ID :
196699
Sat, 07/23/2011 - 13:58
Auther :

Thai employers' network back tripartite wage system

BANGKOK, July 23 (TNA) - Thailand's seven employers institutions have publicly expressed their opposition to a plan proposed by the incoming Thai government, led by the Pheu Thai Party, to scrap the existing tripartite wage consideration system, which has been in place, practically, for a decade.

The opposition has been published in a joint statement of the local employers' network, saying that the authority and resolutions of the existing Thai Central Wage Committee, comprising the government and representatives of local employers and employees, has been well-recognised, as its decisions on wage hikes so far have taken all relevant factors into consideration, namely labourers' costs of living, inflation rates and domestic and global economic conditions.

Dr. Vallop Kingchansilp, chief of a Thai business employers council, cautioned that the Pheu Thai Party's proposed wage hike to 300 baht a day in all areas across the country will likely cause a massive influx of immigrant workers into Bangkok and other provinces where the daily 300-baht wage plan is first implemented; while forcing massive relocations of production bases by entrepreneurs to other areas with cheaper wages and operational costs, including those overseas, resulting in higher unemployment rates among Thai people.

Meanwhile, Prasit Jongasayakul, chief of a Thai trade and consumer services employers' council, acknowledged that the existing tripartite wage system has helped sustain sound relations between local employers and employees, suggesting that the new Thai government raise the daily minimum wage phase by phase to the 300-baht benchmark over the next 3-4 years under the tripartite system and introduce cushioning measures to help local employers cope with their rising operational costs, namely a cut in value-added tax (VAT) and a waiver, to a certain extent, of power and water bills, particularly for small and medium-sized enterprises (SME)--which do not benefit from its plan on a corporate tax reduction to 27 per cent annually, from 30 per cent currently. (TNA)

X