ส.อ.ท. หารือ ก. แรงงาน ร่วมขับเคลื่อนการพัฒนากำลังคนและอุตสาหกรรมไทยFTI Discusses with the Ministry of Labour to Drive Human Resource and Industry Development in Thailand

On Wednesday, July 23, 2025, Mr. Kriangkrai Theeranukul, Chairman of the Federation of Thai Industries (FTI), along with the FTI Board of Directors, met with Mr. Phongkwan Chearungruengkit, Minister of Labour, accompanied by Mr. Somchai Morakotsriwan, Director-General of the Department of Employment, and Mr. Decha Prukphatthanarak, Director-General of the Department of Skill Development, on the occasion of Mr. Phongkwan’s appointment as Minister of Labour. The meeting also discussed ways to collaborate between the public and private sectors at the meeting room of Assoc. Prof. Nikom Chantharawit, 5th floor, Ministry of Labour.

During this, Mr. Kriangkrai led the management team for discussions, including:

•    Mr. Kritsana Imsaeng, Secretary-General of FTI
•    Mr. Suchart Chantharanakrat, Vice Chairman of FTI and Chairman of Labour Line
•    Mr. Apichit Prasoprat, Vice Chairman of FTI, Chairman of the Small and Medium Enterprise Development Institute for Industrial Production, and Chairman of the Member Relations, Activities, and Revenue Line
•    Mr. Thaworn Chaladsitthian, Vice Chairman of FTI and Chairman of the Human Capability Enhancement Institute
•    Dr. Darat Wipatakalas, Vice Chairman of FTI and Office of the Chairman
•    Ms. Petsarat Eksangkun, Vice Chairman of FTI and Office of the Chairman
•    Ms. Pimnara Jiranitthisanon, Vice Chairman of FTI and Office of the Chairman
•    Dr. Naowarat Songsawatchai, Executive Committee of FTI
•    Dr. Piyawat Piyapaisayon, Deputy Secretary-General of FTI
•    Mr. Hasadin Suwattanapongchet, Deputy Secretary-General of FTI.

Mr. Phongkwan Chearungruengkit, Minister of Labour, stated that the Ministry is pleased to work together with both the public and private sectors. The main objective of the Ministry of Labour is to elevate Thai workers through five policies, namely: 1) the use of AI to develop workers, 2) ensuring equal protection for workers, 3) promoting youth to work while studying (Learn to Earn), 4) creating economic opportunities, and 5) organizing the foreign labour workforce.

Mr. Kriangkrai Theeranukul, Chairman of the Federation of Thai Industries (FTI), remarked that the rapid technological changes require Thailand, especially its workforce, to adapt to survive. Therefore, FTI will drive the adaptation of the Thai industrial sector through the development of traditional industries (First Industries) alongside a move towards new or future industries (Next-Gen Industries) through the following strategies:

1)    Shifting from OEM - Original Equipment Manufacturer (custom producers for other brands) to ODM - Original Design Manufacturer (self-design producers) or OBM - Original Brand Manufacturer (producers who design and brand themselves).
2)    Transitioning from labor-intensive approaches to utilizing technology and innovation such as digital, AI, and automation systems, etc.
3)    Transforming profit-oriented production into sustainable production.
4)    Transitioning from unskilled labor to high-skilled labor through a pay-by-skills mechanism.

In this regard, Mr. Suchart Chantharanakrat, Vice Chairman of FTI and Chairman of the Labour Line, proposed measures to develop labor productivity for competitiveness, including:

1.    Enhancing labor productivity to strengthen Thailand's competitiveness against competing countries as follows:
-    Promoting labor productivity as a national agenda.
-    Developing skills through upskilling, reskilling, and future skills to meet the demands of employers and the labor market.
-    Supporting lean manufacturing to reduce waste along with the transition to digital transformation.
2.    Promoting and developing SMEs to adopt automation to replace scarce labor.
-    The government should establish policies and allocate budgets to support and develop SMEs.
3.    Creating a modern, accurate big data database for managing demand and supply of labor.
-    The government should develop a big data system with a specific agency responsible for it.
4.    Coordinating cooperation between the state, private sector, and education sector to produce labor according to the needs of the labor market, especially in Science, Technology, Engineering, and Mathematics (STEM).
5.    Addressing the shortage of foreign labor in positions that Thai workers are not filling.
-    Assigning relevant agencies to improve laws and regulations concerning the importation and employment of foreign labor for greater efficiency, reducing procedures and costs, thus alleviating burdens on operators using foreign labor.
-    Formulating long-term strategies for managing foreign labor, such as negotiations with source countries to improve MOU records.
6.    Addressing the issue of Thailand entering an aging society to alleviate the problem of labor shortages.
-    The government should promote the employment of skilled and experienced elderly workers.
-    Considering incentives for hiring elderly workers, such as tax reductions and related measures.
-    Developing skills for the elderly and facilitating their adaptation to the changing labor market.
-    Creating a labor database for elderly workers to assist employers in managing their demand.
7.    Increasing income for workers.
-    Supporting the payment of wages according to skill standards (Pay by Skills) to enhance worker income, alleviate burdens on employers, and reduce unit costs.
-    Improving labor welfare systems to enhance the quality of life for workers, such as reducing basic utility costs and school expenses for children, among others.
8.    Adjusting the minimum wage rates to ensure fairness between employers and employees.
-    Adjusting the minimum wage should align with the jurisdiction of the provincial tripartite wage committee, which considers economic factors, inflation rates, and GDP growth rates.

Regarding the challenges faced by Thai SMEs, Mr. Apichit Prasoprat, Vice Chairman of FTI, Chairman of the Small and Medium Enterprises Development Institute for Industrial Production, and Chairman of the Member Relations, Activities, and Revenue Line stated that the recent wage increase to 400 Baht in the Eastern Economic Corridor (EEC) applies uniformly across all three provinces: Chachoengsao, Chonburi, and Rayong. However, only 15% of the EEC area benefits from tax incentives, affecting 98.5% of operators, primarily SMEs.

In this context, he proposed that the government issue measures to alleviate the impact of the 400 Baht wage increase on affected businesses, including:
-    Tax reduction measures.
-    Low-interest loans to sustain employment.
-    Promotion of technology and adaptation.
-    Reducing the employer's social security contribution rate from 5% to 0-1%.
-    Reducing land and building tax rates by 90%, as during the COVID period.
-    Reducing electricity tariffs to 3.50 Baht from 3.70 Baht.
-    Exempting various licensing fees.

As for the proposals from the Provincial Industrial Council, Dr. Darat Wipatakalas, Vice Chairman of FTI and Office of the Chairman, suggested a clear framework and principles for calculating future minimum wages that correlate with labor productivity and the efficiency of production processes of each business and establishment.

Additionally, he urged a reconsideration of the contributions to the “Employee Welfare Fund”, or extending the effective date of enforcement for at least another two years to assist entrepreneurs facing economic challenges arising from international and geopolitical issues, such as conflicts between nations, international trade policies, and challenges related to Chinese products.

Mr. Phongkwan noted that the Ministry is preliminarily considering to extend the contributions to the “Employee Welfare Fund” for approximately another 6 months to 1 year. The situation will be continuously monitored regarding political and economic circumstances to assess this policy further.

Regarding wage adjustments, Mr. Phongkwan further stated that the wage adjustment must consider balance and fairness between both employers and employees. The tripartite wage committee will discuss the increase of the minimum wage to 400 Baht/day, and while adjustments were recently agreed upon for Bangkok and service sectors, no further increases will be considered in the immediate future since discussions occurred not long ago.

As for the timeline for consideration, Mr. Phongkwan remarked that typically adjustments occur annually, but there have been two increases this year. If wage discussions do take place again, it will likely be in the following year.

However, the Ministry of Labour has not yet set a timeline for the next wage adjustments. Should there be another meeting, it is anticipated to occur in 2026.

Regarding Bangladeshi and Sri Lankan labor, Mr. Somchai Morakotsriwan, Director-General of the Department of Employment, indicated that both Bangladesh and Sri Lanka have relatively low domestic wage rates, and since Thailand has maintained good relations with both countries, the Ministry of Labour will ensure that workers from these nations receive equal rights as Thai workers. Therefore, it is favorable to bring workers from both countries into Thailand. However, negotiations between Thailand and both countries will need to take place, also in coordination with the Ministry of Labour's security office and the FTI as well as the Thai Chamber of Commerce in subsequent discussions.

This meeting represents an important step forward in cooperation between the public and private sectors to drive the Thai economy toward sustainable and stable progress.