Three draft laws intended to improve living conditions for all Thais have run into strong resistance from the private sector, which says they would lead to higher costs and reduced competitiveness.
The three bills – on labour protection, air quality, and factory oversight – would place huge burdens on employers, especially small and medium enterprises (SMEs), says the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which represents major business groups.
The Labour Protection Bill, still under parliamentary review, seeks to reduce the working week from 48 to 40 hours for most occupations, and to 35 hours for hazardous jobs. It would also increase paid annual holiday provision.
The Clean Air Bill aims to bring Thailand’s air-quality regulations under a single law. It establishes clear responsibilities for polluters, creates new governing bodies and sets out administrative, civil and even criminal penalties for serious or repeated violations.
Amendments to the Factory Act, meanwhile, would strengthen oversight of production plants in controlled categories. This would include tighter checks and a requirement for factories to renew their licences every two years.
Concerns over competitiveness
Poj Aramwattananont, chair of the Thai Chamber of Commerce, said the JSCCIB had received complaints about the proposed laws from members nationwide, including more than 90 local trade associations, as well as foreign chambers.
“This legislation was drafted without comprehensive impact assessments and does not align with international labour law and general standards,” he claimed. “Limiting the working week to 40 hours, for instance, would affect workers’ income and deprive them of overtime opportunities.”
The JSCCIB said the proposed legislative changes also contained several other dangers.
The labour protection bill proposed by People’s Party MP Charas Khumkainam, for example, would not only drive down workers’ income but also reduce Thailand’s production capacity. It dismissed a similar bill proposed by fellow People’s Party MP Wanvipa Maison as unnecessary, arguing it barely differed from existing labour laws, which are adequate. The JSCCIB also rejected a third bill that would give monthly salary earners the same rights as permanent employees, while raising the minimum daily wage every year.
Poj added that these draft laws would make production more expensive, adding to the burden of businesses – especially SMEs – already struggling in volatile economic conditions.
Rising production costs would also affect investor confidence, reducing Thailand’s appeal as an investment destination, he warned.
Devil in the details?
Kriengkrai Thiennukul, chair of the Federation of Thai Industries, also expressed concern about the Clean Air Bill, suggesting that the private sector should have stronger representation on committees and organisations overseeing pollution control.
The bill, formulated to combat Thailand’s annual smog crisis, would penalise polluters for emissions.
“Parties subject to the enforcement should also be allowed to participate. The bill is okay in principle, but its details are flawed,” Kriengkrai said.
One point of contention is the bill’s Clean Air Fund, which would funnel fines paid by polluters into efforts to curb air pollution.
The JSCCIB complained of a lack of clarity and prioritisation in the Clean Air Fund’s 17 objectives, adding that failure to clearly allocate the funds would lead to problems at the enforcement level.
“Also, the penalties do not align with international standards, while some even breach the Constitution,” he cautioned. The Clean Air Bill seeks to impose both civil and criminal penalties, while the Constitution reserves criminal penalties for serious offences.
Turning to the Factory Bill, Kriengkrai warned it could damage the employment sector and Thailand’s competitiveness. The law would complicate business operations at a time when Thailand is working to attract more investment with its “ease of doing business” policy. He added that the threat of strict penalties would trigger foreign investors to scrap or suspend plans for Thai investment.
Environmentalists, health activists want change
Environmental watchdog BioThai Foundation accused the JSCCIB of attempting to manipulate the law to shield big business.
“[The JSCCIB] is clearly acting out of self-interest, seeking to avoid paying or doing anything [for the environment],” the foundation said. It added that if private sector representatives were allowed to sit on pollution-control panels, nothing would be achieved.
The JSCCIB’s opposition to fining polluters would merely protect big business at the expense of public health, it added.
“Hospitals are already overflowing with patients suffering respiratory diseases due to smog and PM2.5 – especially the young and elderly. These costs are never passed on to large corporations,” the foundation said.
Calling the existing pollution law a paper tiger that lets big polluters off the hook, the foundation insisted that “businesses and industrial operations that damage people’s health should be held responsible, no matter what”.
People’s Party MP Pattarapong Leelaphat said the Clean Air Bill aims to prevent big business from reaping profits while blaming air pollution on their suppliers – including farmers whose field-burning fuels the smog crisis.
“With this draft law, we intend to ensure human rights and environmental laws are observed across supply chains,” he said.
Fellow People’s Party MP Sia Jampathong pointed out that the requirement to renew factory licences every two years would only apply to potential polluters that could damage public health.
“The rest will only be required to renew their licences every 10 years,” he said.
Stronger laws for a greener economy
Witsanu Attavanich, spokesperson of the Clean Air Bill’s ad-hoc committee, said the legislation is still awaiting Senate approval and could lapse if not passed before this parliamentary term ends. Prime Minister Anutin Charnvirakul has promised to dissolve Parliament by January 31.
“Passing this bill would protect the fundamental rights of the entire population, not just specific groups,” he said. “Delaying the legislation would mean people will be forced to breathe polluted air for years to come.”
He rejected claims that legislation to ensure better air quality would hurt the country’s competitiveness, pointing out that countries like Japan, Germany and Britain have prospered despite imposing strong environmental controls.
“Such laws encourage a green economy, which is the future for the whole globe,” he said.
By Thai PBS World’s General Desk
