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StrontiumDog

Thai-ASEAN News Network - Ministry Affirms Aid for Employers over Wage Hike Impact



Ministry Affirms Aid for Employers over Wage Hike Impact

UPDATE : 30 April 2012

The Labor Ministry affirms measures to help out businesses affected by the government's 300-baht minimum wage increase policy. Meanwhile, no complaints have been received by the ministry about employers' refusal to pay the new rate.

Labor Minister Padermchai Sasomsap said his ministry has not yet received any complaints about employers refusing to raise the daily minimum wage to 300 baht according to the government's policy, which went into effect on April 1 in seven pilot provinces.

Padermchai noted the wage increase is necessary because the rate has not been adjusted since last August while the cost of living has continued to rise.

The wage increase did not come without measures to assist employers as the government also reduced the corporate income tax from 30 percent to 23 percent, which went into effect January 1, and cut SMEs' contributions to the Social Security Fund from five percent to three percent.

In addition, the government is offering soft loans to businesses facing financial difficulties or affected by the wage increase policy.

Padermchai added their complaints are also welcome so that the ministry can arrange for workshops to come up with further solutions and aid measures.

Meanwhile, Thailand's unemployment rate has recently dropped from 0.4 percent to 0.3 percent, according the ministry.

__________________
"Slavery is the daughter of darkness; an ignorant people is the blind instrument of its own destruction; ambition and intrigue take advantage of the credulity and inexperience of men who have no political, economic or civil knowledge. They mistake pure illusion for reality, license for freedom, treason for patriotism, vengeance for justice."-Simón Bolívar

StrontiumDog

Factory staff, families still struggling | Bangkok Post: news

Factory staff, families still struggling

• Published: 30/04/2012 at 02:17 AM
• Newspaper section: News

Many factory workers say they are not much better off financially after the 300-baht daily wage hike, now in its first month of launch.

The hike simply cannot keep up with the runaway consumer prices, the workers say.

Despite the wage increase, they still keep their belts tightened just as hard.

The simple maths of multiplying the 300 baht by 30 days is simplistic, said Suchada Panchana, 44, a factory worker in Om Noi of Samut Prakan.

Workers do not get paid on their off-days and they work for 26 days in a given month at most.

Ms Suchada said her wage used to be 215 baht a day before the hike was implemented on April 1. Even with a higher wage, her family is struggling to cope.

When everything is deducted, her pay comes to around 8,000 baht a month. Her husband earns a little more than she does. His income covers the rest of the family expenses including the monthly instalment for the family's pickup. At the end of the month, the family is left with a small amount of savings.

''I jot down the expenses and compare prices of household items to see what are costing more. Our expenses from cooking oil to the electricity bill are between 12,000-14,000 baht a month,'' she said.

Each day, she gives her children 100 baht each for bus fares and meals. They also have to save up to buy their own school uniforms.

Ms Suchada said she spends 50 baht a day on breakfast and lunch at the factory. Since the wage hike took effect, the factory has cut back on overtime, which accounted for 25% of a worker's earnings.

Saengdao Lunsorb, 43, a garment factory worker, said the 300-baht wage does not help, as expenses still exceed her income. She initially turned to loan sharks who charge her 20% interest a month.

Labour Minister Padermchai Sasomsap said the government was working on curbing the rising costs of living.

Tom Sawyer

Hard to see how anyone could 'feel' the effects of something a day or a month after it happened. But of course, as we know, the idea is to deride the rise in minimum wage and promote the industry/Democrat/Chink view.

Troy

Thai economy is "Tight"...not as in Virgin but as in there are more jobs than people ...Reason is the employers are not paying enough and the only people likely to take up the jobs are immigrants...

A minimum wage of 300 baht makes sense...reduces the short term profit made by the greedy but increases the productivity and overall profit in the long run...as well as GDP from internal revenue as well as exports and other benefits I can't be bothered to write about...

Basically when someone has been through the internal education system and treated like "pond life"..as in made to work 5 days a work + 2 Saturdays a month for 11 hours a day...and gets paid less than 300 baht per day...they either leave the Country or find a more profitable way to live....

TizMe

Why does the family need a pickup?
The family is living beyonds its means. Give them more and they will probably just go out and increase their debt.
I don't know how to educate people to save for their purchases rather than just borrow.

TizMe

get them a bicycle and take their school lunches from home.

StrontiumDog

Higher living costs eat up hike in daily wage - The Nation

Higher living costs eat up hike in daily wage

THE NATION May 1, 2012 1:00 am


The Labour Ministry will monitor the cost of living over the next three months to determine if any additional adjustment is needed to the minimum daily wage.

From April 1, workers in seven provinces have already earned at least Bt300 a day thanks to a significant hike pushed by the Pheu Thai-led government and approved by the Central Wage Committee.

And the daily minimum wage will soar to Bt300 in 70 other provinces from next January.

However, a recent survey suggests workers have not really benefited from the significant wage hike because product prices have also jumped.

"I have already signed an order instructing provincial labour chiefs to survey the cost of living in their respective provinces within three months," permanent secretary at the Labour Ministry Somkiat Chayasriwong said. This should |be done within three months.

"In July, we should obtain information to determine how to tackle problems relating to the cost of living."

The Bank of Thailand said yesterday inflation was expected to be 3.7 per cent over the next 12 months, up from 3.5 per cent in February.

ENERGY PRICE THE PROBLEM?

However, Somkiat yesterday sought to downplay growing criticism that the government policy to raise the daily minimum wage had pushed up the cost of living.

"The main factor behind the soaring cost of living is the increasing energy price," he said.

Somkiat said when the energy price rises, the electricity price, bus fares and transport costs climb too.

"But on the bright side, the increased wage has eased the expense burden on workers," he said.

Somkiat said workers would be suffering more if the daily minimum wage had not increased significantly.

He said the move to push for a Bt300 a day minimum wage took into account the fact workers have struggled with soaring costs in the past. "Their debt problems have accumulated over years."

While the Central Wage Committee planned to not raise the daily minimum wage for two years after the rate reached Bt300, the committee would review the plan if needed. "If the cost of living has drastically changed, a review is possible," he said.

Thailand Development Research Institute (TDRI) labour-development research director, Dr Yongyuth Chalamwong, said the current wage-hike policy could endanger many businesses and make workers uncomfortable.

The policy, after all, also involved two years of no wage hikes afterward.

"It won't be really fair to workers because the cost of living will keep rising," Yongyuth said.

He believed it would be better if the government gradually increased the wage as that would mean employers had more time to adjust.

Yongyuth recommended three options for authorities to consider. One was in line with a suggestion by the Federation of Thai Industries (FTI), which suggested the daily minimum wage of Bt300 should take effect across the country in January 2015. For provinces where the daily minimum wage was already above Bt300 by then, it should be adjusted up - in line with the consumer price index (CPI), which the Commerce Ministry compiles every year.

WAGE ADJUSTMENT CALLED FOR

Two other options recommended by Yongyuth also call for adjustment to the daily minimum wage based on the CPI. Without such adjustment, no matter how much the wage rate soared, it was possible remaining workers would become poorer.

Although there's much debate about true benefits of the government policy to provide the Bt300 daily minimum wage, Prime Minister Yingluck Shinawatra plans to highlight it today - Labour Day. "We have already raised the daily minimum wage to Bt300 in seven provinces. We are going to ensure the same rate for other provinces by 2013," she said.

The National Congress of Thai Labour and the Thai Labour Solidarity Committee are set to hold separate rallies and seminars to mark Labour Day. They are preparing to call attention to workers' grievances, especially soaring product prices.

More than 40 per cent of the labour force say they are facing greater hardship than last year after being affected by the great flood and the rising cost of living, according to the latest survey by a Suan Dusit Poll. The poll was conducted between April 25-30 and involved 1,440 workers in major provinces around the country.

Asked how their living conditions compared to 2011, 44 per cent said they faced more hardship as a result of last year's flood and the higher cost of living; 32 per cent said living conditions were about the same; and 24 per cent said things had improved following a wage rise and promotion.

StrontiumDog

Development think-tank warns wage hike flawed | Bangkok Post: news

Development think-tank warns wage hike flawed

• Published: 1/05/2012 at 03:09 AM
• Newspaper section: News

The government's minimum wage policy could have a drastic impact on the economy and workers alike, Thailand Development Research Institute economists have warned.

Yongyuth Chalamwong, a labour expert at the TDRI, said hiking minimum wages to 300 baht nationwide from January will be "a massive aftershock" as the wage rise affects businesses operating across the country.

The wage rise was implemented in seven pilot provinces, including Bangkok, last month.

Those workers will face a loss of purchasing power and income if their wages are frozen and not adjusted further to cope with inflation, he said.

The government has said that once daily minimum wages are raised to 300 baht nationwide, no further increase will be made until after the launch of the Asean Economic Community in 2015.

But Dr Yongyuth said the wage policy is flawed, as businesses were given insufficient time to cope with the pay rises, which amount to an increase of as much as 40%.

Workers, on the other hand, are also at a disadvantage if wages are frozen for two years without consideration of inflation.

The TDRI estimates that real wages, after adjusting for inflation, will actually be just 293 baht per day for workers in Bangkok, 290 baht for workers in Nakhon Pathom, 292 baht for workers in Nonthaburi, 289 baht for Samut Prakan and Phuket and 287 baht per day for Samut Sakhon.

Dr Yongyuth suggested the government consider phasing in the minimum wage increases, starting with hikes of 27 to 55 baht for 18 provinces in 2013 and followed by raises of 56 to 78 baht for the remaining 52 provinces in 2014.

At the same time, workers in Bangkok and other provinces already receiving wage hikes would still receive wage adjustments in line with living expenses.

"This option is the minimum necessary to ensure workers receiving the 300-baht minimum wage don't become poorer than before," Dr Yongyuth said. "Each province will have wages hiked in line with inflation. At the same time, it eases the burden for the private sector."

Another option would be a one-time hike of 40% in minimum wages, followed by annual adjustments in line with inflation. This approach would result in Ang Thong becoming the last province to reach the 300-baht level in 2022, with Lampang boasting the highest wages at 564 baht and Bangkok having a minimum wage of 431 baht.

A third option, favoured by the Federation of Thai Industries, would delay the 300-baht policy to 2015 but maintain annual adjustments in line with inflation. Dr Yongyuth said businesses, particularly small firms, would have added time to adjust to rising labour costs.

Finance Minister Kittiratt Na-ranong said the global increase in energy prices and massive liquidity pumped into the economy by central banks across the world would have an upwards impact on prices.

The government would try to constrain inflation by encouraging fair competition in the market, and target subsidies as necessary to consumers.

StrontiumDog

120,000 SMEs to go under | Bangkok Post: news

120,000 SMEs to go under

• Published: 1/05/2012 at 12:00 AM
• Newspaper section: News

The new 300-baht minimum wage could prove fatal for up to 120,000 small and medium-sized enterprises in the next 18 months, research suggests.

Kiat-anan Luankaew, director of Durakij Pundit University's research centre, said 10-15% of SMEs, or between 80,000 and 120,000, are at risk of closing down following the introduction of the 300-baht daily pay rate.

He said the study focused on SMEs in the seven provinces with the highest costs of living where the new wage has been adopted. The seven provinces are Bangkok, its five neighbour provinces, and Phuket.

Based on the study's findings, the wage hike has raised production costs by 16.2% on average.

Mr Kiat-anan said consumer goods prices have increased by 13.8% on average, which is 2.4% below the production costs. SMEs must find ways to meet the difference, he said.

SMEs' sales volume fell to 9.2% from 13.7%, while costs shot up to 52.2% from 41.1% between the first and second quarter, the study found.

It saw that operators are adjusting by increasing efficiency and regulating costs. However, rising electricity costs are likely to worsen the situation and many SMEs may opt to downsize their businesses.

About 45% of the operators will consider replacing manual labour with machinery, while 36% will increase working hours for workers. About 15.5% will switch to productivity-based pay models.

StrontiumDog

PM vows to speed up improving quality of life for workers

PM vows to speed up improving quality of life for workers

วันอังคาร ที่ 01 พ.ค. 2555



BANGKOK, May 1 -- Prime Minister Yingluck Shinawatra on Tuesday vowed to speed up improving the quality of life for Thailand’s workers while promising that the Bt300 minimum wage would cover all provinces nationwide within the coming year.

In her televised Labour Day address, the premier thanked workers for playing a crucial role in the nation's economic and social development.

She said the government has implemented various measures to help improve the ability of workers to cope with the rapid change of the economy and society that results from internal and external factors.

The government wants workers to have suitable welfare, better safety, and good occupational health and environment in the workplace, she said.

To ensure security and a better quality of life, she said the Bt300 minimum wage has been implemented in seven provinces and will cover all provinces by the end of 2013.

The premier said that so-called white factory and industrial estate projects have been implemented as part of measures to prevent drug use in the workplace, the government has also encouraged companies to observe the higher labour standards and develop improved welfare for workers.

The government also supports establishing a labour relations plan to effectively help end the conflict between employers and employees with fairness and within the legal framework.

She said the government has supported skill training for workers, particularly language skills, to prepare Thai labour for implementation of the ASEAN Economic Community in 2015. (MCOT online news)

sabang

Enuff said.

Calgary

Related to this issue, and at risk of sounding like a flaming Socialist, there is something wrong about the following, IMHO.

This applies to both Mexico and Thailand.

The whole notion of High end resorts on their respective coast charging customers Western prices, but paying local wages. If the input is one currency, the output should be as well.

I got a chuckle out of these fat-cat resort investors and owners complaining about needing to up the salaries of their staff by a few measly Baht, while they charge Western levels for their services.

Some Thai's around here said, if they don't like it, leave as they threatened.

Thaihome

A 30 m2 room at the The Westin Hilton Head Island Resort & Spa will run you USD 309 a night.

A 50 m2 room at the The Westin Siray Bay Resort & Spa, Phuket will run you USD 122.

Seems you don't know anything more about the ecomonic fo the resort business than you do about Thai politics.

TH

StrontiumDog

No change to B300 wage plan | Bangkok Post: breakingnews

No change to B300 wage plan

• Published: 2/05/2012 at 03:29 PM
• Online news:

The Central Wage Committee on Wednesday voted by a majority not to postpone the planned increase in the daily minimum wage to 300 baht per day in the 70 remaining provinces, set for Jan 1 next year, as proposed by the employers' representatives.

The daily minimum wage has already been increased to 300 baht in seven provinces - Bangkok, Pathum Thani, Nonthaburi, Samut Sakhon, Samut Prakan, Nakhon Pathom and Phuket - since April 1.

The government plans to increase the minimum wage in the other 70 provinces to 300 baht per day from the New Year.

Permanent labour secrtary Somkiat Chayasriwong, the chairman of the Central Wage Committee, said the representatives of the employers today proposed that the wage increase in the remaining 70 provinces be postponed to 2015.

The committee agreed by majority not to change the plan, reasoning that the postponement would confuse business operators and the employers' representatives did not provide clear enough information on how businesses would be affected.

However, he had instructed labour offices throughout the country to survey the cost of living over the next three months and report to the committee, which would subsequently reconsider whether or not to delay the minimum wage increase, Mr Somkiat said.

He said that if the survey showed that the increase would seriously affect the cost of living and the overall economic condition the Central Wage Committee might have to review its decision.

Mr Somkiat said information provided by representatives from the Commerce Ministry showed the prices of vegetables and meat in March-April had not gone up unusually, compared to the same period last year.