Tuesday, June 18, 2024

FTI warns of more business closures if Bt400 minimum wage is enforced

The Federation of Thai Industries warns of more factory closures if a standard Bt400 minimum wage is implemented. Over 360 factories have closed, resulting in job losses.

Fears of More Factory Closures in Thailand

The Federation of Thai Industries (FTI) has warned that if a standard minimum wage of Bt400 is enforced nationwide by October 1, more factories in Thailand could face closure. Isares Rattanadilok Na Phuket, vice president of the FTI, revealed that over 360 factories have already shut down this year, resulting in over 10,000 job losses with investments exceeding 9 billion baht.

Concerns Over Economic Impact on Industrial Sector

The FTI vice president highlighted the economic slowdown as a factor in the closures, urging the government to implement short-term economic stimulus measures to boost consumer spending. Additionally, Mongkol Traipan, president of the Federation of Eastern Region Labour, expressed concerns about the impact of hiring subcontract employees to save costs and the potential ramifications of a nationwide Bt400 minimum wage on the industrial sector in Thailand.

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