The Minimum Wage Debate: A Tripartite Discussion Amidst Calls for Technological Adaptation
As the discussion around increasing the minimum wage in Thailand intensifies, the National Reform Council of Thailand (NRCT) has stressed the importance of a thorough tripartite discussion before any decision is made. The government, on the other hand, has called for a reconsideration of the wage increase, arguing that it would not significantly impact product prices. However, the need for entrepreneurs to quickly adapt through technological innovation has been emphasized.
A Closer Look at the Debate
Chairman of the Transporters Council of Thailand (SRT), Mr. Chaichan Charoensuk, expressed reservations about the proposed minimum wage increase, citing the need for greater respect for the tripartite committee’s decision-making process. In response, the Prime Minister, Mr. Settha Thavisin, has emphasized the importance of resolving conflicts and ensuring an appropriate minimum wage rate for workers.
Moreover, the private sector has been urged to invest in production technology to reduce reliance on human labor, ultimately leading to cost reduction and enhanced product competitiveness. The government’s support for budget allocation towards training and skills development has also been highlighted as crucial.
Adapting to a Changing Landscape
It has become increasingly evident that a fundamental shift towards technological adaptation is necessary for Thai entrepreneurs. This includes restructuring pay structures based on skill levels, as well as embracing innovation to mitigate the challenges posed by an aging society and potential labor shortages.
Mr. Chaichan stressed the urgency for entrepreneurs to adapt to the evolving landscape, emphasizing the need for technological innovation as a solution to labor shortages and cost reduction. As Thailand continues to navigate these challenges, the role of technology in shaping the future of the workforce remains paramount.
The NRCT considers the wage increase of 2-16 baht as a tripartite discussion based on complete information, while the government suggests that it must be reconsidered, emphasizing that wages do not yet have a significant impact on product prices. But entrepreneurs need to adapt quickly. Use technology to reduce the use of human labour.
On December 12, 2023, Mr. Chaichan Charoensuk, Chairman of the Transporters Council of Thailand (SRT), revealed that in the case where the government considers increasing the minimum wage by 2-16 baht, or an average of 2.37%, is still inappropriate. NRCT is of the opinion that the tripartite committee must be respected when considering adjustments to the minimum wage rate. Due to discussion and thorough analysis of the data.
Chaichan Charoensuk
However, it is necessary to listen to the opinion of the policy department. Especially in the case that Mr. Settha Thavisin, the Prime Minister, has also come out to express his opinion. If Thailand overcomes the problem of raising the minimum wage and eliminates conflicts over setting appropriate rates.
In this regard, private sector entrepreneurs will have to change themselves to invest in production technology. and reduce dependence on human labor Reduce production costs and increase the competitiveness of Thai products. The government must step in and support a budget for training and skills development.
Including the need to restructure the pay structure throughout the system. By paying wages according to the skill level of the workers. In addition to setting the minimum wage rate Currently, Thai workers working within various industrial estates receive a wage rate that is higher than the minimum wage published by the Tripartite Committee.
“At the moment, we still don’t know how much the government will increase the minimum wage. If it is adjusted according to the tripartite committee decision It is believed that there will be no impact on the export sector. Because it will not affect the business operators to increase product prices. But if it is more than the tripartite decision Entrepreneurs can push the burden. By increasing product prices, it will definitely affect exports. Regarding the increase in electricity prices as well. It remains to be seen how much the increase will be. If the adjustment is large, it will affect the export sector. and product prices too.”
Mr. Chaichan further said that entrepreneurs must adapt urgently and seriously. Although the increase in the minimum wage will not have a significant impact on the costs of entrepreneurs, product prices have not yet increased. But what entrepreneurs have to do first is to adapt technology and innovate.
Because Thailand is entering a completely aging society. The labor shortage problem will be serious as a result. And the government must encourage entrepreneurs to use innovation and technology to reduce the cost of intensive labour.
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