Knock-on effect

The Internal Trade Department expects to finish a study next week on possible price increases for 200 consumer products, following an increase in the daily minimum wage of between Bt2 and Bt11, effective from June 1.

Director-general Yangyong Phuangrach yesterday said student-uniform makers would be the hardest hit as the industry is labour-intensive.

Dusit Nontanakorn, vice chairman of the Thai Chamber of Commerce, said it was unclear which industries would be affected the most by the wage rise, as the number of labourers varies between industries. "As wages are rising, many industries have focused on lifting productivity, rather than recruiting more workers," he said.

Chuthathavaj Indrasuksri, the permanent secretary of the Labour and Welfare Ministry, said yesterday that the minimum-wage increase was based on an estimate that inflation will average 5 per cent this year.

The wage increase will be highest in Chiang Rai, where workers will be entitled to a rise of Bt11. Urban centres such as Bangkok, Nonthaburi, Nakhon Pathom, Samut Prakan and Chiang Mai will see rises of Bt9, to Bt203. Those in Sukhothai, Uttaradit and Chaiyaphum get the lowest rise of only Bt2.

The remaining 64 provinces will get increases of Bt7 or Bt8.

The minimum wage is now being applied to about 500,000 workers nationwide, considered to have the lowest skills.

Labour union leaders expressed a degree of satisfaction over the increase. Tawee Tejathirawat said workers in general were not too happy with the increase because they still have to shoulder rising living costs. "The new round of wage increases does not take into account the actual rise in the cost of living," said Tawee, "but at least it helps the workers to get on with their life."

Pannapong It-athanont, a employers' representative, said: "I believe that all parties should be satisfied with this round of wage increases. I am confident that workers in other provinces will also be happy. However, this wage increase will hurt smaller operators such as small or medium-sized factories."