Mr. Thongchanh Khamphone, a representative from Lao Trade Union said his trade union will soon submit a request to the Lao government for considering to raise the minimum wage from 290,000 kips per month to at least 500,000 kips per month to reflect the cost of living increase in last three years.
The Ministry of Labor and Social Welfare, however, said it is difficult for the government to approve on raising the minimum wage in the near future because employers see the move will make the production cost in Laos too high which will make Lao goods unable to compete in foreign markets.
With these differences, Lao officials expected at least by the end of this year the Lao Trade Union and the Association of Employer in Laos will be able to reach an agreement.
Under this circumstance, Lao Trade Union said it had already decided that it will not wait for the result of the negotiation until the end of this year but will submit its request directly to the government, because the minimum wage in Laos for the timebeing is 3 times lower than that in Thailand.
Listen to our Laos Today report for more details.