ID :
202086
Thu, 08/18/2011 - 11:11
Auther :
Shortlink :
http://m.oananews.org//node/202086
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FTI warns of impacts from wage hike to Bt300 a day
BANGKOK, August 18 (TNA) - The Federation of Thai Industries (FTI) warned on Thursday that the new Pheu Thai Party-led government's plan to raise daily minimum wages to 300 baht in all areas across the country would have both short term and long term impacts on the local automobile and parts industry.
Spokesman of the FTI's automobile industrial group Surapong Paisitpattanapong described that in the short term, the plan on the abrupt daily minimum wage hike, if implemented, would shore up labour costs of the local automobile and parts industry by some 40 per cent, forcing auto parts manufacturers, in particularly, to raise their prices and prompting local car producers to, instead, import cheaper auto parts, which could cause other macro-economic related problems.
Surapong said that in the long run, the minimum wage hike to 300 baht a day would also force foreign automobile and parts manufacturers, particularly those from Japan, to move their new investment projects from Thailand to neighbouring countries where labour costs are cheaper.
The FTI spokesman acknowledged, however, that the local automobile and parts manufacturers have no plan to cut their overtime shifts and welfare benefits offered to workers or to lay off part of their workers, despite their rising production costs, thanks to the resumption, from now on, of Thailand's automobile and parts manufacturing to its normal level to meet growing domestic and global demand. (TNA)
Spokesman of the FTI's automobile industrial group Surapong Paisitpattanapong described that in the short term, the plan on the abrupt daily minimum wage hike, if implemented, would shore up labour costs of the local automobile and parts industry by some 40 per cent, forcing auto parts manufacturers, in particularly, to raise their prices and prompting local car producers to, instead, import cheaper auto parts, which could cause other macro-economic related problems.
Surapong said that in the long run, the minimum wage hike to 300 baht a day would also force foreign automobile and parts manufacturers, particularly those from Japan, to move their new investment projects from Thailand to neighbouring countries where labour costs are cheaper.
The FTI spokesman acknowledged, however, that the local automobile and parts manufacturers have no plan to cut their overtime shifts and welfare benefits offered to workers or to lay off part of their workers, despite their rising production costs, thanks to the resumption, from now on, of Thailand's automobile and parts manufacturing to its normal level to meet growing domestic and global demand. (TNA)
