ID :
198708
Tue, 08/02/2011 - 12:24
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Shortlink :
http://m.oananews.org//node/198708
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Thai auto parts manufacturers oppose 300-baht minimum wage policy
BANGKOK, August 2 (TNA) - Some 500 small and medium-sized auto parts manufacturers in Thailand on Tuesday voiced opposition to a 300-baht minimum wage policy, saying the move will turn up drastic results.
In a joint statement to the incoming government under the Pheu Thai party, Thaworn Chalatthian, spokesman of the Auto Parts Industry Club, said the daily wage hike will affect about 1,000 small and medium-sized factories, 500 of which will face serious impacts.
He explained that these factories will be forced to raise prices of auto parts by about 10-15 percent, which could reduce the sector’s market competitiveness.
He suggested the government introduce cushioning measures to help the operators lower costs, namely a waiver on power bills and three-year’s worth of contributions to the Social Security Fund.
The spokesman also proposed that the government use funds from the state corporate income tax to help small and medium manufacturers, instead of lifting a tax cut by 7 percent to 23 percent, which he claimed, would only benefit large-scaled operators.
According to the Auto Parts Industry Club, the Thai auto parts manufacturing sector employed over 500,000 people and had about 2,000 auto parts factories. (TNA)
In a joint statement to the incoming government under the Pheu Thai party, Thaworn Chalatthian, spokesman of the Auto Parts Industry Club, said the daily wage hike will affect about 1,000 small and medium-sized factories, 500 of which will face serious impacts.
He explained that these factories will be forced to raise prices of auto parts by about 10-15 percent, which could reduce the sector’s market competitiveness.
He suggested the government introduce cushioning measures to help the operators lower costs, namely a waiver on power bills and three-year’s worth of contributions to the Social Security Fund.
The spokesman also proposed that the government use funds from the state corporate income tax to help small and medium manufacturers, instead of lifting a tax cut by 7 percent to 23 percent, which he claimed, would only benefit large-scaled operators.
According to the Auto Parts Industry Club, the Thai auto parts manufacturing sector employed over 500,000 people and had about 2,000 auto parts factories. (TNA)
