The government of Prime Minister Prayut Chan-o-cha seem to be back in the limelight once again but all for the wrong reasons as businesses and households brace for the impact of a decision that came as a bolt from the blue.
On June 23 legislation was introduced requiring migrant workers and their employers to register and pay 20,000 baht each for a licence to work in Thailand.
The decision passed by the rubber-stamp parliamentary body set up after the 2014 coup led by Gen Prayut has sent shock waves all across the country and even to neighbouring countries as migrant workers undertake an exodus to head home.
Umesh Pandey is Editor, Bangkok Post.
Thailand is home to nearly four million migrant workers who account for 10% of the country's active workforce. With the unemployment rate at a mere 1.2%, the help of these migrants has been instrumental in keeping the economy buzzing for decades. By taking up menial jobs, they have also allowed more Thais to take more comfortable jobs in offices.
A visit to the likes of MBK, Chatuchak market or a wet market like Pak Klong Talat would show the extent to which migrant labour has become instrumental in the daily lives of Thais. A vegetable vendor can be collecting money while a labourer from Myanmar or Cambodia runs around picking up vegetables and selling to customers. This is not to mention the maids in houses across the country and the migrant labour used by seafood manufacturers.
Their presence is so prevalent that migrant workers have basically built their own communities in areas where they work, be it the outskirts of Bangkok or towns such as Samut Sakhon. But now their future seems a little bleak.
Paying 20,000 baht, equal to nearly two months of wages, to be able to work in the country is not an easy decision for any migrant worker. Their employer, who must also pay 20,000 baht, may consider this an extra cost. The decision by the government basically raises the daily minimum wage of 300 baht by 25% for employers.
Employers who fail to comply could be fined close to 1 million baht, while illegal employees would be subject to fines of 2,000 to 100,000 baht and/or jail terms of up to five years.
The outcome of this irrational move by the Prayut administration prompted an exodus of migrant workers back to Cambodia, Laos and Myanmar.
The rationale behind this sudden decision is yet to be known but Gen Prayut gave an assurance that these migrant workers will return after his administration granted a 180-day reprieve by using Section 44 of the 2014 interim constitution, thus steadying the boat to some extent.
But the habit of extinguishing the fire every time something happens is not sending the right signal to the world community. Why is Gen Prayut not aware of what his puppet parliament is doing? Is it not his job as head of the government, and especially a coup-led government, to be aware of the issues that are being passed by that body?
Can I as a Thai citizen call this dereliction of duty by the premier? In any given context, this would be considered dereliction of duty. Gen Prayut's predecessor is facing charges of dereliction of duty for not knowing what her government was doing under the rice-pledging scheme. The case could possibly put her behind bars. But this is a coup-led government and anything and everything they do is correct and cannot be questioned.
Putting the blame game aside, what this administration needs to do is to look at the bigger picture and concentrate on what the impact of each decision is going to be on the country and its economic prospects.
A decision such as this one, which could cripple the country's various industries, needs to be well thought through and consulted at all levels before it is put into action because today Thailand needs these foreign labourers more than they need us.
Myanmar's economy is on an uptick and a lot of labour from that country will gradually head home in the not too distant future. Cambodia is already witnessing a sharp growth in its economy, while the Lao population of about six million is not going to be enough to meet the labour needs of our country.
Thailand has been complaining about labour shortages for years and moves such as this one by the government will only exacerbate the problem. What is needed is a permanent reprieve of this measure and not just the 180 days as per the Section 44 order issued earlier this month.
