[id2008]

Pay rise challenge rejected - Thailand

The Administrative Court has thrown out a case seeking an injunction against government plans to raise the national daily minimum wage to 300 baht.

The court dropped the case filed by 41 business operators, saying the tripartite Central Wage Committee's decision on the wage hike followed proper procedures and that employers must abide by the panel's decision.

Employers earlier lodged a petition with the court asking it to issue an injunction to suspend the wage hike.

They also asked the court to rule on the legality of the wage panel's order.

The court said the tripartite wage committee took into consideration the cost of living index, inflation, production costs and consumer prices in making its decision.

It had also sought opinions from sub-committees in every province as well as a working committee that had studied the likely effects of the minimum wage hike.

That panel was chaired by the Bank of Thailand's deputy governor.

Still, the court has not yet ruled on whether the wage panel's order was illegal or not.

The 300-baht daily minimum wage policy was a major part of the now-ruling Pheu Thai Party's campaign platform during last year's parliamentary elections.

Increases in the minimum wage to 300 baht a day will take effect on April 1 in seven provinces _ Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon, Nakhon Pathom, Pathum Thani and Phuket. Other provinces will follow later.