Labor Minister discusses with F.T.I. to discuss guidelines for adjusting the minimum wage rate. and increasing labor productivity before presenting it to the Cabinet on September 25th for approval by November as a New Year's gift to Thai people. Meanwhile, the private sector proposes to adjust Thailand to be an ODM country instead of OEM and to use digital technology instead of labor.
Mr. Pipat Ratchakitprakarn, Minister of Labor Lead the management team of the Ministry of Labor Meeting with Mr. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (F.T.I.) and F.T.I. Board of Directors, to discuss the issue of adjusting the minimum wage rate. and increasing labor productivity at the Federation of Thai Industries
Mr. Phiphat said that the Ministry of Labor Its main role is to develop the potential of workers and entrepreneurs in line with the needs of the labor market. There is also protection and strengthening of job security. and good quality of life International labor management Development of mechanisms for balancing the labor market Managing the organization, personnel, and strengthening participation in the organization including the development of technology and information To integrate modern information and stable
“After the policy announcement was made during the campaign period. Today, the Ministry of Labor has come to F.T.I. because F.T.I. is a representative of the private sector that has an understanding of labor problems. which is an important factor for the industrial sector And today we want to hear your opinion. and would like to discuss the minimum wage Because right now every sector is concerned. The proposals received today will be discussed further. To solve the problem directly It does not affect employers and employees can accept it,” Mr. Phiphat said.
Mr. Kriengkrai Thiannukul, Chairman of the Federation of Thai Industries (F.T.I.), said F.T.I. would like to thank the Ministry for recognizing the importance of the private sector. and are willing to work together to drive the economy to grow inclusively and sustainably Mr. Kriengkrai presented FTI's industry driving strategy that drives both First Industries in raising the level of competitiveness. and new industries or industries of the future (Next-GEN Industries) to strengthen Thai industry. For a stronger Thailand
The industry is currently being affected by the trade war. geopolitics and must adapt to changes to the digital age We have analyzed and found that to make the industry survive The most important thing is 1) Change from Original Equipment Manufacturer-OEM. (Contract Manufacturer) is an Original Design Manufacturer-ODM (Contractor who designs and produces products for the company) and Original Brand Manufacturer-OBM (Manufacturers under their own format and brand) 2) Change from using labor to using digital technology, machinery and automation systems. 3) Change from producing for profit. It is production along with caring for the environment and 4) changing from unskilled labor to labor with advanced skills. (High-skilled labor) through skill building
“As we know Efficiency of Thai labor in ASEAN It still cannot be compared to Vietnam and Indonesia. Because they are still unable to recover from the impact of COVID-19. can be fully achieved. For this reason, we must hurry to increase the efficiency of Thai labor. To be able to compete with other countries, we have to work as Patongko. Because the industry will grow There must be the Ministry of Labor supporting us,” Mr. Kriangkrai said.
Mr. Suchart Chandranakarat, Vice President of F.T.I. and Chairman of the Labor Division. Mentioned labor proposals that he would like the Ministry of Labor to help push forward, consisting of 8 main issues:
1. Increase labor productivity (Labor Productivity) to build Thailand's competitiveness with competing countries. and pushing the issue of labor productivity as a national agenda Including the need to develop skills to meet the needs of entrepreneurs and the labor market. To be in line with the modern economy The government sector should provide budget support. and coordinate cooperation between the public sector, the private sector, the private sector, and the education sector in creating teaching and learning curricula. Responding to the needs of the labor market (STEM)
2. Promote and develop SMEs in adopting Automation systems. The government should have policies and allocate budgets for use in efficient management and production systems. to replace the labor force shortage and create competitiveness
3. Create a database (Big Data) that is modern, accurate and complete. To manage demand (Demand) and supply (Supply) in labor, solving the problem of work not matching skills. (Mismatching) and labor shortage There is a special unit responsible for planning, gathering, and processing information related to labor. for use in human resource development Create a balance in the labor force
4. Strengthen cooperation between the government, educational sector, and private sectors in producing personnel according to the needs of the labor market (STEM) in sufficient quantity and quality.
5.Solve the problem of shortage of foreign workers By allowing relevant agencies to improve laws and regulations related to importing and hiring foreign workers to be more efficient, reduce procedures, and costs. In order to reduce the burden on entrepreneurs who use foreign workers, there should also be a long-term strategy for managing foreign workers, such as negotiating with countries of origin to improve the memorandum of understanding or MOU that Thailand has with neighboring countries. To meet the needs of the Thai business sector and industry.
6. Solve the problem of Thailand entering an aging society. To alleviate the labor shortage problem The government should issue incentives for entrepreneurs. Promote employment of the elderly Reduce labor shortages Reduce family and social problems, such as promoting the employment of elderly people with skills and expertise. Issue tax reduction measures and other measures related by consulting with all sectors To develop the skills of the elderly in both Upskill and Reskill, as well as encourage the elderly to adapt to the changing labor market.
7.Increase income for workers. Support and encourage the payment of wages according to labor skill standards (Pay by Skills) in order to increase income for employers. and can reduce costs per unit Improving the labor welfare system to improve the quality of life of workers, such as reducing basic household utility costs. Children's tuition fees, etc., in order to reduce the burden on workers and enable them to make a living.
8. Issue a policy to adjust the minimum wage rate. To ensure fairness between employers and employees
“Adjusting the minimum wage rate It should be in accordance with the authority and duties of the Tripartite Wage Committee, which each province considers in accordance with economic factors. Inflation rate The growth rate of GDPs, the suffering of workers Employer's ability to pay and labor productivity without interference from outside agencies Minimum wage increase We will not have lump sum payments. But we will pay according to skill. Also known as Pay by Skills because if the minimum wage is paid to workers with no experience It will create unfairness to experienced workers,” Mr. Phiphat said.
After the discussion The Ministry of Labor assures that Minimum wage adjustment It must definitely happen within 2024. There will be a detailed discussion of both Thai workers and neighboring workers. To present to the Cabinet (Cabinet) for consideration on September 25th in order to reach conclusions and announce them within November. as a New Year's gift to Thai people.
Source: Thai News Agency