructure.
“Utilities and infrastructure vary from province to province. For example, Bangkok and Phuket already have wages exceeding 400 baht, but small provinces like those in the Upper Northeastern region, which I represent, do not have the same access to resources. Some areas don’t even have railways or airports. Why would factories choose to invest here when they can offer the same wages in Bangkok with better infrastructure?” Natthaphon explained.
He stressed that wage adjustments should be gradual and reflect the economic conditions of each province. He cited the existing provincial tripartite committees—composed of five labor representatives, five employer representatives, and five government officials—who have already agreed to a wage increase of 5 baht per day for the five provinces in the Upper Northeastern region, a plan that has been accepted by both workers and employers.
Raising the minimum wage nationwide in one go, Natthaphon warned, would trigger price hikes across all goods and services, leading to inflation. Employers would struggle to survive under the increased cost burden, potentially leading to layoffs, reduced investments, and a shift towards automation to cut labor costs.
“The problem is that while unskilled workers will get a wage increase, their productivity doesn’t improve. This means businesses face higher costs without gaining any benefit from improved efficiency, so they’ll pass the burden onto consumers. The government should focus on enhancing workers’ skills and capabilities, rather than just increasing wages. Otherwise, both businesses and workers will suffer in the long run,” Natthaphon said.
He also emphasized that unskilled labor, particularly migrant workers, stands to gain the most from the wage hike, while skilled workers already earn above the minimum wage. He urged the government to reconsider its approach and adjust wages according to the local economy to prevent further negative impacts on both businesses and workers.
