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socal

Depends if the expats are earning baht. If not then inflation and a rising baht just means that inflation is worse in the western currency then the baht.

The BOT needs a rising Baht to stop inflation. The soft peg that the BOT has with the dollar is the inflation. The more money the US prints, the more baht the BOT has to print to keep the soft peg. The less the BOT prints, the higher it will go (deflation)

socal

It is very easy to spur domestic demand. Let the Baht rise so that commodities priced in dollars get cheaper for Thais and incrementally more expensive for westerners. When commodities get cheaper, Thais have more discretionary income to consume their own production.

Basic macro.

socal

Abolish all minimum wages. They are market distortions. Economic juggernauts like Singapore and Germany have no minimum wage.

The general population dont have a clue about how economics. Considering all this wage talk, are you aware that Germany and Japan have higher wages then the United States yet they both have trade surpluses with China ?

socal

clueless, Germany and Japan have higher wages then the US yet they have trade surpluses with China who has lower wages then Thailand.

Economics is not a guessing game. Most people dont even know some basic definitions.

socal

with the right policies it could easily happen in 10 to 20 years. Compare east and west Germany back in the day. North and South Korea. Taiwan vs mainland China.

socal

whoooo i am sure if they could do it in their head, it would make them worth $40 an hour ?

9999

^ It must kick in when they're gambling then. I've played obscure card games with varying bet amounts through the hand, money changin hands all over the place and they're right on top of it. These are working class tradesmen. Also with some pool gambling games I've seen them never miss a beat. I never see the calculator except if they think you can't understand the price they punch it in.

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StrontiumDog

AFP: Thailand set for return to 'Thaksinomics'

Thailand set for return to 'Thaksinomics'

By Janesara Fugal (AFP) – 7 hours ago

BANGKOK — Riding a wave of support among rural voters, Thailand's incoming premier plans a raft of populist measures to narrow the rich-poor divide, at the risk of higher inflation and public debt.

A rise in the minimum wage, increased rice prices for farmers and free tablet computers for primary school students are some of the promises that helped propel former premier Thaksin Shinawatra's Puea Thai Party to victory.

The one-time billionaire telecoms tycoon, who was ousted by the military in 2006 after five years in power, is adored by Thailand's rural poor for his populist policies such as cheap healthcare and microcredit schemes.

Now his sister Yingluck is set to follow in his footsteps as Thailand's first female premier, marking a return to her brother's expansionary policies targeting the rural poor that came to be known as "Thaksinomics".

"The concept of the policies is good because it focuses on how to resolve the vicious circle of poverty," said Thanawat Pholwichai, head of economic forecasting at the University of the Thai Chamber of Commerce.

"But Puea Thai has to implement it carefully," he added.

Thailand has made great strides in reducing poverty, with 8.1 percent of the population living below the national poverty line in 2009, one of the lowest rates in developing Asia, according to the World Bank.

But there are significant inequalities in the distribution of wealth, particularly between Bangkok and the rural northeast, the heartland of Thaksin's "Red Shirt" supporters.

The richest 20 percent of Thai households account for nearly half of total household incomes, the Asian Development Bank estimates.

"When people have more income they will spend more and that will boost the economy," Thanawat said. "But it is also risky. There are concerns that Puea Thai's populist policies will cause higher inflation."

Inflation in Thailand is relatively contained for now at about four percent, lower than the levels in many other Asian nations.

But growing price pressures could lead the central bank to extend its series of interest rate rises -- attracting more capital inflows, driving up the value of the baht and affecting the competitiveness of exports, analysts said.

The effects of Yingluck's policies are likely to be felt further afield than just Thailand, the world's top rice exporter.

She has promised rice farmers a minimum price of 15,000 baht per tonne, much higher than the current market price of less than 10,000 baht.

"It will be the highest rice price in the world," said Korbsook Iamsuri, director of the Thai Rice Exporters Association.

"It will definitely affect our exports. With this price, we can sell our white rice only after Vietnam sells all its rice," she told AFP.

There are also concerns about the impact on Thai companies of a proposed 40-percent increase in the daily minimum wage to 300 baht, about 10 dollars, although the impact should be cushioned by a cut in the corporate tax.

The biggest worry is for small and mid-sized firms, the bedrock of the Thai economy, said Mark Monson, a fund manager at Vienna-based Raiffeisen Capital Management.

"Their margins are thin already. Will they have to fire people? It could put pressure on job and labour growth," he warned.

For now investors appear largely unfazed: Thai stocks surged 4.5 percent last week as news of a decisive win by Puea Thai in the July 3 vote raised hopes of a return to political stability after years of turmoil.

The Thai baht also rose sharply and extended its gains after Yingluck, who is widely seen as Thaksin's political proxy, said the value of the currency would continue to be determined by market forces.

Jitters about the new policies are tempered by optimism about the robust health of the Thai economy, despite years of political unrest and a series of sometimes-bloody opposition street protests.

Thailand's export-dependent economy grew 7.8 percent in 2010 and there are hopes that rising incomes and consumer spending will boost tax revenues, easing pressure on the public finances.

Analysts estimate Puea Thai's proposed policies, which also include a planned high-speed rail network and free Wi-Fi in public places, will cost about 60 billion dollars over the next five years.

But with public debt at manageable levels, a bigger concern for many investors is that Thailand's fragile political calm may prove short-lived.

The outgoing ruling party is seeking the dissolution of Puea Thai on the grounds that banned politicians were involved in its election campaign.

Any attempt to remove Thaksin's allies from power yet again could trigger another round of street protests, in a fresh blow to the key tourism sector.

__________________
"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

Bangkok Post : Govt wage plan faulted

Govt wage plan faulted

Percentage rise kinder on economy, says expert

• Published: 11/07/2011 at 12:00 AM
• Newspaper section: News

The government should increase minimum wages in percentage terms to better reflect productivity, says a labour expert at the Thailand Development Research Institute.


Abhisit begins his farewells Outgoing Prime Minister Abhisit Vejjajiva waves to supporters at a gathering in Ekkamai yesterday. The gathering was organised by social networkers to give him moral support following the Democrat Party’s defeat in the July 3 election. PATTANAPONG HIRUNARD

Yongyuth Chalaemwong, the TDRI's labour development research director, says the government should scrap its policy of increasing the daily minimum wage to 300 baht a day, which could hurt employment in provinces where productivity is lower than wage rates.

The government should raise the minimum wage rate in percentage terms depending on the province, or increase it by 70% nationwide instead of fixing the wage hike at 300 baht a day, he said.

The proposed 70% increase would help ease the pressure on the government's wage policy.

Wage rates vary by province. A 70% increase would take the minimum wage rates in central provinces and Bangkok to higher than 300 baht.

Workers in small provinces with low industrial productivity will also receive higher wages even though the figures may still be lower than 300 baht, Mr Yongyuth said.

The average minimum wage nationwide is 175 baht a day and if the minimum wage increases by 70%, the new average wage will be 297.5 baht, which is close to the 300 baht figure promised by the Pheu Thai Party, which is forming the next government.

The minimum wage ranges from 159 baht a day in Phayao to 221 baht in Phuket.

Pheu Thai's proposed 300 baht a day wage is 50-90% higher than current rates.

This has raised concern among academics and businesses that the policy would force many entrepreneurs out of business as they would be unable to afford to pay the higher wages.

Some fear the policy could also increase inflation, although Pheu Thai has promised to offset the impact of higher minimum wages by cutting the corporate tax rate from 30% to 23% by next year, and 20% by 2013.

Mr Yongyuth said a 300-baht flat rate increase across the country would fail to encourage productivity of small provinces where wages paid are higher than worker productivity.

He said a study had found that wage rates in the central region and Bangkok are lower than productivity while wage rates in the North and the Northeast are already suitable.

Meanwhile, Amnart Nanthaharn, deputy secretary-general of the Federation of Thai Industries, said the FTI will meet the government to discuss possible repercussions which its wage policy could have on the businesses.

Mr Amnart said the government must come up with measures to help entrepreneurs.

He also suggested the government announce new special economic zones in border provinces to help labour intensive industries which demand foreign workers.

Special labour measures should be put in place to govern employment of foreign workers there, he said.

Somsuk Kongkachen, vice-chairman of the Samut Sakhon industrial council, said the proposed 300 baht minimum wage is also likely to cover foreign workers, which could hurt businesses employing them.

The government should be aware of the risk, he said

StrontiumDog

Bangkok Post : Don't count on it

Don't count on it

Employers say they can't just wave a magic wand and push up salaries overnight, and neither can the new government.

• Published: 11/07/2011 at 12:00 AM
• Newspaper section: Business

A starting salary of 15,000 baht a month is an appealing prospect for a young university graduate. But most entry-level jobs now pay far less _ between 9,000 and 12,000 baht on average _ and both job-seekers and employers don't see salaries rising any time soon.


Young people check job listings online at the Bangkok Career Expo 2011 held on Friday and Saturday at the Queen Sirikit National Convention Center in Bangkok. KOSOL NAKACHOL

At the recent Bangkok Career Expo 2011, interviews with 83 participants indicated that the new Pheu Thai government would not find it easy to make good on one of its most high-profile election promises.

From the standpoint of employers, if starting salaries are regulated, businesses would have to adjust their salary scales across the board, resulting in higher costs and potentially affecting the competitiveness of their businesses and of the country.

A human resources officer of a well-known hospitality company said politicians could say anything to win votes but they didn't care whether a policy was practical or not.

"If we pay a salary of 15,000 baht for new staff, the question is how about our existing staff holding the same degrees and earning only 12,000 baht?" he asked rhetorically.

"Do we have to tell them that you should resign and reapply again if you want a new salary? It's nonsense. I think the government should think of a solution for operators, especially small and medium-sized operators. A policy needs clear details before it's launched."

Pheu Thai economic strategists insist the impact of higher staffing costs would be offset by a promised reduction in corporate income tax from 30% to 23% by next year and 20% by 2013. However, most executives surveyed by the Post said such reductions would benefit big companies but not small ones.

Pavorn Maleehom, a human resources officer with Tesco Lotus, believes salary should depend on work experience. The average starting salary at the hypermarket chain is currently 13,000 baht _ it was just increased from 12,000 baht last month.

"We think it would be difficult to follow the proposed policy," said Mr Pavorn. "It's not just a case of offering a new salary base to new bachelor's degree holders. We would have to adjust the rates for the majority of our staff. So we have no idea how the policy could be implemented next year."

Young job seekers, while encouraged by the possibility of earning more, were equally sceptical about the Pheu Thai promise materialising.

"I'm looking for a job related to financial accounting. As I talk with many companies here, the average salary for new bachelor's degree holders is about 10,000 to 12,000 baht. My friends and I will accept the offers and we have a forlorn hope of getting 15,000 baht as promised by the new government," said Nuchaporn Songsiri, who will graduate from Siam University in two months.

Maybe in five or 10 years a salary of 15,000 baht would be practical, she added with a smile.

A law student at Thammasat University said she believed 15,000 baht was appropriate given the current cost of living, but that no employer could offer such an attractive salary.

"I think 12,000 baht per month can be possible for us. We have no experience. If we request a high salary, it will be difficult to find a job," she said.

Pawarisa Bunnut, a recent Liberal Arts graduate from Rangsit University, said she expected a monthly salary of 15,000 baht.

"I know that it's a policy of Puea Thai for new graduates, and I think they will be able to implement it but I didn't choose them anyway," she said.

Piyamitn Rangsitienchai, chief executive at the local recruitment firm Prompt Professional Resources & Services, said salaries of 15,000 baht were up to 50% higher than current average levels. "If the private sector was forced to pay such a high rate, employers may change to hiring more freelancers rather than paying salaries for a whole month to employees whose working days are not 30 days in each month," he said.

Another HR specialist said offering a flat rate to all graduates regardless of position or job description may create unfairness as some positions require candidates with more complex skills.

"An engineer or a medical adviser would certainly require a different skill set from candidates filling a general administration job. If the pay is equal, it would have an impact on morale in the long term," she said.

Performance-based pay so positions demanding complex skills should offer a premium rate is more appropriate because students are motivated to choose fields of study that match the country's strategic development plan, said the specialist.

She is also worried about employers' ability to pay as personnel costs generally account for the largest portion of expenses in most organisations. A sharp rise in salaries would certainly diminish profitability, which would also reduce the benefit of a lower tax rate on corporate profits, she added.

socal

a rise in the baht is a raise.

Carrabow

No wonder they have issues...tell me where common sense plays into this equation?

StrontiumDog

Thai-ASEAN News Network

300 Baht Minimum Wage Must Be Gradually Implemented

UPDATE : 12 July 2011

Even though it has only been about a week since the election, the Pheu Thai Party is already starting to feel the pressure. This is because some of the Pheu Thai’s campaign promises have been so well received by most workers and farmers. At the same time, many have raised concern that the feasibility these populist polices might be limited by state budget and economic conditions.

A number of economists from the private sector believe that the Pheu Thai could only implement between 40 to 50 percent of its campaign pledges. They have pointed out that many of these policies could bring severe economic repercussion; especially the 300 baht per day minimum wage which has brought doubt among the public after former Prime Minister Thaksin Shinawatra said that “it might only be initiated in Bangkok”.

The minimum wage policy may not be the only promise that the new administration might not be able to keep. The other policies such as the 15,000 baht monthly salary for all college graduates may only be applicable only for state employees, not for everyone as boasted during the campaign. There is a valuable lesson that all political parties could learn from these campaign promises. They need to make sure that they can deliver before making any kind of promise. We need to punish the politicians who are irresponsibly making false promises aimed only to garner votes. Everyone in society, including the politicians, must be held accountable.

It may seem easy to implement the 300 baht per day minimum wage policy. If looked at closely, the policy itself is quite complex and could bring serious economic consequences, particularly on medium and small enterprises. Anyhow, we concur that it should be initiated in Bangkok and Phuket before expanding to other parts of the country. By looking at the current economic structure, the Thai work force deserves higher wages. However, the pay increase should take place in chorus with vocational skill development in order to raise overall national productivity.

Furthermore, the wage boost must be supported by a sound plan. The Office of Small and Medium Enterprises Promotion has calculated that labor cost accounts for about 16.2 percent of the total production cost for small and medium enterprises, meaning that a one percent increase in labor cost would raise these businesses’ production costs by 0.16 percent.

It has been estimated that there are about 3.3 million workers in the Bangkok Metropolitan area. If minimum wage is increased to 300 baht per day, the small and medium enterprises will have to shoulder 39.5 percent increase in labor cost and 6.4 percent in other associated costs. By looking at the major provinces with high employment rates, it has been discovered that Roi-et and Khon Kaen provinces would have the highest wage and production cost increase while Phuket would have the lowest.

From a survey conducted throughout various industries, among the businesses which would be most affected by the wage hike will be the wicker furniture manufacturers which would have to bear a 10.2 percent in production cost increase followed by gemstone cutting with a 7.6 percent, garment and leather accessories with 7.3 percent.

Therefore, the 300 baht minimum wage must be thoroughly deliberated before it is gradually implemented from the most prepared industries along with a clear strategy on foreign labor.

Taken from Editorial Section, Krung Thep Turakij Newspaper, Page 2, July 12, 2011

Translated and Rewritten by Kongkrai Maksrivorawan

StrontiumDog

Wage fund planned to aid SMEs: Jaruphong

Wage fund planned to aid SMEs: Jaruphong

By THE NATION
Published on July 13, 2011


The proposed Bt300 minimum daily wage will not cripple small and medium-sized enterprises as feared by employers and the public, because a fund will be initiated to provide SMEs with interest-free loans, Pheu Thai Party secretary-general Jaruphong Ruengsuwan said yesterday.

A survey will be soon be launched to find out how many SMEs pay their workers less than Bt300 and how much money would be needed to support them, Jaruphong said.

The Bt300 wage was one of Pheu Thai's major campaign promises during the election that it ultimately won, but businesses and academics have warned that it is impractical and unproductive for the entire economic system.

Although former prime minister Thaksin Shinawatra, the de facto Pheu Thai leader, recently said the Bt300 wage would be paid only in Bangkok and not elsewhere, Jaruphong said only that the flat-rate policy would become "clearer" once the new Cabinet was set up.

Chalee Loisoong, a labour leader, said Pheu Thai would be a liar if the Bt300 wage could not be enforced uniformly across the country as its candidates had boasted during their election stumps.

The party also guaranteed a minimum entry-level salary of Bt15,000 a month for new university graduates.

The increases in the minimum daily wage agreed upon by the Tripartite Wage Committee for 35 provinces, ranging from Bt2 to Bt28, should also be immediately approved before the Bt300 wage goes into effect next year, Chalee said.

"Workers would all starve if they had to wait for the hike to Bt300 in January."

StrontiumDog

^ This isn't sounding good at all.

Government to prop up businesses so it can implement its policy....

Ambiguity over whether the 300 Baht will be nationwide....

Pheu Thai need to sort this out or it is going to go tits up.

Gerbil

^ I think we need a "PT - The broken election promises" thread, to keep score of all the policies that they promised which get changed or dropped. Not in News, obviously though.

Candidates so far:

1. 300 baht minimum wage - whoops, sorry Bangkok only, just to reward all those people there who voted for us (oh, that's right, they didnt did they?)
2. Tablet PCs for every school child - ah, sorry again. if you're already in school then tough, it will only be the 4-5 year olds starting school who get them.

P.S. Exclusive first shots of the tablet 'PC' to be provided:

__________________
You, sir, are a God among men....
Short Men, who aren't terribly bright....
More like dwarves with learning disabilities....
You are a God among Dwarves With Learning Disabilities.

StrontiumDog

Thai-ASEAN News Network

Property Associations Against Wage Hike

UPDATE : 13 July 2011

Thailand's three major property associations are submitting a letter to the new government detailing the impacts of the wage hike policy on the property market.

They say it will cause production costs to spike, instantly raising home prices by 10 percent.


Three property associations, including the Real Estate Association, the Thai Condominium Association, and the Housing Business Association has prepared to submit a letter to the new government explaining the impacts of the national policy to hike the minimum wage to 300 baht per day.

The Real Estate Association Chairman, Kittiphol Pramote Na Ayuthaya said the wage hike policy will cause widespread damage to the property sector including construction costs and property prices.

Labor cost makes up 30 percent of all production costs for single houses and 20 percent for condominiums, and the remainder goes to construction materials and land.

Kittiphol warned that small and medium operators are those with the highest production costs, and by raising the minimum wage, prices of homes will instantly jump by 10 percent.

The Thai Condominium Association Chairman Thumrong Panyasakulwong said that the labor payment rate is currently 25 percent, or 250,000 baht for constructing a home worth one million baht.

And if the minimum wage rises from 215 to 300 baht, the rate will become 40 percent causing the home prices to go up by 100,000 baht.

He urged the new government to carefully consider a gradual rise instead of a one-time hike, so that operators are able to adapt to the changes.

He also noted that the policy to cut business income tax will not help reduce high production costs as not all companies enjoy lucrative revenue to benefit from the tax-cut.

Real estate operators agree that the five-year-zero-percent mortgage rate will help stimulate the property in the second half of the year and should not create a bubble economy due to the high demand of private residences and strong consumer purchasing power.

The property market saw a dip in registration for March 2011, dropping by 39 percent compared to the same time last year and 170,000 new house registrations will be expected this year.

According to property figures, the single house index in the first half of 2011 rose 1.79 percent compared to last year.

The price index for townhouses rose by 3.55 percent while three-story townhouses index rose 4.07 percent.

StrontiumDog

Thai-ASEAN News Network

SME Bank: Wage Hike to Affect Retail Business

UPDATE : 13 July 2011

The Small and Medium Enterprise Development Bank of Thailand is concerned that the Pheu Thai Party's policy to raise the daily minimum wage to 300 baht will increase production costs for retail businesses.

It suggests the new government ensure economic stability before implementing the policy.


President of the Small and Medium Enterprise Development Bank of Thailand, or SME Bank, Soros Sakornvisava admitted that he is concerned about the Thai economy, which is influenced by global economic conditions.

He noted that product price increases in the country show no sign of slowing down, and the interest rate is likely to continue to increase. These factors could affect public spending.

As for the Pheu Thai Party's policy to raise the daily minimum wage of workers across the country to 300 baht, Soros said the hike will increase retail business production costs, especially for industries that require a large number of workers.

He said that the bank has given its clients information to help them prepare to deal with possible problems that could result from the wage hike.

The SME Bank president said the bank has not received further policies from the Finance Ministry, but he is confident the change in politics will have no effect on the bank's loan target.

He added that the bank has issued loans worth a combined nine billion baht during the first six months of the year, while total outstanding loans stand at 90 billion baht.

Soros said he believes that approximately ten billion baht worth of new loans is expected to be issued before year-end and will make the bank achieve its outstanding loan target of 100 billion baht.

The SME Bank has collaborated with the Business Development Department and the Franchise and License Association to organize a fair to provide loans to franchises with a minimum loan rate or MLR of 3 percent per year.

The fair will be held at SME Bank Tower on Phaholyothin Road from July 12 to 14.

Lancelot

There is a huge "gray" economy here in Thailand and I doubt that the minimum wage will apply there. Somchai's noodle stand staff will never see a 300 baht daily salary. Ditto for many of the construction common laborers-who aren't Thai nationals anyway

Tom Sawyer

Minimum wages are not inflationary. There's loads of evidence to prove that. Funny how all these news stories in Thailand don't quote any empirical evidence to back up their shite. If you can't make a profit by paying your 40 workers and extra 4 dollars a day - or 160 in total - you shouldn't be in business. And notice how they say "costs will increase 30%". They don't tell you what it would mean to the profit line. Labour is like 5% of costs here. So in reality the 'costs' would go from 5 - 7% or something like that.

__________________
My mind is not for rent to any God or Government, There's no hope for your discontent - the changes are permanent!

StrontiumDog

A whole bunch of articles on the minimum wage today on TAN....rather than post them all, here are the links and highlights....

Industry Council Opposes Bt300 Minimum Wage
Wednesday, July 13, 2011
The Federation of Thai Industries is planning to consult with the Joint Standing Committee on Commerce, Industry and Banking on its opposition to the 300-baht daily minimum wage on the grounds that it will severely damage the whole economy.

Siam Cement Urges Govt to Reconsider Wage Hike
Wednesday, July 13, 2011
Siam Cement Group expresses concern about Thailand's competitiveness should the government raise the minimum wage. Siam Cement Group, or SCG, Managing Director Kalin Sarasin expressed his concern about the Pheu Thai government's policy to increase the minimum wage for workers, saying that it would also result in an increase in the prices of construction materials as production costs would go up.

New Minimum Wage Feared to Spark Massive Lay-offs
Wednesday, July 13, 2011
The Federation of Thai Industries has revealed the results of a survey, showing that up to 27.23 percent of manufacturers are planning lay-offs should the 300- baht daily minimum wage be implemented. Secretary general of the Federation of Thai Industries, Sommart Khunset, has revealed the results of a survey conducted on 512 firms from 40 industrial groups belonging to the federation on the topic of the 300-baht daily minimum wage.

CP All Supports Minimum Wage Hike
Wednesday, July 13, 2011
An executive of CP All voices support for the Pheu Thai-led government's policy to raise the daily minimum wage to flat 300 baht, saying it will increase purchasing power of consumers and spur spending. Even though many businesses have voiced opposition to the Pheu Thai Party's policy to raise the daily minimum wage of workers across the country to 300 baht, Suwit Kingkaew, Senior Vice President of CP All,operator of 7-Eleven convenience store chain, has expressed support to the policy.

Private Sector to Be Consulted on Wage Hike
Wednesday, July 13, 2011
Prime minister to be Yingluck Shinawatra is planning to discuss the 300-baht daily minimum wage with the private sector once her MP status is certified by the Election Commission. Meanwhile, she is receptive to the proposal submitted by businesses that the government help partly shoulder their increased costs. Yingluck Shinawatra, top MP-elect from the Pheu Thai Party who is tipped to be the next premier, said that once her MP status is certified by the Election Commission, she will meet with private businesses to discuss the possibility of integrating some of their suggestions into the implementation of the 300-baht daily minimum wage policy.

Business Leader Concerned over Wage Hike
Wednesday, July 13, 2011
A business leader in Buri Ram urges the Pheu Thai-led government to review its planned wage increase given fears that it could have an impact on the overall economy.. Chairman of Buri Ram Chamber of Commerce, Weeradej Tangtrongvejakit, said the Pheu Thai Party's policy to increase the daily minimum wage to 300 baht nationwide and to fix the starting salary for bachelor degree graduates at 15,000 baht a month would do more harm than good if they are implemented without considering the ability of business operators to pay.

StrontiumDog

Burmese Workers Strike for Extra 15 Baht

Burmese Workers Strike for Extra 15 Baht

By LAWI WENG
Wednesday, July 13, 2011


There are around 5,000 Burmese migrants in Three Pagodas Pass. The town has around 30 factories which produce gloves, textiles and shoes. (Photo: Lawi Weng)

More than 300 Burmese migrant factory workers in Thailand's Three Pagodas Pass have been on strike for three days after their employer refused to increase their pay by 15 baht per day.

Workers from the Watana Footwear Company—which produces shoes and other items—have demanded an equal amount of money as other factory workers in the area.

Aung Bo, a leading member of the strikers, said, “They told us to come and work today. But all of us made an agreement not go to work unless they gave in to our demands.”

Workers at the factory currently earn between 65 and 80 baht for a nine-hour workday, depending on their experience. This is a lot less than the average wage for Thailand, causing many workers to feel exploited.

They also requested that the company provides them with clean drinking water as they currently make do with untreated water from a pipe.

Around five leaders of the striking migrant workers met company bosses at the factory on Monday in order to negotiate a compromise.

But the employer refused to pay all workers their demands of an extra 15 baht, saying that he only pays the factory mangers an additional 20 baht. But he offered to pay workers who only get the 65 baht a day minimun an additional 15 baht on top.

“We want them to increase the pay of all of us so that we are equal. If we do not achieve this then we will tell all the workers here not to work for this company,” said Ko Nan Yee, one of the managers who participated at the meeting.

Around 400 Burmese workers also went on strike at a shoe factory owned by PTK Company last week to demand a raise of 20 baht per day. The workers reached an agreement after the employer agreed to pay an extra 15 baht a day.

There are around 5,000 Burmese migrants in Three Pagodas Pass, many of them coming from different parts of Burma. The town has around 30 factories which produce gloves, textiles and shoes.

Factory workers say that they have to pay around 2,200 baht a month for accomodation and food, and so their spare cash only comes to around 500 baht a month.

“We are only demanding what we need. It is not a strike for luxuries,” added Ko Nan Yee.

DroversDog

This is disgusting. The so called employers needs to be strung up by the short and curlys. Absolute scum of the earth!

StrontiumDog

'Only some will directly benefit'

'Only some will directly benefit'

By The Nation
Published on July 14, 2011

Setting the minimum daily wage at Bt300 is profitable for labourers but can be rather detrimental to the country's long-term chance of attracting foreign investment, director-general of the Department of Labour Protection and Welfare Amphorn Nitisiri said yesterday.

However, the boost will be useful for 5 million out of the 9 million beneficiaries of social security, and will lift their quality of life as well as attract out-of-system workers such as bringing farmers to general business, hospitality and production sectors, she explained.

The Bt300 minimum wage will also encourage businesses to employ Thais instead of hiring immigrants for the same amount, while the government could collect more tax through either income or value-added taxes, and the contributions to the Social Security Office would become higher, she added.

She said foreign employers' tendency to move away from Thailand based on the long-standing availability of cheap labour was nothing new. "Thailand is already facing this problem in industries like textiles and electronics," she said.

However, businesses that have a large workforce could face closure if the owners can no longer afford to increase the daily wage to Bt300 from the current average of Bt200-Bt215 currently, she said. "There are such 12,839 businesses hiring 588,000 people now," she added.

Labour Ministry permanent secretary Somkiat Chayasri-wong, as chairman of the national Wage Tripartite Committee, dismissed speculation that the three-party panel had been biased or faced political intervention.

Responding to an idea by the Pheu Thai Party to set up a fund subsidising SMEs at risk of collapsing, he said there had been no discussions and such a fund would require a colossal amount of money.

dirtydog

Thats bollox, I would rather hire Cambodians, they actually want to work.

I used to pay 180baht to 450baht perday, 60 to 80 staff, I would have rather had all my staff being paid in the 400baht range, but, most were too fuking lazy or too fuking lacking in any skill set at all to warrant more than 200baht perday, if I was doing this now, 50 at least would be sacked tomorrow, they aint worth 300baht perday.