Thread: Minimum wage to increase by April 2011

[quote=crippen;1548163]A bit surprised the 500 bht to vote payment has not been lifted ,say 1000 bht ??

500, wow. In Korat it's only 100. We want a raise !

http://www.bangkokpost.com/breakingn...e-minimum-wage

PM: Govt to raise minimum wage

• Published: 27/02/2011 at 11:56 AM
• Online news: Local News

The government is planning to increase daily minimum wage of workers for another round as prices of consumer goods are on the rise, Prime Minister Abhisit Vejjajiva said in his “Confidence in Thailand with PM Abhisit” weekly programme on NBT on Sunday morning.

In addition, the government will also increase the ceiling rate of farm income guarantee scheme for farmers to help ease burden of their daily cost of living expenses, Mr Abhisit said.

“It will not be long for the income of workers and farmers to be raised”, the prime minister said.

Mr Abhisit admitted that the government could not control prices of all products. However, it has been able to curb prices of diesel and liquefied petroleum gas (LPG) for the time being.

^

elsewhere the gov is quoted as stating it will take 2 years to implement .

So we'll just file this one under populist vote buying shall we ?

Originally Posted by StrontiumDog

In addition, the government will also increase the ceiling rate of farm income guarantee scheme for farmers to help ease burden of their daily cost of living expenses, Mr Abhisit said.

“It will not be long for the income of workers and farmers to be raised”, the prime minister said.

Mr Abhisit admitted that the government could not control prices of all products. However, it has been able to curb prices of diesel and liquefied petroleum gas (LPG) for the time being.

Subsidizing inefficient, non-viable enterprises, be it farming or anything else is not in anyones interest. Diversification into more productive and competitive industries is the only way to grow an economy and benefit the people.

However, the socio/political system in place in Thailand requires a pool of indebted peasants (mainly from Issarn) to maintain a stream of cheap labour to supply prostitutes, maids, and unskilled labour for the factories and construction industry.

The Chinese/Thai elite prosper on the labour of the Lao/Thai peasants while this unofficial system of ethnic apartheid continues.

The soils in Issarn are generally poor with low yields by world standards. Other problems such as regular floods and droughts plague the farming industry there. Ground water salinity and lack of irrigation is also a big problem. The place in Issarn just aint suited for rice farming, especially on ever diminishing plots as the population expands. Yet almost one third of Thais call Issarn home. They are the underclass. The dark skinned Lao/Thai girls you see working as prostitutes in the bars of Bangkok and Pattaya. The labourers you see working on construction sites for $3 a day and living in tin sheds on site.

Is it any wonder the Abhisit government wants to maintain the status Quo?

http://www.bangkokpost.com/news/loca...wage-hike-plan

Industry opposes second wage hike

• Published: 28/02/2011 at 01:02 PM
• Online news:

The private sector opposes the prime minister’s plan to raise the daily minimum wage of workers for the second time this year, as it would increase production costs, Thaweekij Chaturacharoenkhun, vice chairman of the Federation of Thai Industries (FTI), said on Monday.

(Click the link etc)

Originally Posted by Bettyboo

but that's what the Bkk lot are about; amassing all the wealth for their own little group whilst the majority struggle by best they can.

Its called capitalism. Same same - it works in the rest of the world. London, Paris, Tokyo, Hong Kong ......

There are more votes in BKK hence the higher minimum wage rate.

Thailand risks growing old before it gets rich (Reuters)
2 March 2011

BANGKOK - Earning $6 a day from her food stall outside her home next to a railway track, Lumyai Rungruang is sceptical of news that Thailand’s wages are rising. The 54-year-old is too busy contending with spiralling inflation. Coconut juice has doubled in price. Egg prices are up 50 percent at 90 baht ($2.95) a dozen. Doubtful her income can keep pace, she bristles when pressed about her future.

“I expect to work the rest of my life,” the mother of five said from her makeshift stall with its corrugated iron roof and bamboo stools, where she sells rice porridge and noodles.

For the past decade, Thailand’s minimum wage has trailed inflation, creating one of the widest gaps between rich and poor in Asia according to the World Bank, and fuelling working-class frustrations that erupted into violent street protests last year.

continues : Business : Thailand risks growing old before it gets rich

khaleejtimes.com

Originally Posted by Mid

“I expect to work the rest of my life,” the mother of five said from her makeshift stall with its corrugated iron roof and bamboo stools, where she sells rice porridge and noodles.

Same as in Croydon except their restaurant is air conditioned and they, of course, are part of the UK "Caring Society".

I would hope that we practice what we preach? Conscientious? Obviously, many of us have been in the situation as to hiring common and skilled labour in some capacity or another. As it applies to more common, everyday labour, would you or do you exceed this "legal" and imaginary minimum wage standards? Consider what this daily minimum wage is for the average worker/labourer. It's nothing - like everywhere else in the world, the wage rates haven't changed in a generation, yet the cost of living increases by five to eight fold within this same period.....in more in some societies.

http://www.bangkokpost.com/news/loca...y-boost-pledge

Business pans 25% salary boost pledge

• Published: 10/03/2011 at 12:00 AM
• Newspaper section: News

The Democrat Party's promise to boost the daily minimum wage by 25% is coming under fire from leading businessmen.

Speaking during the monthly Bangkok Post Forum on Monday, Sethaput Sithiwart-Narueput, chief economist and executive vice president of Siam Commercial Bank's Economic Intelligence Centre, said the promise would not be a sustainable solution unless workers' productivity improved too.

(lots more at the link)

http://www.nationmultimedia.com/2011...-30151333.html

Corporate tax cut offered for minimum-wage hike

By The Nation on Sunday
Published on March 20, 2011

Prime Minister Abhisit Vejjajiva has offered to cut the corporate income tax rate in return for private sector support for a big rise in the country's minimum wage.

Speaking at a seminar held by Federation of Thai Industries in Kanchanaburi, Abhisit said the ruling Democrat Party's policy was to raise minimum wages by 25 per cent over the next two years.

In Bangkok and nearby provinces, the minimum wage is currently Bt215 per day. Minimum wages in farther provinces are even lower.

Previously, Abhisit proposed that the country adopt a flat single minimum wage of Bt250 per day nationwide.

The premier said yesterday Thai minimum wages were still too slow when compared to other countries.

This resulted in a wide income gap among the population and social injustice. "I was told that higher wages should follow higher labour quality. It's a matter of chicken and eggs. I think we should make a big wage adjustment," he said.

Abhisit added that the government would consider lowering other costs for businesses and industries.

The premier won loud applause from FTI members when suggesting the corporate tax rate should be cut.

According to the prime minister, wage earners needed more income and security while the government would also ensure that its minimum wage policy did not hurt businesses and industries.

After surviving the no-confidence debate in Parliament, Abhisit is set to dissolve the House of Representatives. His offer to cut income taxes for industries in return for higher minimum wages is seen as one of his major policies for the upcoming poll.

^
A vote-buyer if ever there was one. How about this...implement the rate-rise now BEFORE the election Abby.

It's quite simply bullshit.

Originally Posted by Rural Surin

I would hope that we practice what we preach? Conscientious? Obviously, many of us have been in the situation as to hiring common and skilled labour in some capacity or another. As it applies to more common, everyday labour, would you or do you exceed this "legal" and imaginary minimum wage standards? Consider what this daily minimum wage is for the average worker/labourer. It's nothing - like everywhere else in the world, the wage rates haven't changed in a generation, yet the cost of living increases by five to eight fold within this same period.....in more in some societies.

we faced a desperate labour shortage recently, simply not enough to go around as everyone harvesting at the same time; the border argy-bargy impacted with less Cambodians available as they chose to stay their side.

The timber company paid up-front, cash, for the eucalyptus then couldn't supply the workers to cut them down/remove, delaying re-ploughing/fertilising; needed firebreaks cut between cut euc and sugar - hired a group of older high school boys who stopped work every time I left the area, but did a good job in the end; expected 6 week delay for the sugar harvest (still waiting, labour and machines too busy); got the cassava stems cut and tubers lifted by offering work bonus, no daily rate but opted for 5 baht/bundle of 30 for cutting, a team of machete-wielding women took the job on and top earner got 750 b for a day's work. She cut 150 to my 50 (should I be ashamed?)

The production payment was the deal-maker.

^
Good to hear from a hands-on/eyes-on "doer" rather than just more theorising. Thanks.

Talks coming on more minimum-wage rises

Talks coming on more minimum-wage rises

By The Nation
Published on March 31, 2011

Labour Minister Chalermchai Sri-on will tomorrow start discussions with the Federation of Thai Industries and employee associations over the Democrat Party's election promise to raise minimum wages by 25 per cent within two years.

According to Democrat Party spokesman Buranat Samutarak, raising minimum wages is one of two major policies for the upcoming election to help the poor cope with the increasing cost of living. On the other hand, farmers' income will also be raised by the same amount. "We will launch the policies soon through TV commercials and radio spots until the election takes place," he said.

The latest rises in minimum wages, by Bt8-Bt11 per day depending on the province, took place in January and drew criticism from manufacturers.

Meanwhile, Labour Ministry permanent secretary Somkiat Chayasriwong, as chairman of the Central Wage Committee, noted that the planned increase was just an election-campaign promise of the Democrat Party. He also believed other parties would follow suit, however.

He said provincial subcommittees had been assigned to collect data on the cost of living in each province and submit the data within two months.

If the cost of living in any province shows significant increases, the issue will be tabled at the committee's meeting for immediate discussion. Without such signs, the issue will be discussed at the end of the year, as usual.

Originally Posted by StrontiumDog

Minimum wage to increase by April 2011

Originally Posted by StrontiumDog

Democrat Party's election promise to raise minimum wages by 25 per cent within two years.

.....

Wage rises driving garment industry to set up shop out of Thailand

Wage rises driving garment industry to set up shop out of Thailand

Textile firms scour overseas locations for cost benefits

Achara Pongvutitham
The Nation (Thailand)
Publication Date : 04-04-2011

The populist government policy to increase minimum wages to 250 baht (US$8) per day within two years will directly hit labour-intensive industries, particularly the garment industry, forcing manufacturers to build plants outside Thailand to maintain competitiveness.

Viet Nam, Indonesia, Bangladesh and China are among the countries where Thai exporters foresee business opportunities in the future. Some Thai companies have already been running plants in Vietnam for several few years.

The "unreasonable" increase in minimum wages from 215 baht ($7) to 250 baht within two years will reduce the country's competitiveness. The entire burden will be placed on manufacturers, making it more difficult for them to quote competitive prices.

As a result, they will have to expand their businesses outside the Kingdom, taking advantage not only of cheap labour but also tax privileges that the countries will gain from free-trade agreements.

The success of the strategy will pave the way for Thailand to become a trading hub for garments, like Hong Kong, with Bangkok becoming the headquarters, dealing with investment planning, product development through to material-sourcing.

Sukij Kongpiyacharn, president of the Thai Garment Manufacturers Association, said in an interview with The Nation that the six largest Thai garment manufacturers - Nice Apparel, Hi-Tech Group, Thong Thai Textile, Nan Yang Textile, Liberty Garment and Hong Seng Knitting - are surveying locations in three potential countries to set up plants.

Almost all of their manufacturing focuses on sportswear. They will invest an average of $8 million to $10 million on setting up the new sites.

Those major players had combined sales of $700 million of total Thai exports of $3.2 billion last year.

Liberty Group set up a plant in Ho Chi Minh City, Viet Nam a few years ago and employs about 2,000 workers. Nan Yang Textile has established a plant in China.

It is expected that the forthcoming investments of all six companies will employ at least 25,000 workers.

Sukij pointed out that the garment industry mainly relied on labour-intensive production, with manufacturers already paying higher than the minimum wage. For instance, general skilled labourers earn an average of 300 baht ($10)-400 baht ($13) per day with two hours overtime.

He said this was the first wave of Thai garment manufacturers investing abroad, though more companies were thinking about following them.

"The minimum wage in Thailand should apply to foreign labourers rather than Thai skilled workers, which we should focus on," stressed Sukij, saying Thai workers should focus more on technical manufacturing for higher wages.

Investment abroad will encourage Thailand to focus more on medium to high-end products. The Thai garment industry is able to produce high-technology products with ultra-sonic cutting, laser cutting and laser fill techniques to make sportwear such as swimming suits that need seamless cutting.

Production outside the Kingdom should concentrate on basic-goods manufacturing.

Many of the manufacturers see Vietnam as base for their new plants as its government's policies have supported foreign direct investment. In addition, exports from the country to the United States will enjoy tax privileges and low tariffs under the Trans-Pacific Partnership.

Sukij is also managing director of Hong Seng Knitting, which he said is planning to set up a second manufacturing base in Kang Nam province of Vietnam with a 50-year land lease. Construction is scheduled to start this year.

Vallop Vitanakorn, chairman of Hi-Tech Group, said Vietnam was a suitable location for a new plant as the living and working culture was similar to Thailand's.

The group plans to set up a factory employing 5,000 workers in Danang, in central Vietnam, with an investment of $10 million. The group is in the process of establishing a company and applying for investment privileges there.

"The Vietnamese government is attracting foreign direct investment by offering attractive tax privileges, and it is not far away from Thailand," he said, pointing out that foreign investors enjoy tax exemption for the first four years of operation and a 50-per-cent tax rate for another nine years. They are subject to normal rates after 15 years.

Vallop said there were many countries where Thailand could invest but Cambodia, Laos, Burma and Vietnam were the most interesting now.

Vallop warned that if the government's policy on labour wages remained unchanged, it would affect the new wave of investment into Thailand, not only from Japan but also other countries.

Dej Pathanasethpong, president of Thong Thai Textile, said he would survey potential sites in Bangladesh and Indonesia this month. Dej has already surveyed the investment environment and supporting factors in Vietnam. Labour wages in Bangladesh are lower than in Viet Nam, he said.

The company's overseas investment plan will see it spend $12 million, with production capacity developed into the same size as Bangkok's within two to three years.

"Having manufacturing plants abroad will double our sales within the next three years from a current target of Bt3 billion this year," Dej said.

However, Thailand will be developed as a business model for management and a design centre for manufacturing outside the Kingdom in the future. The manufacturing base abroad will absorb orders that plants in Thailand are unable to handle.

"The government policy of only giving money to people and high corruption will lead the country to repeat what happened in the Philippines in the past, with politicians enjoying spending from tax collection. In fact, money from tax collection should be spent on infrastructure development," Dej said.

BANGKOK, April 7 (Bernama) -- Thai Prime Minister Abhisit Vejjajiva announced on Thursday that he would increase minimum wages in Thailand by 25 per cent within two years and use tax incentives to reduce costs for local business operators, reports Thai News Agency (TNA).

BERNAMA - Thailand To Hike Minimum Wages By 25 Per Cent Within Two Years

hoo , hum , politicians lips moving ,

Hey Mr PM what happened to April 2011 ?

and just why should we continue to trust you ?

Originally Posted by Mid

BANGKOK, April 7 (Bernama) -- Thai Prime Minister Abhisit Vejjajiva announced on Thursday that he would increase minimum wages in Thailand by 25 per cent within two years and use tax incentives to reduce costs for local business operators, reports Thai News Agency (TNA).

BERNAMA - Thailand To Hike Minimum Wages By 25 Per Cent Within Two Years

hoo , hum , politicians lips moving ,

Hey Mr PM what happened to April 2011 ?

and just why should we continue to trust you ?

Two years, huh? A government for the people. This piece of legislation will surely get lost in the shuffle. Hypothetically, in two years time we could have a couple more coups, four government changes, two constitutional revisions, etc. Two years is a distant time as the Thai political landscape is concerned. Thanks Marky, for looking after the good people.

PM backs Bt250 wage

PM backs Bt250 wage

By The Nation
Published on April 8, 2011


Prime Minister Abhisit Vejjajiva yesterday promised a blanket Bt250 daily minimum wage to workers, saying the rate was suitable and reflected the rise in the cost of living and inflation.

At a seminar with representative of employers and labour leaders, he said skills training and quality improvement were needed to make the rise reasonable for employers and consumers. The government is balancing two approaches to industry, between giving workers more income and making industry thrive with higher profits while carrying more costs, he said.

Phayungsak Chartsutthiphol, chairman of the Federation of Thai Industries and a key representative of employers on the Tripartite Wage Committee, said welfare could be enhanced as an incentive and an alternative to hiking the daily wage.

Chinchot Saengsang, a labour leader representing employees, said the government should control the prices of goods more effectively and a stronger industrial sector meant that Thailand did not have to rely solely on the export sector.

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1042615

Luring Voters with Minimum Wage Hike

UPDATE : 8 April 2011

As the general election is drawing near, key political figures from both coalition and opposition parties are gradually unveiling their policies in hopes of garnering the most support from the public. On the coalition side, Prime Minister Abhisit Vejjajiva has been repeating the government’s policies, which are also of the Democrat Party, including a minimum wage increase and price control, among others.

If you remember, the PM once said local goods prices rose because the media made a fuss of the wage hike and a pay raise for civil servants, prompting vendors to increase prices beforehand.

Now, prices seem unstoppable due to rising costs. Shortages of various items are created as a result of rampant hoarding. That the premier mentioned increasing the minimum wage by an additional 25 percent in the next two years and the government approved a pay raise for civil servants by 5 percent on April 1 only add to the problem.

This has caused businesses to shake their heads in disapproval, as the consideration of any minimum wage increase is in fact the duty of the tripartite committee made of employer, worker and the Labour Ministry representatives.

The role of the committee is to determine what would be the appropriate wage so that it will not cause too much financial strain to employers and force them to lay off and replace their workers with machines, which will jeopardize the nation’s competitiveness.

Abhisit also spoke of how speculation about a price hike have psychological effects on consumers. A pay raise would be rendered useless if prices have already gone up in advance, since the increased money would simply be worth the same or less than before due to rising inflation.

The government may have various methods in hand to draw support from people at the grass-roots level, but the private sector believes cutting the business income tax and slashing red tape could be better options and have fewer negative impacts compared with the minimum wage increase.

Although the wage increase is necessary to keep up with inflation, it should be gradual. Employers would be caught off guard by a sudden wage increase and they would be have no choice but decrease working hours and lay off employees to control costs.

Who will take responsibility for those forced out of their jobs?

So, stop selling dreams about higher pay simply to garner votes in the imminent poll because it is none of the government’s business.


Editorial, Post Today newspaper, Page 2 of Analysis Section, April 8th, 2011

Translated and rewritten by Wacharapol Isaranont

Please note that the views expressed in our "Analysis" segment are translated from local newspaper articles and do not reflect the views of the Thai-ASEAN News Network.

http://thainews.prd.go.th/en/news.php?id=255404290005

Bangkok Poll: Laborers want higher wages



BANGKOK, 29 April 2011 (NNT) – Laborers are demanding higher minimum wages to match the skyrocketing cost of living at present, according to a recent survey by the Bangkok University Research Institute (Bangkok Poll).

The survey was conducted with 1,073 laborers in Bangkok and vicinities from 22 to 24 April 2011, upon the upcoming National Labor Day, 1 May.

91.1% of the respondents admitted that the minimum wage was inadequate and they viewed that the adequate rate should stand at 290 baht per day. Phuket province has the highest daily minimum wage of 221 baht while Phayao has the lowest of 159 baht. Bangkok’s rate is at 215 baht a day.

Regarding the policy of the ruling Democrat Party to increase the minimum wage by 25% in two years, 57.9% of the respondents indicated that it would still be inadequate while 63.7% of them did not think that the policy could be implemented.

As for the policy of the opposition Pheu Thai Party to increase the minimum wage to 300 baht per day, 88.2% of the respondents said the increase would be adequate for their living, and 54.0% of them believed that the policy could be materialized.

Asked about their most favored demand on the Labor Day, 58.4% of the respondents wanted their employers to increase wages and bonuses to meet the high living costs. Asked what were the top priority issues that they wanted the government to take care of, 45.1% of the respondents mentioned wages. 25.4% wanted welfare promotion, and 16.4% wanted the government to take care of their quality of life.