Within the next two weeks, low-paid workers will find out whether they will get a fair pay rise when the minimum wage tripartite committee rules on the annual wage adjustments.
But trade unions' demand for a fair and equal minimum wage has been met with opposition from employers' representatives.
In the past week they have tried to influence the decision-makers by constructing the same old narrative about the "negative effects" of a too steep rise or a single national rate. One even suggested there should not be any increase this year.
The committee, comprising representatives of employers, employees and state officials, needs to consider the positive aspects of reasonable pay hikes and take into account the economic reality and livelihoods of low-income workers.
For those working in the least skilled jobs at the bottom end of the economy, a proposed wage rise of 2-15 baht a day, up from the current 300 baht, is still too small.
Labour groups have voiced concern that this income level is barely enough for a decent quality of life and to look after their families. They can hardly afford the current cost of living, and often remain in debt despite working overtime.
But the private sector has expressed concerns to Prime Minister Prayut Chan-o-cha over the proposed increases, saying they should not be too high or the change will affect supply chains.
Raising the daily minimum wages will also jack up the cost of living and increase competitiveness, the representatives of employers' associations claim.
However, a rising cost of living as a result of wage hikes has been determined by the private sector, which has passed the higher costs of production on to consumers without strong justification.
In reality, increasing the minimum wage may not be such a cause for concern.
A paper by the International Labour Organisation and the Global Labour University points out that minimum wage hikes do not have big systematic employment effects, while their inflationary pressure is usually small and tolerable.
Higher minimum wages can also benefit the macroeconomy, aggregating demand and output as low-income earners have a higher propensity to consume than richer households.
The trade unions are correct in saying the current minimum wages are insufficient for workers to cover expenses for a family of three.
The proposed hikes of 2 to 15 baht are not big enough and the government should not bow to pressure from the private sector to keep the increases below these levels. It should consider higher levels.
A single national minimum wage, as suggested by trade unions, is a good option that will end the disparities in minimum wages set for different provinces.
It could also incentivise workers to migrate to less-dense cities where the cost of living is lower. This would decentralise employment and investment for provincial areas.
The private sector is right in saying that wage increases should reflect individual skills.
But they should regard better pay as a factor that induces companies to invest more in workers, helping them to become improved labour resources through skills training and the provision of relevant knowledge.
With the arrival of automated technology, low-skilled workers are at risk of losing their jobs to robots.
The government and private sector should do more to enhance the skills of the current workforce, helping them to earn more than the minimum wage.
At the end of the day, with decent pay and improved skills, these workers can become significant assets for companies.
