As Thailand marks Labour Day today, parties are busy campaigning for the upcoming election on May 14.
Many parties are proposing policies to support workers, with a key highlight being an increase in daily minimum wages. However, questions have been raised about this proposal, as some fear it may impose a heavy financial burden on businesses and the manufacturing sector.
The answer is yes, minimum wages should be increased, given the rapid and high inflation rate, particularly in essential goods such as food. However, the increase must be acceptable for both workers and employers and should not imperil the overall economy.
In fact, many employees already earn above the minimum wage due to their higher skills. Meanwhile, minimum wage policies benefit many migrant workers who work in unskilled jobs that many Thais do not want to do. That said, the minimum wage policies are not enough to rebalance the Thai labour sector and secure its future.
Workers need an effective way to upskill and reskill to capture fast-changing technologies and economies. Parties and policymakers must have a longer vision for the future and propose policies that tackle long-term challenges, rather than just short-term policies aimed at gaining votes.
Thailand is an ageing society with a population aged 60 and over higher than 7%, and it is expected to reach a super-aged society where those aged 60 and over make up 28% of the population in 2031 or 2032 while the rate of newborns is now at 0.76% a year, according to the Kasikorn Research Centre.
This demographic mismatch will present significant challenges to the country. The workforce will decline rapidly, and the country's labour sector and development will have to rely more on migrant workers. Older workers will lose their skill sets to capture the fast-changing economy, and high-skill jobs may also rely on foreign workers.
So, upskilling labourers is an urgent task that needs to begin immediately. This process will take time, and the country needs to start now to secure its future.
While upskilling and reskilling are essential for workers, there is also a need to improve overall conditions. Many employees face long working hours, low job security, and inadequate social protection. Policymakers must address these issues in addition to promoting upskilling and reskilling.
Not only the government, but the private sector also needs to step up and invest in their employees. This will not only benefit the workers themselves but will also be in the long-term interests of the companies and the country as a whole.
The labour sector is not an isolated entity, but rather is interconnected with other sectors. Policymakers must ensure that policies aimed at promoting this sector also benefit other areas such as education, healthcare, and infrastructure.
As Thailand marks Labour Day, all parties must recognise the challenges facing the sector. Workers must not only be treated as employees but must be seen as stakeholders of the economy who must be fairly allocated resources and benefits. Only then can we ensure the labour sector remains competitive and contributes to the overall development of Thailand.