Thread: Minimum wage to increase by April 2011

Originally Posted by Tom Sawyer

If you want to be taken seriously RS you need to engage. The re-incarnation all-seeing-sage act just gets you ignored. And you probably have quite a bit to contribute. Speak out mate - plainly. (and no I don't want a civil war - who would gain? Criminals maybe - not many others)

Yes. Taken seriously.
Akin to the illusion that usally passes for reality here.
Directed towards all parties.

Originally Posted by Rural Surin

Originally Posted by Bettyboo

^ spoken like a true yellow, excellent comment; keep up the good work for us, Paps; power to the people...

Yes....the people.

RS, have you ever watched this program? Do you understand what it was satirizing? I use it for Papillion because the irony escapes him which I find funny... but, come on mate, I thought you had a bit more about you than Paps...

Power to the people!

Bangkok Post : PT: Tourist areas to get wage hike

PT: Tourist areas to get wage hike

• Published: 15/07/2011 at 11:17 AM
• Online news:

The Pheu Thai Party plans to raise the minimum daily wage to 300 baht a day in provinces where tourism is more developed and the three major sources of funding will be the state budget, bonds and investment, Pheu Thai deputy leader Kanawat Wasinsungworn said on Friday.

"Once the 300 baht minimum wage policy kicks off, the minimum wage in all provinces will provinces will be increased.

"Some provinces will get a full 300 baht increase but some others won't. However other supportive measures for workers will be carried out to prevent workers from going to the provinces with 300 baht minimum wage only," Mr Kanawat said.

Other supportive measures might be raising production capacity and improving labour skills, he said.

The party's economic team member said Pheu Thai must listen to investment and private sectors before developing the most flexible minimum wage structure.

"Bangkok and its nearby provinces and other provinces that have a minimum wage close to 300 baht a day would get a full increase, and this also applies to provinces with major tourist destinations such as Phuket, Pattaya (in Chon Buri) and Samui (in Surat Thani)," Mr Kanawat said.

The party will have to consider if the minimum wage policy, if implemented, would affect small and medium businesses in each province, he added.

During the election campaign last month, Pheu Thai told the people it will raise minimum wages to 300 baht a day nationwide.

^ Carnt argue with their logic- but how will their electoral base respond? No doubt they will cop some flak. Enough broken promises, and the Dem's will finally have something to smile about.

I worked for one of the wealthy yellow shirt families at their big hotel in Pattaya. Their staff struggled to make ends meet. Most of them had 2 jobs, some worked a lot of overtime and some even worked as part time prostitutes to make more money.

The owners were well aware of this but always used the excuse "we obey the law and pay them minimum wage".

Let me tell you its not a nice atmosphere to live and work in when you are surrounded by people who are desperate for more money. Staff were stealing at any opportunity.

I can't support this motion enough. For sure the wealthy ones may have to tighten their belts a bit. If the spoilt brat family I worked for is any marker to go by, this only means shedding a couple of luxury cars.

A lot of people are afraid of CHANGE. The elites are no different and since they have held the balance of power unfairly in their favour they do not want to give it up.

Truth be told the elites that I met were some of the strangest and unstable people I have ever met in my life. They used money to make themselves feel better instead of facing up to life's challenges.

Myanmar workers flocking to Thailand ahead of wage hike : National News Bureau of Thailand

Myanmar workers flocking to Thailand ahead of wage hike

TAK, 15 July 2011 (NNT) – A number of Myanmar citizens have been arrested in Tak province after entering Thailand with the intention to find jobs and take advantage of the new government’s wage hike policy to 300 THB a day.

On the occasion of Buddhist Lent this year, tens of thousands of people from Myanmar are crossing the border into Mae Sot district of the northern province of Tak to spend their four-day holiday visiting temples and making merits. The atmosphere in the Mae Sot Municipality has been full of energy, benefiting the trade of local products.

However, officers of the Natural Resources and Environmental Crime Suppression Division have apprehended a total of 50 Myanmar nationals, comprising 40 men and 10 women, for planning to seek illegal employment within the Kingdom. Their agents reportedly escaped.

According to the interrogation, the border crossers were about to travel from Tak to the nearby Kamphaeng Phet province to board a bus to Bangkok, where they would look for employers in order to be registered as a legal worker afterwards. They claimed that their motive was the incoming government’s policy to increase the minimum wage to 300 THB per day, which would allow them to make a good living.

The Burmese won't be entitled to the B300 per day, but they will be in greater demand and most likely see improved wages.

While their are many factories in border provinces who pay poorly, many employers pay Burmese similar wages to Thais, because they find them harder working and more reliable.

Of course they would be entitled. Thai labour law makes no distinction on one's nationality when it comes to minimum wages or entitlements under the Labour Protection Act. The minimum wage is set province by province. So if they are working in Tak they get the minimum for that area. Now enforcement on the other hand - another matter entirely. And for a Burmese to seek redress in the Thai courts?

Originally Posted by pattayardm

I worked for one of the wealthy yellow shirt families at their big hotel in Pattaya. Their staff struggled to make ends meet. Most of them had 2 jobs, some worked a lot of overtime and some even worked as part time prostitutes to make more money.

very chinese thinking, and they are a dying breed, most "modern" hiso Thai are a bit smarter than that

they probably know about the stealing, but as long as it's reasonable, they let them do it

BERNAMA - Pheu Thai Party Given Six Months To Raise Wage As Promised

July 18, 2011 17:15 PM

Pheu Thai Party Given Six Months To Raise Wage As Promised

BANGKOK, July 18 (Bernama) -- Representatives of workers gives six months to Thailand's majority-elected Pheu Thai Party to raise daily minimum wages to 300 baht (USD9.97) and monthly salaries of new graduates to 15,000 baht (USD498) equally across the country as promised during their electoral campaign, Thai News Agency reports Monday.

The representatives of local workers submitted a nine-point written demand to the Pheu Thai Party at its headquarters here on Monday, calling for the new Pheu Thai Party-led administration to include their demand into its policy statement to be presented to the Thai Parliament.

Led by Chalee Loysung, Chairman of the Thai Labour Solidarity Committee, the nine-point demand includes the ratification of two conventions of the International Labour Organisation (ILO) on workers' rights on mass rallies and bargaining talks and raising daily minimum wages to 300 baht and monthly salaries for new graduates to 15,000 baht nationwide by January 1, 2012.

The Thai Labour Solidarity Committee claimed that its survey in 2008 showed that a fair minimum wage in Thailand should be 421 baht (USD13.9) a day, or 12,630 baht (USD419) a month.

While, Pheu Thai Party Deputy Spokesman Jirayu Huangsap said that his party would keep its promise and would consider all relevant factors when tailoring policies to solve labour problems to ensure their optimum, taking opinions and proposals of the local business sector into account.

The outgoing ruling Democrat Party urged the new Pheu Thai Party-led government to raise the minimum wages and salaries, as promised, by early next year; otherwise it could be accused of deceiving the public.

-- BERNAMA

Bangkok Post : Fulfilling pledges at what cost?

COMMENTARY

Fulfilling pledges at what cost?

• Published: 20/07/2011 at 12:00 AM
• Newspaper section: News

It would be very good to see Pheu Thai Party set a political precedent by implementing policies it promised during the election campaign. But it would be even better and wiser if its party-list and MP candidates had carefully thought things out before promising anything to the people.

They should know that the implementation part is something more difficult than memorising well-written scripts and appealing to people with sweet words to get their votes. And I'm wondering whether PM-elect Yingluck Shinawatra realises that some policy promises will create a new bombshell for the overall economic system if they are implemented. Look at her promise to raise the minimum wage to 300 baht a day beginning January 1, 2012. If that really happens, daily workers in Bangkok will be extremely happy to get a pay rise of almost 50% from the present 215 baht, while their peers in Ayutthaya will earn 110 baht more from their current 190 baht a day. In contrast, employers will be reluctant to enact the pay raise because it means their expenses will surge enormously.

In fact I am delighted to learn that workers will earn more, as their family members will benefit from the improvement in living standards.

So far I'm trying hard to believe what Suchart Thada-thamrongvech, chief of Pheu Thai's economic team, says in defence of the dream wage policy: that it will not hurt private companies or the economic system. He claims that private companies will be able to offset the big increase in staffing expenses with a reduction in the corporate income tax, from 30% at present to 23%.

But how dare he say something like this, which misleads the public? Even though I am not an economist, I have a basic understanding: private companies and employers will definitely see their expenses for staff salaries increase vastly. And this will lead to a rise in operating costs. This higher cost will be passed on to consumers - you and I - who will have to pay more for the products.

So let's talk about the reality. There is a confusion in many labour-intensive sectors. As far as the workers are concerned, they pin their high hopes on the wage promise and expect to get 300 baht a day as a New Year's gift. At the same time, employers are very confused as to whether the new minimum wage will take effect equally across all provinces. The worst part concerns the alien workers from Burma, Cambodia and Laos, who also expect the same pay as Thais, and many new faces are illegally flocking into Thailand in an attempt to enjoy this promised higher wage. Moreover, many product manufacturers have already raised their prices in advance! And once these prices go up, they will never come down.

Many academics have warned that if the wage rise is not suitable, it will create higher inflation in the near future. Once inflation goes up, local interest rates are likely to rise as well. It will become a chain reaction again, and the higher wages will not resolve the issue of the higher cost of living.

Another concern is that if Thailand enacts a higher labour wage, foreign investors will probably move their production bases away to other countries where labour costs are still low. Then, the country's competitiveness will shrink and it will become less attractive in the eyes of foreign investors.

According to a study by the Thai Chamber of Commerce, Thailand employs about 5 million unskilled workers. If the minimum wage goes up to 300 baht a day, their employers will have to shoulder an additional burden of 140 billion baht a year. And I'm not sure if the employers are able to afford this expense.

The urgent task now for Ms Yingluck and Pheu Thai is to alleviate the confusion among all affected parties. Try to make unskilled workers understand that wages should be raised step by step and all provinces are unable to use the same rate due to different business environments. Let's brainstorm to find out the most suitable wage rate and the proper implementation timeline.

Please don't let this issue remain unclear for long, because when people have high expectations they will rarely accept a negative result. I wouldn't want to see a new rift between employers and employees.

Krissana Parnsoonthorn is Deputy Business Editor, Bangkok Post.

I'd bet that the devil is in the details. The 300 baht daily minimum could include benefits, overtime, etc. Add it all up and bingo, Somchai is pulling down 300+

And as other posters have pointed out, more and more the unskilled laborers are Burmese, Lao and Cambdian nationals. Good luck with them actually receiving a daily 300 baht no matter what the law says. Then there are the Thai mom and pop stores and I doubt that they truthfully report their actual earnings and remit the correct taxes due-if they report at all. Thai workers employed there will see pigs flying before they have that nice fat raise

^
Therein lies the rub. If the country had an effective system of VAT and income tax collection - e.g. by jailing people who don't comply (with state officials like inspectors doing triple time if caught taking bribes) - then a lot of this would become a moot argument.

Thai-ASEAN News Network



Ayutthaya Workers to Strike Over Decreased Wage

UPDATE : 20 July 2011

Factory workers in Ayutthaya Province decided to go on strike following a decrease in their daily wage rate.

In response, the factory owner has fired the strikers.

Last Tuesday, the AGC Electronics company, which produces and exports electronic parts in Ayutthaya Province, announced to its workers that the company needs to temporarily stop hiring.


AGC referred to the Labor Act section 75, saying the company has faced a decline in sales and needed to reduce its production costs.

The announcement dissatisfied the workers, especially the two labor unions of the AGC, causing them to go on a strike along with 61 other workers from the company.

In response, the factory owner fired two of the labor union pillars, as well as the 61 workers who went on strike, without paying compensation.

AGC claimed the strikers had violated the law by skipping work without prior notice, and, therefore, it's the company's right to fire them without paying compensation.

The AGC Electronics Labor Union President Suchart Pasee said the company fired the strikers through mobile phone SMS notice, and a letter posted on the factory's gate.

He added that AGC has 4,500 workers, 70 percent of whom receive daily wages of around 200 baht per day.

The situation angered the workers, prompting them to submit a letter to the Ayutthaya Provincial Governor, Wittaya Piwpong, stating that they are suing the factory owner.

One of the AGC labor union board members, Somneuk Boonchom said the company has been operating for six years.

He expressed concern that the government's minimum wage rate increase to 300 baht per day would cause the Japanese owner to shut down its production plant in Thailand and move to another nation.

He added that the Department of Labor Protection and Welfare has contacted the factory owner to negotiate further on labor rights.

Originally Posted by Tom Sawyer

^
Therein lies the rub. If the country had an effective system of VAT and income tax collection - e.g. by jailing people who don't comply (with state officials like inspectors doing triple time if caught taking bribes) - then a lot of this would become a moot argument.

^No argument from me. But I think the chances of that happening are:

1. Slim
2. None

I guess Thais aren't up to snuff with the political process.. these sorts of lies happen in campaigning, that's what makes them politicians.

surely the majority of PT voters weren't naive enough to believe everything that was said or promised to them during the campaign

Bangkok Post news stories today....

Textile firms oppose wage hike
20/07/2011 : All textile manufacturers in Chaiyaphum province will be forced to close down or move their production to neighbouring countries if the daily minimum wage is raised to 300 baht, Theevara Wittanakorn, chairman of Hi-tech Chaiyaphum Apparel, said on Wednesday.

Industry opposed to B300 daily wage
20/07/2011 : The private sector is opposed to the Pheu Thai Party’s policy to raise the daily minimum wage nationwide to 300 baht, Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said on Wednesday.

-----
TAN stories today so far....

Private Sector Warns against Wage Hike Impact
Wednesday, July 20, 2011
A number of business operators have voiced strong concern over the proposed daily minimum wage hike to 300 baht by the Pheu Thai Party, saying the move will hamper the country's competitiveness and will result in higher unemployment and rising goods prices.

Industrial Confidence Index Hit by Planned Wage Hike
Wednesday, July 20, 2011
The Federation of Thai Industries has reported that the industrial confidence index for June has decreased from the month before due to the new government's plan to introduce the 300-baht daily minimum wage policy, along with rising fuel prices and the global economy.

Jeans Manufacturer Backs Wage Hike
Wednesday, July 20, 2011
Jeans manufacturer Mc Jeans has voiced support for the 300-baht wage policy proposed by the Pheu Thai Party, saying the rise will benefit workers and will encourage producers to develop more products. Mc Jeans Chairman Thana Thian-atchariya said although the proposed 300-baht daily minimum wage will considerably affect manufacturers, he viewed that employees will benefit, so his firm is ready to follow the policy.

-----
http://thainews.prd.go.th/en/news.php?id=255407200010

Yingluck: Minimum wage hike policy realistic



BANGKOK, 20 July 2011 (NNT) – Incoming Prime Minister Yingluck Shinawatra has voiced her confidence that the policy to increase minimum wage to 300 baht can be implemented, but those affected by the policy will be invited to discuss with the government.

Upon the concern that the policy might be unrealistic, Ms Yingluck confirmed that the policy will be implemented, and her Pheu Thai Party has strong determination to press ahead with the policy for the benefit of Thai people.

The incoming prime minister explained that minimum wage has been pegged for quite some time while living cost is skyrocketing; therefore, she hoped that this minimum wage hike policy will help shoulder the burden of labourers.

Ms Yingluck noted that her party is disscussing impacts of the policy with related sides, especially private companies in order to see how the government can adjust the implementation of its policy.

The Pheu Thai heavyweight admitted that she might not be able to specify when or how the policy will be implemented, but she remains confident that all policies of her party announced during election campaigns are realistic as their feasibility have been studied, and they are well-prepared.

Originally Posted by Sailing into trouble

The same argument has been world wide for 200 years. The reality is that populations with more real income to spend actually make wealth. This means more million and billionaires.

The real fear is that the closed circle of the elite in Thailand are going to be challenged by a new supper rich culture who will eventually challenge them for social as well as political control.

People only make real wealth when their currency is rising. As we can see here, a nominal rise in the minimum wage is going to result in a less business friendly climate which is going to lead to a fall in the Thai baht. When the Thai baht falls, all commodities get more expensive for Thai's, so they will have less discretionary income to spent on something else. (falling wealth, falling standard of living)

Singapore and Germany have no minimum wages and look at them.

Why not jack the minimum wage to 1000 baht an hour ? if that is how wealth is created ?

Originally Posted by StrontiumDog

Bangkok Post news stories today....

Textile firms oppose wage hike
20/07/2011 : All textile manufacturers in Chaiyaphum province will be forced to close down or move their production to neighbouring countries if the daily minimum wage is raised to 300 baht, Theevara Wittanakorn, chairman of Hi-tech Chaiyaphum Apparel, said on Wednesday.

Industry opposed to B300 daily wage
20/07/2011 : The private sector is opposed to the Pheu Thai Party’s policy to raise the daily minimum wage nationwide to 300 baht, Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said on Wednesday.


TAN stories today so far....

Private Sector Warns against Wage Hike Impact
Wednesday, July 20, 2011
A number of business operators have voiced strong concern over the proposed daily minimum wage hike to 300 baht by the Pheu Thai Party, saying the move will hamper the country's competitiveness and will result in higher unemployment and rising goods prices.

Industrial Confidence Index Hit by Planned Wage Hike
Wednesday, July 20, 2011
The Federation of Thai Industries has reported that the industrial confidence index for June has decreased from the month before due to the new government's plan to introduce the 300-baht daily minimum wage policy, along with rising fuel prices and the global economy.

Jeans Manufacturer Backs Wage Hike
Wednesday, July 20, 2011
Jeans manufacturer Mc Jeans has voiced support for the 300-baht wage policy proposed by the Pheu Thai Party, saying the rise will benefit workers and will encourage producers to develop more products. Mc Jeans Chairman Thana Thian-atchariya said although the proposed 300-baht daily minimum wage will considerably affect manufacturers, he viewed that employees will benefit, so his firm is ready to follow the policy.


Yingluck: Minimum wage hike policy realistic : National News Bureau of Thailand

Yingluck: Minimum wage hike policy realistic



BANGKOK, 20 July 2011 (NNT) –

The incoming prime minister explained that minimum wage has been pegged for quite some time while living cost is skyrocketing;.

No shit, let the baht rise.