Thai Hotel Association adamant minimum wage rise poses no serious impact on employment
30 March 2012 :: 16:03:07 pm [ 1,104 views ]
BANGKOK, 30 March 2012 – A Thai labor agency has cited an affirmation from hotel operators in assuring that the country’s new minimum wage will not cause widespread lay-off as some have feared.
Department of Labor Protection and Welfare Director-General Athit Issamo said on Thursday that he has recently held a meeting with the House Committee on tourism and sports and the chairman of the Thai Hotel Association regarding the looming increase in the country’s daily minimum wage to 300 baht.
Mr. Athit said that the Thai Hotel Association is confident that the higher wage will not force large hotels to consider laying off their employees, although smaller hotel businesses may have to feel the pinch of the wage rise.
Citing opinions from the Association, Mr. Athit said that it is speculated that affected hotel operators will decide to merge their businesses with those large rivals, which may be planning to expand their presence in the country.
In any case, the Department of Labor Protection and Welfare chief conceded that some businesses may let go of some of their employees, who they believe possess lower qualifications than required.
Moreover, he has opined that a number of SME businesses may close down if they believe that the higher wage will make them less competitive or cost them market share.
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