"Lao Factory Owners Say Proposed Wage Hike Will Shutter Businesses", 9 February 2018

Owners of garment factories and other businesses in Laos are rejecting a proposal to raise the minimum wage by as much as one-third, saying the increase in expenses would force them to shut down operations, despite reports of workers seeking opportunities elsewhere due to low pay and high living costs.

…The Lao National Chamber of Commerce and Industry, and the Lao Federation of Trade Unions (LFTU)…proposed raising the minimum wage from 900,000 kip (U.S. $108) per month to 1.1 million or 1.2 million kip (U.S. $133 or $145) to address the increasing cost of living for workers in Laos.

Minister of Labor and Social Welfare Khampheng Saysompheng said…that a pay rise was crucial to improving workers’ living conditions amid rising costs—with prices increasing on a yearly and sometimes monthly basis….

An LFTU official…said that…that 1.2 million kip “can match the cost of living at present.”

…The Association of Lao Garment Industry was willing to accept a wage raise to 1 million kip (U.S. $121) per month, but no more, as any further increase would make operating costs unsustainable.

…Lao National Chamber of Commerce and Industry Valy Vetsaphong…warned that a wage hike could lead to employers laying off workers…

But the manager of a plastic bag factory…told RFA that a wage increase would be beneficial across the board, as employers are having trouble filling vacancies for low-salary positions.