#  >  > Living And Legal Affairs In Thailand >  >  > Thailand and Asia News >  >  > Business, Finance & Economics in Thailand >  >  Minimum wage to increase by April 2011

## Chairman Mao

Local minimum wage raised Bt1-Bt8
By The Nation

Thai workers across the country are enjoying a pay rise as official minimum wages have been increased by Bt1-Bt8 per day depending on the zones.

The Central Wage Committee today approved a rise in 71 provinces, having workers in Ayutthaya enjoying the biggest increase and workers in seven provinces receiving only Bt1.
After a 2-hour discussion, the committee at its third meeting based the decision on the different levels of costs of living across the country and the inflation rate of 5 per cent.
Workers in Ayutthaya where a large number of industrial plants are located will see their minimum daily wage raised from Bt173 to Bt181.

The Cabinet will consider the new minimum wage, which will be effective on January 1 as a New Year gift to all workers.

Samart Angwarawong, honourary chairman of the Federation of Thai Industries Khon Kaen where the minimum wage is raised Bt3 to Bt157, opposed to the move, saying that it would hit the economy. He noted that though overall economic outlook is brighter, the bullishness is concentrated in some areas.

"Bangkok and peripheral provinces would be the first to feel the pinch from any crisis, but the impacts would be seen here in Khon Kaen a year later. Vice versa, when Bangkok and peripheral provinces see improvement, it would take a year for Khon Kaen. Right now, people here tighten their belt," he said.

He noted that some employers may affect employment in the province, and the wage increase may lead to layoffs.

Gotta like the Khon Kaen fucknob whining about giving a 3thb per day increase.

May he have to work for 157b a day in order to survive.

And wow, 7 provinces will get 1 whole baht more per day. Brilliant.

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## Chairman Mao

> inflation rate of 5 per cent.
> 
> is raised Bt3 to Bt157,


Somehow I don't think 3b = 5% of 154.

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## AntRobertson

> And wow, 7 provinces will get 1 whole baht more per day


Is nominal obviously but not really that surprising given the situation of the last year.

We just finalised bonuses and cost-of-living increases today actually; 7 - 9% across the board for the latter.

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## Mid

> The Cabinet will consider the new minimum wage, which will be effective on January 1 as a New Year gift to all workers.


oh joy .........................

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## the dogcatcher

If your business cannot stand meager increases like these then how fragile is your business?
Some years ago I was working at a company in the UK.
When pay rise time was approaching all of us working there got a letter saying that the company had had a bad year and could not afford any pay rises which we initially accepted.
3 days later the two directors turned up with brand new cars totaling nearly 100K
This led to lay off, we all walked out in disgust.

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## crippen

Does this apply to s/t and l/t rates too?   Just asking for a friend like. :Roll Eyes (Sarcastic):

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## Chairman Mao

Prolly not. Just flip 'em 1bht tip as you leave crippen.

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## Mid

_The wages committee will not raise the minimum wage just because the  Ministry of Commerce had reported last month’s inflation rate at 3.7 per  cent, the chairman and labour permanent secretary Somchai Chumrat said  on Wednesday.

_Minimum wage won't be raised

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## aging one

yup. put it in the other hole now.

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## billy the kid

> inflation rate of 5 per cent.
> 
> is raised Bt3 to Bt157,
> 			
> 		
> 
> Somehow I don't think 3b = 5% of 154.


 


7 or 8 baht.

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## StrontiumDog

Minimum wage to increase by April 2011 : National News Bureau of Thailand

Minimum wage to increase by April 2011

BANGKOK, 16 August  2010 (NNT)  The Government has targeted the new minimum wage to affect  the low-income Thai workers by April 2011. 

According to Deputy Government Spokesperson Watchara Kanikar, the  Cabinet on Monday agreed to adjust the minimum wage payment for Thai  workers to an average 250 THB per day, as proposed by the Ministry of  Labor.  

However, Secretary-General to the National Economic and Social  Development Board (NESDB), Ampon Kittiampon calls on the government for a  thorough consideration of the matter as an increase in wage may affect  the rate of inflation in the future.  



 
                                                 News ID: 255308160053

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## Clogiron

That is a massive increase over 2010 minimum wages  which are currently from 206 THB / Day in Bangkok down to 151 THB / Day
Cost of doing Business in Thailand : Demographic

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## Gerbil

Yep. And just in time for an election.  :Smile:   :bananaman:  :bananaman:  :bananaman:

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## Bettyboo

> That is a massive increase over 2010 minimum wages which are currently from 206 THB / Day in Bangkok down to 151 THB / Day


Yes, that massive increase will improve the average workers lot by, if they work 7 days a week, nearly 1,300 baht per month; still less than 1 hour work for me - and the Sino-bkk lot earn a lot more than me. Just to put it in perspective.

In a nation that has a lot of money, it's shameful that so many earn so little, 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.

Having said that, I fully support the efforts by the Dems (whatever their motivation...) if it makes a real difference to people's lives. How well thought through it is, I'm not sure. Such huge efforts are needed in attacking the social disparity that a lot more needs to be done. But, a start must be made, so well done.

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## English Noodles

^Good post.

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## StrontiumDog

> Originally Posted by Clogiron
> 
> That is a massive increase over 2010 minimum wages which are currently from 206 THB / Day in Bangkok down to 151 THB / Day
> 
> 
> Yes, that massive increase will improve the average workers lot by, if they work 7 days a week, nearly 1,300 baht per month; still less than 1 hour work for me - and the Sino-bkk lot earn a lot more than me. Just to put it in perspective.
> 
> In a nation that has a lot of money, it's shameful that so many earn so little, 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.


Yes because Thailand is so different from the rest of the world.....

Distribution of wealth - Wikipedia, the free encyclopedia
*In the United States
*

_In the United States at the end of 2001, 10% of the population owned  71% of the wealth and the top 1% owned 38%. On the other hand, the  bottom 40% owned less than 1% of the nation's wealth.[14]_

_According to this 2006 study by the Federal Reserve System,  from 1989 to 2004, the distribution in the United States had been  changing with indications there was a greater concentration of wealth  held by the top 10% and top 1% of the population.[1]_




Thailand's shocking inequity statistics

*Thailand's shocking inequity statistics*

Posted by Sanitsuda Ekachai 

_- The top 20% own 69% of the country's assets while the bottom 20% own only 1%._


Suddenly the distribution of wealth doesn't look quite so bad here....it's even worse in the USA!

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## Clogiron

> if they work 7 days a week, nearly 1,300 baht per month;


I would put it a lot higher than that, your 1,300 / month seems to be based on BKK minimum wage of 208 THB rising to 250 THB / day rather than the Average minimum wage as mentioned in the article. I would have thought that 185 THB / day was closer to the national average minimum  wage and to achieve an average of 250 would require an increase of 35% across the board.  For someone working a 6 day week on average minimum an increase of 1690 THB / Month and 1890 THB for a BKK worker.






> Having said that, I fully support the efforts by the Dems (whatever their motivation...) if it makes a real difference to people's lives. How well thought through it is, I'm not sure.


My thoughts exactly, hence my initial comment about it being a massive increase. How much thought has there been behind the proposals, has the impact of inflation been considered as you can bet your bottom Baht on the fact when employers have a wage bill hike of 35%, employers such as Lotus and 7-11, the cost will be passed on to us the consumer.

I cannot make my mind up if this is the Dems putting forward a "Populist Policy", something previous governments have often been accused of, or if it is a sustainable policy that the Thai economy can absorb and is a small step in the right direction. Only time will tell.

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## Bettyboo

> I cannot make my mind up if this is the Dems putting forward a "Populist Policy", something previous governments have often been accused of, or if it is a sustainable policy that the Thai economy can absorb and is a small step in the right direction. Only time will tell.


Yeah, I agree. &, I'm not sure too, I hope the latter cause the people need to move forward and if this comes at a minute cost to the better off then so be it.





> Yes because Thailand is so different from the rest of the world.....


SD, what has got into you? It is not black and white. You do not have to disagree with everything I say. We are not mortal enemies. Relax mate, have a beer...

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## StrontiumDog

> Originally Posted by StrontiumDog
> 
> Yes because Thailand is so different from the rest of the world.....
> 
> 
> SD, what has got into you? It is not black and white. You do not have to disagree with everything I say. We are not mortal enemies. Relax mate, have a beer...


Nothing has gotten into me. 

I don't disagree with everything you write. 

Rather an odd response BB. Is this an example of you undertaking "linguistic" analysis again or a more basic error in interpretation of intent? 

However, if you are going to post things on a public forum, be prepared to be called on it. 

Some folks might actually believe what you write as gospel...

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## The Bold Rodney

My God you're right...you don't think that Mandy's lurking in Thailand's parliament wing's do you?

Lets face it Mandy Pandy's was an expert when it came to dreaming up pre election vote buying schemes.

And although I'm not sure... I have heard rumours that Mandelson's a frequent visitor to Thailand, but that may be a rumour? Or it may be worth a separate post, not sure!

Anyway I'm with you on this party, party, party lets have another bent election soon they're so much more fun!   :bananaman:  :bananaman:  :bananaman:

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## sabang

> The top 20% own 69% of the country's assets while the bottom 20% own only 1%.


Don't forget the TIT factor. Declared assets can be *very* different to actual assets in the Land of Slimes. I genuinely doubt that statistic, frankly.

Incidentally, does anyone know when the last increase in minimum wages happened in Thailand?

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## Thaihome

Last increase was Jan 1, 2010.  Was not much and 5 provinces did not get increase at all. 
TH

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## Nostradamus

Will the Democrat strongholds receive a bigger increase for their support?

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## StrontiumDog

Bangkok rates are usually higher because the cost of living is higher. Logic.

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## Bettyboo

> Bangkok rates are usually higher because the cost of living is higher. Logic.


Not for the rest of planet Earth.  :Smile: 

I'd love to see a new minimum wage of 5 pounds in London, but only two pounds fifty in Newcastle because the cost of living is cheaper... I wonder how that would go down with the locals.

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## larvidchr

^^
Not..... you have a free choice where you chose to work and live, also in big city's infrastructure is better like public transport ect., more services are available within short distances, much bigger choice of leisure activities ect. ect.

Other Country's have the same debate, people chose a place of work in the city, thus gets the higher wage, but then resides outside the city with lower costs of living, housing ect. So if anything the pay should be regulated not after place of work but place of residence.

This is an old-fashioned paygrade system and should be abolished, there are pro's and con's with every place you chose to reside in, it must be up to you private to make your choices, but same pay for same work must be the only correct system.

 :Smile:

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## Panda

Such a large increase will surely be inflationary as the higher cost of labour is passed on to the consumer. So, in the end its not really an increase at all. But certainly a good vote getter for the Dems. I doubt the poorly educated masses will be able to figure out that the price of everything which requires labour to produce will go up accordingly. I guess the Dems are banking on the fact that it will be another year or so before people wake up and figure out that they are no better off.

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## crippen

Come in Butterfly!!    Your help needed. :mid:

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## StrontiumDog

> Originally Posted by StrontiumDog
> 
> Bangkok rates are usually higher because the cost of living is higher. Logic.
> 
> 
> Not for the rest of planet Earth. 
> 
> I'd love to see a new minimum wage of 5 pounds in London, but only two pounds fifty in Newcastle because the cost of living is cheaper... I wonder how that would go down with the locals.



But you know how things work here, so you know that it is irrelevant. 

The cost of living is considerably higher in Bangkok than elsewhere. I thought everyone knew that...

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## dirtydog

> I'd love to see a new minimum wage of 5 pounds in London, but only two pounds fifty in Newcastle because the cost of living is cheaper


Fcuk that, 1 quid and 25p per hour is more than enough for those thieving gits, although there always used to be a London allowance, waiting/weighting allowance or something? used to be around 1,500quid per year when I was there, although I have to agree that such a raise for Thais isn't a good idea, gonna be a lot of unemployed labourers etc that will have to take up crime to be able to afford to eat.

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## Clogiron

Sorry SD I have to agree with BB's POV here

There are major cost of living differances across the UK, I make referance to my home country, yet the minimum wage is a national minimum irrespective of the cost of living.

If one wishes to look at the delta of minimum wage between provinces in Thailand a cynic may cry "Financial Suppression" or even worse "Ethnic Discrimination" , personaly I am not that cynical myself but I understand how some radicals could be.

Minimum wage should be applicable country wide and if a potential employee feels it is more benifitial to himself to stay in the provinces than to absorb higher overheads in Bangkok then so be it, when employers need staff the rate will rise above the minimum to compensate.  I remember the days of reading vacancies in the Telegraph and seeing an uplift for a London Posting.

I am not sure which party implemented the staggered minimum wage but the party that abolish it and make it a flat rate country wide would be taking 2-3 steps in the right direction.

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## Sean46

Exports to other countries will be affected and more jobs will be lost to China. Sad, but in a sense …

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## StrontiumDog

Clogiron, I see your point, but as DD said, in the UK you get a London weighting or allowance. No difference really.

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## Bettyboo

> London weighting or allowance. No difference really.


Very, very different.

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## genghis61

does this have an impact on border-hopping Kampuchean farm labour?
150 per day now, so maybe 160 from next April.

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## StrontiumDog

*http://www.bangkokpost.com/news/loca...250-daily-wage
*
*Private sector backs B250 daily wage*
Published:  6/09/2010 at 05:26 PMOnline news: Breakingnews
 The Joint Private Sector Committee on Monday  voiced support for Prime  Minister Abhisit Vejjajiva's idea to increase  the daily minimum wage to  250 baht.

 The committee comprises representatives of the Thai Banking   Association, Thai Chamber of Commerce and Federation of Thai Industries.

 Dusit Nonthanakhon, president of the Thai Chamber of Commerce and   chairman of the Joint Private Sector Committee, said the committee   agreed at its meeting on Monday to support Mr Abhisit's idea.

 He said the private sector would hold a meeting on this matter in   October.  The committee wanted the next wage adjustment to be based on   workers' abilities and skills development.

 However, the power to decide this matter rests with the tri-partite   wage committee, which is expected to base its decision on economic   growth, the inflation rate and employers' ability to pay.

 The present minimum wage ranges from 151 to 206 baht per day, depending on the province.

 Mr Dusit said the private sector was concerned about the baht's   continued appreciation because it could affect competitiveness,   especially for small and medium enterprises.

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## Bettyboo

Okay, progressing.

The micro and macro economics are, frankly, above us all; nonetheless, if the little folk get a salary increase then good for them. One of the fundamental problems here is the way Bkk controls the country. If any barriers can be set up against the continuation of this then it should be done - a nationwide minimum wage addresses one tiny area, now for regional zones across the nation to encourage manufacturers into poorer regions, rather than more Bkk factories; give the Japs tax incentives to invest in the far reaches of the nation, helping to drive healthy local economies...

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## StrontiumDog

> Originally Posted by StrontiumDog
> 
>  London weighting or allowance. No difference really.
> 
> 
> Very, very different.


Reform of benefit system could see introduction of London weighting - UK Politics, UK - The Independent
*Reform of benefit system could see introduction of London weighting*

                                         By Nigel Morris, Deputy Political Editor

_Saturday, 31 July 2010_


  

                     Iain Duncan Smith is considering levels of benefit that vary around the country

Benefit levels could be varied around the  country to reflect the cost of living in different regions under plans  for a radical revamp of the welfare state.

Iain Duncan Smith, the Work and Pensions  Secretary, published wide-ranging proposals yesterday in an attempt to  simplify the benefit system, including rolling more than 50 allowances  into a "universal credit".

A surprise inclusion was the suggestion that benefit levels could be "localised" between different parts of the country. 


<snip>



--------------------------


London weighting - Wikipedia, the free encyclopedia



*London weighting* is an allowance paid to certain civil servants, teachers, airline employees and policemen in the British capital of London.  It is designed to help these workers with the cost of living in London,  which is notoriously higher than that of the rest of the United Kingdom.[1] Its purpose is to encourage key workers to stay in London.


 London weighting was introduced for civil servants in 1920 and until  1974 it was set by the London Pay Board. However since 1974 the Greater London Council and later the Mayor of London,  in partnership with central government, have been responsible for  setting it. In 2002, teachers from across South East England went on  strike to try to force London Weighting to be raised.


 As of March 2007, the London weighting is worth between £3,000 and £4,000.


 In some professions, such as teachers, a different level of weighting is applied to Inner London and Outer London.[2][3]

 Since the abolition of the Pay Board no organisation has been  responsible for setting London weighting. The GLA carried out an  investigation into the issue but did not propose a new figure as such.  Currently the amounts paid by employers as London weighting, or London  allowance, or in some cases both, vary greatly. Further information is  available from pay analysts such as Labour Research Department and Incomes Data Services Ltd.

------------

A sample job advert, showing weighting....not a high paid position.

http://jobs.guardian.co.uk/job/1021298/media-officer/
*Media Officer*

 Employer: BLUE CROSS Posted: 27 Aug 2010 Location: London SW1 Industry:  Charities - Animal   Marketing & PR - Media   Marketing & PR - PR Contract: Permanent Hours: Full Time Salary: £24,155 to £27,186 plus £3,506 London Weighting per annum

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## Bettyboo

SD, as usual you're flogging a dead horse...

A minimum wage is a minimum wage, and MUST be national.

A benefit system is set up for a different purpose entirely and addresses a whole host of areas, one of which may be a local area wage weighting system - indeed the two can work very well together; although artiifially weighting a system to benfit one area over another can have a huge social impact - i.e. driving the smart folk to London and leaving all the thickos up North...

The two systems are seperate, and must be kept that way. In some situations they may compliment each other, but they are not the same. A brief analogy for you: men and women compiment each other is some situations, both can coexist, but they are very different entities...

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## StrontiumDog

Why am I flogging a dead horse? The above clearly shows there's a recognised difference in the UK. London weighting exists because capital cities are usually more expensive places to live in. It's logic. 

Even in the UK the talk is of weighting benefits. Most private sector jobs have weighting included. 

Your "brief analogy" is inept and unrelated. Try again.

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## crippen

A bit surprised the 500 bht to vote payment has not been lifted ,say 1000 bht ??
 ::chitown:: 
 ::spin::

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## StrontiumDog

^^ nice to see you using your linguistic skills again BB. Why do you feel the need to resort to insults? Why not stick to the point? 

You claim to be an educated man. I've yet to see much evidence of this.

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## Bettyboo

^ Abhisit is an educated man, so is Mugabe and so was... we can go on and on.

My post has been deleted, and I understand it was a bit too much, so sorry, but frankly, when you just seek a way out by any means rather than saying 'yeah, you might be right', it is very infuriating...

So, I'll say it nicely:

A minimum wage is a cross nation situation, it needs to be for many sociological and socio-economic reasons that we can't, and don't need to, discuss here.

A weighting system is seperate from a minimum wage. It is incorporated by a different sector of government entirely because it has a very different role.

The two, as in Britain where you are using half the example, work together. Or, it would be truer to say that a minimum wage is supplemented in some parts by an additional local benefit that goes under different names; in London it's called London Weighting.

Please don't confuse the two; they are clearly distinct from one another.

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## Spin

250 baht seems a bit much, most of the cabbages that work in the low pay sector are woth a lot less than that. Fucking useless, they are. :Smile:

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## Butterfly

> 250 baht seems a bit much, most of the cabbages that work in the low pay sector are woth a lot less than that. Fucking useless, they are.


quite right, and lazy bastards too  :Smile:

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## Rural Surin

> Originally Posted by Bettyboo
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Clogiron
> ...


Nice point. As this is the way of the world - always has been. Yet cultural division has driven even deeper and more dramatic over recent years.

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## Thaihome

> ...Yet cultural division has driven even deeper and more dramatic over recent years.


 
But yet the leadership of both factions seems to be from the same cultural elite.  How do you explain the divisons in term of culture then?
TH

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## Bettyboo

> But yet the leadership of both factions seems to be from the same cultural elite. How do you explain the divisons in term of culture then? TH


...

This is very easy: walk amongst the yellow shirters (95% sino Thai white skinned folk); walk amongst the red shirters (95% Thai-Thai, dark skinned folk). Many of us have walked through both 'mobs' on numerous occassions; I'm surprosed that you haven't...

Now, as far as the leadership goes (which is NOT Rurul Surin's point...), you'd have to look at the way schooling and 'qualifications' are used to inhibit certain elements of society; look at how you get into politics here ('start-up' costs).

Now a little analogy to help you cause you need all the help you can get... I had a very similar schooling to me brother (I went to the top free grammar school in the country, he went to one of the most expensive public schools in the country) - we look the same and talk in a similar voice, but he's a little facist stockbroker, whilst I have very central (sometimes left of centre) politics and dislike social parasites... Just because folk have a similar background does not make them the same or force them to have the same politics, rather obviously...

Also, as you are alluding to: the sino-Thai scumbags are very clannish and love money above anything else. One group just work with the powerbrokers which has pushed them on an ideological mission, another clan bet on the masses, but didn't really take fully into account the blueblooded Thai hatred for the common folk and their willingness to shoot as many of them dead as possible, as often as is required... Nobody here thinks that MrT is for the people. But, many savi posters are fully aware how much the current junta are fully against the people in a way that the TRT NEVER WERE!!!

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## Fabian

> Exports to other countries will be affected and more jobs will be lost to China. Sad, but in a sense


I think wages in China have surpased Thailand already.

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## Fabian

> Originally Posted by Thaihome
> 
> But yet the leadership of both factions seems to be from the same cultural elite. How do you explain the divisons in term of culture then? TH
> 
> 
> ...
> 
> This is very easy: walk amongst the yellow shirters (95% sino Thai white skinned folk); walk amongst the red shirters (95% Thai-Thai, dark skinned folk). Many of us have walked through both 'mobs' on numerous occassions; I'm surprosed that you haven't...


What about those who belong to neither faction? Aren't they the majority but overlooked because they just carry on with their lifes?

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## StrontiumDog

*http://www.nationmultimedia.com/home...-30138386.html
*
*Push for minimum wage to be doubled*

                            By The Nation

                                             Published on September 21, 2010                

*A proposal to more than  double the minimum daily  wage - from Bt206 to Bt421 - was accepted  yesterday by the Labour  Ministry and will be further considered by the  Finance Ministry.*

                                                            The rate is  even higher than an earlier proposal to  lift the minimum wage to Bt250,  which the government has been  considering approving.

The Thai Labour Solidarity Committee  also called on the government  yesterday to ratify an International  Labour Organisation accord  protecting labourers joining labour unions at  their workplaces. 

TLSC head Wilaiwan sae-Tia said  employers in Thailand still gave  labourers wanting to join unions harder  work or abused them, to force  them to resign.

The group  also called for the Social Security Office to be set up as an   independent agency, to ensure it was fully efficient and transparent.   She said the office had operated for 20 years and now oversaw a huge   fund but it still lacked these qualities.

Labour Minister  Chalermchai Sri-on accepted the three proposals. He  said the wage  request could be passed to the Finance Ministry and a  decision on  whether to approve it or not would rest with the national  Wage  Tripartite Committee.

In regard to workers being able to  join workplace unions, the issue  would be sent to the Cabinet for  approval, and then to Parliament for a  final vote.

On the  SSO issue, Chalermchai said businesses with 200 to 1,000 workers  could  operate their own social security systems if they got permission  from  the SSO.

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## Mid

be a few po-yai's chocking on their rice porridge this morning  :Smile:

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## StrontiumDog

*Minimum wage rise will fuel inflation rate, says BoT
*
*Minimum wage rise will fuel inflation rate, says BoT*

  วันอังคาร ที่ 05 ต.ค. 2553 

 BANGKOK, Oct 5  – The proposed increased in the minimum wage  will fuel  inflationary pressures if it exceeds the core inflation  level, according to the Bank of Thailand (BoT).

 Speaking of Prime Minister Abhisit Vejjajiva’s proposal to raise the  minimum wage to a 250 baht daily rate, Methee Supapong, senior director  of the BoT Domestic Economy Department, said that should the Tripartite  Private-Sector Committee increase the minimum wage at a higher level  than that of the core inflation, it would impact the expected inflation  range between 2.5-3.8 per cent for this year.

 With the inflation rate set to rise, the central bank will revise its  inflation rate projection prior to a meeting of the Monetary Policy  Committee, which is scheduled to take place on October 20, he said.

 “The minimum wage, if adjusted higher than the core inflation level,  will raise the inflation rate this year. But whether the rate will  increase more than the inflation targeting depends on how much the wage  will rise,” said Mr Methee.

 Regarding the current baht appreciation, he said, the department would  bring data on the baht rise, overall picture of the economy, and a  summary of impacts of the stronger baht on the export sector and the  Thai economy for consideration at the MPC meeting so that the committee  could use them for its decision on the monetary policy direction.

 The central bank projected the core and general inflation rates would  stay in a range of 0.5-1.3 per cent and 2.5-3.8 per cent this year, and  2-3 per cent and 2.5-4.5 per cent next year. (MCOT online news)

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## StrontiumDog

http://thainews.prd.go.th/en/news.php?id=255310050043

Tripartite Panel says no to minimum wages adjustment                                                                                                                                                                                                                                                                                                                                                                                                                                                              

BANGKOK, 5 October  2010 (NNT) – The Tripartite Central Wage Committee disagrees with the  proposal to raise the minimum wage to 250 a day, indicating that the  government should not interfere with the minimum wage issue.  

Committee chairman Dusit Nontanakorn stated that the Tripartite Central  Wage Committee believed the adjustment of the minimum wages to a higher  level for unskilled workers should be considered based on several  factors; such as economic growth, inflation rate, employers' financial  ability.  He noted that the rate must be adjusted in such a way that  both sides could survive. The adjustment was proposed by the Prime  Minister. 

The committee consisting of government, employer, and the labor  representatives, decided to reject the minimum wage raise to 250 baht  per day. The Tripartite Panel also advised that the government stay out  of the issue.  

Meanwhile, President of the Thai Labor solidarity, Wilaiwan Sae-Tia said  that the idea of raising the minimum wages to 250 baht per day still  was insufficient given the high cost of living which forces workers to  live in subsistence. She also suggested that the minimum wage be raised  to 421 baht per day across the board.

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## StrontiumDog

*http://www.bangkokpost.com/news/loca...f-minimum-wage
*
*Rally for rise in minimum wage*
Published:  7/10/2010 at 12:33 PMOnline news: Breakingnews
 About 500 labourers rallied in front of  Government House on Thursday  and demanded that  Prime Minister Abhisit  Vejjajiva raise the minimum  daily wage.

 The workers, led by Sathit Kaewwan, are from labour networks  including  the Labour Union, the Confederation of Thai Labour and the  Thai Labour  Solidarity Committee.

They called on the government to double the minimum daily wage -- from the current maximum of 206 baht to 421 baht.

They  also called on the government to ratify an International Labour   Organisation accord protecting labourers joining labour unions at their   workplaces.

If the demands are met, the living conditions of about 37 million of Thai labourers would be improved, they said.

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## forreachingme

420 Thb seem more realistic then 250 Thb per day, seen cost of living in Thailand actually !

 Bit hard for employers but workers are really on survival mode and this does not help efficiency and education of what comes next... 


Actually there are lots of factories looking for workers and cannot find any ! This forthe whole 2010

Thailand and China due to language (and many other factors) are real difficult places to set up and run business for Westerners...

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...ely-to-win-nod
*
*44 baht a day rise unlikely to win nod*
Published: 11/10/2010 at 12:00 AMNewspaper section: News
 Prime Minister Abhisit Vejjajiva's proposal to  increase the minimum  daily wage to 250 baht is almost certain to be  rejected by employers, a  member of the tripartite wage committee says.

 Chamras Chailangka said yesterday that instead of the 44 baht   increment the prime minister had proposed - to lift the minimum daily   wage in Bangkok and Samut Prakan from 206 baht - the increase was likely   to be just 10 baht next year to keep wages low and attract investors.

 He said the PM's plan was populist and employers had not been properly consulted on the issue.

 Discussions on the increase would continue today as the committee,   representing employees, employers and the government, meets to consider   the matter.

 Mr Chamras said Mr Abhisit's proposal was close to the 255 baht rate   that the Thailand Development Research Institute (TDRI) recommended last   year.

 However, Mr Chamras said he learned from employers that they would   accept an increment of only about 10 baht for next year's wage increase.

 Wilaiwan sae Tia, the chair of the Thai Labour Solidarity Committee,   said an ideal minimum daily wage to allow labourers to raise their   families and give their parents some money without having to do overtime   would be 421baht. She admitted that the rate was not possible for the   time being, so she was supporting the PM's 250 baht proposal.

 Should the prime minister's proposal be rejected, a 10 baht increment   for workers nationwide would be acceptable to Ms Wilaiwan's committee.

 The office of the tripartite wage committee carried out a survey  which  found that workers are demanding a wage increase because they are   heavily affected by the rapidly rising cost of living.

 Many employers base their wage structure on the minimum wage, not on workers' performance.

 A 34-year-old female worker who works at an electronic parts plant in   Samut Sakhon and identified herself only as Kate said she had to work   12 hours a day, seven days a week to earn enough money to raise her   three children and take care of her parents upcountry.

 Narong Phetprasert, an economics lecturer at Chulalongkorn  University,  said 60% of labourers had a salary of less than 6,000 baht a  month,  forcing them to do overtime to make ends meet.

 Bundit Thanachaisethawut, a researcher at the Arom Pongpa-ngan   Foundation for labour, said working seven days a week prohibited   labourers from developing their knowledge and skills.

 Yongyuth Chalaemwong, a senior researcher at the Thailand Development   Research Institute, said the heavy reliance on alien labour was a   factor in keeping Thai workers' wages low.

----------


## GoodMyFarang

lol from 205 to 421,its like you say min wage in German is 10Euro and next years its 20, do the realy want to kill there own economie?

even from 205 to 250 its already 20% and compled unaceptable, its result only in lay off peaopl eand try to employ Burmis and Laos.

GMF

----------


## StrontiumDog

*http://www.nationmultimedia.com/home...-30139878.html
*
*Minimum wage has not kept up with inflation: study*

                            By The Nation
                                             Published on October 12, 2010                


*The minimum wage for  labourers has not kept pace  with the actual cost of living and  inflation in the past 10 years,  Labour Ministry permanent secretary  Somkiat Chayawong said yesterday.*

                                                            This  conclusion was based on initial findings by a  panel assigned by a  tripartite committee to study wage increases, said  Somkiat, who is the  ex officio chairman of the committee.

For  example, inflation was 5.6 per cent in 1997 and there was no  increase  in the minimum daily wage; the rate was 8.1 per cent the next  year,  which saw a wage hike of 1.8 per cent. There were no minimum-wage   increases in 1999 or 2000, which saw inflation of 0.3 and 1.6 per cent   respectively.

There were only two years in the past decade  when the hike in the  minimum wage was higher than inflation: 2001, when  inflation was at 1.6  per cent and the hike was 2.2 per cent, and 2007,  when inflation was  2.3 per cent and the pay rate rose 3.1 per cent.

The  panel is tasked with working out the final figure for the next hike  by  November, which needs to be approved or rejected before January.

In  working out the final figure, which may not reach Bt250 as proposed  by  Prime Minister Abhisit Vejjajiva, four conditions are to be taken  into  consideration. First, the increase must lift standards for  labourers  while not burdening employers.

The three other conditions  are: the new wage rate must reflect the rate  of inflation and the cost  of living; cost-reduction measures will be  introduced for free to  employers; and skill training must be extended  to new employees.

----------


## tomta

As long as it's possible to employ Burmese slaves, the minimum wage debate is irrelevant.

----------


## StrontiumDog

http://www.bangkokpost.com/news/loca...cision-delayed

LABOUR 

*Wage rates decision delayed*
Published: 12/10/2010 at 12:00 AMNewspaper section: News
 The tripartite wage committee is promising to  try to set new daily  minimum wage rates for next year which keep abreast  of the inflation  rate.



The committee, made up of representatives from the government,   employers and employees, yesterday failed to set new rates for next   year.

 Nor did it discuss a proposal from Prime Minister Abhisit Vejjajiva  to  raise the minimum rate to 250 baht a day for all workers across the   country.

 The committee's chairman and permanent secretary for labour, Somkiat   Chayasriwong, said the committee yesterday focused on proposals tabled   by provincial wage committees.

 The Bangkok committee suggested a new wage of 213 baht a day, up from the present 206 baht, he said.

 The committee was aware of the need to improve labourers' quality of   life, but wage rises must not affect employers' ability to pay, Mr   Somkiat said.

 He assigned a subcommittee, headed by deputy permanent secretary for   labour Sunan Photong, to study the pay rises and inflation rate from   1997 to 2010 and propose appropriate minimum wages for workers   countrywide.

 Most wage increases since 1997 have been below the annual inflation rate.

 The subcommittee would look at the discrepancies and the impact on workers, Mr Somkiat said.

 It would depend on employers' ability to pay whether the new minimum   wages would partially or completely close the inflation gap, he said.

 The committee could adopt "gradual pay rises" instead of approving a   big increase in the minimum rates to reduce the effect on employers, Mr   Somkiat said.

 A committee source said employers' financial status, the cost of   living, the inflation rate and the economy would all be key factors in   determining the new minimum rates.

----------


## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1036478

Bare Minimum Wage 

UPDATE : 22 October 2010                           

An old poem found in elementary school books  during the administration  of Field Marshal P. Pibulsongkram details the  conflict of the parent  bird, constantly having to fly in search of food  for its young yet  always deathly worried for the safety and wellbeing  of its child. The  poem originally was written to remind children of the  perseverance and  diligence needed to be a parent and caretaker.

Today, looking at Thailand's working class of farmers, laborers and   vendors we see many facing a worse plight than that of the exhausted   bird. With responsibilities that range from children and elderly   relatives to disabled dependents, it seems no amount of perseverance and   hard work rewards the nation's workers with a sufficient bounty to   support themselves and the people they care for.

The average industrial laborer and retail worker is all but imprisoned   from 8-12 hours a day in their vocation, whether it be at their   storefront of in a factory. Long work hours do not permit for members of   this class to pursue additional income or at the very least the   abilities that would allow them to excel in their jobs. Worse yet,   working class citizens have to suffer under hefty living costs that eat   away at their meager pay. On average, a factory worker will spend 30   percent of his or her pay on transportation, 50 percent on food and more   still on necessities such as hygiene products, not to mention tax   payments and insurance obligations.

A disheartening 60 percent of low level employees receive a monthly   salary of 6,000 baht for working eight hours a day six days a week. The   figure would have many a reader balking at the thought of supporting   themselves without even beginning to consider the support of a single   child. 

A shocking result of this dire situation has been that divorce   statistics have risen sharply, along with both reported and unreported   instances of abortion, a consequence of so many workers fearing the   burdens of child care. With so many resisting reproduction Thailand can   anticipate a sharp population drop off in the coming generation. Even  at  present, the number of individuals entering the employment market  has  fallen from 1.5 million people per year to 700 thousand.

Is this how Thailand would like to see its lower class eradicated?   Socially and financially neutered and left to slowly thin out? Do the   children of the working class not deserve a chance to rise above the   stature of their parents and become happy, healthy, contributing members   of society?

The International Labor Organization (ILO) states that in establishing   the minimum wage of a developing country two major factors must be   considered. The first is the necessities of the common worker and his or   her family as well as the amount of state assistance allowing that   individual to live relative to members of other economic classes. The   second is economic factors such as economic outlook, production targets   and the demand for labor. Is Thailand's minimum wage based on these two   factors? 

Despite being one of the first nation's to join the ILO, Thailand still   continues to obstruct the formation of labor unions at every turn and  as  is obvious, subjects its citizens to an abysmal minimum wage rate.  The  Kingdom's atrocious minimum pay is not just an affront to labor   practices but a violation of human rights. Perhaps the working class   would be better leaving their lives to the birds?

_Post Today, October 22 2010

Translated and Rewritten by Itiporn Lakarnchua_ 

_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._

----------


## StrontiumDog

*http://www.nationmultimedia.com/home...-30142052.html
*

*Wage panel to review minium wage Friday*

The Central Wage Committee will Friday review the proposed raise of minimum daily wage for workers across the country. 

The proposal, prepared by a subcommittee on wage review, is seeking to award the biggest raise to workers in Phuket. 

The  subcommittee's chairman Sunan Phothong, who is also Labour  Ministry's  deputy permanent secretary, yesterday revealed that if the  Central Wage  Committee gave the green light, the minimum daily wage in  Phuket will  jump from Bt204 to Bt214. 

 The Nation

----------


## StrontiumDog

*http://www.nationmultimedia.com/2010...-30142045.html
*

*Panel to consider minimum wage hike proposal*


                            By The Nation
                                             Published on November 12, 2010                





*The Central Wage Committee will today review a proposed increase in the minimum daily wage for workers across the country. * 



The proposal, prepared by a subcommittee on wage review, is seeking to award the biggest raise to workers in Phuket. 

The  subcommittee’s chairman Sunan Phothong, who is also Labour  Ministry’s  deputy permanent secretary, yesterday revealed that if the  Central Wage  Committee gave the green light, the minimum daily wage in  Phuket would  jump from Bt204 to Bt214. 

“In Bangkok and its adjacent  provinces, we have proposed a Bt7 raise,  which means the minimum daily  wage will climb up to Bt213,” he added. 

Sunan said workers  across the country will likely earn at least Bt5  more per day as his  subcommittee has proposed the minimum daily wage  rise by at least Bt5  everywhere. 

“Provincial panels on wages from 26 provinces have  proposed a raise of  fewer than Bt5. But we have resolved to award at  least Bt5 raise to  all,” Sunan said. 

The proposed pay raise has failed to impress Thai Labour Solidarity Committee (TLSC) president Wilaiwan sae Tiam. 

“The  government has again failed to take into account the real  inflation  rate and the cost of living,” she complained, “Workers’  quality of life  won’t improve then”. 

Wilaiwan said workers in fact wanted to earn Bt421 a day.

“Or at least, the daily minimum wage should rise to Bt250 as Prime Minister Abhisit Vejjajiva had earlier suggested,” she added.

Wilaiwan  said if the workers got appropriate pay, they would have  loyalty for  their employers and would deliver better performance. 

Pannapong  Itattanont, secretary general of the Employers’ Confederation  of Thai  Trade and Industry, explained the raise must take into account  the  employers’ ability to pay too.

“Some factories are now flooded. The wage increase may affect them,” he pointed out.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...-wage-increase
*
*Panel delays wage increase*
Published: 13/11/2010 at 12:00 AMNewspaper section: News
 The Central Wage Committee has postponed a  decision on a proposed hike  to the minimum wage pending another study to  arrive atan  ''appropriate'' figure.

 The committee, chaired by labour permanent secretary Somkiat   Chayasriwong, did not approve of a proposal by a subcommittee on wage   review that used rates recommended by provincial wage committees.

 The subcommittee suggested increasing the minimum wage by 7 baht a  day  to 213 baht. That falls below the Labour Ministry's Labour Economics   Office ''quality of life'' wage of 228 baht.

 Mr Somkiat said the Central Wage Committee has asked the subcommittee   to revise its figures so that a balance is struck between workers'   quality of life and the financial concerns of employers.

 He said the final figures are expected early next month.

 Viboon Kromadit, chief operating officer of industrial estate   developer Amata Corporation Plc, said a compromise must be reached on   the minimum wage issue. He suggested that changes to the wage should be   gradual to avoid a major impact on employers.

 Economist Narong Phetprasert, however, lambasted the figure proposed   by the subcommittee, saying the hike was so minimal that it would have   no effect on workers' lives as it does not reflect real costs.

 ''The figures are based on last year's information, which is not  fair.  They need to project next year's situation and base their  calculation  on that,'' he said.

 Tanit Sorat, vice-chairman of the Federation of Thai Industries, said   the real problem facing labour in Thailand is not the minimum wage, but   the shortage of skilled workers.

----------


## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1037868

Govt Pushing Minimum Wage Raise Before New Year 

UPDATE : 26 November 2010                           *

The prime minister has assigned the Labor  Ministry to assess the  possibility of raising the minimum wage before  the new year. He also  insists that the proposal is not for political  gains.

Prime Minister Abhisit Vejjajiva has assigned the Labor Ministry to   assess the possibility of raising the minimum wage. The proposal, which   will be a higher raise than that of previous years, will have to go   through a tripartite board.* 

The government is pushing to raise the minimum wage before the new year   as well as increase the public's social welfare benefits such as   lowering medical expenses. 

The government also insisted that the proposal is not an attempt for   political campaigning since it had earlier announced plans to improve   the public's social welfare. 

Aside from the proposed minimum wage hike, the prime minister also asked   the Energy Policy and Planning Office meeting to look into energy   prices. He stated that since natural gas is a national resource, its   price must be readjusted to a reasonable rate.

----------


## StrontiumDog

*http://www.nationmultimedia.com/home...-30143232.html
*
*Daily minimum wage should be increased by Bt10: PM*

                                      Prime Minister Abhisit Vejjajiva said Friday that the daily minimum wage should be increased by Bt10 to Bt11 next year.

Abhisit  said he had instructed the government representatives on the  tripartite  wage committee to increase the daily minimum wage by Bt10 to  Bt11 next  year.

The prime minister said businesses should adjust themselves for the pay increases.

He said the wage rise should make Thai economy more acceptable.

The Nation

----------


## StrontiumDog

*http://www.bangkokpost.com/business/...ke-to-slow-gdp
*
*Wage hike to slow GDP*

*11-baht raise shaves 0.2% off growth* 
Published: 27/11/2010 at 12:00 AMNewspaper section: Business
 The government's decision to lift the minimum  wage will affect  economic growth by 0.2% on average, says the Finance  Ministry, while  this year's growth will decline slightly to between 7.3%  and 7.4% due  to the recent floods.

 Pisit Puapan, director of the Macroeconomic Analysis Division in the   ministry's Fiscal Policy Office (FPO), said a wage increase from an   average of 200 baht to 210 baht a day would have an impact, as wages are   a significant investment cost.

 Prime Minister Abhisit Vejjajiva said in Bangkok yesterday that   effective from Jan 1, the government would raise the minimum wage by   11-12 baht, depending on each province's cost of living.

 Mr Abhisit had previously proposed a flat rate of 250 baht  nationwide.  However, the tripartite Central Wage Committee comprising  the  government, employers and labour representatives disagreed and   countered with an average increase of 10 baht.

 The committee said a 250-baht flat rate, representing a 21% increase   from the top wage in Bangkok, currently 206 baht, would hurt overall   economic growth too severely.

 The minimum wage currently exceeds 200 baht only in Bangkok and six   other highly developed provinces, and is 151 to 184 baht elsewhere.

 Economists had called the premier's idea too aggressive and   inappropriate. They said a too rapid rise in wages would place more   pressure on employers' costs with no corresponding improvement in worker   productivity.

 Mr Pisit said the FPO would make its final review of the overall   economy next month. The most recent one projected 7.5% growth in GDP.

 Thailand registered growth of 6.7% in the third quarter, with estimates of a rise of 2-3% in the fourth, he said.

 Mr Pisit said that projection was based on the baht remaining at 29  to  the US dollar. If so, it could shave 0.2% off GDP growth. Staying at   29.50 baht would affect GDP growth by only 0.1%.

 "Right now it's standing at about 30 to the dollar, and that should not affect the overall economy," he said.

 Despite the severity of damage from the recent flooding, pressure on   growth will be slight, dropping the projection to 7.3-7.4% from an   earlier figure of 7.5%. That is also lower than the recent 7.9% figure   from the National Economic and Social Development Board.

 Mr Pisit said that even though many items in the October economic index declined, the economy remains strong.

 Last month, revenue from value-added tax slid in line with reduced   growth of 4.5% in domestic consumption, from a 7.1% rise in September.

 Automobile sales expanded by 42.7%, down from 46.6% growth in  September, while motorcycle sales growth fell to 14.4% from 15.7%.

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## StrontiumDog

*PM: Govt to review measures helping low-income earners; Minimum wage may rise Bt10
*

*PM: Govt to review measures helping low-income earners; Minimum wage may rise Bt10*


  วันอาทิตย์ ที่ 28 พ.ย. 2553 

 
   BANGKOK, Nov 28 - In an attempt to defend low-income earners  against  rising inflation in Thailand, Prime Minister Abhisit Vejjajiva  said  Sunday his government may extend its economic assistance measures  for  the poor and may as well raise the daily minimum wage by Bt10.

 Mr Abhisit said during his weekly TV and radio address that the growth   forecast by the National Economic and Social Development Board (NESDB)   for 2010 would grow by nearly 8 per cent along with economic stimulus   measures implemented by the government, especially on its spending to   assist flood victims, would help the country’s economy to increase in a   sustainable manner.

 The NESDB last week revised projection for Thailand’s economic growth   this year to 7.9 per cent, up from the earlier forecast of 7-7.5 per   cent, on the back of the global economic recovery, improving investor   confidence, higher farm income as well as strong tourism and export   growth.

 The government is considering raising the daily minimum wage by about   Bt10 in order to increase public purchasing power, he said.

 The rising cost of living is an urgent matter for the government to   tackle,  Mr Abhisit said, adding that the government would soon review   possible extension of the five measures to lower the cost of living.

 The economic assistance measures are free electricity for households   using less than 90 units per month, free transportation on 800 public   buses on Bangkok’s 73 routes, free passage on 172 third-class railway   trains on a daily scheduled basis and free piped water supply. The   existing measures will expire at year-end.

 The government also freeze prices of liquefied petroleum gas (LPG) at   Bt18.13 per kilogramme and natural gas vehicle (NGV) fuel at Bt8.5 per   kilogramme. This assistance measure will expire in February.

 The possible extension of the government’s economic assistance   programmes comes after the Commerce Ministry earlier this month   maintained its projection of the 2010 inflation rate at around 3-3.5 per   cent.

 The ministry has forecast that 2011 Thai inflation will stay around   3.2-3.7 per cent based on the assumption that crude oil stays at   US$78-88 per barrel and the Thai currency, the baht is around 28-33   against the dollar. (MCOT online news)

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...mum-wage-dec-9
*
*PM: Decision on minimum wage Dec 9*
Published:  1/12/2010 at 03:35 PMOnline news: Economics
 The tripartite Wage Committee is expected to  decide on the new labour  minimum wage on Dec 9, Prime Minister Abhisit  Vejjajiva said on  Wednesday.

 The prime minister said this when told by reporters that the the   Assembly of Labour Unions had expressed disappointment on learning that   the minimum wage might turn out to be 215 baht per day.

 Mr Abhisit had earlier said he wanted to see the minimum wage to go  up  to 250 baht per day throughout the country.  The current minimum wage   is 206 baht per day in Bangkok and slightly lower in the provinces.

 The prime minister said the government had tried to work out the most suitable and fair minimum wage.

 Since the minimum wage is set by the tri-partite Wage Committee, the   government can only set down a policy that its representatives on the   committee ensure there is a suitable increase.  Other members represent   the employers and employees.

 "I have said that the increase in past years was too little, only 2-3   baht per day, and this year's increase should be more than that. This   is not yet final, the decision is expected to be made on Dec 9," Mr   Abhisit said.

 He said the Wage Committee would also take for consideration social security benefits.

----------


## StrontiumDog

*http://www.nationmultimedia.com/2010...-30143718.html

GOVT CONSIDERS NEW POLICY TO HELP POOR*

                            By The Nation

*Under a proposed  government policy, low-income  earners and labourers in Bangkok would be  given immediate access to  basic state welfare. This is a precursor to a  nationwide scheme aiming  to benefit about 24 million labourers  nationwide.*

                              Sangsit Phirayarangsan, chairman of a  working panel,said  the policy was meant to increase the income of  labourers,cut down their  expenses, improve working conditions andgrant  them access to  government-funded loans and socialsecurity benefits.The  policy - which  many critics brand as populist and aiming at seeking  grass-roots support  ahead of the upcoming general election - will  benefit about 5.2 million  people living in the capital, mostly cabbies,  motorcycle-taxi drivers,  vendors and workers without social-security  coverage.

"We  will also look into how we can increase the daily income of cabbies  and  motorcycle-taxi drivers from Bt300 to Bt500," Sangsit said, citing  as  an example the Ua Athorn taxi project, which was initiated by  former  prime minister Thaksin Shinawatra   and now had 50 per cent bad debts.He added that the government would   grant more than 2,000 fee-free locations in Bangkok as an immediate boon   for vendors.

Sangsit's committee will submit its proposals to Prime Minister Abhisit Vejjajiva today,   and if the measures are approved they will be announced as New Year's   gifts for the public at the next Cabinet meeting on Tuesday, he said.   Kanok Wongtra-ngarn, an adviser to the prime minister,  said the policy   was meant to offer more opportunities to exploited people in the labour   sector, such as farmhands who were paid less than the minimum daily   wage, or taxi drivers and vendors who were exploited by traffic   policemen and city police. "The injustice inflicted on these people has   been leading to widening social gaps, political conflicts and even   violence," he said. To implement the policy, the authorities and   government officials would need to adjust their attitude towards   labourers, and see them not as a burden but as a workforce that is   essential to propelling the country forward.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/poli...fare-proposals
*
*PM sets out  new welfare  proposals*

*NON-SSF WORKERS PROMISED HELP* 
Published:  5/12/2010 at 12:00 AMNewspaper section: News
 The government will step up measures to relieve  living costs for 24  million workers not covered by the Social Security  Fund (SSF).

 
MAIN MAN: Mr Abhisit, right, appears at the campaign launch for  Apirak  Kosayodhin, the Democrat Party candidate in the Dec 12 Bangkok   Constituency 2 by-election.

 Prime Minister Abhisit Vejjajiva said yesterday that he wants to help   six groups of workers who are not registered with the SSF and are   therefore not entitled to its welfare coverage.

 They are motorcycle taxi and mini-van drivers, taxi and tricycle   drivers, street vendors, farmers, night workers at restaurants and   entertainment venues, construction workers, and house maids.

 Mr Abhisit said the government was considering ways to relax state   regulations on these jobs and give the workers better access to sources   of finance such as the Government Savings Bank.

 It will talk to banks and other lenders to work out plans to extend the scope of the SSF.

 Mr Abhisit said the government was looking into measures to reduce  the  burden caused by gas and petrol expenses. Some people were  struggling  against the abuse of power by state authorities while others  had to  work under threat of gangs and these problems would also be  tackled, he  said.

 Mr Abhisit will announce the first batch of measures to help the workers on Tuesday.

 However, he said the government would not consider a proposal by the   Bhumjaithai Party to raise salaries for officials of local   administration organisations.

 The Bhumjaithai proposal that was tabled in a cabinet meeting was   unclear and it was sent back to the coalition party to work out the   details, he said.

 Democrat Party spokesman Buranat Samuttharak denied that the fresh   proposals were aimed at bolstering the party's popularity ahead of the   next general election.

 The prime minister has indicated that he will hold a general election   before his government's current term ends in December of next year.

 The snap poll will be called on the condition that the political   atmosphere is conducive to all candidates being able to freely and   fairly conduct their political campaigns.

----------


## StrontiumDog

http://www.bangkokpost.com/opinion/o...workers-plight

EDITORIAL

*PM must ease workers' plight*
Published:  4/12/2010 at 12:00 AMNewspaper section: News
 It is embarrassing when politicians have to eat  their words,  especially when they are prime ministers. In 2005, Thaksin  Shinawatra  did a turnabout on the issue of a 200-baht minimum wage,  going from  "employers cannot afford it" to enthusiastic endorsement as  an election  neared. Now Prime Minister Abhisit Vejjajiva has fallen into  a similar  trap by holding out hope of a 250-baht daily wage, only to  have to  back down when confronted by employers on the tripartite wage  committee  unable or unwilling to shoulder a 21% increase.



As the festive season approaches, tens of thousands of workers are   wondering how to finance shopping sprees and family celebrations without   getting deep in debt or having to work unreasonable amounts of   overtime. Part of their problem is that inflation makes a mockery of   annual increases in the minimum wage. Even on the two occasions in the   past decade when parity has been achieved, the increase has not even   covered the bus fare to work.

 But all that was supposed to change with the 2011 minimum wage, which   the prime minister said in June should increase from the present   206-baht rate in Bangkok to a more equitable 250 baht. What followed was   a roller-coaster ride of speculation that peaked at a demand for a   minimum wage of 421 baht a day and then fell back to a more likely and   realistic increase of just 11 baht for those working in the capital and   proportionate increases for those in the provinces.

 Now unions are urging Mr Abhisit to honour his pledge but employers   say they cannot absorb extra labour costs of this magnitude without   increasing product costs to a level where they become uncompetitive and   trigger massive inflation. Such fears are justified but an alternative   such as a graduated and index-linked scale over a set time period  should  be pursued. This could be complemented by more generous cost-of  -living  payments for unskilled employees. In exchange for this,  business  operators would receive tax incentives. At present it is  difficult for a  worker who earns the basic minimum wage to make ends  meet, let alone  raise a family and enjoy a decent standard of living.

 The practice of applying different minimum wages to different zones   throughout the country creates confusion and does not reflect   present-day reality. Workers in Nakhon Sawan, Chiang Rai or Ayutthaya   provinces who receive less than fellow workers in Bangkok often have to   pay more for the same consumer products they buy in their hometowns, as   transport costs are higher.

 It is unfair that they should be paid so much less than workers in  the  capital. The different rates also motivate job-seekers to move from   one province to another, creating labour shortages. Because Bangkok   offers the highest rate, it exerts the strongest pull and this   contributes to the urban drift to the capital.

 Even with the current meagre minimum wage, many owners of small   businesses refuse to honour it and resort to tricks to circumvent the   law. One ploy is to make use of the service of sub-contractors, who   provide employers with the needed workforce. Equally common is the use   of low-cost migrant labour, especially on building sites.

 Such problems have been rife ever since the minimum wage was   introduced in 1973 with a 12-baht-a-day rate for Bangkok. We must   improve the skills and morale of factory employees through job training   and further education. The present system needs an overhaul if we are  to  create a happier workforce, boost productivity and calm fears about   remaining competitive.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...-plan-gets-nod
*
*Cabinet approval for Post Bank*
Published:  7/12/2010 at 02:28 PMOnline news:
 The cabinet meeting agreed in principle to a  plan to set up Post Bank  to provide small soft loans for an estimated  14-18 million people who  are denied access to other financial sources,  Information and  Communication Technology Minister Juti Krairerk said on  Tuesday.

  Post Bank, to be set up under the umbrella of a state-run Thailand   Post Company, will have an initial registered capital of 50 million   baht, Mr Juti said. 

 The bank will only provide soft loans to a maxiimum of 10,000 baht   each and will not offer any money deposit services, the minister said.

 It is expected that the new micro-finance bank will start operations   in February next year, when about 10 pilot branches of the bank will be   opened to provide lending services.

  Thailand Post was authorised by the cabinet to proceed with the   bank’s establishment and registration, selection of a board of   executives and recruitment of a management team and staff, said Mr Juti.

 The Daily News reported the new bank will lend to  small retailers  and  other people with an average income around 5,000 baht a month   and  those in debt to loan-sharks.

----------


## StrontiumDog

*http://www.bangkokpost.com/breakingn...-b10-wage-hike
*
*Workers to press for B10 wage hike*
Published:  8/12/2010 at 12:15 PMOnline news: Economics
 About 1,000 workers will rally in front of the  Labour Ministry on  Thursday to press for a 10 baht rise in the minimum  wage, labour leader  Manas Kosol said on Wednesday.

 Mr Manas, president of the Labour Development Council of Thailand,   said the rally was set for Nov 9 when Central Wage Committee would hold a   meeting to consider the new minimum wage for 2011.

 He said although most workers wanted the new minimum wage to go up to   250 baht per day, as proposed by Prime Minister Abhisit Vejjajiva, or   421 baht per day as demanded by certain groups of workers, these figures   were unlikely to be possible.

 The workers should be satisfied a 10 baht rise, which was more reasonable, he said.

 Sunan Pothong, chairman of a technical subcommittee of the Central   Wage Committee responsible for proposing a suitable wage rise, said his   panel would propose an increase which was likely to satisfy the LDCT,   but some groups who demanded as high as 421 baht per day would be   disappointed.

 He declined to reveal the amount of increase to be proposed to the Central Wage Committee tomorrow.

 On Tuesday, the Thai Labour Reconciliation Committee (TLRC) issued a statement demanding a 421 baht miminum wage.

 The committee said if this was not possible Mr Abhisit's proposal for   250 baht per day minimum wage nationwide would be acceptable.  However,   it said an increase of 10 baht per day would not be enough to enable   workers to have a quality living condition.

 The current minimum wage is 206 baht per day for Bangkok and surrounding provinces and slightly lower in other provinces.

----------


## StrontiumDog

*TAN_Network*                             Labour Board increases  minimum wage by an  average of 11 baht per day; Phuket sees biggest  increase of 17 baht;  effective Jan 1, 2011

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...o-b11-pay-hike
*
*11 baht a day average pay increase*
Published:  9/12/2010 at 03:19 PMOnline news: Local News
 The tripartite National Wage Committee has  agreed to increase the  minimum daily wage throughout the country by an  average 11 baht,  Somkiat Chayasriwong, labour permanent secretary, said  on Thursday.

 Labourers in Phuket, where the daily wage is 204 baht, will get   another 17 baht a day -- the highest of all -- lifting them to 221 baht.

 Those in Bangkok and neighbouring provinces will get a new daily wage entitlement of 215 baht a day.

 Workers in seven provinces -- Phayao, Si Sa Ket, Amnat Charoen,  Nakhon  Sawan, Phetchabun, Uthai Thani and Prachuap Khiri Khan -- will  receive  the lowest rise at 8 baht a day.

 Workers in 24 provinces get 9 baht hike. They are Nan, Tak, Surin,   Maha Sarakham, Nakhon Phanom, Chaiyaphum, Lampang, Nong Bua Lam Phu,   Chiang Rai, Buri Ram, Roi Et, Yasothon, Sakon Nakhon, Chai Nat, Suphan   Buri, Trat, Lamphun, Samut Songkram, Ang Thong, Chiang Mai, Ayutthaya,   Saraburi, Samut Prakan and Bangkok.

 Workers in 16 provinces get a 10 baht increase. They are Phitsanulok,   Mae Hong Son, Uttaradit, Mukdahan, Kalasin, Khon Kaen, Kamphaeng Phet,   Nong Khai, Nakhon Nayok, Loei, Sa Kaeo, Nakhon Ratchasima, Nonthaburi,   Nakhon Pathom, Pathum Thani and Samut Sakhon.

 Workers in six provinces get an extra 11 baht. They are Pattani,   Narathiwat, Ubon Ratchathani, Sing Buri, Phetchaburi and Rayong.

 Workers in 10 provinces get 12 baht rise. They are Phrae, Phichit,   Sukhothai, Udon Thani, Yala, Chanthaburi, Kanchanaburi, Lop Buri, Ranong   and Chon Buri.

 Workers in seven rpvoinces get 13 baht rise. They are Surat Thani,   Chumphon, Trang, Ratchaburi, Phangnga, Chachoengsao and Prachin Buri.

 Workers in three provinces get 14 baht rise. They are Phatthalung, Satun and Krabi.

 Workers in two provinces get 15 baht rise. They are Nakhon Si Thammarat and Songkhla.

 Mr Somkiat said the wage rise will benefit about 2 million Thai   workers and 2 million foreign labourers. An estimated 14.69 billion baht   in extra money will be circulated into the economiy as a result of the   wage rise.

 The new wage rise will be effective as of Jan 1, 2011.

----------


## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038354

The Bank for the Poor 

UPDATE : 9 December 2010                           *

To many, it was a dream come true when  the Democrat-led government  finally push through the establishment of a  micro-banking system under  which a banking service will be offered at  the Thailand Post offices  across the country.

Micro financing brings funds closer to the poor and small-time borrowers   and help reduce dependence on informal lenders and loan sharks who   charges exorbitantly high interest rates and relies on coercion and   threats to ensure repayment.* 

On Tuesday (Dec 7), the Cabinet gave a nod to Thailand Post to set up a   subsidiary company with a registered capital of 50 million baht to   provide micro finance for ten million people who are ineligible to   borrow money from commercial banks.

The Cabinet indicated that the new bank, or so-called Thailand Post   Bank, may offer up to 10,000 baht in loan per client, and no collateral   is required for the loan, since borrowers will guarantee repayment of   each other’s loans. This is a condition in favor of the poor and those   with low income.

The bank will charge interest at a rate lower than that stipulated by   the law. That means a micro finance client will pay interest at the rate   below 28 percent a year, compared to the exorbitant 20 percent a month   charged by loan sharks. In addition, the process of debt settlement  will  be done within the scope of law and in a fair manner.



 The concept is worth being implemented because it will benefit a large   number of people. It works with Bangladesh’s Grameen Bank, which allows   the poor to get fast cash to start up a business. Incredibly, the bank   has a very low level of bad debts. 

However, everything has its good and bad points. Since the Thailand Post   bank is not different from other commercial banks, it still has to   operate under the same set of rules. That means it has to set aside a   sufficient amount of cash reserves and do not allow defaults to pile up   and cause the bank to collapse. The bank’s board must be made of   professionals with vast knowledge and expertise in credit management.

To prevent defaults, the bank needs cooperations from people in the   community. Postmen who deliver letters as well as collect debt repayment   will play a big part in making this new micro finance system works.    These individuals are the closest to clients. It will be more difficult   for borrowers to avoid repaying their loans.

Micro financing is one of many ways to help reduce disparities in the   society. It is what every government in the past were well aware of and   attempted to achieve. For now, the Abhisit Vejjajiva administration   could take the credit for finally making it happen, though it has yet to   be known whether the Thailand Post bank can fulfill its objectives and   live up to the lofty expectations.


*Editorial, page 2 of Analysis Section, Post Today newspaper, December 9th, 2010.
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._

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...6-7-wage-boost
*
*Workers set to enjoy 6.7% wage boost*
Published: 10/12/2010 at 12:00 AMNewspaper section: News
 The National Wage Committee has agreed to raise the daily minimum wage around the country by between 8 and 17 baht.

 
Supporters of the Labour Congress of Thailand rally yesterday in  front  of the Labour Ministry to pressure the Central Wage Committee to   increase the minimum daily wage by at least 10 baht. APICHART JINAKUL

 The raise, which amounts to an increase of 6.7% on average, is considered a big jump.

 The increase takes the average minimum wage to 176.3 baht a day, said   Somkiat Chayasriwong, the permanent secretary for labour and chairman   of the wage committee.

 Mr Somkiat attributed the raise to the government's policy to reduce disparity in society.

 The Social Security Office says about 2 million Thai workers and 2 million migrant workers will benefit from the increase.

 The raise for Thai workers adds more than 6.92 billion baht to the   national payroll, while the increase for migrant workers adds up to more   than 7.78 billion baht.

 The increase will boost the purchasing power of the 4 million workers by 14.69 billion baht.

 The increase of 17 baht in the minimum wage in Phuket, from 204 baht to 221 baht, is the highest in the country.

 The minimum wages in Bangkok and nearby provinces were put on an equal footing of 215 baht a day.

 The minimum wage in Bangkok and Samut Prakan was raised by nine baht   from 206 baht. In Nakhon Pathom, Pathum Thani, Samut Sakhon and   Nonthaburi, it was increased by 10 baht from 205 baht.

 Workers in Nakhon Si Thammarat and Songkhla received the second-highest raise of 15 baht.

 Workers in seven provinces - Phayao, Si Sa Ket, Amnat Charoen, Nakhon   Sawan, Phetchabun, Uthai Thani and Prachuap Khiri Khan - received the   lowest raise of eight baht.

 The minimum wage in Phayao, at 159 baht a day, remains the lowest in the country.

 Prime Minister Abhisit Vejjajiva earlier suggested that the minimum   wage be raised to a flat rate of 250 baht across the country.

 Mr Somkiat said it would take time to raise the figure to 250 baht   nationwide as any increase must be made gradually. It would affect   employers' ability to pay wages and workers could suffer if it was done   at once.

 Pannaphong It-atthanan, an employer representative on the wage   committee, said the government should offer direct subsidies to   low-income workers instead of pushing for minimum wage raises.

 He suggested the government control the rise in commodity prices that   often follows the minimum wage increase, otherwise workers would not   benefit from their pay raises.

 Employees' Labour Development Council of Thailand chairman Manas  Kosol  said he was quite satisfied by the wage committee's decision.

 However, he still wanted the committee to review the raise for provinces where the pay increase was less than 10 baht.

 Workers' living conditions in those provinces are still below general living standards, he said.

----------


## StrontiumDog

*http://www.bangkokpost.com/breakingn...-wage-too-high
*
*FTI: Daily wage rise ‘too high’*
Published: 10/12/2010 at 02:38 PMOnline news:
 The increase in the daily minimum wage around  the country of between  eight and 17 baht by the National Wage Committee  on Thursday was too  high, the Federation of Thai Industries (FTI) said.

 FTI deputy chairman Thaweekij Chaturacharoenkul said the appropriate   daily minimum wage increase should be no more than eight baht.

 Mr Thaweekij said such a high wage hike would have a severe effect  on  small and medium enterprises (SMEs) without much back up capital.

 “If the SMEs cannot afford the wage hike, they will have no choice but to lay off their workers,” he said.

----------


## FlyFree

> Yes, that massive increase will improve the average workers lot



Yes, on the surface it seems so. But then, there may only be 1 guy on the back of the water delivery truck etc., the rest sitting without an income. Always a contentious issue, min wage.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...ist-wages-rise
*
*Bosses blast 'populist' wages rise*

*SMALL BUSINESSES FEAR CRISIS* 
Published: 12/12/2010 at 12:00 AMNewspaper section: News
 The Federation of Thai Industries (FTI)  yesterday slammed the daily  minimum wage increase, saying it would  adversely affect the garment  sector and small-to-medium enterprises.

 FTI vice-president Thanit Sorat said the garment sector would  struggle  to stay competitive with Vietnam and Malaysia because wages  here are  two to three times higher.

 He noted that big industries such as motor vehicle and electronics   firms would be least affected by the wage increase or would not feel the   pinch at all.

 "Don't lean on a populist policy and overlook the consequences," he said.

 He called on the government to formulate a national labour policy ensuring wages are linked to workers' skills.

 He said the FTI would hold talks on the new wage structure tomorrow   and submit a petition to the government calling for a review.

 The National Wage Committee has agreed to raise the daily minimum  wage  across the country by between eight and 17 baht. The pay rise,  which  amounts to an increase of 6.7% on average and takes the average  minimum  wage to 176.3 baht a day, will take effect on Jan 1.

 Mr Thanit said the pay rise would lead to higher prices for consumer goods.

 FTI vice-president Thawee Piyawattana said the government should have   paid heed to the lower pay rises proposed by the provincial wage   committees. These proposals reflected the real situation as they were   based on input from workers, employers and state officials, he said.

 Mr Thawee said the wage increase would add salt to the wounds of the   export sector which has already been affected by a strong baht and high   interest rates. "When wages are too high and orders are in decline,   massive lay-offs are around the corner," he said. "Another crisis is   waiting to happen."

 Somphop Thirasan, president of Kanchanaburi-based FTI, raised similar   concerns, saying the new wage rates could put several SMEs out of   business.

 He also called for a revamp of the wage structure, saying it should  be  based on the operators' ability to pay and the competency of the   workers.

 Mr Somphop said the Kanchanaburi FTI had already submitted a petition   to the provincial governor demanding a review of the wage rise.

 However, the Khon Kaen provincial chamber of commerce yesterday   welcomed the pay rise, saying it would boost purchasing power and   stimulate the local economy.

 Boonlert Buranasakda, the chamber president, said the hike would   result in lower staff turnover, making it possible for workers to   improve their skills and increase productivity.

----------


## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038405

Finance Minister Rules Out Review of Minimum Wage Increase 

UPDATE : 13 December 2010                           *

The finance minister reaffirms that the  recent minimum wage increase  was appropriate, while ruling out the need  for an immediate review as  is being demanded by the private sector.

Finance Minister Korn Chatikavanij said there is no need to review the   recent increase in minimum wage, as the decision was already endorsed by   a tripartite committee in which representatives from the business   sector were also involved.

In addition, he noted that the previous wage hikes were inconsistent   with the rising cost of living and it was the government's job to   address the problem.

Korn further stated that since businesses have been seeing steady   increases in profits, as evidenced by higher corporate tax revenue, they   should spread the wealth to employees.
*

Secretary-General of the Federation of Thai Industries, or FTI, Sommart   Khunset said the FTI is holding a meeting to discuss the recent   daily-wage increase, which it believes are inappropriate.

Somphop Theerasant, the head of FTI's Kanchanaburi office, said that FTI   offices nationwide plan to submit a letter to provincial governors in   order to pressure the government to reconsider the hike.

He felt the increase of 8 to 17 baht was too high and could affect   production costs as well as production capacity of small and medium   businesses in particular.

Somphop added that, the worst that could happen would be that some   companies could be forced to close their businesses, if they are unable   to meet the mandated increased payroll.

----------


## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038430

NESDB Confident Wage Rise Poses No Impact on Inflation 

UPDATE : 13 December 2010                           *

Thailand’s leading economic think tank is  not worried about the  increase in the local minimum wage and its impact  on inflationary  pressure. 

However, it is more concerned about rising interest rates.

National Economic and Social Development Board or NESDB Secretary   General Arkhom Termpittayapaisith said that the recent minimum wage   rise, approved by the Central Wage Committee, will likely drive the   private sector’s costs up by a mere ten percent.    

He said business operators see the biggest portion of their costs coming from raw materials and energy.   

Arkhom said the NESDB has forecast that the global oil price will range   between 80 and 85 dollars a barrel and local inflation will be at 3.5   percent in 2011.   
*

The economic think tank chief is also calling on the private sector to   quickly improve their quality and labor skills to offset the effects of   the rising wages.   

Arkhom stressed that continued improvement on workers’ skills is   essential for any business, which wants to increase its competitive edge   and sustain growth.   

He went on to comment that the Bank of Thailand’s recent interest rate   increase can have a considerable impact on local businesses, especially   those with sizable inventory.

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## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038424

Industries Federation Discusses Impact of Minimum Wage Increases 

UPDATE : 13 December 2010                           *

The public is concerned that the increase  in minimum wage by between  eight and 17 baht per day, will result in  higher product prices. 

Meanwhile, the Federation of Thai Industries is holding a meeting to discuss the effect of the hike.

After the Tripartite Wage Committee decided to raise the daily minimum   wage by between eight and 17 baht last week, the Federation of Thai   Industries, or FTI, is holding a meeting today to discuss the issue. 

The FTI believes the wage increase is too high and may put a strain on the industrial sector. 

Head of the FTI's Kanchanaburi office Somphop Theerasarn said that FTI   offices nationwide plan to submit a letter to provincial governors in   order to pressure the government to reconsider the hike before the new   daily minimum wage will be put into effect in January. 
*

Akom Termpittayapaisit, secretary-general of the National Economic and   Social Development Board, stated that he believed the increase will have   no impact on inflation in 2011 which is projected to stand at 3.5   percent. 

Akom further said that although the hike in daily wage increases the   private sector's production cost, it accounts for only ten percent of   total costs. 

The major production costs come from raw materials and electricity. 

He added the NESDB estimates that the price of crude oil would fluctuate   within the range of 80 to 85 US dollars per barrel next year. 

In the meantime, the wage adjustment has raised concern among the public   that traders will exploit the situation to raise product prices. 

The public asks the government to closely monitor the prices of   commodities and other necessities, such as sugar, to ensure that prices   are reasonable and are in line with actual costs. 

Meanwhile, Manop Surapongvanitkul, operator of a dessert shop, said   manufacturers are already shouldering a higher production cost from   rising oil prices. 

He added the inadequate supply of agricultural product as a result of   severe flooding has caused prices of products like coconut milk to   double. 

Manop called on the government to find ways to ease the impact of the wage hike on businesses.

He said he has to raise the daily wage for all 25 workers in the shop   and have to raise product prices to meet the higher production cost. 

Another retail trader said product prices are now extremely high which is partly a result of the recent flooding. 

He asked state authorities to monitor middlemen to ensure that there is no hoarding.

----------


## StrontiumDog

*http://www.bangkokpost.com/business/...mand-increases
*
*Manufacturers demand increases*

*Government mulls extending freeze policy* 
Published: 14/12/2010 at 12:00 AMNewspaper section: Business
 The government is coming under growing pressure  from a myriad of local  producers to raise prices as the minimum wage and  oil prices rise.

 Packaged rice producers are the latest sector to submit its plea to   the Internal Trade Department, asking for a raise of 5-10 baht per   package after auto batteries, electrical wires, steel, chemical   fertiliser, palm oil and pork producers already submitted their requests   for price increases.

 Producers of cooking palm oil, for instance, want to raise the price   of a one-litre bottle from 38 baht to 48, while milk producers have   asked since September to increase the price for a 250cc bottle from   16.50 baht to 17. Manufacturers of chemical fertiliser want to raise   their retail prices depending on each formula.

 The requests came despite the government announcing it is considering   extending the Commerce Ministry's price-freeze policy for another three   months after it expires this month.

 Vatchari Vimooktayon, director-general of Internal Trade Department,   said the department prepared a study on the impact on product prices of a   hike in the daily minium wage and rising diesel prices. The study will   be presented to the cabinet at its meeting today.

 Last week, the National Wage Committee agreed to raise the daily   minimum wage across the country by between eight and 17 baht, an   increase of 6.7% on average that takes the average minimum wage to   176.30 baht a day. The increase will take effect on Jan 1.

 The move drew prompt rebukes from businesses, which likened the   increase to adding salt to the wounds of the export sector that has   already been affected by a strong baht and high interest rates.

 Payungsak Chartsutthipol, chairman of the Federation of Thai   Industries (FTI), said yesterday the private sector is planning to   submit a letter to the National Wage Committee asking for an explanation   for the increase.

 "We have questions about the method used to determine the wage   increase, since the decision by the academic committee and each   provincial committee was not the same, with some provinces seeing an   increase of nine baht from the initial decision of three baht," said Mr   Payungsak.

 "We expect a reasonable explanation with the possibility of reconsideration."

 FTI vice-chairman Thanit Sorat said there was no appropriate justification for the increase.

 "We do not have the source of the figures. Some provinces, such as   Yala and Narathiwat, are situated next to each other but have different   wages, while other provinces with low inflation had wages increased by   14-15 baht," he said, adding the committee used only one hour to make   the decision.

 Singh Tangcharoenchaichana, chairman of the central region's FTI,  said  he is concerned the issue will affect foreign investment in the  future  due to inconsistencies in government policies.

 He said the decision will mostly affect small and medium-sized   enterprises (SMEs), as they will not receive as many orders from large   companies.

 "The timing is strange. It's like [the government] is trying to win   votes by populist policies similar to free bus rides," said Dr Singh.

 Ekaporn Kosakanchit, chairman of the eastern region's FTI, said   although wage increase won't affect the region much because many of the   businesses are large companies with labour shortages such as the   electronic parts industry, some SMEs that are original equipment   manufacturers may feel the pinch.

 The approved wage increase may lead companies in all sectors to lay off 10-15% of workers, Dr Singh warned.

 In a related development, Deputy Finance Minister Mun Patanotai said   the government may need to cut the excise tax in order to ease the   impact of soaring oil prices if they reach US$95-100 per barrel.   However, he still believes oil prices, now quoted at an average of $88 a   barrel, will likely drop after winter in Europe and the US passes.

----------


## StrontiumDog

*http://www.nationmultimedia.com/2010...-30144350.html
*
*FTI protests as ministry pushes for hike*

                            By The Nation
                                             Published on December 14, 2010                


*Federation says rates distorted, might hurt businesses, scare away investors*

                                                            The Labour  Ministry will go ahead and ask Cabinet to  approve a hike in the minimum  daily wage despite protests from the  Federation of Thai Industries  (FTI). 

If Cabinet gives the increase the green light today, workers nationwide will get between Bt8 and Bt17 more each day. 

"I want to deliver this wage hike as a New Year's gift to workers," Labour Minister Chalermchai Sri-on said yesterday.

However,  the FTI expressed doubts about the Central Wage Committee's  decision to  approve the hike at a rate much higher than that proposed  by provincial  wage committees. 

"If possible, the government should review the plan," FTI president Payungsak Chartsutipol said. 

The  federation convened a meeting to discuss the "controversial" plan   yesterday, and later asked the government to explain why the Central   Wage Committee's rate of increase was much higher than what was proposed   by provincial wage committees. 

"The provincial committees have only proposed a hike of between Bt2 and Bt10," an informed source said. 

For  instance, the provincial wage committee proposed a Bt2 daily wage   increase in Pattani, but Central Wage Committee approved a Bt11 hike. 

The  same source said the Central Wage Committee was also seeking to  award  Bt8 more than the amounts proposed by the provincial panels for  workers  in Yala, Phang Nga, Trang, Surat Thani, Ratchaburi, Chumphon,  Krabi,  Phatthalung, Satun, Nakhon Si Thammarat and Songkhla. 

Sing  Tangjaroenchaichai, who heads the Federation of Industries in the   Central region, said the Central Wage Committee didn't just listen to   the provincial wage committees, it also paid attention to   recommendations made by a newly established academic panel. 

"That's  why the rate has been distorted. If we allow this to happen,  the country  may lose its appeal in the eyes of foreign investors," Sing  claimed. 

He said the much higher minimum daily wage would definitely hurt entrepreneurs in the food-processing and apparel sectors. 

"We  will send a letter directly to Prime Minister Abhisit Vejjajiva,"  FTI  vice-president Taweekij Jatujarernkhun said, adding that if the  rate was  too high, some businesses may have to lay off workers.

However,  Chalermchai said he did not believe the wage hike, sought by  the Labour  Ministry based on the Central Wage Committee's  recommendation, would  adversely affect business owners. 

"If any employer feels his or her  business is going to crumble because  of the pay hike, then they should  step forward with evidence," the  minister said. 

Chalermchai said  employers should not complain about the hike, but  focus instead on how  to use the higher pay to motivate their workers to  become more  productive and efficient. 

Meanwhile, Thai Labour Solidarity  Committee rep Wilaiwan sae Tia said  the proposed rates were in fact  still lower than what workers wanted.  "But the offer is not too bad,"  she said.

However, Wilaiwan urged the government to control product  prices  because if the cost of living rose too high, the wage hike would  do  nothing to improve workers' quality of life.

----------


## GoodMyFarang

Ok, just got Order from our CEO, as Salary increase 6.7% we need to reduce 10% of worker until Q1/2011, thats other side of this hugh increasment......

Anyways going for X-Mass holidays to europe now and will be back NY

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## StrontiumDog

http://www.tannetwork.tv/tan/ViewData.aspx?DataID=1038478

Wage Committee Firm on Wage Hike Decision 

UPDATE : 14 December 2010 

*The Central Wage Committee is standing firm on its decision to raise local minimum wage announced last week. 

The wage increase has been more than welcomed by laborers across the country, with many giving credit to the prime minister.   

Labor Ministry Permanent Secretary Somkiat Chayasriwong, who also chairs   the tripartite Central Wage Committee, said there will not be any   backdown from the recent decision to raise the minimum wage by eight to   17 baht.   

Somkiat said the wage increase decision has been thoroughly considered,   based on the recommendations of all provincial wage committees.   

He added that the increase is intended to help local workers have a   better quality of life, which suits their local geographical conditions.     

The permanent secretary also said that the Labor Ministry is ready to   clarify the wage rise decision with the Federation of Thai Industries,   which publicly showed its discontentment.   
*

He also welcomes business operators who claimed to be affected by a   higher minimum wage to discuss the matter at the ministry to find proper   solutions.   

Meanwhile, Confederation of Thai Laborers Chairman Manas Kosol said   Prime Minister Abhisit Vejjajiva should be praised for making a promise   to drive the minimum wage to 250 baht a day.   

He said Abhisit's remark undeniably attributed to the upward swing in the country’s wages.   

However, with 31 provinces seeing no change in minimum wage next year,   Manas said that around 200 workers will submit a letter to the Labor   Ministry permanent secretary tomorrow to urge for a review of such a   decision by related provincial wage committees.

----------


## Tom Sawyer

> *TAN_Network* Labour Board increases minimum wage by an average of 11 baht per day; Phuket sees biggest increase of 17 baht; effective Jan 1, 2011


So around 5-7% for the working poor. That's a TOTAL daily wage of around 6 dollars per day - about 75-cents an hour at best.

Meanwhile today, the army-installed lower house and the appointed upper house of Parliament just gave themsleves nearly 15% more in salary. Timing was coincidental, I'm sure.

Sweet.

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## StrontiumDog

^ Indeed, something is very wrong here....the poor get shafted while the incompetent, corrupt politicians award themselves a fat rise....for doing very little it seems.

----------


## StrontiumDog

Cabinet approves minimum wage rise despite heavy criticism : National News Bureau of Thailand

*Cabinet approves minimum wage rise despite heavy criticism   *  

BANGKOK, 15 December  2010 (NNT) - The Cabinet on Tuesday gave a green  light to the minimum  wage rise despite warnings by the private sector  of detrimental effects  on the economy.  

Deputy Government Spokesperson Watchara Kannikar announced that the   Cabinet had approved the minimum wage hike by 8-17 baht, depending on   the province, which would come into effect on January 1st, 2011.   

Phuket will become the province with the highest minimum wage at 221   baht per day, whereas Phayao province will have the lowest rate at 159   baht per day. 

Mr Watchara elaborated that the Prime Minister intended to increase the   minimum wage to 250 baht per day and had discussed with the Labor   Minister about the matter; however, the appropriate rate could only be   settled at 221 baht. 

Earlier, the private sector warned the government of detrimental effects   from the wage hike on Thai entrepreneurs, especially the small and   medium businesses who could not pay higher wages. They said the increase   would also raise the production costs of Thai products, which are   competing against other countries. 

Meanwhile, Government Spokesperson Panitan Wattanayakorn clarified that   the wage rise would also help set the salary standard for the entire   country. As for the move to raise the salary for local administrative   officers, he said the Cabinet had postponed its consideration to next   week as it needed more time to study the issue.

----------


## Tom Sawyer

> ^ Indeed, something is very wrong here....the poor get shafted while the incompetent, corrupt politicians award themselves a fat rise....for doing very little it seems.


Meantime, the present Government also stands accused of having one of the worst records of Parliamentary attendance by its members - to the extent they often can't reach a quorum. 

http://www.nationmultimedia.com/2010/12/15/national/MPs-failure-to-attend-meetings-a-key-concern-30144459.html

----------


## StrontiumDog

*http://www.nationmultimedia.com/2010...-30144627.html
*
*New-year gift for grass roots*

                            By Nophakhun Limsamarnphun
The Nation
                                             Published on December 17, 2010                


*Government's populist 'Pracha Wiwat' policy    will alleviate cost of living problem of the poor* 

                                                            The  government will unveil its action plan for the new  "Pracha Wiwat"  populist policy on January 7 - aimed at winning the  hearts and minds of  grass-roots voters.

The action plan will  include measures to ease the cost of living for  the poor and help  hundreds of thousands of workers in the informal  economy join the social  security system and get cheap loans from  state-owned banks.

Finance Minister Korn Chatikavanij said yesterday that Prime Minister Abhisit Vejjajiva would announce these measures as a New Year's gift to the people.

These  measures will be the product of a new management style aimed at   overcoming cross-ministerial challenges in order to solve complex   socio-economic problems affecting the grass-roots population, Korn said.

According  to recent government surveys, pressing issues include a lack  of  farmland, the rising cost of living, lack of a safety net and  reasonable  credit for informal-sector labour, corruption and rising  crime rate.  Korn said senior officials from more than 30 government  agencies had  worked full-time at the new government office complex on  Chaeng Wattana  Road for five weeks to come up with ideas to tackle  these issues.

Officials  also invited more than 1,000 farmers, street vendors and  motorcycle  taxi and cab drivers to join the brainstorming sessions  before  finalising proposals for the government.

"Previously, our problem  was a lack of effective intra-agency  coordination, lack of a uniform  database and lack of common goals and  vision.

"Therefore, the  prime minister asked all ministries concerned to send  their  representatives with the authority to act to work at the  government  complex for five weeks, [starting around mid-November].

"The  premier himself came here a few times to chair the sessions. The   national police chief and the Bangkok governor also came here to join   some of the sessions as we also have to deal with corruption, crime,   street vendors and other issues related to police and local government   jurisdiction.

"Basically, we encouraged all to think and act outside the box under this Pracha Wiwat policy," he said.

Such  a populist policy is expected to lead to new measures to manage  the  prices of basic food items, especially eggs, pork and chicken, and   energy prices, especially for diesel, LPG (liquefied petroleum gas) and   household electricity.

All these items are listed as top priority for the government to tackle, according to surveys.

Regarding  diesel, a Bt5-billion subsidy is being planned to cap the  price below  Bt30 per litre, while LPG used for households and  transportation would  be further subsidised, but LPG used by industry  would be subject to the  world market price.

Regarding electricity, households consuming less than 90 units per month will continue to get power free of charge.

The  government will help workers in the informal economy to enjoy  social  security benefits so that they have some form of a safety net.

These  include motorcycle taxi drivers, street vendors and cab drivers  in  Bangkok and major provinces who do not have long-term savings or  access  to bank credit.

Dr Sangsit Piriyarangsan, a government adviser on  the Pracha Wiwat  policy, said workers in the informal economy have to  rely on loan  sharks when they need to urgently borrow Bt10,000-Bt20,000.

"Basically,  we have to compete against illegal loan providers in  convenience and  speed. One solution is to set up a system with the  Government Savings  Bank to pre-register these workers for a certain  credit line.

"When they need money, they can get cash relatively quickly, possibly within a few days, if they already have the credit line.

"In the future, this will be a new form of social enterprise," he said.

Sangsit  also proposed that the government turn to electronic  distribution of  state lottery tickets to solve the price-gouging  problem.

For  years, most state lottery tickets have been sold at higher than  their  official price largely due to various powerful interest-groups.

The  government should sell the tickets directly to buyers via  electronic  dispensers without going through the middlemen who jack up  the price, he  added.

----------


## StrontiumDog

Interesting, don't raise the minimum wage that much, but instead give/bribe the poorer sections of society (read; Isaan) with multiple 'gifts'. 

I've included the above here for that reason.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...ilo-definition
*
*Experts call on govt to use ILO definition*
Published: 22/12/2010 at 12:00 AMNewspaper section: News
 Labour experts are urging the Thai government to adopt the International Labour Organisation's definition of the minimum wage.

 The ILO defines a minimum wage as one that can support all members of a worker's family.

 Speakers at a seminar on the topic yesterday at a Bangkok hotel said   workers should campaign for the government's ratification of ILO   convention 131 on minimum wage fixing. The convention gives the broader   definition of the minimum wage to cover workers' families.

 The present definition of the minimum wage in Thailand refers to an   amount sufficient to cover the expenses of a worker only, they said.

 Pokpong Janvit, an economics lecturer at Thammasat University, said a   minimum wage should be sufficient for a worker to take care of his or   herself and their family members.

 It should also be enough for them to afford further education and recreation, he said.

 A reasonable minimum wage would also reduce the gap between the rich   and the poor and solve social inequities, which are a major problem in   Thai society, the lecturer said.

 The seminar was organised by the Friedrich-Ebert-Stiftung Foundation and Thai Labour Reconciliation Committee.

----------


## Tom Sawyer

Looks like they timed their meeting a bit late.. The minimum wage hike was annoucned the week before. Too bad.

----------


## Panda

The country simply can not afford a substantial rise in minimum wage while it is labouring under an inept administration with corruption rife at every level of society.

And in any case, this proposed wage rise is not a wage rise at all as it will soon be eaten up by the inflation in the prices of necessities it causes. Its just a political a bribe that will soon evaporate. The only viable ways to increase wages for the poor is to 1. increase productivity, and/or 2. create a fairer redistribution of wealth which would mean clamping down on corruption and raising taxes on the rich; --- Neither of which is going to happen.

----------


## who

> Originally Posted by Bettyboo
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Clogiron
> ...


 
     Perhaps 'even worse' should be: 'even BETTER'

The top levels are where the vast majority of saving takes place.

From savings come: Investment ergo jobs ergo growth ergo "progress".

     Ah but then again the the world would undoubtedly be a more prosperous place if the 'po folks' ran it.

----------


## who

> Sorry SD I have to agree with BB's POV here
> 
> There are major cost of living differances across the UK, I make referance to my home country, yet the minimum wage is a national minimum irrespective of the cost of living.
> 
> If one wishes to look at the delta of minimum wage between provinces in Thailand a cynic may cry "Financial Suppression" or even worse "Ethnic Discrimination" , personaly I am not that cynical myself but I understand how some radicals could be.
> 
> Minimum wage should be applicable country wide and if a potential employee feels it is more benifitial to himself to stay in the provinces than to absorb higher overheads in Bangkok then so be it, when employers need staff the rate will rise above the minimum to compensate. I remember the days of reading vacancies in the Telegraph and seeing an uplift for a London Posting.
> 
> I am not sure which party implemented the staggered minimum wage but the party that abolish it and make it a flat rate country wide would be taking 2-3 steps in the right direction.


 Econ 101 would teach otherwise.
.

----------


## who

[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 !

----------


## StrontiumDog

*http://www.nationmultimedia.com/2011/01/05/national/Companies-told-to-|follow-wage-hike-30145707.html
*
*Companies told to follow wage hike*

                            By The Nation
                                             Published on January 5, 2011                

*Employers who fail to  pay higher wages to workers  after an approved hike in minimum daily pay  will be punished, the  Department of Labour Protection and Welfare  warned yesterday.* 

                                                            The hike,  due to take effect on January 1, means  workers on minimum pay will earn  from Bt8 to Bt17 more each day,  depending on which province they work  in. 

 The department's director general Amporn Nitisiri said  employers who  fail to pay the higher minimum wage could face a jail term  of up to six  months and/or a fine up to Bt100,000.

Amporn said 31  employers were found to have paid their workers less  than the minimum  daily wage between October 2009 and September 2010 -  15 of whom were  prosecuted. 

*More pay for teachers* 

Cabinet yesterday approved extra monthly  pay for teachers with private  primary and secondary schools. The  approval requires Bt267.4 million  for back pay for 89,816 teachers from  May to September last year, and  another Bt641.7 million for pay from  October 2010 to September 2011.

----------


## StrontiumDog

*http://www.bangkokpost.com/breakingn...e-minimum-wage
*
*PM: Govt to raise minimum wage*
Published: 27/02/2011 at 11:56 AMOnline 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.

----------


## Mid

^

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 ?

----------


## Panda

> 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?

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...wage-hike-plan
*
*Industry opposes second wage hike*
Published: 28/02/2011 at 01:02 PMOnline 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)

----------


## OhOh

> 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 ...... :Roll Eyes (Sarcastic): 

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

----------


## OhOh

It's great to live in a country with a positive balance of payments. Not many western countries can say the same.

Trade balance (Bil. USD)

2007 12.8, 2008 0.1, 2009 19.4, 2010 11.3+14.9

Source: Thai Economic Performance in Q2 and Outlook for 2010, August 23, 2010, Office of National Economic and Social Development Board

----------


## Mid

*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

----------


## OhOh

> “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". :Roll Eyes (Sarcastic):

----------


## 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.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...y-boost-pledge
*
*Business pans 25% salary boost pledge*
Published: 10/03/2011 at 12:00 AMNewspaper 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)

----------


## StrontiumDog

*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.

----------


## Tom Sawyer

^
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.

----------


## genghis61

> 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.

----------


## SteveCM

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

----------


## StrontiumDog

*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.

----------


## Mid

> Minimum wage to increase by April 2011





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


.....

----------


## StrontiumDog

*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.

----------


## 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 ?_ 
_

----------


## Rural Surin

> _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. ::chitown::

----------


## Tom Sawyer

The great irony in all this regarding Abhisit and his British Passport etc, is that when the revolution eventually happens - he and his ilk will be scurrying off to their little bolt holes. He'll end up in the UK with Gi Ungraporn and Thaksin's (now vacant) terraced house. While most of the other military-connected types will be off to California and Pennsylvania -- but why Pennsylvania - does anyone understand the big connection there? I don't.

----------


## StrontiumDog

*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.

----------


## StrontiumDog

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._

----------


## StrontiumDog

*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.

----------


## Mid

> Bangkok Poll: Laborers want higher wages


You don't say .......................


thelionstarblog.blogspot.com

Christ I hope they don't get paid for that  :Sad:

----------


## StrontiumDog

*Abhisit to announce wage-hike plan today
*
*Abhisit to announce wage-hike plan today*

                            By The Nation on Sunday
                                             Published on May 1, 2011                


*Bhum Jai Thai vows to cut VAT from 7% to 5%*

                                                            Prime Minister Abhisit Vejjajiva will announce a policy  today to boost minimum wages by 25 per cent over the next two years, if  his party is re-elected to office.

The pledge will be made during a speech he will give to mark Labour Day.

A 25-per-cent hike would mean the minimum wage in Bangkok would rise to more than Bt250 per day from the current Bt216.

"The  premier has ordered Labour Minister Chalermchai Sri-on to inform the  tripartite central committee on wages to implement this policy at their  next meeting," said Buranat Samutarak, the Democrat Party spokesman.

The  party yesterday reassured that Abhisit would dissolve the House of  Representatives by the end of next week and that an election would be  held by the end of June.

Besides the wage hike pledge, Korbsak  Sabhavasu, the Democrat Party's top campaign official, will today unveil  more details of the party's economic platform for the election.

"He  will talk about the details at the Reporters' Association of Thailand,  covering the guidelines to help businesses and industries lower their  costs, tax reform, measures and incentives to support the wage hike,"  the spokesman said.

In addition, the premier will today visit  construction sites of mass-transit projects in Bangkok. The Democrats  also plan to boost farmers' income by 25 per cent through crop-price  guarantee schemes.

The party will also pledge a new interest rate and tax breaks for first home-buyers.

Meanwhile,  Bhum Jai Thai Party, a key partner of the Abhisit coalition government,  has proposed to cut the current 7 per cent value-added tax (VAT) to 5  per cent as one of its key policies for the upcoming election.

Chaovarat  Chanweerakul, the party leader and interior minister, said Bhum Jai  Thai expected to win 60-70 House seats in the upcoming poll.

"Our  proposal to reduce VAT by two percentage points is the major selling  point in this election. The tax cut will make the prices of goods  cheaper for consumers," Chaovarat said.

Prime Minister Abhisit was expected to dissolve the House of Representatives on May 6, Chaovarat said.

The election would have to be held within 45 days after that, according to electoral laws.

He  said the party would unveil its MP candidates after the House was  dissolved. Over the past two years, Bhum Jai Thai has controlled key  ministries, including Interior, Commerce and Transport.

The  opposition Pheu Thai Party, meanwhile, said if it wins the next election  it will raise the minimum wage to Bt300 per day and guarantee that  fresh college graduates will get a minimum monthly salary of Bt15,000.

In addition, Pheu Thai says it would switch back to using crop-pledging schemes to boost farmers' income.

Chart  Pattana Puea Pandin Party also said former deputy commerce minister  Goanpot Asvinvichit would lead its economic management team.

The  team includes former assistant to Thammasat University rector Montri  Thirakotai and Pirom Chantaworn, former dean of Thammasat University's  Faculty of Economics.

Goanpot said the party's economic policies  would emphasise social stability, people's wealth and a sustainable  economy. It would promote sportsmanship and unity of people as well as  tourism, agriculture and education. 

The party will also grant  scholarships for master's and doctoral programmes, while further  boosting Thai exports and implementing measures to boost farm prices.

Among its MP candidates are Paradorn Srichaphan, the former tennis rstar, and Olympic medallist Yaowapa Burapolchai.

----------


## StrontiumDog

*PM accepts nine-point list of demands submitted by workers
*
*PM accepts nine-point list of demands submitted by workers*

  วันอาทิตย์ ที่ 01 พ.ค. 2554
 

  BANGKOK, May 1 -- Prime Minister Abhisit Vejjajiva on Labour  Day accepted a nine-point list of demands, including a fair wage  increase in all fields of works and a ratification of International  Labour Organization (ILO) Convention, submitted by worker  representatives for consideration. 

 The acceptance was made while Mr Abhisit attended a Labour Day fair held  near the Bangkok Metropolitan Administration headquarters in central  Bangkok.

 Other key demands called for the government to set up a fund to help  workers who were laid off without compensation when their firms closed,  imposition of tight government control on prices of goods and to punish  violators, and an abolition of privatisation of state enterprises.

 The workers urged the government for tax relief, and for a child care as well as mother breast milk centres to be established.

 Responding to workers’ demands, Mr Abhisit said his government is now  moving to make several labour related laws to become enforced,  especially on an establishment of child care centres.

 He pledged that workers’ minimum wage would rise 25 per cent within the  next two years and the government would put forth effort to controlling  goods prices which have risen sharply during recent months. (MCOT online  news)

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## StrontiumDog

*Bangkok Post : Govt to raise minimum wage in 1 month

* *Govt to raise minimum wage in 1 month*Published:  1/05/2011 at 10:31 AMOnline news:_The government is now considering to increase  the daily minimum wage of workers to have it in line with rising cost of  living and the process will complete in one month, the prime minister  said.

 Prime Minister said this at his “Confidence in Thailand with PM Abhisit” weekly programme on NBT on Sunday morning._ _

 Mr Abhisit said his government has introduced a main policy to give  importance to workers over the past two year with the aim at improving  their living standards._ _

 He said the cabinet had lately agreed to raise daily wage of skilled  workers by between 200 to 500 baht, depending on their skills. He added  that the government has pushed forward the law to bring the outside  system workers to become members eligible to gain benefits from the  social welfare system._

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## Tom Sawyer

> Minimum wage to increase by April 2011 : National News Bureau of Thailand
> 
> Minimum wage to increase by April 2011
> 
> BANGKOK, 16 August 2010 (NNT) – The Government has targeted the new minimum wage to affect the low-income Thai workers by April 2011. 
> 
> According to Deputy Government Spokesperson Watchara Kanikar, the Cabinet on Monday agreed to adjust the minimum wage payment for Thai workers to an average 250 THB per day, as proposed by the Ministry of Labor.


Well April 2011 has come and gone. No minimum wage of 250 THB / day

But hey, Happy Labour Day (oh sorry they didn't get the statutory day off either, or the statutory overtime for working on the holiday..)

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## Buksida

Both parties are making promises they can't keep. It's a shame the electorate doesn't realize that more than higher wages are needed to improve things.

The crap education system doesn't turn out skilled individuals. Cambodian street kids speak better english than Thai uni graduates. Tech school students are mainly focused on killing each other.

So Thailand is forced to compete with poorer countries due to it's largely unskilled workforce.

We emloy 20 women, general they are hardworking, but don't like to take responsibility, they prefer repetive work where they don't have to think.

Thai men are another story, I only employ them when necessary. Those that aren't lazy are experts on everything and refuse to listen. 'Tradesmen' can do everything except read a plan or make a list.

There is a labor shortage, many employers are turning to foreign labor, not just because it's cheap.

The women really keep this place moving. It would be interesting to know just how much money foreign men with Thai birds bring in or send over.

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## SteveCM

^
Tried to "green" you for that - good to get real-life observation.




> The crap education system doesn't turn out skilled  individuals. Cambodian street kids speak better english than Thai uni  graduates.


Only anecdotal, but echoes my own experience. Karen hill-tribe  missionary-educated friend of mine learned good English and acquired good  computing/office skills pretty much self-taught. Was interviewed for a  job with a property sales/rental office and competed with 20 CMU  graduates with impressive CVs. Friend got the job on the spot - after  the employer had already interviewed over a dozen of the graduates. Not  one knew the first thing about office work and several had asked about  who they would be in charge of to tell _them_ what to do.

Frankly, the idea that any of the CMU applicants rated 15k as a starting salary is beyond fantastic. But, more or less as you say, both main parties are offering the earth - and Thaksin's response to the Dems' bid is to throw in the moon as well. I suspect it'll work well enough in terms of vote-garnering.

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## Buksida

Maybe this is the start of party's coming up with policies in order to get votes, let's see. Problem is Thais have a problem seeing past cash.

It's interesting your freind got a job, hill tribes are hard working than thais, but there is a lot of prejudice. Was the boss a farang?

Poor thais have to be resourceful, the hi-sos who haven't been educated overseas are the dumbest, shallowest ppl I've met. 

Thais aspire to uni education mostly for status. IMO the country needs skilled laborers and technical ppl, but this physical work is really looked down upon.

They could also consider giving some farang more permanent status, but Thais are unique, a foreigner knows nothing about the place and will never be consulted for anything.

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## SteveCM

> Was the boss a farang?


Yes - Swiss. Karen friend graduated from Rachamankala University in CM (not prestigious - regarded as a kind of polytechnic if you recognise the Brit term). BTW, not to beat any drum here, but he could only do that with serious financial assistance from a scholarship scheme - initiated by a certain Mr T's government.

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## Tom Sawyer

Interesting post (and the one before about not hiring thai men).




> Poor thais have to be resourceful, the hi-sos who haven't been educated overseas are the dumbest, shallowest ppl I've met. 
> 
> Thais aspire to uni education mostly for status.


Very true isn't it..




> IMO the country needs skilled laborers and technical ppl, but this physical work is really looked down upon.
> 
> They could also consider giving some farang more permanent status, but Thais are unique, a foreigner knows nothing about the place and will never be consulted for anything.


I think you've answered the main thesis in those last two sentences. Thailand trades off its low-wage environment but is competing with China and India - so it's unsustainable. Allowing farang more liberal rights to abode would result in farang competing with the hi-so's that never went to uni abroad and as you noted they are shallow and dumb as shit. They open businesses without a businessplan financed with their chinese grandfather's ill-gotten gains through decades of dirty little deals. 

Even the really big thai-chinese family businesses out there (CP, Central, etc) are successful only because they have no competition - and because they copy Western business models. In Central's case this is right down to the type of font used in the John Lewis chain. They buy the franchises like Black Canyon, KFC, Swensens, etc. There are rare exceptions like See Fah and a few others.

Generally, you're absolutely right, Thailand needs to move toward a skilled and better educated workforce. But since the people with money in this country don't have a clue about doing anything other than copying other countries' ideas, what good would it do? Innovation is required first, then skilled workers to make it thrive. Thailand has neither and little sign of it emerging given the semi-feudal nature of the place and the concentration of capital in the hands of those without a clue. The King has tried to give examples of innovation, with many projects endorsed. It's a shame the rest of the wealthy establishment can't or won't follow suit. 

My own sense is that Thailand will need to shift its tourism industry to attract chinese tousists on a much larger scale and then allow large foreign agri-companies to come in and create massive super farms. The latter would of course disenfranchise the poor subsistance people in Issan and would make the restive social divide between north and central even worse. 

But Thailand is not going to become South Korea anytime soon.

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## Buksida

While I'm not one for thr amart conspiracy theories, it's been suggested that the rich see no point in improving the education system because their kids go to school OS and have a distinct advantage.

It's true thakki gave scholarships and tried to instill a work ethic (normal for chinese, but not Thais). There has been a lot of talk about reforming education, but the problem is too big for any govt. Schhols are corrupt, this is where the kids learn that hypocrisy is a normal part of life.

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## Tom Sawyer

^
I think it's more to do with the patron-client system and that does indeed start at school level in the private Thai school system. Parents send their kids to big name private Thai schools not to get a better education but to make life-long contacts with other thai and chinese-thai merchant class and establishment (amart) families. The middle and upper-middle classes have no business plan other than that. Their kids will become merchants and they will hire working class peasants that they can pay peanuts to ensure the comfortable lifestyle continues. I really think that's the beginning and the end of it.

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## Buksida

^I don't think everything that happens here boils down to class struggle.

Despite what many Thais think, historically things have not been that hard. food has been plentiful and you can get by with simple shelters.

Thais can't plan because it's never been necessary. In countries with cold winters, planning has been the difference between life or death.

The success of the Chineses has a lot to do with their work ethic and ability to save. 

It's true poor Thais have had enough and are demanding more, but many have unrealistic expectations of how this will be achieved. I often get asked about the welfare system at home, the idea od free schooling health etc has a lot of apppeal, until you tell them this means high taxes and little corruption - something that will never happen here.

Go to any part of the country, look for a family where all adults are working and kids are in school, you will see they are doing OK.

Truth is a lot of Thais do not like work, especially if it's hard. There are plenty of jobs and plenty who chose not to take them but to sit around knowing that other family members will take care of them.

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## Tom Sawyer

> Truth is a lot of Thais do not like work, especially if it's hard. There are plenty of jobs and plenty who chose not to take them but to sit around knowing that other family members will take care of them.


Truth is a lot of Thai (e.g. the vast majority) have an unrealistically low salary scale to face. It's around 6,000-8,000 THB for unskilled workers and 8,000-10,000 for high school graduates. Finish University and you might get 12k or up to 15k in lower management.

Hard to get motivated. If you're starving yes. But if all you're going to get by busting your ass is a little bit more - with no hope of ever moving into a more comfortable lifestyle, what's the point? I'm not defending this choice or reasoning. But it's the reality of a rigged system.

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## Buksida

The basic problem is the Thai labor force is largely unskilled and nobody is doing anything about it. Even uni graduates don't know shit.

The education system reflects the cultural attitude that anything difficult is not worth doing - everyone passes as long as their hair is the right length.

Don't take my word for it, talk to some farang employers who have tried to motivate staff, provide training, encourage responsibility etc. See how many refuse to employ Thai men, take a look around, the women are doing most of the work.

We had one mother bring in her 22 yr old son, out of embarrassment I took him on. After two days he hadn't come in and she was back asking if we'd still take him. I said no, not if he can't ask for himself. About to cry she said, "I know, he's useless".

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## Tom Sawyer

As mentioned before, I don't disagree with any of that. But my point is that you need to look at what's causing the malais. It's a rigged system, designed to enrich and ethnic minority merchant class, backed by a fake, invented culture less than 60 years of age. The Thai prai (prole) has been deliberately left uneducated to be a handy low-wage labour pool. The economic growth here has moved beyond this provincial semi-feudal system's ability to respond. Add to that every family with any cash at all sending their uneducated kid to university - and like you say - this is what you get.

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## Buksida

The Chinese have faced discrimination here as in many other countries. Nonetheless around the world they've managed to do well, because as immigrants they've had to work and save hard. This is normal, there is no conspiracy.

Thais and Chinese love money, the difference is the Chinese will work for it. 

You can read all the books you want and think you understand it all, but if you were in business it would soon become clear that Thai Chinese will get the job done, properly and on time.

There are plenty of ppl from Isaan running their own businesses in Bangkok and doing quite well, they are not blaming everything on some Chinese elite secret society.

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## StrontiumDog

*http://thainews.prd.go.th/en/news.php?id=255405180003

FTI: New govt should increase minimum wage   *  

 

BANGKOK,  18 May 2011 (NNT) – The Federation of Thai Industries (FTI) has  suggested that the new government should adjust the minimum wage up in  line with the current situation and take the impact of the increase on  entrepreneurs in consideration. 

FTI Vice Chairperson Dr Tanit Sorat stated that the new government  should consider increasing the minimum wages reasonably because doing so  without considering its impact on the national industrial system will  certainly have adverse effect on the industry’s operating cost and  exports of products.  

Dr Tanit expressed his opinion that minimum wage hike should be in  accordance with the living costs, and that it could be increased every  few years in the form of annual income, which should  not be lower than  the national inflation rate. 

The vice chairperson added that the government should also expedite the  regulations to increase wages based on skills and qualifications;  therefore, skilled workers’ salaries should be commensurate with their  experience and ability. 

Dr Tanit explained that failure to do so could lead to skilled workers  migrating to and earning more in neighbouring countries after the  establishment of the ASEAN Economic Community in 2015.

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## StrontiumDog

*Doubt over wage hike
*
*Doubt over wage hike*

                            By The Nation
                                             Published on May 24, 2011                

*It remains unclear if workers will get a minimum  wage hike mid year as previously expected, as the Bangkok Minimum Wage  Sub-Committee meeting yesterday were told about affecting factors such  as inflation and rising commodity prices.*

                                                            Sub-committee member Ammorn Chaowalit said meeting  discussed the opinion survey of business operators after the wage hike  earlier this year, which showed that them commented about impacts  including the inflation rate that was 3.06 per cent increase in Bangkok  and 3.27 per cent nation-wide. 

Ammorn said the Bangkok sub-committee  didn't propose for a wage hike to the Central Wage Committee's meeting  on June 2. Expressing sympathy to all sides affected by commodity price  rising, the sub-committee wanted to see the wage rate according to work  skills to be in effect from July 28 onwards, before discussing about the  minimum wage hike, he added.

Another sub-committee member  Atthayuth Leeyavanija said that employers had complained that the  previous hike caused them to pay additional Bt100,000 million in wages  and he urged the government to keep the commodity price down.

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## SteveCM

^



> It remains unclear if workers will get a minimum wage hike mid year as previously expected........


Thank you, The Notion - that should, of course, read "..... as previously promised" (by none other than the then PM Mark).

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## Mid

sorry wage slaves goods are more expensive so you don't get a pay rise .

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## StrontiumDog

*Panel to make decision on wage increase today
*
*Panel to make decision on wage increase today*

                            By The Nation
                                             Published on June 2, 2011                


*Labourers nationwide today will be eagerly waiting  to find out whether the Wage Tripartite Committee has approved an  increase in their minimum wage.*

                                                            Labour Minister Chalermchai Srion said yesterday that  an increase was possible given the rising cost of living and an increase  in the price of daily commodities. "These factors have been supplied to  the wage committee for consideration." 

The committee is to start its meeting at 1.30pm and is expected to spend hours discussing the issue. 

Echoing  Chalermchai on the rising cost of living, the ministry's permanent  secretary Somkiat Chayasriwong cited a study showing that more than  23,000 labourers surveyed were earning Bt20 less daily than they should.  As such, they were leading lives that registered in negative numbers on  the life quality index, a measure used by statisticians to determine  acceptable minimum incomes. The life quality index varies in different  parts of the country. It is minusBt25 in Bangkok, minusBt23 in  neighbouring provinces, minusBt50.97 in the Central region, minusBt38 in  the North and minusBt28 in the South, he said. [Writer says OK to cut  this as the numbers are meaningless without an explanation, which was  not provide by source.] 

He added that efficiently controlling the price of goods was vital after the increase to daily wages was approved. 

 The study collected information on workers dating back to 1988  until last month, based on varying costs of living and inflation, which  showed that each worker spent Bt2,015 on food, Bt1,400 on rent, Bt819  on trivial matters and Bt649 on travel per month.

 The average increase in wages should be Bt20, though in  Bangkok wages would only rise by Bt11, he said, adding that the increase  would be Bt23 in adjacent provinces, Bt35 in the Central, Bt23 in the  North, Bt13 in the Northeast and Bt11 in the South.

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## spark

This guy is going to try to live on a Thai budget of 200 baht for a month. Could be interesting to follow.. Living Like a Thai Day 1: The 200 Baht a Day Challenge | Thailand Land of Smiles

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## StrontiumDog

*Bangkok Post : Boost unlikely until after poll
*
*Boost unlikely until after poll* 
Published:  3/06/2011 at 12:00 AMNewspaper section: News
 Further increases in the minimum wage are not in  the pipeline although the present level has failed to keep up with cost  of living increases, says the chairman of the wage committee.

 Somkiat Chayasriwong, also permanent secretary of the Labour  Ministry, said after the committee met yesterday his panel had ordered  its provincial wage subcommittees to study wage increments that would  suit their respective provinces.

 
Somkiat: Present levels too low

 The subcommittees would propose their respective increases to the  wage committee by June 16. Then a technical and scrutiny subcommittee  would review their proposals and study possible economic impacts in the  provinces if the hikes are implemented.

 The wage committee will consider the wage increments for all of the  provinces later this month or early next month and then propose the next  average minimum wage increase to the government for its consideration.

 He did not expect the caretaker government to consider the matter in  case it was criticised for trying to woo the working class in the  lead-up to the July 3 election.

 The present minimum wage stands at 175.82 baht on average.

 But a recent study found that a labourer needs 195.41 baht a day to  survive and 211.23 baht a day to enjoy a decent standard of living, Mr  Somkiat said.

 The latest minimum wage increase in January brought the rate to 159-221 baht per day depending on the region.

 "A minimum wage increase is a temporary solution. What is sustainable is wages that suit a labourer's skills," Mr Somkiat said.

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## Mid

deleted

----------


## SteveCM

*Bangkok Post : Wage promises debated*

*Wage promises debated*

*Industries warn of serious inflation risk *  Published:  4/06/2011 at 12:00 AMNewspaper section: BusinessCampaign promises to raise minimum wages could  be a double-edged sword, as higher labour costs would likely be passed  on to consumers in the form of higher priced goods and services, say  business leaders.

 _Acting Prime Minister Abhisit Vejjajiva is dwarfed by a giant screen  showing inflation projections during his presentation to local and  foreign business executives yesterday. SOMCHAI POOMLARD_

 Payungsak Chartsutipol, the chairman of the Federation of Thai  Industries (FTI), said higher labour rates could ultimately result in a  higher cost of living for the public as companies raised retail prices  to maintain profit margins.

 Both the Democrat and Pheu Thai parties, the two leading contenders  to form the next government, have promised wage increases in a bid to  win votes ahead of the July 3 general election.

 The Democrats, led by Abhisit Vejjajiva, have vowed to raise minimum  wages by 25% within two years, while Pheu Thai, led by Yingluck  Shinawatra, wants to lift minimum wages to 300 baht per day.

 Minimum wages currently range from 221 baht per day for Phuket and 215 baht for Greater Bangkok to a low of 159 for Phayao.

 Mr Payungsak said the FTI wanted the next government to maintain the  current system under which minimum wages are set through consultation by  a tripartite committee representing labour, the private sector and the  state.

 He said wages for the 10 million workers in the industrial sector  accounted for 10% to 30% of production costs, depending on the industry.

 Hardest hit by any increase in minimum wages would be small and  medium-sized companies that employ the bulk of the labour force in the  industrial sector.

 "Any increase in wages should be tied to efficiency and  productivity," Mr Payungsak said. "Right now, Thai labour has one of the  lowest productivity rates in Asia. Productivity growth is just 3% per  year, a level less than that of Vietnam and Indonesia."

 Mr Abhisit, speaking to Thai and foreign business leaders yesterday,  justified the minimum wage policy as necessary to help the public cope  with rising living expenses.

 He said wage increases would take into account living expenses for  each area of the country. Bangkok minimum wages, for instance, would  rise to 267 baht per day under the Democrat policy, while rates in  provinces in the North would rise to around 205 baht within two years.

 In contrast, Pheu Thai would raise wages immediately to a flat 300  baht per day for the entire country, a shift that Mr Abhisit said was  misplaced and not in line with real costs.

 "We understand that costs will increase for the private sector [from  wage increases]. So we will also push for cuts in other business  expenses, including import taxes on machinery and capital goods and new  tax deductions for companies based on the added costs incurred from  salary hikes," Mr Abhisit said.

 In any case, Thai companies need to shift away from the mentality  that wages need to be held in check to support export industries.

 Such policies have only hindered development of the domestic market,  due to limited growth in consumer purchasing power, Mr Abhisit said.

 Pichai Naripthaphant, a member of the Pheu Thai economic team, said  his party's policies to raise minimum wages to 300 baht per day and  starting salaries for new university graduates to 15,000 baht per month  were aimed at future trends foreseeing a continued shift in Japanese  manufacturing to the country.

 "Raising salary scales will help screen those companies that will  make the shift, which will help us move away from labour-intensive  industries," he said.
 Mr Pichai said the impact from higher minimum wages would be offset  under Pheu Thai's policies to reduce the corporate tax rate to 23% by  next year and 20% by 2013, from the current rate of 30%.


Writer: Wichit Chantanusornsiri
Position: Business Reporter

----------


## StrontiumDog

*Fair pay must take account of economic reality

EDITORIAL* 

*Fair pay must take account of economic reality*

                            By The Nation
                                             Published on June 8, 2011                

*Promises of a high minimum wage rise have to be made  cautiously, and alongside other factors such as education and market  conditions*

                                                            The decision-makers in charge of the minimum wage rate  should not let political influence dictate their prospective decision on  the minimum wage later this month.

The National Wage Committee is  scheduled to review the minimum wage on June 16, after its members  acknowledged during last week's meeting that Thai workers are facing  increasing pressure from consumer price rises of 3-5 per cent, which are  in line with the current inflation rate of 3.94 per cent.

The  minimum wage was established to provide a degree of fairness for  workers. In theory, it should enhance the bargaining power of  hard-working labourers. The regular upward adjustment of the minimum  wage should help ease the day to day burden on low-wage earners who have  to contend with ever-increasing prices and balance their income against  necessary expenditure which is pushed hard by overall inflationary  pressure. 

However, politicians often tend to make unrealistic  promises to workers about high wage rises. This is especially the case  during general election seasons when grassroots voters express growing  concern over price rises. 

Prime Minister Abhisit Vejjajiva has  been criticised for failing to control prices in spite of the fact that  the problem has now become a nationwide concern.

The Abhisit  government has desperately tried to contend with higher inflation by,  for instance, subsidising diesel prices, but the consequences of such a  fuel subsidy can distort real costs. In addition, the unrealistic  suppression of fuel prices can also lead to inefficient energy  consumption.

A survey from January to May this year showed that  the average minimum daily wage nationwide was Bt175.82. Permanent  Secretary for Labour Somkiat Chayasriwong said recently that,  considering the overall price rises, a minimum wage adjustment seems to  be inevitable. 

The question is, what will be the best level at which to set the minimum wage?

Low  wage earners naturally want to see their income rise substantially, but  a sharp and unrealistic increase does not always fix the problem of the  rising cost of living. 

Manufacturers tend to react fast to a  possible wage rise by raising the prices of goods. A prospective wage  rise can also have a psychological impact on the market, and can lead to  further price rises even ahead of the actual wage rise.

However,  politicians still use the promise of a wage rise to attract voters.  Candidates from almost every political party have already promised a  certain wage level on their campaign billboards, even though they may  have no authority to do so and do not take into account that the wage  rate should be considered against the overall economic environment. 

It  is not possible to dictate the optimum wage level for the future, but  politicians will always offer the highest number they can. Such  irresponsible promises only put greater pressure on the Wage Committee.

The  ideal minimum wage level should be one that balances the interests of  workers, employers and consumers. The political factor should not be  overdone here because an imperfect rate can have negative consequences  such as distorting the overall market, pushing up labour costs to a  non-competitive level and affecting consumer spending. 

The  minimum wage rise should go in line with an increase in capacity,  otherwise outsourcing will follow, and that would affect the job  stability of low-income workers in the longer term. 

Instead of  irresponsibly promising the highest figures possible, politicians should  offer better solutions for workers to improve their conditions. The  questions to address are policy platforms to boost the capacity or  productivity of workers, plus education and training. 

When  workers gain skills and capacity, they worry less about a minimum wage  because they can use their skills to better negotiate their income  level. That is a more desirable way of improving workers' wellbeing.

----------


## StrontiumDog

*http://thainews.prd.go.th/en/news.php?id=255406080004

FTI preparing for minimum wage hike   *  

 

BANGKOK,  8 June 2011 (NNT) – The Federation of Thai Industries (FTI) is  preparing measures to cushion the policy of many political parties to  increase the minimum wage for fear of impact to business operation. 

FTI Vice Chairperson Tanit Sorat said a survey is being conducted and  its result will be raised for discussion among FTI members in a hope to  formulate measures to deal with wage increase in case it becomes  concrete. The result will also be presented to Labour Minister  Chalermchai Sri-on and political parties on 20 June 2011 when a seminar  is arranged to reflect the private sector’s opinions for the  consideration of a new government. 

Representatives from five political parties, including Democrat, Pheu  Thai, Bhumjaithai, Chart Thai Pattana and Chart Pattana Puea Pandin will  also be invited to join the seminar since each party has its own policy  regarding this issue. 

Although the private sector is not against the minimum wage rise policy,  Mr Tanit said it is worrying that different businesses are able to  adjust themselves to the policy at a different pace; therefore, wages  should be adjusted according to the living costs. 

The private sector is suggesting that minimum wage rise should not be  higher than 20 baht a day or 10%. It is also stressing that the issue  should be considered by the tripartite private sector committee, not by  the interference of the political sector.

----------


## StrontiumDog

*FTI propose Bt226 as minimum daily wage
*
*FTI propose Bt226 as minimum daily wage*

                            By The Nation
                                             Published on June 9, 2011                

*The Labour Ministry yesterday welcomed the  Federation of Thai Industries' higher proposal for a daily minimum wage  of Bt226, describing it as a sign of employers' cooperation to get the  much-awaited hike approved.*

                                                            The FTI proposal was Bt31.21 higher than the Bt226.67  proposed recently by the ministry, permanent secretary Somkiat  Chayasriwong said. The precise figure would be submitted for  consideration at a meeting of the Wage Tripartite Committee on June 16.

Members  of the committee held a preliminary meeting yesterday to discuss  figures and reportedly encourage each other to reach a middle ground  over the rates.

Chalee Loisoong, a labour representative, said a  daily wage of Bt226.67 was not enough, but it was better than nothing.  He said, based on the 4-per-cent inflation, Bt441 per day would be just  enough. However, he said, employers could make up for this by providing  cheap incentives and better welfare to make up for the workers' lost  income. 

Thawee Techatheerawat, another labour representative,  said Bt226.67 was acceptable, because increasing it to Bt300 would  prompt foreign companies to leave Thailand for countries where labour is  cheaper. Instead, he said, businesses should offer incentives like free  or low-cost transport and cheap meals. He also called on the government  to strictly control the price of necessities such as cooking oil and  rice.

----------


## StrontiumDog

*http://thainews.prd.go.th/en/news.php?id=255406090005

FTI: Entrepreneurs disapprove minimum wage rise   *  

 

BANGKOK,  9 June 2011 (NNT) – The Federation of Thai Industries (FTI) has  cautioned political parties about impact of their campaign strategy to  increase minimum wage when it is implemented. 

According to FTI Chairperson Payungsak Chartsutipol, the FTI will  present the result of its survey conducted from 2 to 6 June 2011 among  entrepreneurs on labour problems and minimum wage hike, to a meeting  with political parties it will arrange on 20 June 2011. 

The survey showed only 2.2% of the respondents believed that their  businesses would not be affected by the policy. 5.6-11.0% said impact  would be minimal while 9.0-37.1% said theirs would be in the middle  range. 42.7-68.5% of them said the impact would be vast while and  6.7-16.9% said it would be so severe that it could lead to closure of  their business.  

The average minimum wage proposed by the respondents stands at 226.67  baht a day. The figures for the central region, the North, the East, the  South and the Northeast are 231.8, 223.2, 203.33, 209.37 and 190 baht  respectively.   

In addition, 39.1% of the respondents did not want any political parties  to include minimum wage hike in their campaign strategies. 18.8% of  them wanted the authorities to curb inflation and living costs while  9.4% asked the authorities to uplift labour quality. 

Mr Payungsak explained that minimum wage in the past was increased  gradually and adjustment was done through the tripartite panel; however,  lately the adjustment has been made at a jumping step forcing the  capital cost and retail prices to rise which results in minimum wage  adjustment again to match the rising cost of living.

----------


## StrontiumDog

*Wage rise to be considered shortly
*
*Wage rise to be considered shortly*

                            By The Nation
                                             Published on June 14, 2011                

*Members of the Central Wage Committee will consider a  new rate for the minimum daily wage on July 6, three days after the  election.*

                                                            An increase is likely even though the Federation of  Thai Industries (FTI) has said a wage hike may cause some employers to  go out of business. 

The FTI has claimed that between 6.7 and 16.9  per cent of businesses may have to close down if a major wage hike is  approved, and the possibility is highest in the East. 

"The  information is worrying," Labour Ministry deputy permanent secretary  Sunan Phothong admitted yesterday. But he said wages would have to rise  in the face of soaring living costs. 

He pointed out that after  government schemes to provide free bus and train rides, plus free  electricity and tap-water for low-income households, expire at the end  of this month, living costs would soar even further.

A Labour  Ministry survey showed that the minimum daily wage averaged Bt176 across  the country, lower than what it should be when living costs were taken  into account.

However, Sunan fell short of saying how much the minimum wage would rise by. 

He said provincial wage panels would propose the new rates to his sub-panel by June 20 next Monday. 

"We  will analyse and summarise the proposals for the Central Wage Committee  to consider," he said in his capacity as chairman of the academic  sub-panel on wages. 

He said his sub-panel would take into account  the inflation rate reported by the Bank of Thailand, the Consumer Price  Index compiled the Commerce Ministry, and economic figures reported by  the National Economic and Social Development Board.

----------


## genghis61

> He pointed out that after government schemes to provide free bus and train rides, plus free electricity and tap-water for low-income households, expire at the end of this month, living costs would soar even further.


I was not aware the free electricity for low users scheme was to end?

that is at odds with this article from May 19 2011. If it is to end, quite an impact in rural areas especially for those dependent on seasonal/casual work for their income. 

*Firms pay extra to finance Govt's free electricity policy*
By The Nation

Starting July, medium and large-sized enterprises and government units will start paying extra 11 satang per unit for electricity cost, to help finance the government's free electricity policy, said Kawin Thangsupanich, secretary-general of the Energy Regulatory Commission.
It is estimated that the policy to waive electricity fees for households consuming no more than 90 units a month will cost Bt12 billion a year.

The fees will be shown in the new power bills, which will clearly state the generating and distribution costs.

At the press conference today, the commission also revealed the result of the public opinion survey. The commission won 2.48-3.10, out of full 5-points score. The survey showed that individual power users have low expectation on the commission, but business operators expect it to play a bigger intermediary role.

----------


## StrontiumDog

*Bangkok's minimum wage may be raised by Bt5-9
*
*Bangkok's minimum wage may be raised by Bt5-9*

                                      The daily minimum wage in Bangkok will likely climb up by between Bt5 and Bt9.

"We  have agreed that the raise should be in this range but we have not yet  concluded on the final figure," Ammorn Chaovarit said Friday. She is an  advisor to a sub-panel on Bangkok's minimum daily wage, which now stands  at Bt215.

The wage hike is expected to take effect soon given that the inflation rate is now touching 3.3 per cent.

The Nation

----------


## StrontiumDog

*Thai Vote to Pay Off for Workers, No Matter Who Wins - WSJ.com
*
*Thai Parties Promise Big Wage Raises Ahead of Election* 

*By JAMES HOOKWAY* 

BANGKOK—Thailand is bracing for a tumultuous  election on July 3. But no matter who wins, the cost of doing business  here is set to rise, as both the main political parties promise to raise  wages dramatically when the vote is over.

 The increases mean Thailand is likely to become the latest country in  Asia, including China, to see wages shoot higher after years of rapid  economic growth. That growth has translated into more upward pressure on  wages, as workers demand higher pay, forcing companies to pay more for  everything from factory workers to farm hands. 

 In Thailand's case, the military-backed Democrat Party is promising  to raise minimum wages by 25% over the next two years if it stays in  power. Supporters of ousted populist Thaksin Shinawatra, who are leading  opinion polls, are pledging an increase of 40%.

 Analysts say it is likely that at least some of the proposed  increases will be enacted. The plans reflect a deepening realization  among Thai policy makers that the country needs to strengthen its  domestic economy to better protect itself from lurches in global demand  for its exports, although the extent to which a new government can drive  up wages will depend in part on how secure it is in the aftermath of  the July 3 vote.

 Local businesses are concerned about the impact, as is Thailand's  central bank. Bank of Thailand Gov. Prasarn Trairatvorakul warned  earlier this month that higher wages and other spending initiatives  could drive up inflation—which hit 4.2% year-to-year in May—and threaten  the country's recovery from the 2008 global slump.

 Big exporters say the increases could put them out of business,  further increasing costs at a time when an appreciating Thai baht has  already made their products less competitive overseas.

 The politicians competing on July 3 say Thailand has no choice but to raise pay. 

 The country's mainstay export sector  has been losing ground to cheaper, less-developed rivals such as Vietnam  and Bangladesh, leaving Thailand vulnerable if it continues to rely on  low-cost, export-oriented manufacturing to drive the economy. Raising  wages, they say, will create a new engine of growth by boosting consumer  spending, which currently accounts for only 54% of Thailand's economy,  compared to about 70% in the Philippines and more than 60% in Indonesia.

 "Our currency is getting stronger so we're not attracting those kinds  of investors who seek out the cheapest base for production," said Korn  Chatikavanij, Thailand's British-born, Oxford-schooled finance minister,  in an interview. That means consumption must increase, he said.

 Mr. Korn's competitors in the election match him. From his overseas  base in Dubai, Mr. Thaksin, who was toppled from power in a 2006 coup,  describes Thailand's push to develop a stronger consumer economy as  "crucial." 

 His proxy in the race to become prime minister, his youngest sister,  Yingluck Shinawatra, agrees. "For the past five years, Thailand hasn't  been able to generate enough wage growth, while household costs have  risen sharply," she said in an interview on the campaign trail around  Bangkok. "Now is the right time to expand consumption here in Thailand."

 Some analysts deride the proposals as little more than populist vote  grabs. Thailand's political conflicts run deep, with military-backed  royalists fighting bitterly in recent years to prevent a return to power  of Mr. Thaksin and his allies, who enjoy widespread support in  lower-income rural areas. Clashes between the two sides in Bangkok last  year left more than 90 people dead.

 But the arguments over how to reorient Thailand's economy are  important, economists say, especially as more international money flows  into the region, boosting currency values and undermining some  countries' low-cost advantages as manufacturing hubs.

 Currencies in Southeast Asia, once the world's low-cost factory  floor, have risen in value by a third or more against the U.S. dollar  over the past five years, at a time when China has put the brakes on the  ascent of its yuan.

 A slew of Asian nations have adopted minimum wages over the past 10  years, even if just a few workers benefit from them, as in Cambodia,  where only textiles and footwear workers are guaranteed a minimum  income. Malaysia this week became the latest to attempt to put in place a  minimum wage law after a new proposal was introduced to the Malaysian  Parliament earlier this week.

 Still, a wage increase might not be the quick fix its proponents  claim, economists warn. Higher inflation could undermine the benefits  from higher wages by putting some goods further out of reach of lower-  and middle-class shoppers, as has been happening in some countries like  China. 

 It could also force central banks in Thailand and elsewhere to raise  interest rates more than they would have otherwise—curbing growth.

 "I think that all across Asia governments are trying to move in this  direction. We do need to depend more on our own domestic demand," said  Thanomsri Fongarunrong, an economist with Phatra Securities PCL in  Bangkok. "But we can't just rely on a minimum wage. We also need to  improve productivity and output."

 Thailand's Mr. Korn says he thinks there is room to boost pay. He  says he decided to back the move to increase the minimum wage after  organizing cash handouts to ameliorate the worst impact of the global  financial slump. In early 2009, 50,000 people a month were losing their  jobs in Thailand, and there were widespread fears that the country of 65  million could see over 2 million unemployed.

 One of Mr. Korn's responses was to hand out 2,000 baht, or $70,  checks to anybody earning less than $500 a month. The total outlay was  around half a billion dollars.

 The impact seemed almost instantaneous. Thai shoppers began spending  in droves, providing a shot in the arm to local businesses which, in  turn, began hiring to keep up with demand. Private consumption in 2009  hit 4.99 trillion baht, or $166 billion at current exchange rates,  keeping pace with 2008's pre-slump figures. It expanded to 5.43 trillion  baht, or $181 billion in 2010, buoyed in part, too, by rising  agricultural prices in world markets.

 Now, the Thai economy is at full employment even as the baht  continues to rise, encouraging the government to press ahead with its  bid to raise wages.

 Under the Democrat plan, Bangkok minimum salaries will rise to 268  baht, or around $8.96 a day, from 215 baht, although many people working  in the informal sector—a large portion of Thailand's working  population—won't receive anything and risk seeing inflation climb  further. Migrant laborers from Myanmar, Cambodia and Laos are unlikely  to gain, either.

 The opposition Puea Thai, or Thai Pride Party, proposes pushing the minimum wage up to 300 baht, or $10, a day.

----------


## spark

> [B]
> *Bangkok's minimum wage may be raised by Bt5-9*
> 
>                                       The daily minimum wage in Bangkok will likely climb up by between Bt5 and Bt9.
> 
> "We  have agreed that the raise should be in this range but we have not yet  concluded on the final figure," Ammorn Chaovarit said Friday. She is an  advisor to a sub-panel on Bangkok's minimum daily wage, which now stands  at Bt215.
> 
> The wage hike is expected to take effect soon given that the inflation rate is now touching 3.3 per cent.
> 
> The Nation


It`s funny that the wage raise has got so much attention in the media when the final increase barely will cover the inflation. 

What about a tax increase for the filthy rich instead, so that the government can give incentives to farmers and that like. Construction workers should get an increase anyhow. Raised prices for new apartments or condos won`t effect them anyway as they usually live in shacks.

----------


## StrontiumDog

*Concern over promise for Bt300 minimum daily wage
*
*Concern over promise for Bt300 minimum daily wage*

                            By The Nation
                                             Published on July 5, 2011                

*The new minimum daily wage has become a major  concern for employers and officials at the Labour Ministry, who are  awaiting word from the incoming government, which promised voters  during the election campaign it would back a pay hike for workers.*

                                                            Somkiat Chayasriwong, permanent secretary at the Labour  Ministry, said yesterday the Bt300 wage promised by Pheu Thai Party  would be also be discussed at a meeting of the Wage Tripartite Committee  scheduled tomorrow [July 6].

"As a government agency, the policy  on the new [daily wage] rate will need to be reported and approved by  the ministry's political leadership," he said.

A labour leader,  Thawee Techatheerawat, said a flat rate of Bt300 and a starting salary  of Bt15,000 a month for all university degree graduates - another  promise by Pheu Thai Party - would be difficult. But labour groups would  advocate the Bt300 rate to start from January 2012 at a meeting on  Thursday.

Another labour leader, Chalee Loysoong, said the new  government would be under huge pressure if it could not guarantee the  flat Bt300 rate.

Withoon Kamolnaruemet, head of the Khon Kaen  chamber of commerce, claimed a flat Bt300 rate would cause a  50-per-cent jump in operating costs for of most employers. Such election  promises had already caused many companies to rethink whether they want  to invest in Thailand.

Small and medium enterprises would be most  affected by the Bt300 rate, and half of them would be suddenly faced  with losses, or eventual closure. "And that would result in 50 per cent  of (SME-associated] unemployment across the country," he warned.

Three  foreign business owners based in Khon Kaen were seeking advice from his  chamber about possibly relocating their businesses to countries where  labour costs were cheaper, as a result of the possible hike, including  the flat Bt300 rate promised by Pheu Thai.

Withoon said a new rate  of Bt190 in Khon Kaen, up from the current rate of Bt167, was still  acceptable to employers, but Bt300 would need to be backed by other  measures, which he said Pheu Thai had never discussed or revealed.

----------


## dirtydog

This will bring in 10's of thousands of illegal workers, take the construction industry for example, 80 percent of Thai construction workers are barely worth 200baht perday, Burmese and Cambodian will work for that, they also work harder and don't waste time having days off as they want money to send their families.

Most Thais are not worth a salary of 300baht perday, many will be unemployed, what will they do for money, aint no dole or social here yet, go out robbing or drug dealing?

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## Gerbil

> Most Thais are not worth a salary of 300baht perday, many will be unemployed, what will they do for money, aint no dole or social here yet, go out robbing or drug dealing?


More girls heading to Pattaya as they get shut out of their factory jobs?  :bananaman:  Thank PT & the Reds for doing their bit to relieve poverty.

----------


## Butterfly

Nana will be full again  :Smile:

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## Loy Toy

I have a few blokes arguing with me about this on another thread.  :Roll Eyes (Sarcastic): 

RIP Thailand's industrial and export sector if Yingluck keeps her election promises.

----------


## Butterfly

it's actually the right thing to do,

manufacturers can afford it, they have been making record profit

----------


## Butterfly

you can't move factories overnight, Thailand is still a good base for those firms under all the BoI privileges

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## Loy Toy

> manufacturers can afford it, they have been making record profit


Don't think so mate and particularly with regard to the Automotive industry.

Yes some sectors have picked up in Thailand because of the disasters in Japan but before then they were struggling.

I remember a recent debate about increasing the minimum daily wage to 250 Baht and there was a lot of opposition across the board.

----------


## English Noodles

> aint no dole or social here yet


Yes there is.

Full social security details, in Thai, can be found here;

à¸ªà¸³à¸à¸±à¸à¸à¸²à¸à¸à¸£à¸°à¸à¸±à¸à¸ªà¸±à¸  à¸à¸¡

_Criteria and Entitlement Benefits

                                                                                                                                                                                 Having made contributions towards  unemployment for not less than 6 months within a period of 15 months  prior to unemployment

Terms and conditions giving rise to the entitlement:Must  apply for registration of  the unemployed at the State  Unemployment  Office within 30 days without  having to wait for the  Unemployment  Certificate from the Employer as to  declare the  entitlement  tentatively.Is capable of performing the work and is ready to take on suitable job as offered.Must not reject the job training.Must report to the Employment Office for not less than 1 time per month.The unemployed must not be terminated from employment thanks to:Dishonest on dutyCommission of criminal offense to the detriment of the employerSerious infringement upon working rules, or regulation or lawful working orderAbandoning the duty for 7 days consecutively without good reasonsRecklessness which causes serious harms to the EmployerHaving been sentenced to imprisonment by Court judgment.Must not be the person entitled to old age benefit.Shall be entitled to receiving the benefit starting from the 8th day from the date of unemployment with the last employer.Is not a voluntary insured under Section 39.The Entitlement Benefits you shall receive:

In case of termination of employment:Unemployment  benefit for not more  180 days per year at the rate of  50 % of the  wage calculated on the  basis of maximum contributions of  15,000 Baht.In case of resignation:Unemployment  benefit for not more  than 90 days per year at the rate  of 30 percent  of the wage calculated  on the basis of maximum amount of  contributions  but not more than  15,000 Baht shall be payable. If in the  duration of  1 year, there was  more than 1 application for the  unemployment  benefit, the counting of  the unemployment benefit  receiving period in  total shall not exceed 180  days; the compensation  benefit for loss of  income shall be paid on  monthly installment basis  by crediting to the  Bank Account as notified  by the Insured.Evidence to be used in Applying for Compensation Benefit                                        Application Form for Unemployment Benefit (SorPorSor. 2-01/7)The Citizenship Identity CardOne photograph of 1â€ in sizeEmployment  Certificate or a  copy of the resignation letter of the  Insured  (SorPorSor.609). In the  event of unavailability of the Form  SorPorSor.  6-09, application for  registration of unemployment can also  be made.A letter or an order from the employer terminating the employment (if there is any).A  copy of the first page of  the Bank Savings Account on which the   Account Name and the Account  Number belonging to the Insured are shown.PROCEDURE AND METHOD OF APPLYING FOR COMPENSATION BENEFIT                                       Must apply for registration of unemployment at the Office of Employment, the Department of Employment.Complete the Registration of Unemployment Form together with the following evidence:The Citizenship Identity CardOne 1â€ photograph.Complete the Application Form for Unemployment Benefit together with the following evidence:Letter  of Termination  of Employment or a copy of the Notice of  Leaving  Employment  (SorPorSor.6-09) or a letter or an order from the  employer  terminating  the employment (if there is any).A copy of the first page of the Bank Savings Account on which the Account Name and the Account Number are shown.The officer of the Employment Office shall conduct an interview/ an inspection of the qualification and records of employment.The officer of the Employment Office makes available job vacancies in 3 locations for the unemployed insured to choose.If  a suitable job can not be  found, the officer of the Employment  Office  will coordinate the effort  by sending the unemployed insured to   receive vocational (skill)  training as necessary. If the insured   returns to work in the same place  of business or refuse the work or job   training provided and fails to  show up as required, the Office of the   Social Security shall suspend  the payment of benefit immediately.The officer shall enter the status of the insured in the case of unemployment in the central database.The  officer of the Office of  Social Security shall retrieve  information  on the unemployed insured  for a review according to the  terms of  entitlement.Having had complete  qualification, the Office of  the Social  Security shall transfer the  compensation benefit for loss  of income  according to the Insuredâ€™s  entitlement through the  Insuredâ€™s bank  account once a month via 8  commercial banks, namely,  Krungthai Bank  Plc; Bank of Ayudhya Plc;  Bangkok Bank Plc; Siam  Commercial Bank Plc;  Kasikorn Thai Bank Plc;  Thai Military Bank Plc;  Siam City Bank Plc (  commencing 1 October 2006)  and The Islamic Bank  of Thailand (commencing  1 January 2007).If the Applicant for   compensation benefit is not satisfied with the  order for the   compensation benefit payment, an appeal can be filed  within 30 days of   receipt of the order._

----------


## Loy Toy

> you can't move factories overnight


I know of a few major Multi-National companies who set up their Multi-Million Dollar plant upgrades in Malaysia and Vietnam when that plant was originally ear-marked for Thailand.

Let's wait and see what pans out as only time will tell.

----------


## Butterfly

> Don't think so mate and particularly with regard to the Automotive industry.


I think they are making a killing, at least the big corps

maybe they will limit the wage increase to the big companies with more than 500 employees

----------


## buriramboy

How can any employer argue against paying 300 baht (£6) for a days work??? Say people are working a 6 day week, still only 1800 baht a week or 7200 baht a month, hardly a liveable wage even for low class Thais with a family.

----------


## Butterfly

> I know of a few major Multi-National companies who set up their Multi-Million Dollar plant upgrades in Malaysia and Vietnam when that plant was originally ear-marked for Thailand.


they spread their risk in the region, SOP when you can afford it

the wage increase will not be enough for them to move facilities, it's fucking peanuts for them

they might shift more OT to other regions though,

----------


## Butterfly

> How can any employer argue against paying 300 baht (£6) for a days work??? Say people are working a 6 day week, still only 1800 baht a week or 7200 baht a month, hardly a liveable wage even for low class Thais with a family.


from my discussion with a few SET listed companies CFO, they all have been expecting the wage increase and didn't make much fuss about it, they understand perfectly the situation

it might impact OT for employees though, maybe less of that

----------


## Loy Toy

> I think they are making a killing, at least the big corps


I know of at least 4 other large local component manufacturing companies who supply parts to the bigger corps and their machines are mostly idle because the orders are not coming.

Vietnam and Malaysia stand to win big if she passes these election promises and I can tell you they are watching Thailand very closely.

----------


## jizzybloke

> I think they are making a killing, at least the big corps


They are but the bean counters will always look for ways to increase profitability and if that means a move then so be it!

----------


## Loy Toy

> How can any employer argue against paying 300 baht (£6) for a days work??


The problem is mate, that's an increase of around 35% and they have to factor that into their new manufacturing costs making them a lot more expensive then other companies in neighbouring countries.

Then everyone else will want an increase.

Malaysian and Vietnamese wages (not to mention China and India) are on par or even cheaper wages then Thailand plus the factory running costs are lot less particularly for electricity and fuels.

----------


## socal

Minimum wage laws create unemployment and a decrease standards of living. Singapore has no minimum wage laws as far as I know..

 The minimum wage laws price companies out of the labor market. If a company can only afford to hire by paying a worker $5 an hour but the govt says you must pay $6, then that company has a negative return on labor. The company will be out of business and that job will not exist.

This is why, in the US, you have to pump your own gas, you dont have people carry your luggage at airports anymore, more automated tellers and clerks ect. The minimum wage laws make automation cheaper then labor. Everyone loses. People with experience and skills or an education (people that are worth more then low wages) have to work harder and enjoy less luxury and the unskilled people cant get jobs because the government makes it illegal for the more productive people to hire them.

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## socal

> How can any employer argue against paying 300 baht (£6) for a days work??? Say people are working a 6 day week, still only 1800 baht a week or 7200 baht a month, hardly a liveable wage even for low class Thais with a family.


It costs nothing to live in Thailand, they are not starving. I bet  a Canadian on minimum is poorer then a Thai when you consider living costs. Average price of a house in Vancouver is $818,000, price of 12 beer is $25.

----------


## English Noodles

> Singapore has no minimum wage laws as far as I know..


Neither does Germany, Italy, Hong Kong (except for foreign workers), Austria, Malaysia, Finland, Denmark, Iceland, Norway, Sweden.

----------


## socal

> Originally Posted by buriramboy
> 
> How can any employer argue against paying 300 baht (£6) for a days work??
> 
> 
> The problem is mate, that's an increase of around 35% and they have to factor that into their new manufacturing costs making them a lot more expensive then other companies in neighbouring countries.
> 
> Then everyone else will want an increase.
> 
> Malaysian and Vietnamese wages (not to mention China and India) are on par or even cheaper wages then Thailand plus the factory running costs are lot less particularly for electricity and fuels.


35% ? !!

That's insane. :Confused:  That will send the baht down. I didnt expect this resurgence of socialism. It will do damage to the baht. Im changing my outlook on baht from a buy to a hold.

----------


## Butterfly

^  :rofl:

----------


## buriramboy

> Originally Posted by buriramboy
> 
> 
> How can any employer argue against paying 300 baht (£6) for a days work??? Say people are working a 6 day week, still only 1800 baht a week or 7200 baht a month, hardly a liveable wage even for low class Thais with a family.
> 
> 
> It costs nothing to live in Thailand, they are not starving. I bet a Canadian on minimum is poorer then a Thai when you consider living costs. Average price of a house in Vancouver is $818,000, price of 12 beer is $25.


On your next visit you try and live on 7200 baht a month and report back on how great your life is.

----------


## Butterfly

> On your next visit you try and live on 7200 baht a month and report back on how great your life is.


he probably can, and the rest he spent on whores and katoys  :rofl:

----------


## sabang

> I know of a few major Multi-National companies who set up their Multi-Million Dollar plant upgrades in Malaysia and Vietnam when that plant was originally ear-marked for Thailand.


I think the political turmoil of the last five years is the prime cause of that. Also, we are increasingly hearing foreign investors complaining about the lack of skilled labor and decent education & vocational training in Thailand. In that regard, the bumi's & viet's are eating our lunch.

There are 'minimum wages' and there is 'competitiveness' and they are not the same thing. A hike in minimum wages _is_ required just to maintain historical living standards, given the domestic inflation here. I don't know what PT's specific policy is, but I doubt they would announce a 35% hike in one go- it would likely be phased in over a period of time. In terms of 'competitiveness', minimum or average wages are certainly a part of that, although oft overstated by employers & lobbyists for self serving reasons. I think a considerably more enlightened approach to addressing the competitiveness issue would be to improve the abysmal education standards here, but sadly no party addressed that as part of it's electioneering.

From a 'macro' perspective, the domestic (as opposed to multinational) business lobby has pretty much had it's own way in Thailand. On the one side they benefit from domestic protectionism- many if not most domestic industries here are basically cartels. This means the domestic consumer pays more for a lesser quality product, be that in banking, tobacco, booze, whatever. I can buy Vietnamese cigarettes in nearby Laos for 9bht a packet- and they are considerably better in terms of both packaging and quality than those pushed out via the Thai tobacco monopoly at 45bht a packet and more. Someone is making a lot of money, at the consumers expense.

Protectionism is often justified because it 'enables' companies to pay their local labor at decent rates, but this is manifestly not the case in Thailand. So domestic business benefits both ways- protectionism enabling them to keep their prices & profitability high, their quality & re-investment low. Low wages also help keep their costs low, and of course further enhance profitability. Plus of course the legions of foreign workers in Thailand from Laos, Cambo & Burma- who, more often than not, are being employed illegally. Someone is being rewarded to studiously look in the other direction, but of course this top level collusion is very much a part of the Thai way of doing things- and it is expressly for the benefit of a Few.

The third leg of the pyramid is tax collection & revenue, which at 17% of GDP is very low in Thailand by any international standards. It is obvious who this benefits- just look at the obscene wealth differentials here, and even they are understated.

So really, if we are to focus on a competitive future vision for Thailand, minimum wages are a small part of the equation. Education, tax collection, and a systematic lowering of punitive tariffs and other barriers to competition are considerably more critical, and of course a relatively stable, sustainable political system- which (perhaps) we are getting towards now.

----------


## blue

''The party plans to cut corporate income tax to 23 per cent from 30 per cent in its first year in office, then to 20 per cent in later years.''

they can pay the extra  wages out of that .
 min wage  good idea ,better than a race to the bottom with other countries towards  starvation wages,
and they could add big fines for anyone employing cheaper immigrants

----------


## Butterfly

I hope PT will try to resolve the wealth disparity in this country,

time to tax the rich, land and condos

the 35% hike in one go would actually be justified, well overdue

----------


## LooseBowels

The PADyellows have always been against redistributing wealth, and allowing votes to the "peasants"
They have been supported by many falang nutters off here in their quest.

I would like to see the coalition tax the very same falang nutters till the pips squeek  :Smile:   and give it to those same "peasants"

----------


## Gerbil

> I don't know what PT's specific policy is, but I doubt they would announce a 35% hike in one go


An immediate rise to 300 baht a day was their election policy. Interestingly, not with different rates per province. That alone could cause some interesting realignments of the workforce.

----------


## Spin

> starting salary of Bt15,000 a month for all university degree graduates


The present number is about 7500 which is too much as graduates have no experience, and disgusting sence of entitlement and not a lot between the ears.

The whole artical is a disaster.

Thaksins mention of putting the baht at 40 to the U$D would keep farangs who can only think in terms of how many beers they get from their pensions hazppy but at 40 to the dollar diesel would be about 40 baht per litre which which would cause Thailands economy to detonate in a way not seen since 1997.

Great start guys  :rofl:

----------


## Butterfly

funny that Thaksin was saying 40 to the THB when he was advocating the THB to go to 20 only a few years ago

the dude can't make up his mind  :Razz:

----------


## Butterfly

> I would like to see the coalition tax the very same falang nutters till the pips squeek and give it to those same "peasants"


better idea, kick out the farang keenok like yourself who are on a 30,000 THB monthly budget and don't contribute anything to the country materially

----------


## FailSafe

Raising the minimum wage knocks up the salary structure across the board up to middle management- if your manager is making ~12K and your lower-end workers are making ~6K, then bumping the lower end to 8K-9K means you'll have to give your manager a commensurate bump in salary to merit his higher position and work responsibilities- it's not just about the lowest-paid people on staff.

This could potentially cost employers quite a bit.

----------


## StrontiumDog

Thai-ASEAN News Network

New Govt Urged to Gradually Adjust Minimum Wage 

UPDATE : 5 July 2011                     *

The private sector asks the new  government to gradually adjust the daily minimum wage and ensure that  the hike is in line with productivity.  

Federation of Thai Industries Chairman Payungsak Chartsutthiphol  commented on the Pheu Thai Party's campaign promise to raise the daily  minimum wage. 
*

He said that if the new government is to increase the wage, it should be done gradually to minimize the effects on businesses. 

He said the new government should also allow manufacturers time to adjust to the higher minimum wage.  

The rise in the daily minimum wage means higher cost of production for business owners. 

Payungsak called on the new government to lay down measures to assist and strengthen Thai industries.  

The federation chairman believes the Thai economy would grow by four to five percent this year. 

Thai Chamber of Commerce Chairman Dusit Nontanakorn said despite her  lack of political experience, the private sector is ready to give Pheu  Thai top party-list MP Yingluck Shinawatra an opportunity to prove  herself once she becomes prime minister. 

Dusit noted that the new government's policies should be based upon  reality, adding the increase in minimum wage should be done  simultaneously with development of workers' skills.  

President of the Thai Labor Solidarity Committee, Chalee Loysoong, said  most members of the public voted for the Pheu Thai Party as they  expected promises made in the party's campaign to be kept. 

If the party fails to deliver on the promises, it will come under pressure from the public. 

He suggested Pheu Thai vet its plan to raise the minimum wage to 300  baht a day during a parliamentary session with inputs from its coalition  members.

----------


## Bobcock

How do they increase the minimum wage for farmers for example because the Rice Middle men habitually fuck them over.......

----------


## StrontiumDog

*Bangkok Post : Labour demands quick wage rise
*
*Labour demands quick wage rise.*
Published:  5/07/2011 at 05:06 PMOnline news:A labour network has urged the Pheu Thai Party  to honour its promise to raise the minimum wage to 300 baht per day as  soon as possible, and demands that the new labour minister be a person  who understands and respects the workers.

 Chalee Loisung, chair of the Thai Labour Solidarity Committee, said  Tuesday that the Pheu Thai Party should raise the minimum wage to 300  baht per day immediately after it takes government, to honour the  promise it made during its election campaign.

 "The Pheu Thai Party told voters that it would raise the minimum wage to 300 baht right away, so it should honour its word.

 "Although the authority to increase the wage rests with the wage committee, the spoken promise commits it," Mr Chalee said.

 He also demanded the new government ratify the convention of the  International Labour Organisation on the right to organise and  collective bargaining, amend the law to facilitate the establishment of  labour unions and protect founding members of labour unions from being  laid off, and make the Social Security Office an independent  organisation.

 Mr Chalee was heartened by speculation that  Jarupong Ruangsuwan,  former permanent secretary of the Labour Ministry would be the new  labour minister.

 He said Mr Jarupong knows workers' problems and is open to discussions.

 Some former ministers did not understand workers' problems, which were real, and even looked down on workers, he said.

----------


## StrontiumDog

^ Pressure is mounting before they've even taken office...

----------


## 9999

Does anyone know the details of the 300 THB policy?

According to the missus the whole thing is a cunning marketing ploy where they spray the board the '300 THB FOR ALL' whilst hiding the fine print.

The fine print is it only applies to skilled labour. Factory jobs etc. would not qualify, though experience also plays a part in qualifying. Also, there are tax breaks for businesses affacted by the new policy.

That's jusxst what the mrs says, anyone else hear that?

----------


## StrontiumDog

*For Thais Populist Policies Could Harm Thailand Economy - WSJ.com
*
*New Populist Policies Could Harm Thai Economy* 

*By LEIGH MURRAY* 

BANGKOK—A sweeping electoral victory for Yingluck  Shinawatra has allowed Thailand to avoid the immediate risk of social  unrest or military intervention, but the incoming government's populist  policies may threaten the vibrancy of Southeast Asia's second-largest  economy. 

 The sister of exiled former Prime Minister Thaksin Shinawatra wooed  voters not only with her charisma, but with an array of vote-grabbing  promises: an increase of 36%-89% in the minimum wage, guaranteed rice  prices for farmers, starting salaries of at least 15,000 baht ($492) for  university graduates, tablet PCs for students, and high-speed trains  across the country. 

 "Even if they only deliver a fraction of what they promise (on  wages), the impact will be significant" on inflation, said Santitarn  Sathirathai, an economist with Credit Suisse in Singapore. 

 A few days before the election—with both parties promising to raise  the minimum wage—Mr. Santitarn raised his average inflation target for  2012 to 3.7% from 3.5%. 

 The way the government implements any minimum-wage increase will be  crucial: An across-the-board increase "will be very inflationary," Mr.  Santitarn said, but a varied introduction across sectors would limit the  impact on inflation, which rose 4.06% in June from a year earlier. 

 The Bank of Thailand has warned that inflation poses the biggest  threat to economic growth this year. Gov. Prasarn Trairatvorakul said  during the election campaign that the next government needs to maintain  fiscal discipline and that increasing the budget deficit could threaten  fiscal stability. 

 Standard Chartered Bank wrote in a research note that the For Thais  party had indicated its economic policies would cost around 1.85  trillion baht over the next five years, a level of spending that could  push back plans to achieve a balanced budget by two years, to fiscal  2018. 

 Although Thailand's public debt of about 45% of GDP "is not yet at  alarming levels, the big-ticket investment could imply larger demand for  public borrowing over the coming years than markets had expected,"  Standard Chartered said. 

 Despite the calls for fiscal discipline, the new government will face  enormous pressure to make good on its promises. Members of Thailand's  vast rural population, many of whom are low-income earners, were  critical in lifting For Thais to power. 

 Among the big winners will be rice farmers, who have been promised  15,000 baht per ton of rice from the government—prices are currently  below 10,000 baht/ton—a policy analysts say could lead to hoarding.  Because Thailand is one of the world's biggest rice exporters, it also  could trigger a dramatic increase in global prices. 

 Not everyone sees a threat, however. Frederic Neumann, co-head of  Asian economics at HSBC, believes big-spending policies won't undermine  Thailand's competitiveness against its regional peers since minimum  wages in China "are rising a lot faster." 

 He adds that Thailand's fiscal position remains healthy enough that  it could allow its budget deficit, targeted at 420 billion baht this  fiscal year, or some 3.9% of GDP, to widen. 

 The trouble is not with short-term funding, Mr. Neumann said, "but if  you make commitments indefinitely, then it becomes hard to reverse  these at some point."

----------


## DroversDog

> The Bank of Thailand has warned that inflation poses the biggest  threat to economic growth this year.


This would be economic growth that have only benefited a few at the high end of the export chain. I can see how most Thais couldn't give a shit about growth where a great majority have gone backwards rather then benefited. The Bank of Thailand's foreign reserves have done very nicely and it is time to use some of that excess for the benefit of the country.....

----------


## DroversDog

> Does anyone know the details of the 300 THB policy?
> 
> According to the missus the whole thing is a cunning marketing ploy where they spray the board the '300 THB FOR ALL' whilst hiding the fine print.
> 
> The fine print is it only applies to skilled labour. Factory jobs etc. would not qualify, though experience also plays a part in qualifying. Also, there are tax breaks for businesses affacted by the new policy.
> 
> That's jusxst what the mrs says, anyone else hear that?


While nothing is certain until it is written in law, PT so far have implied that it included the lowest of paid Thai work force. We will have to see if it also filters down through the dodgy employers of foreign workers. Most are already non-complient with the current arrangements and will most likely not pass any benefits on.

For the falang community there is no word on any increase for bar fines.....   :St George:

----------


## Bangyai

> it's actually the right thing to do,
> 
> manufacturers can afford it, they have been making record profit


It is the right thing to do. As Buriram Boy says , 7200 is hardly a living wage for a working class family to get by on in this day and age.

More money in the hands of lower paid workers will get spent within the Thai economy and will translate into increased demand for essentials and manufactured goods which in turn will help keep factory workers in employment and factory owners in business. If you want to stimulate domestic demand then people need a reasonable amount of disposable income. A quick walk around any mall will easily prove that 7200 a month does not go far.

As for this stimulating illegal employment of cheap labour from neighboring countries, we have recently seen a crackdown on this and can expect it to continue. A large percent of the wage paid to an overseas worker will obviously end up overseas which is not going to be much help to the Thai economy.

----------


## Dick

pay monkey $10 to work all day , u still get shit quality in Thailand

----------


## DroversDog

> pay monkey $10 to work all day , u still get shit quality in Thailand


You should look to stop wasting your money on monkeys and pay real people.
Most falangs would die of dehydration trying to do the work same Thais do working their land.
I would rather pay them the 300 baht and use the change to buy some beer!

----------


## FailSafe

> It is the right thing to do. As Buriram Boy says , 7200 is hardly a living wage for a working class family to get by on in this day and age.


The point is that many smaller businesses (say, 15-20 employees) run by single owners are going to lay people off in order to save on payroll costs when this ends up costing them 50K out-of-pocket if they keep the same number of staff.

----------


## Bobcock

The rich have got super rich on the backs of cheap labour, they won't want to change....

Even in a company like mine you can see the pain in the managements faces when you recommend someone for a pay rise.

Frankly some of my guys are way overpaid for the work they do, but I say fuck it, I always fight for more money for them (apart from one....)

----------


## 9999

> The point is that many smaller businesses (say, 15-20 employees) run by single owners are going to lay people off in order to save on payroll costs when this ends up costing them 50K out-of-pocket if they keep the same number of staff.


Maybe not if there are tax breaks I think we should wait to see the actual policy before jumping to conclusions. I doubt they're out to intentionally destroy the Thai economy, stupid as they may be.

----------


## Buksida

> How do they increase the minimum wage for farmers for example because the Rice Middle men habitually fuck them over.......


They've promised to maintain a price of 20k per tonne of rice. Another frightening policy.

----------


## FailSafe

> Originally Posted by FailSafe
> 
> The point is that many smaller businesses (say, 15-20 employees) run by single owners are going to lay people off in order to save on payroll costs when this ends up costing them 50K out-of-pocket if they keep the same number of staff.
> 
> 
> Maybe not if there are tax breaks I think we should wait to see the actual policy before jumping to conclusions. I doubt they're out to intentionally destroy the Thai economy, stupid as they may be.


Personally, this is going to potentially cost me money- I'm already making plans to downsize my work-force in a couple of small businesses if the wage increase goes through as my personal income will take a hit to the point where continuing to run things with employee numbers at their current level will be cost-prohibitive (I only employ people 'on the books' and pay all taxes and social insurance payments every month)- I would probably shut them down otherwise as they would no longer be worth the effort it takes to pull some money out of them.

----------


## Buksida

We employ around 20, some get min and some get up to 300 plus bonuses and overtime. 

Paying more and maintaining the same profits would be possible if the staff were more productive, however this would mean sacking staff.

The policy of 15k for fresh grads is the worst, as this bunch learnt little at school besides how to sit up straight.

Thais aren't the best workers. It would be interesting to hear comparisons of workers in neighboring countries.

----------


## Loy Toy

Basically all these promises were made without any thought about how it will affect the big picture.

Thailand although having no natural resources, well apart from rice and other agriculture products, has done well in the past to become the second largest S. E Asian economy mostly on the back of the foreign currencies buying exports including investing in the Taboo industry.

Having read through Jingluck's election promises she will destroy the Thai economy overnight.

----------


## Butterfly

> They've promised to maintain a price of 20k per tonne of rice. Another frightening policy.


let them do it, it will actually hurt the poor more than the rich, let them eat the cake and have it for electing populist opportunists

----------


## Buksida

> Having read through Jingluck's election promises she will destroy the Thai economy overnight.


They will have to choose between keeping their promises and the survival of the economy. I think it will be the latter, they have their huge majority and I doubt they are worried about the poor chasing them out of office.

----------


## Loy Toy

> I think it will be the latter, they have their huge majority and I doubt they are worried about the poor chasing them out of office.


Yes, because the poor majority (and with all due respects) have no idea about politics, economics or how the game is played.

That's why PT are where they are today and I hope they do not let Thailand down as the next few years are probably the most important in the last 50 years.

----------


## Sakeopete

> Originally Posted by Loy Toy
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by buriramboy
> ...


I don't know much about economics but will the wage increase and 20k rice pledge increase inflation drastically? I don't think the wage increase will effect multinational companies but it will effect small companies who produce locally consumed products thereby increasing inflation.

If this happens the BOT will increase interest rates as a counter measure making the Baht more attractive. The Baht will gain hurting export businesses and expats.

We expats will be hit with a double whammy of inflation and forex to our spending power.

----------


## Buksida

> Originally Posted by Buksida
> 
> I think it will be the latter, they have their huge majority and I doubt they are worried about the poor chasing them out of office.
> 
> 
> Yes, because the poor majority (and with all due respects) have no idea about politics, economics or how the game is played.


At least the poor and uneducated have an excuse. Look at the policy for graduates salaries, surely ppl with that level of education should understand there is no free lunch.

----------


## DrB0b

*Tuesday, July 5, 2011*

* Are the banks urging Thailand to drink the Kool-Aid?* 


Somebody call a physician.  Economists at some of Asia's leading financial institutions are suffering amnesia.  Or worse.

First, some background.  For a long time, economists have been urging  leaders of emerging countries in Asia to shift from export-led growth  strategies to domestic investment.  They have preached spending on  infrastructure and the stimulation of local demand.  Here's an article  dated May 2009:
*ASEAN: ADB urges Asia to increase domestic spending*

The Asian Development Bank (ADB) President Haruhiko Kuroda told  ASEAN,  East Asian and South Asian officials at the ADB’s annual meeting  in  Bali, Indonesia that *Asia must boost domestic consumption and end its   dependence on exports as external demand plunges in the world economic   slump....*

Although Asian governments have embarked on economic stimulus  packages, *Kuroda  said such measures would not be enough without  structural reform to  end the region's dependency on demand from rich  countries.*

*Over the longer term, developing Asia is starting the process of   rebalancing growth from excessive dependence on external demand to   greater resilience on both consumption and investment," he said.*What  was good advice in 2009 ought to be good advice in 2011.   This year,  nobody expects consumer demand in the US or Europe--regions plagued by   unemployment--to rebound anytime soon.  The insatiable appetite of   Western leaders for draconian fiscal austerity is reducing consumer demand, and may push the world's richest economies back into recession soon.  Thus, if Asian economies are to prosper, their leaders have never had more reason to focus on stimulating local demand. 

Or so one would think.  Today the Wall Street Journal reports that the  Bank of Thailand and various international banks are warning that if the  incoming government of Yingluck Shinawatra follows through on its plans  to increase domestic spending, this will have harmful consequences.   They are sounding alarm bells about a rise in Thailand's national debt  and an increase in the rate of inflation: 
 *New Populist Policies Could Harm Thai Economy* BANGKOK—A  sweeping electoral victory for Yingluck Shinawatra has allowed Thailand  to avoid the immediate risk of social unrest or military intervention,* but the incoming government's populist policies may threaten the vibrancy of Southeast Asia's second-largest economy.* 

The sister of exiled former Prime Minister Thaksin Shinawatra wooed  voters not only with her charisma, but with an array of vote-grabbing  promises: an increase of 36%-89% in the minimum wage, guaranteed rice  prices for farmers, starting salaries of at least 15,000 baht ($492) for  university graduates, tablet PCs for students, and high-speed trains  across the country. 
*
"Even if they only deliver a fraction of what they promise (on wages),  the impact will be significant" on inflation, said Santitarn  Sathirathai, an economist with Credit Suisse in Singapore.* 

A few days before the election—with both parties promising to raise the  minimum wage—Mr. Santitarn raised his average inflation target for 2012  to 3.7% from 3.5%. 

The way the government implements any minimum-wage increase will be  crucial: An across-the-board increase "will be very inflationary," Mr.  Santitarn said, but a varied introduction across sectors would limit the  impact on inflation, which rose 4.06% in June from a year earlier. 
*
The Bank of Thailand has warned that inflation poses the biggest threat  to economic growth this year. Gov. Prasarn Trairatvorakul said during  the election campaign that the next government needs to maintain fiscal  discipline and that increasing the budget deficit could threaten fiscal  stability.* 

*Standard Chartered Bank wrote in a research note that the For Thais  party had indicated its economic policies would cost around 1.85  trillion baht over the next five years, a level of spending that could  push back plans to achieve a balanced budget by two years, to fiscal  2018.* 

*Although Thailand's public debt of about 45% of GDP "is not yet at  alarming levels, the big-ticket investment could imply larger demand for  public borrowing over the coming years than markets had expected,"  Standard Chartered said.*

*Despite the calls for fiscal discipline*, the new government will face enormous pressure to make good on its promises...Let's  hope that Thailand's new government ignores the fear-mongering of  international bankers and the Bank of Thailand governor.  Even a  substantial increase in a national debt that, as a percentage of GDP, is  only half that of the United States, will not spell ruin for Thailand.   Moreover, modest inflation can discourage hoarding and stimulate  productive investment.  

Thailand may well be on the verge of pursuing an economic growth  strategy that would not only be advantageous for poor and middle class  Thais, but good for the world economy.  Thailand might set an example  for other countries.

I would tend to chalk up the Wall Street Journal article as a reflection of the present global hysteria for "fiscal discipline _now_ at any price." This economic dogma has been demonstrated to serve bond-holders at the expense of workers.

Incidentally, I found another version of the comments made by Gov. Prasarn Trairatvorakul, cited above, at MSNBC:
Thailand risks slipping into a fiscal crisis as in Western  economies, eroding consumer power if the new government substantially  expands fiscal spending as many parties are promising, warns Bank of  Thailand governor Prasarn Trairatvorakul.If Gov.  Trairatvorakul actually believes that Western economies are suffering  from "a fiscal crisis" as opposed to crisis of consumer demand and  unemployment, then we can be quite certain he's drinking the Kool-Aid.

----------


## robuzo

Banksters. Bunch of parasites.

----------


## StrontiumDog

*http://www.nationmultimedia.com/2011...-30159600.html*

*Minimum daily wage of Bt222 approved in principle*

                            By THE NATION
                                             Published on July 6, 2011                

*A sub-panel of the  Bangkok Wage Tripartite Committee  (WTC ) yesterday proposed a Bt7  increase to the top minimum wage of  Bt215, which is already in effect  in Bangkok.*

                                                            Ammorn  Chaowalit, an adviser to the sub-panel, said  yesterday that the new  rate of Bt222 was acceptable to employers,  employees and the  authorities and had been approved initially as a  proposed rate.It could  be approved officially by the WTC in October,  Ammorn said. Another  hike next January, if demanded by employees, would  be decided based on  new factors at the time, including inflation, he  added.

The sub-panel and the WTC have not yet discussed a flat  Bt300-per-day  wage, raised as an election promise by the Pheu Thai  Party, which will  now lead a five-party coalition to form a new  government.

"Such a policy will rest with the new labour minister," he said.

At  a Bangkok seminar yesterday, employers and academics on labour   cautioned the new government against a possible policy to raise the   daily minimum wage to a flat Bt300.

Pannaphong Itthiatthanont, a  member of the WTC, said the wages were  always calculated realistically  based on several factors and must be  approved jointly by the authorities  and employees.

Ammorn said a Pheu Thai proposal to restructure  the WTC to make future  hikes easier would need a legal amendment - but  it could also result in  consequences for the entire production sector.

The  Labour Ministry would need to initiate an amendment for the   government's approval before a two-year process could begin, he added.

Associate  Professor Lae Dilokwitthayarat of Chulalongkorn University's  faculty of  economics said the three-party mechanism was necessary for  the entire  business and production sectors to continue, or even  survive. 

High wage rates without good reason would only result in high production costs and product prices.

The group most affected by high wages would be small and medium-sized enterprises, which employ the most people. 

They  would need to be subsidised or helped by other government  measures, if  the wages could be raised independently by the government  without a  counterbalance from employers.

----------


## 9999

> Having read through Jingluck's election promises she will destroy the Thai economy overnight.


Fair enough you guys in business would know better than me; so they really are stupid enough to destroy the economy eh. I gave the Shinno family a little bit more credit than that. Obviously little Yingas didn't dream this one up herself.

I hope for yall sake they break the promise on this one.

----------


## StrontiumDog

*Bangkok Post : Industry opposes B300 daily wage
*
*Industry opposes B300 daily wage*
Published:  6/07/2011 at 01:13 PMOnline news: Local News
 The incoming government should review its policy  to raise the daily minimum wage to 300 baht because manufacturers would  not be able to carry the added labour cost, the chairman of Khon Kaen  Federation of Industries said on Wednesday.

 “Industrial plants might have to close down, or move their production bases to other countries,” Withoon Kamolnaruemeth said.

 Mr Withoon admitted that manufacturers were truly worried about the 300 baht a day policy championed by  the Pheu Thai Party. 

 He said no other country [in the region] had a policy for the same  daily wage level nationwide. The  daily minimum wage should be set in  line with living costs of each province, which varies.

 “The current minimum wage in Khon Kaen is 169 baht a day. If it is   raised to 300 baht, the increase would be about 90%," he said.

 No manufacturer could bear such sharp increase in labour costs and  they would have no option but to lay off workers, stop operations or  transfer their production bases elsewhere.

 Therefore, this policy should be reviewed, Mr Withoon said. The  private sector would also meet soon discuss this issue and search for a  solution.

 He said that outside the indutrial sector,  the negative impact of  this policy would also be felt by ordinary people, civil servants and  employees of other private firms.

 They would face higher prices for consumer goods, which would rise in line with the increase daily wage.

----------


## StrontiumDog

*Thai business fears wage inflation under new government | Reuters
*
*Thai business fears wage inflation under new government*







              By Ploy Ten Kate and Michael Perry
                  BANGKOK |          Wed Jul 6, 2011 4:21am EDT         

   (Reuters) - Thailand's central bank on Wednesday expressed concern over  inflation, as business leaders fear a wage-price spiral if the newly  elected government goes ahead with billions of dollars in spending.

  Prime Minister-elect Yingluck  Shinawatra won a landslide election victory on Sunday on a platform of  populist policies which include wage rises, a household debt moratorium  and better welfare and healthcare.

One  proposal is for a nationwide minimum wage of 300 baht ($9.8) per day,  as much as 90 percent higher than the current minimum set for each  province around the country.

That  would be a huge amount for manufacturers to absorb, said Richard Han,  CEO of integrated circuit packager Hana Microelectronics Pcl.

"Two  things will happen: either they will make less money or they'll try to  put their prices up and cause inflation ... This could put you on a  (wage-price) spiral," he said.

Annual inflation in Southeast Asia's second-largest economy hit 4.19 percent in May, its highest since September 2008. It stood at 4.06 percent in June.

"High  inflation will hurt people's purchasing power and as a result may  affect consumption," said Governor Prasarn Trairatvorakul, adding the  new government's policies would be considered at a policy meeting on  July 13.

Economists expect the Bank of Thailand  to raise its policy rate by a quarter of a point to 3.25 percent at  that meeting and see it at 3.75 percent by the end of 2011 rather than  the 3.50 percent they had expected before the election.

FOREIGN INVESTORS

The  central bank chief said he expected foreign money to flow into Thailand  in the second half of 2011 as worries about political instability eased  and with concern growing over economic conditions in Europe and the  United States.

But business leaders said a rising wage bill may deter offshore investors.

"Any  wage adjustment should really go in line with market mechanisms.  Foreign direct investment is still a key foundation that drives the  economy in this country," said Viboon Kromadit, chief operating officer  of industrial land developer Amata Corp.

Higher wages could also undermine exports, especially in agriculture, damaging a sector that employs millions.

The  Thai economy expanded a robust 7.8 percent in 2010 and is projected to  grow 4.0-5.0 percent in 2011, fueled by strong export growth and  increased consumption.

Businesses urged the new government to proceed slowly.

"Personally  I think the pace of the wage rise should be gradual rather than a sharp  hike," said Thammarat Chokwatana, executive vice-president of I.C.C  International Pcl, part of Saha Group, Thailand's leading consumer  product group.

"Otherwise it's  going to affect product prices in the market and could ultimately drive  up living costs and cause even higher inflation," Thammarat said.

----------


## StrontiumDog

^Abhisit looks unwell in that photo...

----------


## DroversDog

> *A sub-panel of the  Bangkok Wage Tripartite Committee  (WTC ) yesterday proposed a Bt7  increase to the top minimum wage of  Bt215, which is already in effect  in Bangkok.*


7 Baht increase per day?
Are they serious? 
That is lucky to keep up with inflation.
What an insult.......
I bet the committee has got a much more generous increase over the years of their service.

----------


## StrontiumDog

*Quality products, not cheap labour, Pheu Thai policy: Jaruphong
*
*Quality products, not cheap labour, Pheu Thai policy: Jaruphong*

                            By The Nation
                                             Published on July 7, 2011                

*Pheu Thai secretary-general Jaruphong Ruengsuwan  said his party's election promise to increase the daily minimum wage to a  flat Bt300 would help labourers stand on their own feet.*

                                                            "From now on cheap labour will no longer exist in  Thailand, and with this policy, skills of workers will be upgraded and a  policy to make only high-quality products adopted, to accommodate a  party policy - Year 2020," he said.

Asked whether this policy  would result in foreign companies migrating from Thailand, he said the  Pheu Thai-led government would subsidise operations of Thai firms in  other countries where labour is cheap.

Citing a study by the  International Labour Organisation, he said the daily minimum wage should  be Bt441 - a rate he said would by sufficient to feed and support a  labourer with a wife and a child in one day.

Jaruphong dismissed  criticism that the Pheu Thai Party would want to scrap the wage  tripartite structure, saying it would want to make the Wage Tripartite  Committee truly represent employees.

The highest minimum wage is  now Bt215 paid in Bangkok. An adviser to the WTC said on Tuesday that  the most practical increase would be Bt7, which could be approved by  October at the earliest.

He said another promise to pay a minimum  salary of Bt15,000 to government officials at entry level would  continue, and could be implemented by October. Personal income tax could  be lower by January.

Caretaker Labour Minister Chalermchai Sri-on  warned against approving the flat Bt300 rate, saying it would result in  a higher cost of living and higher commodity prices.

He said the  Bt15,000 promise would also affect the entire financial structure and  burden fiscal policy, because those now receiving less than Bt15,000  would not accept new officials getting more than they did, and would  demand equal or higher salaries.

----------


## Gerbil

> From now on cheap labour will no longer exist in Thailand


Vietnam (and to a lesser extent, Cambodia & Laos) will be rubbing their hands in glee hearing that.




> Citing a study by the International Labour Organisation, he said the daily minimum wage should be Bt441


Ok, they truly are insane.  :Sad:

----------


## Sailing into trouble

> It costs nothing to live in Thailand, they are not starving. I bet a Canadian on minimum is poorer then a Thai when you consider living costs. Average price of a house in Vancouver is $818,000, price of 12 beer is $25.


Are Thai people starving? Is this the measure that you hold up as justification for your Argument? 


 Your Home province of BC has a minimum wage.  A minimum wage that is very low. But it is a minimum wage mandated by government. The right wing provincial government has now taken action to increase the minimum wage of  workers. Since you use Canada as an example it is interesting that in Canada, BC is within 5c the lowest minimum wage. Unfortunately for your thesis the provinces with the highest minimum have generally a higher GPP. It is also interesting that this very conservative BC government is raising the minimum wage by about 15% this year.

People on or well below the poverty line don't have disposable income. That means less profit for business that, means less of us can afford beer and houses. When that situation grows it often snowballs and is then called a recession. The balance is to have a sustainable society that can develop economic and social policy that compliment. 

 In a volatile country like Thailand overseas investors look at many factors not just a 0.% increase in the cost of manufacturing a refrigerator or car. Political stability, settled work population, educated work force, access to domestic and foreign markets transportation costs etc etc. If Thailand is to compete against its increasingly economic powerhouse Asian Neighbors, it needs to force itself from the dark ages of the present feudal serfdom. 

If that means that your choice of night partners diminishes as more Thais find alternatives to Farang dick to make a living; tough tity

----------


## Mid

> If that means that your choice of night partners diminishes as more Thais find alternatives to Farang dick to make a living; tough tity


There is that Elephant in the room  :mid:

----------


## silversands

> Originally Posted by LooseBowels
> 
> I would like to see the coalition tax the very same falang nutters till the pips squeek and give it to those same "peasants"
> 
> 
> better idea, kick out the farang keenok like yourself who are on a 30,000 THB monthly budget and don't contribute anything to the country materially



Bit harsh! Even if he is not contributing "materially" as you put it. He is still spending his 30,000 bt a month IN Thailand. 
How do you know what he spends anyway? Even if you are correct. This is much more than the average tourist spends on their visit to Los. It all contributes!

----------


## Carrabow

> Originally Posted by StrontiumDog
> 
> From now on cheap labour will no longer exist in Thailand
> 
> 
> Vietnam (and to a lesser extent, Cambodia & Laos) will be rubbing their hands in glee hearing that.
> 
> 
> 
> ...


Hate to argue that point Gerbs, at the current rate of inflation that is still too low. Single mothers out east stuggle with 150-200 a day. That buys you peanuts  :Confused:

----------


## Carrabow

[quote=StrontiumDog;1806665]*Bangkok Post : Industry opposes B300 daily wage*


*Industry opposes B300 daily wage*

That would cut into the Executives annual bonuses, who is kidding who ?

----------


## Buksida

> "From now on cheap labour will no longer exist in  Thailand, and with this policy, skills of workers will be upgraded and a  policy to make only high-quality products adopted, to accommodate a  party policy - Year 2020,"


Surely he's joking? How will this be achieved? Where is the plan?
Builders here can't even read a plan, many electricians have no proper training, there's plenty of seamstresses but few who can work of patterns. 

Try teaching these ppl anything, few want to learn, especially the men.

----------


## The Bold Rodney

> That would cut into the Executives annual bonuses, who is kidding who ?


Exactlty!

As this proposal only applies to companies who employ more than 50 employees it simply means the greedy employers will make less profit. Of course many will shout "International Corporates will pull out and move to other countries" and yes that could happen just like it has in Europe. 

So for example Nokia, Siemens etc. etc. can't afford to pay 300 Baht for a 12 hour shift? 

Yes exactly who is kidding who?

----------


## Butterfly

> So for example Nokia, Siemens etc. etc. can't afford to pay 300 Baht for a 12 hour shift?


of course they can, it's simply political

----------


## StrontiumDog

Bold Rodney et al..... Ah, but business is business and profit is the goal....you are being somewhat naive if you think businesses give a damn about anything else.

----------


## Buksida

I would think a lot of the transnationals are already paying over B300, as they need to train they workers to stay and do this thru higher wages, better conditions.

----------


## Butterfly

> I would think a lot of the transnationals are already paying over B300, as they need to train they workers to stay and do this thru higher wages, better conditions.


a point I made earlier, many of those manufacturers are fighting already on hiring more employees they have difficulty to find, they can't get away with less 300 THB

big manufacturers are already paying 8,000 THB a month for a factory worker, sometimes more if more qualified

on 22 days, that's more than 300 THB per day, and of course there is overtime that they will pay

----------


## The Bold Rodney

> Bold Rodney et al..... Ah, but business is business and profit is the goal....you are being somewhat naive if you think businesses give a damn about anything else.


I'd agree with 100% with what you say and even more so here where life is cheap and the masses are unemployed and are desperate to feed their kids. Add to your post the majority politicians please! :Smile:

----------


## teddy

If you drive along the unnamed road that links Chiang Si Phom corner with the superhighway in Chiang Mai in the morning, you'll see hundreds of Tai Yai illegal labourers standing by the side of the road waiting to be collected and used as casual labour. The numbers have increased significantly over the last few years. I guess they have replaced Thai workers on the minimum daily rate.

To think that raising operating costs of Thai businesses by at least 35% will lead to a workers utopian paradise is naive. Jobs are going to flood out of Thailand and as long as there is uncertainty over a minimum wage policy of 300 baht per day, investment will dry up.

It might be tough for Thais to live on 7K baht per month but they are used to it. Take away the 7K because they have no jobs will be worse. If they are really desperate, they will find a dumb farang to marry one of their lazy, whoring and gambling-addicted skanky daughters. If they weren't lazy, incompetent, poorly-educated and corrupt, then they might be able to produce a wealth factory such as Singapore. That isn't going to happen though within the life span of our universe. 

It's horses for courses: Thais have been born to be peasants and Chinese have been born to exploit them. I'd rather be with the Chinese.

----------


## Buksida

Increase the skill level and wages will rise automatically.

----------


## The Bold Rodney

> Increase the skill level and wages will rise automatically.


Before you attempt to increase manufacturing skill levels, providing all young people with a sound, solid even basic education here would be extremely beneficial.

----------


## Buksida

> Originally Posted by Buksida
> 
> Increase the skill level and wages will rise automatically.
> 
> 
> Before you attempt to increase manufacturing skill levels, providing all young people with a sound, solid even basic education here would be extremely beneficial.


Not about to happen though Is it?

----------


## The Bold Rodney

> Not about to happen though Is it?


Only time will tell...but reducing corruption here would be a good start and there are such plans which one hopes can only help everyone. 

It's easy to keep knocking Thais and Thailand but we're all here for a reason whether, it's the weather, food or pussy it's all better than the UK in my book!

Some posters on here (we know who) are bitter and twisted for reasons unknown to me but slagging off the Thais and Thailand at every oportunity isn't going to make their lives any better! :Smile:

----------


## Buksida

^ you seem to be drifting off the subject. Improving skills doesn't need to be as complicated as you say.

For example learning to read a basic plan is very easy, then moving onto more difficult plans can be done gradually at the workplace.

----------


## The Bold Rodney

> you seem to be drifting off the subject. Improving skills doesn't need to be as complicated as you say.


Not at all and if you knew the level of education here of factory workers in Bangkok for example you would understand.




> For example learning to read a basic plan is very easy, then moving onto more difficult plans can be done gradually at the workplace.


If they could actually read, write and understand basic maths then I'd agree with you, unfortunately many of them can't. 

They are taught basic assembly tasks by example but as for reading and understanding techinical drawings let alone solving technical issues, forget it! 

The reason so many mundane manufacturing tasks are carried out in the East is that not only is labour cheap Westeners with degrees (there are too many) all want to be chiefs not indians.

You're correct on one point many high tech factory employees in Bangkok earn above the proposed 300 Baht minimum wage but remember they work 12 hour shifts six days a week. So roughly lets assume they earn around 8,000 - 10,000 a month? a good wage for many but not quite as good as selling pussy to farangs assuming they have a pussy of course?  :Smile:

----------


## Buksida

Rodney, you have no idea what your talking about.

Check the literacy rates, they are not that low. Basic maths is understood by most.

----------


## StrontiumDog

Thai-ASEAN News Network

Govt to Raise Minimum Wage for Civil Servants, State Firm Employees in October 

UPDATE : 7 July 2011                     *

The Pheu Thai-led government is looking  to raise the monthly salary for civil servants and employees of state  enterprises, starting from October.*

Pheu Thai Party Secretary-General Jarupong Ruangsuwan, also serving as a  member of the party's economic team, said the new government expects to  start increasing the minimum salary to 15,000 baht per month for civil  servants and state-enterprise employees in October. 

As for an increase to the minimum wage rate, he said the policy will be  put into effect once the government has reached a conclusion with the  private sector and prepared measures to assist companies in managing the  higher payroll, such as a cut to the business income tax and promotion  of exports to emerging markets.

Jarupong noted that the plan to increase the minimum wage to 300 baht a  day aims to help low-income earners support themselves. He reaffirmed  that the same rate will apply to all provinces. 

The minimum wage increase is expected to be implemented next year.

The Pheu Thai secretary-general said the International Labor  Organization noted that an appropriate wage should allow an individual  to cover basic expenses for all family members. He added that worker  skills must be improved, and the production of high-value products must  be promoted in order to correspond with higher wages and the economic  development plan in 2020.

----------


## teddy

> Rodney, you have no idea what your talking about.
> 
> Check the literacy rates, they are not that low. Basic maths is understood by most.


The why do they use a calculator in shops and bars to calculate the change from a 100 baht note for a 80 baht bottle of beer?

----------


## Buksida

> Originally Posted by Buksida
> 
> 
> Rodney, you have no idea what your talking about.
> 
> Check the literacy rates, they are not that low. Basic maths is understood by most.
> 
> 
> The why do they use a calculator in shops and bars to calculate the change from a 100 baht note for a 80 baht bottle of beer?


Because they're lazy I guess, as I've seen it done by grads.

Building workers don't have calcs and do OK. But can't read plans, to save face they pretend it's not necessary

----------


## StrontiumDog

*Putting populist pledges into action may bankrupt us all

EDITORIAL* 

*Putting populist pledges into action may bankrupt us all*

                            By The Nation
                                             Published on July 7, 2011                

*The Pheu Thai Party needs to reconsider its promised billion-baht give-aways*

                                                            The prospective Pheu Thai-led coalition government will  now have to reconsider carefully how to implement the pledges it gave  to voters during the election campaign.

The Pheu Thai Party lured  voters with a raft of policies it promised to implement should it gain  power. However, some of those policies may squander taxpayers' money,  failing to boost the capacity of the country's human capital and create  sustainable wealth for its people.

Pheu Thai is a champion of  populist policies, and many voted for the party because they wanted to  benefit from such policies. However, when populism is put into action,  the country's fiscal health can suffer through the massive budget  spending needed to finance give-away programmes.

Pheu Thai ran a  campaign full of policies aimed at catching the voter's eye. Included  were pledges to raise the national minimum wage to Bt300 per day, offer  higher prices to farmers for their rice crops, provide tablet computers  to all primary schools, cap mass-transit train fares at Bt20, and ensure  college graduates receive support of Bt15,000 per month. 

While  the party has yet to spell out how it will implement these projects,  there are already concerns that some of these policies could be a waste  of taxpayers' money, leading to more damage than benefits.

Credit  ratings agency Standard and Poor's recently warned of the dangers.  "Implementing many of these policies without having proper appropriation  of the revenues would adversely affect the country's fiscal position,"  said Takahira Ogawa, a credit analyst for the agency.

Measures  undertaken by the last government over several years to counter the  global recession and implement populist policies have already eroded  Thailand's fiscal strength, he was quoted as saying.
"Further significant erosion could be detrimental to the current ratings," Ogawa cautioned.

For  instance, Pheu Thai may have to reconsider its pledge to distribute  computers to each primary school student. The "one tablet per child"  programme would amount to 800,000 computers at a cost of about Bt4  billion. But it remains to be seen how this project would contribute to  the children's development - especially those living in rural areas with  no broadband coverage.

The pledge to raise the minimum wage to  Bt300 in 90 days might also lead to uncontrollable inflation. It is  crucial that the minimum wage level be acceptable to both employers and  workers so as to ensure it is practical and conducive to the business  environment. A rate set too high would discourage factories from hiring  workers, causing high inflation and creating potential job losses as  factories turned to outsourcing.

The rice-pledging programme is  also likely to cost more than Bt100 billion. And yet, the programme  would not benefit poorer farmers, as they lack the facilities to store  and dehydrate rice as required by the pledging programme. The major  beneficiary would in fact likely be the rice millers.

Populist  policies are not necessarily bad, but they must be implemented only  according to necessity, as short-lived programmes to ease the suffering  of people and complement other sustainable policies. 

It would be  unfortunate if political parties used full-blown populist policies so as  to inflate the economy's growth figures in the short run, without  considering the consequences to the country in the longer term.

Instead,  the government has a duty to focus on policies to boost Thailand's  capacity and competitiveness in the long term. Populist policies also  instil a perception that the government will provide people with  economic security, which discourages self-reliance in favour of reliance  on hand-outs.

In addition, such policies naturally attract corruption because of the huge sums of taxpayers' money involved.

A  country will fail to develop if its government places a higher priority  on populist policies than on a sustainable economic platform to boost  the country's long-term competitiveness. Although these give-aways may  seem like an essential element of economic strategy because voters have  become addicted to them, the Pheu Thai Party-led government must  reconsider how to implement them in the best interests of the people. Otherwise, we could all be bankrupted altogether.

----------


## StrontiumDog

^The Nation being somewhat dramatic...but never mind. 

Personally I don't think all of the populist policies will make it. 

The Dem's sent off their raise in the minimum wage to a committee, which duly whittled it down.

It is a neat way of reneging on your promise without being seen to do so.  

Worked for them! Well, kind of, they did lose the election but I'm sure other factors were more influential.  :Smile: 

Lets see what Pheu Thai does...

----------


## koman

> Originally Posted by teddy
> 
>  Then why do they use a calculator in shops and bars to calculate the change from a 100 baht note for a 80 baht bottle of beer?
> 
> 
> Exactly right but..... 
> 
> 
> 
> ...


About a year ago I needed to buy a load of potting soil. The wife and I arrive at a big garden center and see that they have a special deal;  six bags of potting soil for 100 Thb.  Excellent; so we tell them we need 40 bags...how much?  800 Thb they say.   Wait a minute I say.  You are charging me more per bag for buying 40 bags than if I only buy six?    Now this causes consternation like you would hardly believe.  We end up standing in the hot son  with no less than four "managers" all with calculators.  Finally the most senior manager says in triumph...OK we can discount for you...750 Thb for 40.   But that's still more expensive I say.....dear me.

So then I have an idea.  OK I say; just give me 6 bags for 100 baht.  They summon a non-management type and had him load the six bags into my truck and I hand over 100 Thb...then I say OK now give me six more...I hand over another 100Thb....we did this 7 times and I paid a total of 700 baht.

We drove off with 42 bags of soil while the 4 managers, still standing out in the hot sun furiously calculating away and trying to figure out how that farang managed to rip them off like that.... :Smile:

----------


## Butterfly

> So then I have an idea. OK I say; just give me 6 bags for 100 baht. They summon a non-management type and had him load the six bags into my truck and I hand over 100 Thb...then I say OK now give me six more...I hand over another 100Thb....we did this 7 times and I paid a total of 700 baht.
> 
> We drove off with 42 bags of soil while the 4 managers, still standing out in the hot sun furiously calculating away and trying to figure out how that farang managed to rip them off like that....


awesome story, yes, technical details are not their strong

----------


## Buksida

> Pheu Thai Party Secretary-General expects  to  start increasing the minimum salary to 15,000 baht per month for  civil  servants and state-enterprise employees in October. 
> 
> As for an increase to the minimum wage rate, he said the policy will be   put into effect once the government has reached a conclusion with the   private sector and prepared measures to assist companies in managing the   higher payroll, such as a cut to the business income tax and promotion   of exports to emerging markets.
> 
> The minimum wage increase is expected *to be implemented next year.*


PT will start giving bureaucrats 15k, but the poorest ppl will have to wait until next year to get less than half that? Anything could happen between then and now, especially considering they are talking to employers first.





> The* pledge to raise the minimum wage to  Bt300 in 90 days*


Was this really a pledge? If so looks like they're going back on it already.

----------


## crippen

> Originally Posted by teddy
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Buksida
> ...


Round here,they use a calculator so they can show the amount to the thick farang who doesn't understand Thai.  Don't do for the Thais though. ::chitown::

----------


## StrontiumDog

Thai-ASEAN News Network

 

Southern Trade Union Worried about Wage Hike 

UPDATE : 8 July 2011                     *

A southern trade union is urging the  government to run its wage policies with caution, given they could pose a  severe threat to internal businesses. 

Chief adviser of the Federation of Southern Industries Thawee  Piyapathana said the push for a minimum-wage increase to 300 baht per  day and the entry salary of a new bachelor graduate at 15,000 baht per  month will do more harm than good if other factors are not considered. 

Thawee said that business operators in the country will not be able to  bear increased costs, while small and medium entrepreneurs could shut  down their operations. 
*

He suggested that the rise covers 60 percent of workers who rely on minimum wage. 

The chief adviser then urged the new government to place importance on  the country’s economic and business conditions before putting its  economic policies in place, as they will be the group hardest hit by the  government’s wage policies.

----------


## StrontiumDog

Thai-ASEAN News Network

 

Food Industry Prepares for Minimum Wage Hike 

UPDATE : 8 July 2011                     *

The food industry believes the new  government's minimum wage hike will have a serious impact on production  costs, but feels it will also help stimulate consumer spending,  providing the political climate is stable.

The private sector has continually voiced opposition against the new  government's minimum wage hike to 300 baht per day, including Thailand  Restaurant News Magazine manager and organizer of the Thailand  International Restaurant and Bar exhibition Chattaporn Yolao. 
*

She said she has been closely monitoring the new government's wage  policy, and if it is passed business operators will be deeply troubled. 

She has urged the government to find solutions for the operators. 

Regarding this year's growth in the food industry, factors such as a  change in consumer behavior, with many people eating out, as well as  political stability have contributed to an increase in consumer  spending.

 A 15 percent growth is expected this year. 

The Thailand Restaurant News Magazine is cooperating with Impact  Exhibition Management to hold the 2011 Thailand International Restaurant  and Bar exhibition, showcasing food and drink products from around the  globe. 

The exhibition kicked off yesterday and will continue until Saturday at Muang Thong Thani's Impact Terminal 2.

----------


## Bangyai

Some interesting comments on the minimum wage in this article :

*BoT welcomes peaceful election*



The peaceful election and the acceptance of poll results by leaders of both Pheu Thai and Democrat parties are positive factors in ensuring Thailand's international credit rating, Bank of Thailand (BoT) goverrnor Prasarn Trairatvorakul said on Friday.
Mr Prasarn said the countrys debt repayment ability will also be taken into account by credit rating firms.

He said if the populist policies of the incoming government do not cause a heavy fiscal burden it would also be a positive factor. The alternative would be a negative factor.

The central bank chief said he will have to wait for details of the policies on the end to the state levy on some fuels, the increase in the daily minimum wage and the fixing of a 15,000 baht salary for bachelor degree graduates starting government jobs before making further judgement of whether they would cause inflation or increase the ratio of public debt to gross domestic product.
 Bank of Thailand governor Prasarn Trairatvorakul

Mr Prasarn refused to comment on reports that the Pheu Thai-led coalition government might interfere in foreign exchange policy, saying any comment he made could affect the exchange rate.

He said risk factors that could hurt the economy in the second half of the year are inflation, rising prices of oil and food, the fragile global economic recovery, particularly in the US, and the debt crisis in Europe.

The BoT governor said the bank maintained its economic growth projection for this year at 4.1 per cent.

Islamic Bank of Thailand (Ibank) president Theerasak Suwannayos said the Pheu Thai's 300 baht daily minimum daily wage policy will not hurt small and medium enterprises (SMEs).

At today's seminar on "Ibank: New form of Financial Institution for SMEs", Mr Theerasak said that before raising the daily wage to 300 baht related procedures and conditions were needed.

Workers eligible for the new wage rate must be trained to the level of skilled labour.

"In the past, we only talked about GDP growth and forgot to think of income distribution. This has led to a problem of economic inequality because the GDP has been growing but people are still poor," he said.

The Ibank president said that this was because the GDP growth occurred only in the industrial sector and the money had not reached the peoples hands.

He said the labour cost accounted for only 10 per cent of total production costs and if it werer increased it would not have much effect on business.

Of much more concern is the cost of raw materials, which account for 60 per cent of total cost, he added.

Pheu Thai's nominee for prime minister Yingluck Shinawatra said her party is taking into consideration the impact on all sides in finalising its economic policies.

Many people, both supporters and critics, have questioned Pheu Thai's economic policies heralded during its election campaign.

Ms Yingluck said her party might have been talking about ways to lower the cost of living during the electioneering, but it must clearly explain sources of revenue as well.

"To drive our economic policies, we must not be rash and the impact on all sides must be taken into account," said the 44-year-old businesswoman-turned-politician.

Bangkok Post : BoT welcomes peaceful election

----------


## StrontiumDog

New Thai Prime Minister Promises to Double Minimum Wage | Southeast Asia | English

July 08, 2011 

*New Thai Prime Minister Promises to Double Minimum Wage*

   Ron Corben  
Bangkok

Thailand’s Prime Minister-elect, Yingluck Shinawatra, says the  country’s new government will press ahead with election promises to  double the minimum wage despite fears that the move will trigger  inflation. 

Yingluck says before the policy is implemented, she  will hold talks with both business and labor. Speaking at a news  conference, she said the government would gradually implement the policy  and ease the impact on businesses through corporate tax rate cuts.

“The  policy of the minimum wage we will do at the same time as reducing the  corporate tax from 30 percent to 23 percent," the prime minister said.  "But we have to sit down and discuss with all the business [sector]. So I  won’t be launching or implementing ...concerning the impact so we have  to sit down and gradually see how we can find a solution together.” 

*Campaign promises* 

The  move to double the minimum wage to $10 a day (300 baht) was one of  several populist election promises made by the Pheu Thai Party ahead of  the elections. Pheu Thai won a landslide victory over the governing  Democrat Party on Sunday and is preparing to form 300 seat coalition  government in the 500 member parliament.

Thai labor groups say they have been assured the incoming government will go ahead with the increase in minimum wages.

Chalee  Loisung, chair of the Thai Labor Solidarity Committee, says the  government should implement the policy as soon as taking office. But he  also said the government should avoid adverse impacts on the Thai  economy.

Chalee said the government has told labor groups it  stands by a promise to raise the minimum wage, which will help people  have a higher standard of living. But he said while household incomes  will rise, employers may also need assistance.

*Positive feedback* 

Thavee  Techatheerawat, head of the Thai Trade Union Congress, backed the  government’s promises of higher wages, but said the ultimate  negotiations will depend on who becomes labor minister.

He says  the government has repeatedly said "we can do it" but labor groups will  have to wait and see who will be appointed as labor minister and then  the trade unions can negotiate.
 Thai and foreign businesses have been more wary of the minimum wage  increase because of the cost to their payroll and how it could lead to  more inflation.

Nandor von der Luehe, chair of the Joint Foreign  Chambers of Commerce, said the wage increases were widely cited by  campaigning politicians, but can be achieved only with productivity  improvements.

 “All the [political] parties came out to increase  the minimum wage. To increase the minimum wage is fine as long as you  increase productivity. But if you only increase minimum wage without  increasing productivity it does not work,” von der Luehe said.

The  Pheu Thai-led government is also planning to follow through on pledges  to increase funding for rural development programs. Economists have  warned against using debt to fund generous spending programs that are  aimed at boosting growth

----------


## Rural Surin

> Rodney, you have no idea what your talking about.
> 
> Check the literacy rates, they are not that low. Basic maths is understood by most.


I believe some like to wade into stereotypical pools. Automatically conditioned to presume that the everyday average labourer, city slicker or country bumpkin, attains half-wittery. Far from reality. A reasonable moderate level of literacy and competency is the norm amongst the last couple of generations.

----------


## socal

> Originally Posted by socal
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Loy Toy
> ...


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

> *Tuesday, July 5, 2011*
> 
> * Are the banks urging Thailand to drink the Kool-Aid?* 
> 
> 
> Somebody call a physician.  Economists at some of Asia's leading financial institutions are suffering amnesia.  Or worse.
> 
> First, some background.  For a long time, economists have been urging  leaders of emerging countries in Asia to shift from export-led growth  strategies to domestic investment.  They have preached spending on  infrastructure and the stimulation of local demand.  Here's an article  dated May 2009:*ASEAN: ADB urges Asia to increase domestic spending*
> 
> ...


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

> Originally Posted by socal
> 
> It costs nothing to live in Thailand, they are not starving. I bet a Canadian on minimum is poorer then a Thai when you consider living costs. Average price of a house in Vancouver is $818,000, price of 12 beer is $25.
> 
> 
> Are Thai people starving? Is this the measure that you hold up as justification for your Argument? 
> 
> 
>  Your Home province of BC has a minimum wage.  A minimum wage that is very low. But it is a minimum wage mandated by government. The right wing provincial government has now taken action to increase the minimum wage of  workers. Since you use Canada as an example it is interesting that in Canada, BC is within 5c the lowest minimum wage. Unfortunately for your thesis the provinces with the highest minimum have generally a higher GPP. It is also interesting that this very conservative BC government is raising the minimum wage by about 15% this year.
> ...


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

> Originally Posted by Carrabow
> 
> That would cut into the Executives annual bonuses, who is kidding who ?
> 
> 
> Exactlty!
> 
> As this proposal only applies to companies who employ more than 50 employees it simply means the greedy employers will make less profit. Of course many will shout "International Corporates will pull out and move to other countries" and yes that could happen just like it has in Europe. 
> 
> ...


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

> If you drive along the unnamed road that links Chiang Si Phom corner with the superhighway in Chiang Mai in the morning, you'll see hundreds of Tai Yai illegal labourers standing by the side of the road waiting to be collected and used as casual labour. The numbers have increased significantly over the last few years. I guess they have replaced Thai workers on the minimum daily rate.
> 
> To think that raising operating costs of Thai businesses by at least 35% will lead to a workers utopian paradise is naive. Jobs are going to flood out of Thailand and as long as there is uncertainty over a minimum wage policy of 300 baht per day, investment will dry up.
> 
> It might be tough for Thais to live on 7K baht per month but they are used to it. Take away the 7K because they have no jobs will be worse. If they are really desperate, they will find a dumb farang to marry one of their lazy, whoring and gambling-addicted skanky daughters. If they weren't lazy, incompetent, poorly-educated and corrupt, then they might be able to produce a wealth factory such as Singapore. That isn't going to happen though within the life span of our universe. 
> 
> It's horses for courses: Thais have been born to be peasants and Chinese have been born to exploit them. I'd rather be with the Chinese.


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

> Originally Posted by Buksida
> 
> 
> Rodney, you have no idea what your talking about.
> 
> Check the literacy rates, they are not that low. Basic maths is understood by most.
> 
> 
> The why do they use a calculator in shops and bars to calculate the change from a 100 baht note for a 80 baht bottle of beer?


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

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## 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.

----------


## 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.

----------


## 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 AMNewspaper 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 AMNewspaper 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

> 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."


 
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:

----------


## 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  :Smile:

----------


## 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.

----------


## 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._

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## 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.

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## DroversDog

> *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)    
> ...


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

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## 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

> The Bt300 minimum wage will also encourage businesses to employ Thais instead of hiring immigrants for the same amount,


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.

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## StrontiumDog

*Wage hike worries workers
*
*Wage hike worries workers*

                            By WANNAPA KHAOPA,
MAYUREE SUKYINGCHAROENWONG
THE NATION
                                             Published on July 14, 2011                 

*It's a tough burden being a family breadwinner on a  low income, but a group of Bangkok workers have explained how they use  different ways of spending as little as possible on themselves, sparing  most of their meagre earnings for family expenses.*

                                                            All of them earn less than Bt300 daily, the minimum wage the Pheu Thai Party has promised the new government will introduce.

 Pien, 45, a cleaner, earns Bt255 a day. Piyanut Suwannahong,  39, a factory worker, gets about Bt243. Sawai Klangyoon, 48, a worker at  a construction-materials shop, is paid Bt200. Lamduan Chaichalard, 38, a  construction worker, gets only Bt180.

 Pien, a single mother, takes care of three children. One is  unemployed and the other two are at high school. As well, she pays  Bt2,200 per month to rent their apartment.

 "My studying children and I need Bt180 a day, while my  unemployed 16-year-old son spends Bt20. At weekends I cook only in the  morning, which costs Bt70 to Bt80 a day, and we eat the same food in our  three meals. This is how we reduce our expenses," she said.

 Piyanut lives with her mother. She gives her mother Bt1,000  and pays Bt700 land rent every month. She makes about Bt7,300 per month,  or as much as Bt8,000 or Bt12,000 if she works overtime.

 She wants to buy a house, which will cost her up to Bt500,000,  so she keeps her spending down to between Bt20 and Bt60 per day. She  tries to bring cooked food from home for lunch and waits for free buses  to save money.

 "I set aside Bt3,000 before paying other expenses because I want to buy a house," Piyanut said.

 Lamduan comes from Kalasin. Her husband is sick, so she has  become the family's breadwinner. She sends Bt2,000 back home to her  mother and husband every month.

 "I spend Bt140 to Bt150 to buy food each day. Food is more  expensive now. My income is too little. It is not enough to cover my  expenses sometimes, so I borrow from my friends. 

 Although I work overtime, my daily wage still doesn't reach Bt300," she said.

 Sawai can't earn extra money because he doesn't get overtime.

 He spends Bt3,000 a month on his personal expenses, and sends  his wife in Nakhon Phanom between Bt3,000 and Bt3,500. They have a child  at primary school.

 "Sometimes, the money I send them is not enough," he said.

 All of the group welcome the Pheu Thai Party's  plan to increase the minimum daily wage to Bt300, but are concerned  that it will force food and commodity prices up and bring job losses. 

 "If prices are going to increase, you [the new government]  should not increase my wage. It will cause me trouble, calculating  higher wages and higher expenses. 

 "It will be difficult for me to manage," Pien said.

 Sawai is worried that his employer will lay off some workers and he will be one of them.

Piyanut  and Lamduan said that if commodity and food prices are not controlled,  their lives would be the same - Bt300 per day or not.

----------


## socal

> 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.


Minimum wages can be inflationary because when ever the business climate turns negative for a country (from minimum wage hikes, minimum wages period, war, tax hikes) the currency tends to sell off(inflation). If the baht falls to 35 then everything priced in dollars (oil)goes up by that amount.

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## LooseBowels

Well its obvious aint it.

The democratically elected government will easily afford the minimum wage hike by taking it off the amart junta blood sucking vermin  :Smile: 

Don't need another MBA from harvard to work that one out.

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## FailSafe

I run one small business that makes me ~35K in a good month, and can just break even in a slow month- it used to do much better, but competition and rent increases have knocked down my profits.  It's fairly hands-off and doesn't take much of my time, and it pays some of my daily living expenses, so I keep it going.

I pay the employees less than 9K each per month- there are five of them- if I have to raise their salaries, I will end up closing this business and they'll be out of a job- it just won't be worth it to me to keep it going (it can be a real hassle at times, and I have a rent increase coming up at the end of this year as well)- it won't really make a difference to me as far as my life goes as I have other, more profitable sources of income, but to them it will be a different story.

Remember that 'small business' in Thailand can have a much different (and much 'smaller') connotation than it does in the West, and an increase in minimum salary can have a huge effect on their viability.

If this proposed increase will only affect businesses with a higher number of employees it won't be an issue, of course- hopefully that's the case.

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## Gerbil

^ Well PT have already admitted they lied about this and it's for Bangkok only.

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## sabang

The economic performance of the Thaksin administration was rather good. I assume the Yingluck administration has access to the same, or similar, economic advice. Fiscally, they were pretty savvy actually- government debt was reduced under Thaksin, but has only grown since. Now that election time is over, and campaign promises are to be translated into reality (or not, as the case may be), the financial markets are telling you there is hardly reason for panic. Thailand's tax collection rate is currently one of the lowest in the world as a % of GDP, improve this and the government really doesn't have a funding problem. Hopefully though, some of this will go towards improving the education system and other long term investments rather than just improving the lot of the current poor, or underpaid. Reduce corruption, and a whole lot more money is freed for productive use. Basically, the Thai government does not have a funding problem- but it has chronic corruption and efficiency problems, and an entrenched bureaucratic element that fiercely resists reform. There is considerable room for improvement, to state the obvious.

As far as there being a higher minimum wage for Bangkok & surrounds than Provincial Thailand, it makes perfect sense to me. Whether PT 'lied' about this or not, given the penchant for misquoting or selectively quoting in the Bangkok media, I really wouldn't know.

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## Gerbil

> As far as there being a higher minimum wage for Bangkok & surrounds than Provincial Thailand, it makes perfect sense to me. Whether PT 'lied' about this or not, given the penchant for misquoting or selectively quoting in the Bangkok media, I really wouldn't know.


Whether they lied or not and whether it makes economic sense or not....

How are they going to explain it to the PT heartland who did vote for them, that they wont be getting it, but the voters in Bangkok (who didnt) will?

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## Butterfly

> How are they going to explain it to the PT heartland who did vote for them, that they wont be getting it, but the voters in Bangkok (who didnt) will?


good point, they will probably getting it in the form of free credit cards and mobiles in true Thaksin economics miracle  :bunny3:

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## Bettyboo

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

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## Tom Sawyer

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


Mae Sot is a good example. Right next to the border with Burma. Hundreds, maybe even thousands of small-to-medium size factories making clothing mostly. Slave Burmese labour basically - but on the Thai side of the border. No minimu wages or working standards in sight there..

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## Rural Surin

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


Yes...._the people._

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## Butterfly

yes, who are they ?

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## Rural Surin

> yes, who are they ?


It's a sceret. Yet promoted subliminally everyday.

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## 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)

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## Rural Surin

> 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)


I'd love to really speak out here, TS. 
But I can't [even if I have much to offer]. What I might have to say can't be displayed here.
Easier to get caught up within the ever-growing delusioned fancy that there is a difference and change is eminent.

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## Rural Surin

> 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.

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## Bettyboo

> 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...

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## Bettyboo

Power to the people!

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## StrontiumDog

*Thai Chamber of Commerce Concerned Wage Rise May Erode Exports - Bloomberg
*
*Thai Chamber of Commerce Concerned Wage Rise May Erode Exports*

                                                                                                                    By                     Suttinee Yuvejwattana                  -                                  Jul 14, 2011 5:37 PM GMT+0700                             

Thailand’s Chamber of Commerce said the incoming government’s plan to raise the daily minimum wage to 300 baht ($9.96) may erode the nation’s export competitiveness and curb foreign investment. 

 The wage increase may force some small- and medium-sized businesses to fire workers or shut down, and the government should prepare measures to help companies, Pongsak Assakul, vice chairman of the group, said at a briefing in Bangkok today. 

 The increase in the minimum wage may cost businesses about 190 billion baht per year, said Thanavath Phonvichai, an economist at the University of the Thai Chamber of Commerce. 

 The Pheu Thai party, which won a majority in the July 3 general election, plans to raise wages by as much as 99 percent in some parts of the country next year.

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## StrontiumDog

*Bangkok Post : PT: Tourist areas to get wage hike
*
*PT: Tourist areas to get wage hike*
Published: 15/07/2011 at 11:17 AMOnline 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.

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## sabang

^ 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.  :Smile:

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## 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.

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.

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## Tom Sawyer

> 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.


Ditto. And I've met many. The middle classes aren't so bad though. These are the ones who are the outer circle - uncles, fathers, etc who've benfitted through the system of sucking up and (usually) involved in some kind of back-handing. Still many of their kids have actually worked their way through University and are capable professionals.

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## StrontiumDog

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.

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## Smithson

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.

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## Tom Sawyer

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?

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## Butterfly

> 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

----------


## StrontiumDog

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

----------


## StrontiumDog

Bangkok Post : Fulfilling pledges at what cost?

COMMENTARY

*Fulfilling pledges at what cost?*
Published: 20/07/2011 at 12:00 AMNewspaper 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.*

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## Lancelot

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+  :Smile: 

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  :Smile:

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## 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.

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## StrontiumDog

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.

----------


## 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.

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## Lancelot

> ^
> 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

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## drawp

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.

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## Butterfly

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

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## 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._

-----
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.

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## socal

> 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 ?

----------


## socal

> 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._
> 
> 
> ...


No shit, let the baht rise.

----------


## SteveCM

From the blog world.....


*Thailands rich stay greedy  the battle for Yinglucks minimum wage | Asian Correspondent*

_By Andrew Spooner 
Jul 21, 2011_

One of the key and most popular policies  that helped sweep Yingluck Shinawatra and the Pheu Thai Party to power  in the recent July 3 Thai general election was the increase in  Thailands pitiful minimum wage.  Having won a landslide election  victory, Pheu Thais avowed aim is to increase this minimum wage to a  national level of 300 Baht (£6.50 or US$10) a day. This is, on the face  of it, still pitiful and shouldnt even be considered anything  approaching a dignified living wage but it is at least a start and must  be recognised as a well-intentioned progressive step, that has the  backing of the Thai electorate.

 What is most astonishing is the uproar  that is now accompanying this very modest rise. One might even think  that Pheu Thais minimum wage policy was picked over by their main  opposition, the Democrat Party, during the recent election. Not so. The  Democrats, under graceful Mark Abhisits leadership, rather than taking on the detail of  Pheu Thais policy commitments, were too busy rabble rousing, whining about bullying or calling Pheu Thai supporters toxic. Admittedly in an interview  I conducted with outgoing Finance Minister Korn Chatikavanij, he did at  least attempt to pick over some of the policies of Pheu Thai but the  minimum wage was an issue that hardly surfaced at all during the  election.

_Thailand's  PM-elect, Yingluck Shinawatra, is presently engaged in a tough battle  to introduce a higher minimum wage for the country's poorest workers.  Pic: AP.
_ 
 Now, it seems, every cod economist, rich kid oped writer, or minor  aristocrat in Thailand is weighing in, no doubt eager to make sure that  they arent faced with increasing the pittance they presently pay their  staff. One might even think an apocalypse is about to fall upon the Thai  economy such is the hue and cry.

 Yet, apart from the occasional ominous  oped, based on a few facts and figures cobbled together by Thailands  rich and powerful, it seems that little actual research has been done,  while very little of any of the evidence gathered from countries around  the world which have credible minimum wages gets a mention. What we seem  to be witnessing, rather than an evidence-based debate on the likely  benefits and possible pitfalls of increasing Thailands minimum wage, is  the usual range of shrill, denuded voices that seem more eager to  undermine a popularly elected government than actually establish what is  good for the poorest members of the community (arent these the same  people who are usually screeching about national unity at any  opportunity?).

 A couple of comparisons might help here.

 For a start China has had a minimum wage since 2004. It has been set  higher than Thailands for some time and is still about to undergo a further 20% increase  in some parts of the country. Any evidence that Chinas economic growth  has come to a drastic end-of-days halt since 2004 has yet to emerge.

 Taking things a bit further  and while this comparison is not  completely watertight (they seldom are)  lets look at some proper  research done by the UK government and the London School of Economics  (LSE) into the effects of the minimum wage introduced into the UK in  1999.

 Professor David Metcalf  of the LSEs Centre for Economic Performance published a lengthy study  in 2006 into the impact the UKs minimum wage had on pay and jobs,  examining 25 other studies en route  he said:_When the minimum wage was being discussed in the 1990s,  there were dire warnings that it would lower employment. For example,  Alan Walters  Mrs Thatchers economic guru  wrote that it was utter  nonsense to argue that jobs might not be lost.

 Perhaps this hostility was unsurprising. Orthodox economic theory  predicts job losses, the scale depending on how high the minimum wage is  set and the elasticity (or sensitivity) of employment with respect to  the wage.

 But more subtle observers suggested that the labour market   especially the low wage sectors  may not mirror the economists  competitive ideal. In particular, labour market frictions  imperfect  information, the costs of switching between firms and the rich variety  of workers preferences  mean that employers have considerable  discretion in wage setting. Under these circumstances, a carefully set  minimum wage would not necessarily cost jobs and may even boost  employment as recruits are found for previously hard-to-fill vacancies.

The consensus is that the minimum wage has not cost jobs  either in the aggregate economy or in the low wage industries and  occupations._ 
Next up is the UK governments Low Pay Commission report  from February 2005, which looked at the impact on profits and prices in  the UK economy in the 6 years since the minimum wage had been  introduced. The report itself is filled with complex mathematical  equations way beyond my understanding but its conclusions are crystal  clear._The key findings from this research are as follows:

 We show that profitability was significantly reduced by the minimum wage. Importantly,  we also show that low wage firms were not forced out of business by the  higher wage costs resulting from the minimum wage. On possible  explanation (that requires more research attention in future) is that  firms were making profits from paying low wages prior to the minimum  wage introduction and that one consequence of the introduction of the  minimum wage to the UK labour market was to moderate these excess  profits by channeling them back to the wages of low paid workers.

We are unable to detect significant price effects_ _,  by looking at a limited range of consumer prices and by studying links  between changes in producer prices and wages. The evidence that higher  wage costs can be passed on in terms of higher prices does not seem to  be present for the UK national minimum wage._
Such research is incredibly important when making the case for the  raising of a minimum wage to a higher level, particularly in a nation  like Thailand where there is massive, entrenched and destabilising  levels of inequality.

 One senses the nasty and unpleasant stench of greed running through  this debate in Thailand. The rich and the powerful, and their petulant  acolytes in both the Bangkok middle classes and some parts of the expat  community, have just lost the election  now they are making it clear  that they loathe the idea of sharing a few crumbs of comfort with  Thailands poorest citizens.

----------


## crippen

How many posters on Teak Door are there who live on 300 bht a day.   Careful you don't get crushed in the rush.  I bet a lot spend more on Latte's and ale than 300 bht a day,never mind the lady-boys.  ::spin::

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## SteveCM

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


There's a reason why trying to argue a case this way is called "reductio ad absurdum" ("reduction to the absurd").

_Two simple examples of_ _reductio ad absurdum are:__Proposition: "Raising taxation rates always results in increased tax revenue."_
_
Proposition: "Lowering taxation rates always results in increased tax revenue."
__These can both be disproved using_ _reductio ad absurdum as follows:__"If taxes were raised to 100% of income, individuals would not work,  and companies would not operate, resulting in zero income, and thus zero  tax. That is less than current tax income, thus the proposition is  false."_
_
"If taxes were lowered to 0%, no taxes at all would be collected. Zero  will always be less revenue than even the lowest non-zero tax rate would  produce, thus the proposition is false."_Reductio ad absurdum - Wikipedia, the free encyclopedia


There is a case to be made against minimum wages; resorting to this patently absurd manouevre doesn't assist in making it. Just the opposite.

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## StrontiumDog

Deleted, can't be arsed.

----------


## Thaihome

> From the blog world.....
> 
> 
> *Thailands rich stay greedy  the battle for Yinglucks minimum wage | Asian Correspondent*
> 
> _By Andrew Spooner_ 
> _Jul 21, 2011_
> 
> _...._. The rich and the powerful, and their petulant acolytes in both the Bangkok middle classes and some parts of the expat community, have just lost the election  now they are making it clear that they loathe the idea of sharing a few crumbs of comfort with Thailands poorest citizens.


Would have been a good article if Spooner could have refrained from the name calling and turning this into an rich versus poor issue. In every country that has implemented a minimum wage, business and industry leaders have opposed it, but they always end up finding a way to live with it. Rather then point that out, Spooner uses the issue for another of his hate filled rants. 

Here is an example of what a balanced analysis of the issues around Hong Kongs minimum wage laws looks like. Notice the difference? No name calling, no rhetoric, no demagoguery. Spooner had the facts and figures to support his argument, but using them to stir up hatred and divisions only shows what his agenda actually is.
TH


_Hong Kong Jobless Thanks To Minimum Wage Law_

_Michael Chan, Chairman of Fast-Food Giant Cafe de Coral:_
_Will issue a profit warning if the hourly rate proposed by the unions became law._ 
_21 April 2011._

_Hong Kong's unemployment rate has fallen to an all time pre-crisis low of 3.4 per cent, the Census and Statistics Department announced this week. Critics blame Hong Kongs first minimum wage law for job losses. "In view of the still strong economic performance and positive hiring sentiment in the corporate sector, the unemployment rate is likely to remain at low levels in the near term," said Matthew Cheung, Hong Kong's labour secretary. But he warned the city would "remain vigilant in monitoring any economic and employment implications._

_Hong Kongs US$3.61 minimum wage bill was passed amid growing concerns over the income gap  and is now being blamed for job losses among thousands of low-paid workers. Hong Kong's half elected, half appointed legislature passed the minimum-wage bill in July 2010 that will take it effect on 1 May 2011.But is minimum wage good for any economy?_

_The Singapore government contemplated a similar minimum wage law earlier this year but was opposed by leaders and the public for fear such laws would lead to unemployment. Especially in the low-wage job sector  or give jobs away to cheaper labour from neighbouring countries, and leave locals unemployed. If Hong Kong passes the legislation, Singapore will be one of the few countries left that does not have such a mandated provision._ 

_Should a minimum wage law cause unemplyment? The general consensus is yes. Not because we want it too, it's just what happens when a mandate price floor is introduced to wages. Even though there are workers willing to work for less, just to get some work - the price floor changes the equilibrium point and causes a shift in the workers' demand curve. In short, employers will hire fewer workers at higher wages._

_Australia and New Zealand were the first countries to establish minimum wage laws in the 80s. A century after those reforms, some critics argue that minimum wage rates are too ow. Others say the laws are to blame for inflation, high prices and unemployment._

_Can nations on the rise, like Hong Kong, Singapore and Emerging Economies introduce and implement minimum wage laws without impacting their robust growth?_

_Legislator and union organizer Lee Cheuk-yan feels the law symbolizes that Hong Kong has said goodbye to shameful wages and embraced social justice for workers. This means goodbye to unfettered capitalism" speaking to AFP._

_China preserved Hong Kongs capitalist system after the British returned the territory in 1997. The government resisted a minimum wage in order to keep labour markets free until pressure to control the citys widening wealth gap to introduce the policy. However, the new law doesn't cover the nearly 280,000 mostly Filipino and Indonesian domestic workers who work as live-in help for Hong Kong families._ 

_Any minimum wage law "must balance the interests of every party,'' Secretary for Labor and Welfare Matthew Cheung told legislators Saturday. Hong Kong's law will require a task group to review wage levels every two years, instead of once a year as proposed by trade unions. "We will have to use public pressure to campaign for a fair minimum wage level, since under the legal framework the control will be largely in the hands of the government," said Lee._

_Hong Kong is one of the world's richest territories with a 2010 per capita GDP of US$ 31,798.74, but came last in income equality among 38 countries and territories the United Nations Development Programme's 2009 Human Development Report ranked as the world's most advanced._

_Hong Kong's minimum-wage proposal had faced stiff opposition from some of its largest employers, with some threatening large-scale layoffs. Michael Chan, chairman of fast-food giant Cafe de Coral (Forbes 35th richest man in Hong Kong in 2009) said his company might issue a profit warning if the hourly rate proposed by the unions became law._

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## Butterfly

the increase of minimum wage might increase inflation as it will have a cumulative effect on the economy which is already at full capacity

but at the same time it will buy her social peace, not a bad thing

she needs to start increase taxes on the very rich, including herself, to finance this

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## Buksida

> the increase of minimum wage might increase inflation as it will have a cumulative effect on the economy which is already at full capacity
> 
> but at the same time it will buy her social peace, not a bad thing
> 
> she needs to start increase taxes on the very rich, including herself, to finance this


The idea of paying tax horrifies Thais, it's a concept they don't seem to grasp. Many are away that other countries have good schools, pensions, health care etc., but don't seem to realize these are paid by taxes.

It's true the min wage is too low, problem for a lot of exporters is they are trying to deal with rising material costs and a high Baht.

----------


## SteveCM

^^^
I agree completely (though I'd say "much better" rather than "good") - and it's something I've also noticed in many of his tweets where he all-too-often undermines a valid point with what accompanies it. It's rather too easy to pluck a political/conspiracy theme from (perhaps better said _insert into)_ a chain of events - particularly when the events in the chain are purposefully cherry-picked. Of course, he's not alone in that..... and far from being the worst offender.

As for demagoguery..... well, we're surrounded by glaring examples of that - particularly on TD. I have no problem with rhetoric _per se_ - it's part of discourse and expressing opinions (and Spooner's is clearly more an opinion piece rather than a balanced/neutral analysis); I suspect you're thinking more of hectoring bluster - not dissimilar to demagoguery here. Name-calling? Rarely useful - but then some will readily take as an insult what is actually just a reflection of what to others is self-evident reality. Recognising and naming things for what they are is not name-calling or insulting in my book. The manner in which it's done and the level to which it's taken (relative to credible evidence produced) is what moves it from one side of the line to the other.

----------


## Thaihome

> ^^^
> ...As for demagoguery..... well, we're surrounded by glaring examples of that - particularly on TD. I have no problem with rhetoric _per se_ - it's part of discourse and expressing opinions (and Spooner's is clearly more an opinion piece rather than a balanced/neutral analysis); I suspect you're thinking more of hectoring bluster - not dissimilar to demagoguery here. Name-calling? Rarely useful - but then some will readily take as an insult what is actually just a reflection of what to others is self-evident reality. Recognising and naming things for what they are is not name-calling or insulting in my book. The manner in which it's done and the level to which it's taken (relative to credible evidence produced) is what moves it from one side of the line to the other.


No, I meant demagoguery . What you see in Spooners pieces and many posts here falls within this definition:
_appealing to the prejudices, emotions, fears, vanities and expectations of the publictypically via impassioned rhetoric and propaganda,_

Here on TD that takes the form of attacks on Thais and particularly those not of the Issan rural types. This plays to the resentment and envy of that class of Thais that is so prevalent within a certain type of expat living in Thailand. Just the sight of a Thai person driving an expensive car or shopping in an upscale mall (and actually, heaven forbid actually being able to buy something) just infuriates them.

So these articles and posts plays to that and it almost seems at times to be some sort of circle jerk as each poster tries to outdo the other with their irrational insults.
TH

----------


## SteveCM

^
I appreciate better now the specific "demagoguery" distinction you're making. I have to say your focus on 


> ...particularly those not of the Issan rural types


 seems strange to me - and not reflected in what I see on TD or elsewhere. I'm well aware that as a generally recognisable ethnic group, those recognisably from Issan are a frequent butt of jokes from those who aren't - but I don't see a particular effort to support _them_ specifically any more than their social equivalents from elsewhere e.g. in the north (who make plenty of jokes about them). Granted, there are a couple of frequent TD posters based in Issan and it seems natural enough that they'll write of what they know first-hand - just as I'll write of what I know from the North when appropriate - but I think you make too much of too little here.

You mention "class of Thais" - and I think it's a word that should be used more often (even if it's considered not "PC") because it avoids a near-exclusively regional focus that's both distorting and distracting. If not "class", then "social group". As with any generalised grouping, it certainly shouldn't be taken as licence to simply lump all included into one entirely uniform mass - a habit of rather many here on TD and at times quite despicably expressed.

----------


## StrontiumDog

*Bangkok Post : SMEs office backs wage hike
*
*SMEs office backs wage hike* 
Published: 21/07/2011 at 02:48 PMOnline news:The Small and Medium Enterprises (SMEs)  Promotion Office supports the Pheu Thai Party’s policy to raise the  daily minimum wage to 300 baht, the director-general Yuthasak Suphasorn  said on Thursday.

 “But the wage increase should be implemented step-by-step and the  government should introduce measures to minimise adverse effects on more  than 2.89 million SMEs nationwide,” he said.

 Mr Yuthasak said the SMEs office is planning to set up a “labour  fund” to assist the small and medium manufacturers that would be  affected by the increase.

 The labour fund will have a total budget of 300 million baht to  provide financial assistance to the affected SMEs in the form of soft  loans at no more than five million baht each, he said.

 The director-general said the fund's details should be finalised within two months.

----------


## SteveCM

From the blog world.....


*Pookys Opinion: As an SME Apparel operator, I have no problem with Yingluck but with Interest Payments* 

July 21, 2011_By Pooky, Thai Intels economics journalist_Yes I am part of the forces of democracy, liberty and justice in Thailand-and so Yes I support the in-coming government of Yingluck-against the Thai establishment.

 But I also run an SME business-and Yes I have heard of many people talking about how Yinglucks plan to raise the minimum wage from about 200 baht  a day to 300 baht a day-with the summary from like everyone on TV and  newspapers, quoting this business association and that business think  tank-that The Sky will be Falling, because of Yinglucks minimum  wage raise.

 What a bunch of crappy news!*Funny thing is, to me at least, it is not the raising of the minimum wage that worries me-but the Interest Rate and loan payments, on my borrowing to keep my SME business running that worries me.*I have two clothing retail stores, one in the market and another in a shopping mall. Everyday, after I walk my daughter to school, I take the bus to Pratunam,  a wholesale center for clothing-to which I will spend, everyday, about  10,000 baht, depending on many things, on clothing-and then take them to  my outlets for sale.

 At the 2 outlets, I have 3 girls working for me, currently, at 200  baht a day-the going rate in Bangkok these days, if you need help-and  that is 600 baht a day for 3 sales people. Under the Yingluck plan, that  600 baht a day, will increase to 900 baht a day-or another 300 baht a  day.

 To me, that extra 300 baht a day, is only about the profit from  selling 3-4 more pieces of clothing a day-and I already figure, the  higher wages will make my sales-girls very happy-with smiling faces.

 That 300 baht extra, is just not that big  of a deal to me.*But my problem, the real problem, is the loan shark  and the bank borrowing-where part of my operating funding comes from  loan shark, for quick and ease of borrowing, and from the bank, where I  have credit.*My problem, again, is the Interest Rates and payments on these borrowing.Everyday, I have to pay the loan shark about 1,200 baht. And  everyday, I have to save about 400 baht, a portion of my income, to make  the payment to the bank at the end of the month.*What makes me angry, is that I look at banks  profit, and it is like zooming up up and away every quarter-with the  spread, meaning, when I deposit my SME income in the bank, it is just  really nothing in return, but the bank is charging me about 8% interest  rate on my borrowing.*Then the loan shark? Lets not talk about the level of interest rate I  am paying-lets just say it is something I wish I did not have to depend  on-because when it rains many days in a row, and I can hardly sell  anything-if I am late-the words get spread to the entire market that I  have bad credit.This report is really about me, but I just want to say, that I have  many other friends in the market and in the shopping mall, doing and in  situations like me.*Everyday, we do not talk about Yinglucks 300  baht plan, but we talk about Money or namely, the interest on our  borrowings and the payment. Will you be OK this month, meaning making  enough to cover the borrowings-is like the most common question-that  gets any conversation going. I am quite sure, the millions of those in  the SME retail sales business talks about the same thing like me and my  friends.*I understand, that there are many SME apparel makers selling in  Thailand. I buy apparel everyday, and I know where they are made and who  makes them.*Much of it these days, at Pratunam, comes about  1/3 from China, about 1/3 from big operators and about 1/3 from SME  apparel makers. I really, do not know how the 300 baht minimum wage  increase will hit them. Each will probably get hit differently.*The big Thai operators will probably be OK, because they use lots of  machine and automation. The Chinese, well, they are coming in already  anyway, because it is much cheaper-like already and the stronger baht,  just makes them even more here. Then the Thai SME apparel makers - they  will probably increase their price to cover higher minimum wage.*But I just want to get this across to Thai Intel  readers, that the success of my outlets-depends not very much on the  price I buy my goods at-but about 90% on my skill to select strong  selling style.*Meaning, I spend every-night on the Internet-where my daughter, will  take me on an expedition in exploring the latest fashion globally-like  hot style and hot brands. 

 Then in the morning, I will go out and search Pratunam-for the  closest to the trend-if not for the actual pieces itself. I never ever,  buy because this and that is cheaper.*In summary, all I want to say is this-the key to  my success, is selecting what sells and managing the loan payments, that  I have to pay-and can not get out off-literally, trapped.*My success, depends just so little, on what Yingluck plans to do with the minimum wage.

----------


## LooseBowels

^ and what about the stories from the 200 miserable baht a day workforce?

Its the junta and their patrons you should be campaigning against.

Halve their cut and you'll all get reasonable reimbursement   :Smile: 

You cant argue with that

----------


## socal

> How many posters on Teak Door are there who live on 300 bht a day.   Careful you don't get crushed in the rush.  I bet a lot spend more on Latte's and ale than 300 bht a day,never mind the lady-boys.


using that logic, are you assuming that Singaporeans and Germans live on 0 baht a day ?

They have no minimum wages there. Minimum wages lower living standards. Anyone with a deep understanding of economics knows that.

----------


## socal

> Originally Posted by socal
> 
> Why not jack the minimum wage to 1000 baht an hour ? if that is how wealth is created ?
> 
> 
> There's a reason why trying to argue a case this way is called "reductio ad absurdum" ("reduction to the absurd").
> 
> _Two simple examples of_ _reductio ad absurdum are:__Proposition: "Raising taxation rates always results in increased tax revenue."_
> _
> ...


I agree but some socialists need the obvious pounded into their head once and a while.

The op I was answering, specifically said that wealth is created by high wages.

----------


## socal

> the increase of minimum wage might increase inflation as it will have a cumulative effect on the economy which is already at full capacity
> 
> but at the same time it will buy her social peace, not a bad thing
> 
> she needs to start increase taxes on the very rich, including herself, to finance this


 :rofl:  :rofl: 

Some market 101.

A minimum wage law is just like a minimum rent law. The higher the price of the rent, the more people will be priced out of the market.

----------


## StrontiumDog

Bangkok Post : A real need for decent wages

EDITORIAL  

*A real need for decent wages*
Published: 22/07/2011 at 12:00 AMNewspaper section: News
 Since it is likely that Pheu Thai Party will  have to fulfil its promise of a 300-baht minimum wage policy, the  industrial sector has begun waging a concerted battle to oppose this  move.

 

 The proposed minimum wage would wreak havoc on the Thai economy and  tear the social fabric, the industrialists warn. Among their threats:  consumers will suffer from more expensive goods; exports will lose  competitiveness; businesses will go bankrupt en masse; social tensions  will rise following the inundation of immigrant workers as cheap labour  substitutes.

 Such fierce opposition has sent Pheu Thai into a policy retreat.  Instead of a wage increase across the country as promised, the party now  says the 300-baht minimum wage would first apply to Bangkok and Phuket  only. Other provinces would have to wait.

 The workers are furious, naturally. But there is nothing much they can do till the next general election.

 While the industry is asking loudly whether the Thai economy can  survive a 300-baht minimum daily wage, an equally important question is  how much longer can Thailand survive by relying solely on cheap labour  for export competitiveness.

 Another question: Can Thailand survive at all when industrial growth is essentially based on labour exploitation?

 According to economist Narong Petprasert of Chulalongkorn University,  60% of the labour force earns less than 6,000 baht a month. They then  have to work more than 10-12 hours a day without enough rest so as to  earn extra income since their families cannot live on the present  215-baht minimum wage.

 This is inhuman, to say the least.

 Despite such a low wage, investors are still turning to immigrant  labour. Although the law says immigrant workers must be paid the same  minimum wage, in reality they get much less money and do much more work.

 Investors often say they cannot find Thai workers to fill the jobs.  But the main reason Thai workers refuse those jobs is because of the  extremely low wages and slave-like working conditions. By focusing on  the cheapest labour possible, such exploitation actually works against  Thai products in the international market, which is increasingly paying  attention to labour justice.

 But raising the minimum wage alone is not enough to improve the  workers' quality of life. Apart from providing workers with training to  further improve their skills and wages, the new government should pay  attention to the recommendations of the National Reform Committee: to  bridge labour injustice through a host of welfare support initiatives.

 Among its proposals are support for lodgings near the workplace,  day-care for workers' infants, extra support for education and  healthcare for workers' families, and the setting up of revolving funds  to provide low-interest loans and to encourage savings.

 Refusing to improve the workers' quality of life could actually end  up destabilising the economy. Fury against disparity and social  injustice is among the main causes of the recent political violence.  Consequently, the economy suffered badly, which should make the  industrial sector realise that social injustice is indeed bad for  business.

 Regime change through an election may ease political tensions but it  cannot tackle the root causes of public discontent. If disparity  deepens, political violence is certain to recur.

 By then, an industrial green light for a decent minimum wage would be too little, too late.

----------


## StrontiumDog

*Full Tilt - FT Tilt
*
*Think investment, Thailand*

 by *Rina Chandran, FT Tilt* 

 A decisive victory  for the Puea Thai Party in the recent election had boosted hopes for  greater political and economic stability, and a rush of foreign  investment in the country. But with no clear direction yet from the  incoming government, and the risk of instability still lurking, there are no signs of investors beating down the door.

  What's worse is the government seems inclined to stimulate  consumption rather than investment, which would be unfortunate, if not  downright disastrous, according to analysts. "It is still early days, but the preliminary details suggest the  policy bias is towards stimulating consumption rather than investment,  which is the need of the hour. [Doing so] may sow the seeds for  inflation rather than kick-start sustainable growth," said analysts at  DBS Research in a note.Indeed, barely had the election celebrations died down when two of  the policy changes proposed sent chills down many an economist's spine.  Firstly, lifting the minimum wage to THB300 ($10) per day, which implies  a 35-90 per cent increase from current levels, and raising the starting  monthly salary in government jobs by about 30 per cent. Secondly, a  reduction in the corporate tax rate from 30 per cent to 23 per cent in  2012, and to 20 per cent in 2013.

  In other areas too, the new government’s policy appears to favour  more subsidies or an effective reduction of prices -- i.e. reducing oil  excise duties, or interest-free housing loan for the first five years,  as well as greater government intervention. "It would seem the government is prioritising consumption expenditure  and populism in the near-term. This approach risks suppressing  inflation (and stimulating growth) in the short-term but fanning  inflation (and restraining growth) in the medium-term, especially if  seen against the context of the current economic situation," DBS said.Instead of distributing cheaper rice, what the government needs to  focus on is encouraging more investment. Compared to other countries in  the neighbourhood, Thailand’s investment performance has been  disappointing, to say the least. Investments are back to the level of  1993, which was a few years before the big crisis sent investors running  for the exits.

  In contrast, investment in Indonesia and Korea are up by 110 per cent and 70 per cent from levels in 1993, DBS estimates.

  Even if we look at investment growth from 1993 to 2006, when  political instability slowed investments: by the end of 2006, Thai  investments were down by 6 per cent from levels in 1993, while  Indonesia’s and Korea’s investments were up by 50 per cent, DBS said.


_Source: DBS Research_

  Moody's and S&P have said that while Thai economic and fiscal  policies were likely to take a populist turn, the election outcome is  generally a "credit positive". They have faith in the central bank to  keep inflation under check.

  Still, it appears that investors are wary. Already, auto manufacturers have been scouting for new hubs, spooked no doubt by the prospect of rising wages and more uncertainty.

  And really, if PTP were only to listen to what investors want:  bureaucracy, corruption and political instability ranked far higher on a  list of concerns than tax rates.

----------


## StrontiumDog

*Bangkok Post : Employers slam Pheu Thai's wage hike policy
*
*Employers slam Pheu Thai's wage hike policy*
Published: 22/07/2011 at 04:23 PMOnline news: NewsImplementation of the incoming government's  300-baht minimum daily wage policy should be decided by the tripartite  Central Wage Committee, the Employers’ Confederation of Thailand (ECOT)  said on Friday.

 Seven employers' associations under the ECOT held a meeting to  discuss their stance on Pheu Thai's plan to raise the minimum wage to  300 baht a day nationwide.

 The wage rise was part of Pheu Thai's policy platform for the July 3  general election. Pheu Thai will be the dominant core of the new  coalition government.

 
_Core members of the Pheu Thai Party campaign ahead of the July 3 general election. (Photo by Apichart Jinakul)_

 Employers' Confederation of Thai Business president Vallop  Kingchansilp said the confederation was not totally against Pheu Thai's  minimum wage policy, but the party should leave its implementation to  the mechanism of the tripartite committee comprising civil service,  business and labour representatives.

Atthayuth Leeyawanich, the  employers' representative on the wage committee, said the committee  takes into consideration the wage needs of employees, the employers'  capability to pay, the  gross domestic product growth rate and the  global economic growth rate when deciding wage rates.

He said all sides had complied with this standard for over 10 years.

"As  regards Pheu Thai's plan to impose the minimum wage hike from January  next year,  the tripartite committee is still using these same factors  as criteria and we cannot yet say if the minimum wage will reach 300  baht," Mr Atthayuth said.

Employers' Confederation of Thai Trade  and Industry vice president Worapong Rawirath said Pheu Thai was setting  the 300-baht minimum wage hike without any clear supporting principle.

"We  want to protect the balance between the policies of the government and  the tripartite committee. Does the wage hike  infringe on the tripartite  committee, and has Pheu Thai sought the opinions of  employers and  their employees," Mr Worapong asked.

ECOT member Prasit  Jongadsayakul said the government should pay the difference between the  300 baht and the minimum wage set by the tripartite committee by using  tax credits. The government should be responsible for this payment for  three years, he said.

"If the tripartite committee sets the  minimum wage at 240 baht a day, the government should pay  the additional  60 baht in the first year. Later, the government  contribution could fall as the minimum wage would eventually rise to 300  baht," Mr Prasit said.

He said the ECOT was ready to hold talks with the government and provide  information relating to the minimum wage policy.

The  seven employers' associations under the ECOT are: the Pharmaceutical  Employers' Association, the Electrical Appliances Employers'  Association, the Pattaya Hotel Employers' Association, the Lighter  Owners' Association of Thailand, the Thai Constructor Employers'  Association, the Ferrous and Non-Ferrous Employers' Association and  Bangkok Hotel Employers' Association.

Meanwhile, Bangkok Poll  said today that economists polled recently were concerned about Pheu  Thais  populist policies because  they could lead to inflation and more  economic problems.

The Research Centre at Bangkok University  conducted a poll on "Election campaign policies concern by economists"  from July 15 to 21, seeking opinions from 62 economists from the  country’s 26 leading economic research and analysis agencies.

The  poll results showed that the respondents were worried about 14 policies  out of the total 26 promised by Pheu Thai during the election campaign,  Bangkok Poll said.

The three most worrying were the promises to  raise daily minimum wage to 300 baht across the country, to provide  credit cards for farmers and to give free tablet PCs to students.

The  top three policies supported by the respondents were: to set up  training centres in all vocational colleges, suppress drug trafficking  within 12 months, and to make available free-of-charge internet services  at all public places.

The economists’ eight concerns about Pheu Thai’s policies:

1) The policies could lead to a problem of high inflation.

2)  It would require a huge budget to finance the policies and some of them  could reduce government revenue. This could lead to a fiscal problem  and the government would fail to implement all promised policies as a  result.

3) Some policies could reduce trade competitiveness of  manufacturers because of higher production costs and the affected small  and medium enterprises would be forced to close down or move their bases  to other   countries. Workers would be laid off. Foreign workers would  flock to Thailand and might cause other problems.

4) Some  policies, particularly the mega-development projects, could pave the way  for corruption, such as the rice mortgage scheme.

5) Some  policies would not help solve existing problems but instead could lead  to more problems, such as the credit card for farmers, the refund of the  car tax for people who buy their first vehicle and energy credit cards  for drivers of taxis and motorcycle-taxis.

6) Good policies of former government should be continued or improved, like the 30 baht healthcare programme.

7)  Some policies are very sensitive and require caution, such as the  policy to establish a special administrative zone in the three  southernmost provinces.

8) The implementation of all policies  should be step-by-step to allow the economy to gradually adapt without  any shock. Non-urgent projects should not be quickly implemented without  a study of their impact. Setting priorities for these projects is  essential.

----------


## longway

> From the blog world.....
> 
> 
> *Thailands rich stay greedy  the battle for Yinglucks minimum wage | Asian Correspondent*
> 
> _By Andrew Spooner 
> Jul 21, 2011_
> 
> One of the key and most popular policies  that helped sweep Yingluck Shinawatra and the Pheu Thai Party to power  in the recent July 3 Thai general election was the increase in  Thailands pitiful minimum wage.  Having won a landslide election  victory, Pheu Thais avowed aim is to increase this minimum wage to a  national level of 300 Baht (£6.50 or US$10) a day. This is, on the face  of it, still pitiful and shouldnt even be considered anything  approaching a dignified living wage but it is at least a start and must  be recognised as a well-intentioned progressive step, that has the  backing of the Thai electorate.
> ...


Somebody needs to let him know that thailand already has a minimum wage policy.

----------


## Rural Surin

> Originally Posted by SteveCM
> 
> 
> From the blog world.....
> 
> 
> *Thailand’s rich stay greedy – the battle for Yingluck’s minimum wage | Asian Correspondent*
> 
> _By Andrew Spooner_ 
> ...


I could question Mr. Spooner's sincerity, concern and sympathy.
The reality of it? Makes good copy.
Cause of the day, without regard. Nothing more, noting less.
The bandwagon seems to be rather popular these days amongst the ilk.

----------


## SteveCM

> Somebody needs to let him know that thailand already has a minimum wage policy.


Seems he's already aware of that - seeing as he mentions *increases* to it _twice_ in the first paragraph.....   

Speed-reader are you?

----------


## The Bold Rodney

> ote: Originally Posted by longway Somebody needs to let him know that thailand already has a minimum wage policy. Seems he's already aware of that - seeing as he mentions increases to it twice in the first paragraph..... Speed-reader are you?


Exactly, strange how many "speed readers" can't actually read?  :Confused:

----------


## koman

> Originally Posted by buriramboy
> 
> 
> How can any employer argue against paying 300 baht (£6) for a days work??? Say people are working a 6 day week, still only 1800 baht a week or 7200 baht a month, hardly a liveable wage even for low class Thais with a family.
> 
> 
> It costs nothing to live in Thailand, they are not starving. I bet a Canadian on minimum is poorer then a Thai when you consider living costs. Average price of a house in Vancouver is $818,000, price of 12 beer is $25.


Yea it's pretty rough living in Canada....that's why they have a couple of million waiting in the immigration queue and shiploads of illegals arrived off Vancouver island.  I'm sure all these people would much rather live in Thailand but they just  can't get past Thailand's draconian immigration police.

PS  You can buy a small house with an acre of land down in NB for under $5Ok
It is possible to survive without living in Vancover.....and you can brew your own beer for about 10% of the cost for the commercial stuff.   The water is excellent.. :Smile: .

----------


## Tom Sawyer

But you'd have to learn the dialect - fer Shore.

----------


## Calgary

I need some more Canadians for my hockey pool this fall starting the new NHL season.

What has that to do with Thai Politics?

Nobody has commented on my violent Avatar.

Who is that poor, yellow bastard being beat upon?

Could it be TH, SD, Butters, Longway..............but trying to beat some sense into them is a never-ending task, isn't it.

But on TD, we are up to it. 

We will prevail!

----------


## socal

> Originally Posted by socal
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by buriramboy
> ...


Actually that trend is changing. There is many Chinese moving back to Asia and away from North America. The lineups are just because the government is such an insufficient joke, not just because so many people want to come here. Also, Canada is the most lenient for extradition and shit, that is why all the Tami Tigers planned to come here rather then Australia.

I think reality strikes allot of forign brides to places like North America and Europe too. They realize that the average person is not rich, 30 to 50% of your income is taxed away, everyone is up to their eyeballs in debt. People are slaves to banks for their cars, their education and their house.   It is not what it used to be.

----------


## Tom Sawyer

^
I see that in Canada a subtle change (or not so subtle) happened around ten years back when the two main immigration queues at the airports changed from "Canadian Citizens and Residents of Canada" and "Non-Canadian Citizens" -- to "Residents of Canada" and "Non-Residents of Canada"

What I take this to mean is that being a Canadian Citizen gives you no better status than a foreigner living in your country under a residency permit. 

Because I have business interests abroad, including Canada, I also see that the Tax forms have changed. Again, it seems that they make no distinction between Canadians and non-Canadians. I assume this immigration change was meant to reflect the changes in global taxation of 'residents' vs non-residents of Canada, but what it appeears to have done is quietly disenfranchise Canadian Citizens bringing them down to the level of permit holders. Sad, I'd say.

----------


## lom

> what it appeears to have done is quietly disenfranchise Canadian Citizens bringing them down to the level of permit holders. Sad, I'd say.


So you think it is of major importance to distinguish between people and people, that it is important to classify them. 
You're really showing your true colours now young Tom. :Roll Eyes (Sarcastic):

----------


## koman

> ^
> I see that in Canada a subtle change (or not so subtle) happened around ten years back when the two main immigration queues at the airports changed from "Canadian Citizens and Residents of Canada" and "Non-Canadian Citizens" -- to "Residents of Canada" and "Non-Residents of Canada"
> 
> What I take this to mean is that being a Canadian Citizen gives you no better status than a foreigner living in your country under a residency permit. 
> 
> Because I have business interests abroad, including Canada, I also see that the Tax forms have changed. Again, it seems that they make no distinction between Canadians and non-Canadians. I assume this immigration change was meant to reflect the changes in global taxation of 'residents' vs non-residents of Canada, but what it appeears to have done is quietly disenfranchise Canadian Citizens bringing them down to the level of permit holders. Sad, I'd say.


Once an immigrant has been granted "landed" status they acquire virtually all the benefits of citizenship.  I have known people who lived in Canada for 30 years or more and they were still just "landed immigrants".  About the only benefit to full citizenship is that you are always guaranteed re-entry when you leave. 

 If a landed immigrant left for a long time and then tried to re-enter they could be denied....at least in theory. In practice it probably would not happen unless there was something pretty extraordinary about the circumstances.

There was a story just a few days ago about the government revoking 1800 citizenships.   These people apparently had never actually lived in Canada but had made arrangements with some "consultant" to fake their residency and eventually get the full citizenship.  Useful if they ever need a place to run...or when they need expensive medical treatment etc.   Talk about abusing the system.... :Confused:

----------


## Tom Sawyer

^
Sad - says it all really.

And lom, nice try. The main point is that Citizenship becomes rather meaningless under the type of system outlined above, hence the nation state becomes more a port of conveniece with little or no obligations other than taxation. A Citizen is expected to defend his country, his way of life, and he thinks he has a stake in it. A permit holder there (landed immigrant?) has no such obligations yet receives all the same treatment and benefits as a Citizen - which begs the question "what's the point of being a Canadian citizen?"

----------


## koman

> which begs the question "what's the point of being a Canadian citizen?


Well you do get a nice ID card and a scroll...and you shake hands with a high court judge and a Mountie salutes you...... :Smile:  ...and you can now become Prime Minster if you want.

----------


## StrontiumDog

*PressTV - 'wage raise could soar unemployment in Thailand'

'wage raise could soar unemployment in Thailand'
*
Sat Jul 23, 2011 11:34AM
Sonia Labboun, Press TV, Bangkok

The latest statistics show that 60% of Thai workers receive a wage of 200$ per month working 10 to 12 hours a day.




During the election campaign , The Pheu Thai Party, led by Yingluck  Shinawatra had vowed to increase the minimum wage of workers to 10$ per  day and allocate a minimum monthly salary of $500 for new graduates  starting in October. 

These were the promises believed to have drawn a large number of  votes for the party, who won the general elections on July the 3rd.Thai  workers welcome the wage increase as the rising inflation has been  weighing heavily on their shoulders without any perspective of cooling  down due to the global financial crisis. 

However, leading economists urge the new government to review the plan as it could raise unemployment and scare out investors. 

 The private sector has also expressed its disagreement on the plan  of the new Pheu Thai-led government to raise the minimum wage  countrywide, saying that the measure will prompt an increase of 4.6$  billion a year to the labor cost.  

Small and medium-sized enterprises have already been feeling the  pain of the global recession in recent years. Factories and businesses  have warned that if the policy is to be implemented they will have to  reduce the number of employees due to unsustainable high costs which  will lead to more unemployment. 

Thai chamber of commerce said that foreign investors are already  eyeing other countries to open factories and businesses as the wage  increase in Thailand works out to US$260 per month, compared with the  current rates of $50 in Burma, $60 in Cambodia and $70 in Laos. 

The loss in foreign direct investment (FDI) has been estimated to  4.3 $ billion per year, if the Pheu Thai Party moves ahead with its plan  and makes Thailand less attractive than neighboring countries for  investment. 

Economists agree that an increase in minimum wage is a necessity  against disparity and social injustice, but they insist that in addition  the next government, through welfare support initiatives, should  provide workers with training to further improve their skills.

----------


## Tom Sawyer

Wouldn't it be typical if the idiots threw a coup over the minimum wage?

----------


## longway

> Originally Posted by longway
> 
> Somebody needs to let him know that thailand already has a minimum wage policy.
> 
> 
> Seems he's already aware of that - seeing as he mentions *increases* to it _twice_ in the first paragraph.....   
> 
> Speed-reader are you?


Just that his arguments are about the effects on employment and inflation on having a minimum wage, nothing to do with increasing it by between 40-80% at one go.

maybe he forgot by the second part of the blog that no-one is arguing about abolishing the minimum wage, or he forgot it was there as his bile from his faux concern overwhelmed him by then.

----------


## SteveCM

> Originally Posted by SteveCM
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by longway
> ...


- or maybe your (wishful) reading is on a par with your wishful crowd-counting. From the penultimate paragraph: 


> Such research is incredibly important when making  the case for the raising of a minimum wage to a higher level.....

----------


## StrontiumDog

Thai-ASEAN News Network

CP Backs Minimum Wage Increase 

UPDATE : 25 July 2011                     *

Giant conglomerate Charoen Pokphand or CP  Group voices support for the Pheu Thai Party's policy to raise the  daily minimum wage to 300 baht.

CP Vice President for Finance, Suparat Kawatkul, said he backs Pheu  Thai's attempt to increase the daily minimum wage to 300 baht, saying  that laborers are facing a dramatic increase of goods prices. 

Consequently, he said increasing their wage is reasonable. 
*

However, he conceded that the plan would affect the business sector and may cause a decline in foreign direct investment. 

He said the next government should help the business sector with the  rising wage cost such as by providing subsidies and cutting corporate  tax. 

Suparat reitrates that CP is ready to comply with the new government's policies, especially regarding the agricultural sector.

----------


## StrontiumDog

*Bangkok Post : Academics support wage rise proposal
*
*Academics support  wage rise proposal*
Published: 26/07/2011 at 12:00 AMNewspaper section: News
 Academics and labour leaders have thrown their  weight behind the Pheu Thai Party's policy to raise the daily minimum  wage to 300 baht, but recommend that measures be drawn up to cope with  employer concerns.

 Lae Dilokwitthayarat, a lecturer at Chulalongkorn University's  faculty of economics and an expert in labour affairs, said wages for  workers accounted for less than 10% of total production costs. Thailand  has suppressed local wages to attract industrial investors and in turn  worsened inequality in society, he said.

 Pheu Thai's campaign pledge to raise the minimum wage to 300 baht a  day nationwide had piqued the interest of workers, spurring them to vote  for the party in the recent general election, Assoc Prof Lae said. As a  result, the party must make sure it introduces a 300-baht flat rate, or  face a crisis of confidence among its supporters.

 He spoke during a labour network seminar at Chulalongkorn University's faculty of economics.

 Direk Patamasiriwat, of the School of Development Economics at the  National Institute of Development Administration, said the Pheu Thai-led  government would win over workers if it honoured its campaign pledge.

 But, the government will meet resistance from employers who may resort to mass layoffs, he warned.

 The government should prepare measures to cope with anticipated  layoffs by finding jobs to accommodate affected workers, Prof Direk  said.

 Local administrative bodies nationwide should be asked to hire people who are laid off due to the wage rises, he said.

 Several studies have found that a wage rise of Pheu Thai's magnitude  would have a minimal impact on businesses, but it would spark an  overreaction from many companies, he said.

 Pheu Thai's plan to cut taxes on businesses must be carefully  studied, Prof Direk said. He said the party should not use taxpayer's  money to subsidise businesses.

 He suggested the government set up a committee to study the exact  effect on production costs if the daily minimum wage were increased to  300 baht.

 Narong Petprasert, a Chulalongkorn University economist, said the  minimum wage in Thailand was relatively low, particularly when compared  to worker efficiency, which results in huge profits for enterprises.

 He cited research which found that 60% of the labour force earned  less than 6,000 baht a month. This low income forces many people to work  overtime to meet the increasing cost of living.

 He called on relevant agencies to help cut non-production costs such  as under-the-table fees and personal expenses of company executives that  were normally added to production costs.

 Labour leader Pawis Pasook said employers had exploited workers for more than 40 years by paying them low wages.

 Somsak Thong-ngarm, of Ang Thong provincial wage committee, said  workers had decided to vote for Pheu Thai mainly because of its minimum  wage proposal.

 Wilaiwan sae Tia, deputy chairwoman of the Thai Labour Solidarity  Committee, said employers were living comfortably at the expense of  workers and if workers dare ask for wage increases they are  rejected.Meanwhile, the Northern Industrial Council has voiced concern  over Pheu Thai's policy, saying the 300-baht daily minimum wage would  hamstring the industrial sector, particularly small and mid-sized  factories.

 Yutthapong Jeeraprapapong, chairman of the council, said the next  government should gradually increase the minimum wage instead of pushing  for a quantum leap like Pheu Thai had promised.

 Such a drastic increase would push labour costs up to 36% of total  production expenses, from the current average of 20%, he said. This, in  turn would increase product costs by at least 16%.

 He proposed that the wage hike be based on studies by provincial tripartite wage panels and the Central Wage Committee.

----------


## Tom Sawyer

Escap: Pheu Thai plans sound
Published: 26/07/2011 at 12:00 AMNewspaper section: Business
Improved political stability, a proposed cut of business taxes and a hike in the daily minimum wage will give Thailand better odds in competing with regional economies to attract foreign direct investment, says the UN Economic and Social Commission for Asia and the Pacific (Escap).


Escap executives have played down arguments over the Pheu Thai Party's proposed rise of the daily minimum wage to 300 baht, saying instead that the policy should be part of the country's industrial transformation: sending a signal to international communities that Thailand is moving away from unskilled labour industries to more value-added activities.

"Raising the minimum wage will help in terms of income security for workers coming to Thailand," said UN under-secretary-general and Escap executive secretary Noeleen Heyzer.

"It is a good way looking forward for Thailand."

Ravi Ratnayake, Escap's trade and investment director, urged the new government to come up with measures to deal with the short-term negative impacts of the wage hike including ones to help small and medium-sized enterprises.

"You need to balance positive and negative impacts of higher minimum wages," said Mr Ratnayake, adding that the prices of some products may go up. "But in the long term, there are net positive impacts."

Meanwhile, foreign direct investment (FDI) is drawn to political stability, which has not abounded in Thailand in recent years but could improve after this month's election and when the new government is installed.

Certain proposals of the new government to reduce business taxes will create more FDI in Thailand, said Mr Ratnayake.

Although the agency's "Asia-Pacific Trade and Investment Report 2011" released yesterday found that FDI flows to the region have fully recovered from the 2009 global crisis, 75% of these go to just five "giants" - China, Hong Kong, India, the Russian Federation and Singapore.

In Southeast Asia, while FDI flows to Malaysia and Indonesia rose sharply last year, Singapore was clearly the leader in the sub-region, ranking as the No.1 FDI destination in the world. The island economy attracted 35% of FDI inflows during 2008-10, with Vietnam, Indonesia and Thailand taking 17%, 16% and 13%, the report said.

Escap also projects spectacular export growth in Asia-Pacific after returning to pre-crisis levels with an estimated 17.3% last year. Growth will stabilise at 9% in 2011.

India is expected to record the highest export growth with 11.3% this year, followed by Korea (11%), China (10.8%), Thailand (10%), Indonesia (9.9%) and Malaysia (7.9%).

"Opportunities for export expansion will depend largely on the growth of intra-regional demand and ability of developing countries of the region to restructure and diversify their exports," Dr Heyzer said, noting that Asia-Pacific exports face a clear and present risk of protectionism.

"The region is facing uncertainties in the post crisis era, such as climate change, inflation pressures driven by food and energy price increases, foreign exchange volatility, the effect of natural disasters and sluggish demand in developed economies," she said.

Although Thailand has been able to keep the effects of rising oil prices at bay due to state price controls, as the global price of oil continues to climb, Thailand, like the rest of the Asia-Pacific, will continue to face rising oil costs that can curtail economic growth, said the report.

----------


## Sailing into trouble

So how little do the International investment community think that a Thai can live on?
And what percentage of their investment does this amount to? A serious question? Is this a serious concern or the rich just wanting to get richer?

----------


## longway

> Originally Posted by longway
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by SteveCM
> ...


So he remembered again right before the end, after making irrelevant points throughout the blog, good for him.

Yes, appropriate research is incredibly important, but completely lacking, in his blog and the party that proposed it. 

And if you had any real interest in the topic you would be addressing that concern than nit picking one line posts by people you perceive to be your opponents.

I don't know why you want to bring up the crowd numbers at the democrat rally again, but if you want to revisit that topic please address it there. Both you and Calgary have some kind of fixation with it, and if you think I am lying for whatever reason I will happily defend myself in that thread. Bump the thread  if you have a point to make.

Please, no more silly little snide remarks referring it in unrelated threads.

----------


## Butterfly

the minimum wage might eventually increase unemployment, but that's actually a good thing for employers, it will give them greater "workers" accessibility and will slow down wage inflation eventually as the labor market is very tight these days with the low unemployment figure.

This of course is valid in high growth area like Bangkok, completely invalid in NE shithole where everyone is drunk on lao khao 24/7

----------


## longway

Saying the lack of forethought before making this promise is spectacular is an understatement.

----------


## SteveCM

> So he remembered again right before the end, after making irrelevant points throughout the blog, good for him.  Yes, appropriate research is incredibly important, but completely lacking, in his blog and the party that proposed it.


Fine, hold to your view. I've already pointed out why I think it doesn't stand up - and nothing you've said here changes that.




> And if you had any real interest in the topic you would be addressing that concern than nit picking one line posts by people you perceive to be your opponents.


No idea what this refers to. Neither do I see any "opponents" here any more than I see "allies". I see what I think is either wrong or right and respond accordingly as and when I I've a mind to.




> I don't know why you want to bring up the crowd numbers at the democrat rally again, but if you want to revisit that topic please address it there. Both you and Calgary have some kind of fixation with it, and if you think I am lying for whatever reason I will happily defend myself in that thread. Bump the thread if you have a point to make.


_You_ bring up again here the "lying" suggestion that I've already dealt with on that thread. What Calgary chooses to say is up to him - just as how/whether you choose to respond to _him_ is up to you; I suggest you don't waste time and energy trying to "pair" or group posts from different people - it's self-evidently pointless. The totality of what _one_ person says (and how they say it) is always relevant - if for no other reason than it often relates to credibility. That said, if this reference to your crowd-count gets under your skin so much, I'm happy to both withdraw it and apologise. In any case, I don't foresee reference to it coming up again - not from me anyway. I can't speak for others here - any more than they (or you) can speak for me.

----------


## longway

^ No you brought it up. If you think its dealt with then don't bring it up.






> That said, if this reference to your crowd-count gets under your skin so much, I'm happy to both withdraw it and apologise.


Not sure how I am supposed to take this, its a fairly back handed way to make an apology, and reeks of fakeness, but it suits your persona on this board to a T.

----------


## StrontiumDog

*Increasing the minimum wage: Puea Thai
*
*Increasing the minimum wage: Puea Thai’s first big test – Part 1*

_By Bangkok Pundit Jul 26, 2011 9:00AM UTC_ 

One of Puea Thai’s campaign promises was to implement a  nationwide daily minimum wage of 300 Baht a day. Currently, there is no  nationwide minimum wage, it is set at different levels per province (i.e  higher in Phuket and Bangkok and other larger urban provinces), but  lower in more rural provinces. Currently, the minimum wage is between  159 to 221 Baht a day. This slightly out-dated BOI chart has minimum wage per province at beginning of 2010 which though does give you an indication of where provinces are.

*Should the minimum wage rate be increased?*

 First, some background about the minimum wage in Thailand. _Reuters_ Bureau Chief Jason Szep had an interesting analytical piece article a few months back:*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.

 But Thai wages are creeping up, supported by an average 6.4 percent minimum-wage increase this year…

 According to Thailand’s Labour Ministry, *there were only two  years in the past decade when the increase in minimum wage exceeded  inflation: in 2001 when inflation was 1.6 percent and the increase was  2.2 percent and 2007 when inflation was 2.3 percent and the wage rose  3.1 percent.*_The Nation_ has some more details over how the minimum wage has trailed inflation in the late 90s:For example, *inflation was 5.6 per cent in 1997 and there was no increase in the minimum daily wage*; *the rate was 8.1 per cent the next year, which saw a wage hike of 1.8 per cent*. There were *no minimum-wage increases in 1999 or 2000,* which saw inflation of 0.3 and 1.6 per cent respectively._Bloomberg_ has the result:The country’s average daily minimum wage increased by 25  percent over the past decade to 206 baht ($6.73) from 165 baht,  according to data compiled by Bloomberg.*BP*: Although, a pro-Thaksin party was in power for  half that time so it is not as though may want to reflect as to why the  low increase in wages then again. After having typed the above, BP found  the below chart which shows you minimum wage versus inflation for  1997-2009:


 Source: _Bangkok Post_

 btw, when they say that 2.9 and 3% in 2005, doesn’t that mean around  5.9%- actually just under 6% so increase was more than inflation? Right?

 However, this slowing down of the increase of the minimum wage has not always been the case. This TDRI PDF file shows the increase in the minimum wage from 1973 to 2003. Below is information summarized from TDRI:In 1973, it was 12 baht a day. By 1978, it varied between  25-35 baht a day. By 1983, it varied between 56-66 baht a day. By 1988,  it varied between 61-73 baht a day. By 1993, it varied between 102-125  baht a day. By 1998, it varied between 130-162 baht a day. By 2003, it  varied between 133-169 baht a day.*BP*: In the past 14 years, the minimum wage has stagnated and has not kept place with inflation like in the past.

 btw, would be interested if anyone has been able to plot minimum wage increases on a chart with inflation increase….

 Actually, the Democrats also agreed to raise the minimum wage. While  the Democrats campaigned on raising the minimum wage by 25% over two  years, this was actually a significant backdown from Abhisit’s proposal last year for a nationwide 250 Baht a day minimum wage, which was approved  by Cabinet, but which was later abandoned. Basically, the idea of a  significant increase the minimum wage has broad support – one of Puea  Thai’s coalition partners campaigned on 350 Baht a day. This is best summed up by then Finance Minister Korn in a speech in Korea as reported by the _Bangkok Post_ last year:*Corporate income tax revenues have doubled since  the 1998 crisis, he said, while minimum wages have fallen when adjusted  for inflation.*

 One course for the country may be in a new economic model based on  tourism or auto clusters. This will help diversify the economy and  narrow the income gap, he said.

*“In the export sector, only the [company] owners or  shareholders benefit from the earnings, while employees earn [minimum]  wages,*” Mr Korn said.

 “Yes, low wages are one key factor why foreign companies invest in Thailand. *But in the end, low wages also contribute to the income gap.*“Then, also in an interview with the _Sydney Morning Herald_ last year:So Thailand’s Finance Minister, Korn Chatikavanij, has  come up with a very big idea, albeit a simple one – raise workers’  salaries. ”What’s the cost to the country to significantly increase this  minimum wage?” he posits during our recent interview.
 …
Those people most likely to oppose Korn’s suggestion are his own  supporters. Korn is a senior figure in Thailand’s oldest political  party, the Democrats, whose heartland is Bangkok’s conservative business  elite. Many of their number are rich and yellow-inclined, regarding  their privilege as a birthright endorsed by the semi-divine monarchy.
 …
Now, he says: ”*Maybe we’ve been conned all this time here by  employers as regards our minimum wage, which we all know to be low but  have been told is necessary*.”
 …
He has shown particular interest in the Foxconn crisis in southern  China. Several workers at the Taiwanese-owned factory that produces for  Apple, Hewlett-Packard and Microsoft committed suicide and the company  is fending off claims of abusive work practices. Korn says he sees a  lesson in the company’s reaction to the deaths.

 ”The most significant thing about the Foxconn matter was that  overnight the owner was able to double salaries. That means he could  afford to do it,” he says.

*As for the cost to business of higher wages, Korn says: ”I  would reduce their tax, that’s the quid pro quo, and then I pick it up  through higher consumption. But I need to do more work on how this would  impact on costs and competitiveness*.”

 Korn’s thinking betrays not just his own government’s immediate  dilemma but a longer-term Asian leadership conundrum – how to confront  unexpected political and economic challenges as working-class  aspirations and education rise.

*”I’m thinking, what’s the cost to the country to  significantly increase this minimum wage, by order of the Ministry of  Labour? If there’s a time to do it, it is now.*‘*BP*: The main difference now is how significant the increase should be and how quickly.

 In a later post, BP will look at some of the pushback from business,  the implications of minimum wage increase, Puea Thai statements  post-election, and possible problems ahead.

 btw, was Korn’s establishment membership cancelled after that interview?  :Smile:

----------


## sabang

> Saying the lack of forethought before making this promise is spectacular is an understatement.


CP, Escap, and several academics seem to prominently disagree. How they bring it in though will be interesting- it makes sense to raise it in Bangkok & central provinces first really, but this may well be a bit controversial with PT's electoral base.

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## noelbino

Not to worry. All you Thai workers who will get the 300 baht minimum wage forget it.
My son's school informed me today that due to the change of Government [remember they haven't taken office yet] the free education policy has ende and and they will need to charge me 3.000 Baht a year for m Prathom 5 student plus a charge for free uniforms. As he is in P5 he will not get the Laptop for every student as this now will only apply to P1 students, Therefore my expected wind fall of another 50 baht per day has gone already.

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## Rural Surin

> Not to worry. All you Thai workers who will get the 300 baht minimum wage forget it.
> My son's school informed me today that due to the change of Government [remember they haven't taken office yet] the free education policy has ende and and they will need to charge me 3.000 Baht a year for m Prathom 5 student plus a charge for free uniforms. As he is in P5 he will not get the Laptop for every student as this now will only apply to P1 students, Therefore my expected wind fall of another 50 baht per day has gone already.


Free educational policy. There's no profit in this.

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## StrontiumDog

> Originally Posted by longway
> 
> Saying the lack of forethought before making this promise is spectacular is an understatement.
> 
> 
> CP, Escap, and several academics seem to prominently disagree. How they bring it in though will be interesting- it makes sense to raise it in Bangkok & central provinces first really, but this may well be a bit controversial with PT's electoral base.


Controversial in that they promised a 300 baht minimum wage for the country, but since have watered this promise down to only Bangkok (and possibly Phuket). Yeah, I can see how you'd think that might be controversial. I prefer the word lie...or con...

A reminder...

https://teakdoor.com/thailand-and-asi...ml#post1776064 (Thai elections 2011-Thai PM sets stage for tough election)

 

And lets not forget the....

Pheu Thai Party offers tablets to Thai students

_Pheu Thai Party offers tablets to Thai students

                            By THE NATION
                                             Published on April 29, 2011                

The Pheu Thai Party has highlighted one of its  campaign policies, billed as "one student, one tablet computer", arguing  that it plans to offer Thai youth a tangible tool to brace them for the  world of high-speed Internet._ _

                                                            "The government is promoting its broadband policy in an  intangible manner, but Pheu Thai will make available the actual tool to  access ADSL or high-speed internet," Pheu Thai campaign strategist  Pichai Naripthaphan said.Pichai said that his party, if elected to  lead the next government, would expand Wi-Fi coverage to every school  and that every primary school student would be given a tablet computer  free of charge.

He said Internet access would be available without charge at education institutions, government offices and public places.

Pheu  Thai expects to improve the country's competitiveness by promoting  e-learning and making sure that every student can gain access to  e-books, he said.

Tablet computers in China and India have a price  range of Bt3,000-Bt6,000, and Thai schools could get a cheaper price by  buying in bulk, he said._


Which has since become only something entirely different....just one year in schools...

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## Tom Sawyer

SD - didn't you post this ALREADY? What the fuck are you doing?

----------


## longway

> Originally Posted by longway
> 
> Saying the lack of forethought before making this promise is spectacular is an understatement.
> 
> 
> CP, Escap, and several academics seem to prominently disagree. How they bring it in though will be interesting- it makes sense to raise it in Bangkok & central provinces first really, but this may well be a bit controversial with PT's electoral base.


They think their lack of forethought is not spectacular?  :Smile: 

The minimum wage should be increased substantially, but the promise of a nation-wide minimum wage and its implications are largely unknown, for example, what about the knock on effect on people earning more than 300b per day, would they not demond an equal pay rise to maintain their status, with similar demands as you move up the chain, then the provinces face a wage bill increase of close to 100%, whereas Bangkok only has to absorb 40% is that fair?

Is there a precedent anywhere in the world? What happened?

----------


## LooseBowels

I am really impressed and optimistic in that since the legitimate government has been legitimately elected again , and one pier of the axis of evil swept away, the talk talk about the day to day issues on here  has increased obviously and markedly.   :Smile: 

You still get the oddball unwashed PAD yellow nutter traffic( you know who you are)  at times, but even though we are only a few short weeks back into democracy  isnt it so refreshing to see discussion on the political performance of the democratically  elected again government, rather than the murderous activities of the coup issued law junta proxies arses and their felon patrons.   :Smile: 

So on with the good government and its accountability, but not forgetting the felons must answer for their crimes.

You can't argue with that

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## longway

Well at the end of the day, they wont go through with it as promised, they will just squabble among themselves and steal as much money as possible, same ole shit, with a few new faces.

----------


## FailSafe

> So how little do the International investment community think that a Thai can live on? And what percentage of their investment does this amount to? A serious question? Is this a serious concern or the rich just wanting to get richer?


You keep thinking about it in terms if 'big business' and 'rich people'- you seem to have very little understanding of how this will potentially affect small- and medium-sized businesses in Thailand- you just keep expressing indignation because you can personally pull 300 baht out of your pocket to buy a beer without considering what it means multiplied over several employees.

I mentioned earlier in this thread that I would have to consider closing a small business as if I have to increase salaries as it will eat into my profits to the point where it won't be worth it for me to continue it- this won't be a big deal for me as I don't rely on it for anything more than pocket money, but it will mean several people will be out of a job.

There are many mid-sized business where the owners make maybe 50K-100K per month with ~10 employees who make ~6K-7K per month- if payroll increases 20K-30K, that will come directly out of the owners' monthly profits- what do you think is going to happen?  The owners aren't going to just accept such a reduction and will look to cut expenses/raise prices-  employees will be fired, and those that remain will have to take up the slack, or the prices of goods/services will increase, negating a pay raise and causing inflation/recession (worst-case, or course).

Cheap labor generally means a large work-force- if that work-force becomes more expensive, it will decrease in size.

----------


## StrontiumDog

*Bangkok Post : Wage increase will crash Thai economy
*
*Wage increase will crash Thai economy*

*It will be the perfect storm: 40-90 per cent higher labour costs, higher borrowing rates and a stronger exchange rate.*
Published: 27/07/2011 at 07:16 AMOnline news: Opinion
 A crisis seems to come every decade or so. There  is a pattern of recovery and growth leading to a false sense of  confidence about the future. That false sense of confidence leads to  policies and decisions which, after the next crisis grabs hold, looks  foolish in hindsight.

The recent financial crisis in developed countries is just that.

The  next crisis will rarely come in the same guise, as the previous crisis  is well studied and therefore measures are in place to prevent a  recurrence.

As with the 1997 crisis, the next crisis can be seen  coming. The lead indicators were there in 1997, with high trade  deficits, a property bubble and a fixed exchange rate. However, at the  worst possible time those in power at the time floated the baht and the  rest is history.

That disaster could have been avoided. In June  1997, in another open letter through the Bangkok Post, I warned against  the floating of the baht at that time. I advised that it was unnecessary  and could be avoided and the foreign currency pressure relieved through  a managed devaluation of the Thai baht. This would have saved Thailand  from losing tens of billions of US dollars due to the ‘‘floating’’ of  its currency.

This coming crisis is different, and like the 1997  crisis, can be both seen coming and can be avoided. So what is this  coming crisis? It is a combination of lost competitiveness and  inflation.

The fundamental flaw in the present collective  thinking of ‘‘most’’ people in Thailand is that they can become richer  by government-enforced wage increases. But for an economy as a whole,  that is impossible. It has never been done, although it has been tried  many times in different countries.

The result is always high and possibly hyper inflation which results in economic collapse.

Ask  a German, Argentinian or Zimbabwean and he will explain to you the  collective fear of inflation. Germany suffered hyper-inflation after WWI  as Zimbabwe does now.

Globally, inflation has been under control  for over 20 years and therefore the collective memory of those living  through inflationary periods seems to have largely been lost.

Inflation  is such a destroyer of wealth that huge efforts through very high  interest rates in the 1970s and 80s were required over a long period to  bring it under control.

The baht is just a paper money like all  other currencies today. In itself, a currency cannot generate wealth.A  currency is just a medium of exchange. It is more like the oil which  enables an engine to run. It is not the fuel for the engine.

To  increase the wealth of a country we need to increase labour productivity  — making the same goods and services by using less labour. Developed  countries’ wages are higher than in Thailand as those countries have  much higher labour productivity.

As an example, my family owns a  900-rai of sugar cane farm in Australia. The farm manager runs the  property together with another 1,000 rai of his family farm. To grow and  harvest the crop less than one unit of labour is used to run my family  farm. I have visited a number of sugar cane farms in Thailand.  Typically, you would see a farmer cultivating, say, 100 rai with 10 farm  workers, including seasonal workers. On an annual basis, this is more  than five units of labour per 100 rai — the equivalent of 45 Thai farm  workers to one Australian farm worker. That is the difference in  productivity.

The farm labour cost in Australia is A$20 (about  300 baht) per hour compared to about 25 baht per hour in Thailand. So  after accounting for the productivity difference, labour is cheaper on  the sugar cane farm in Australia than in Thailand.

A common  misconception is that employees on a minimum basic wage take home only  that minimum wage and therefore have inadequate income.

However,  in the electronics industry in Thailand, and I expect in most other  companies, employees take home significantly more per day due to various  allowances and overtime.

An increase in the minimum basic wage  of 40-90 per cent will increase the takehome pay by a similar factor.  Many export manufacturing businesses exist in Thailand due to the  competitive labour cost. They were attracted to invest here through  consistent government investment policies and a competitive labour cost  for the labour skills required in their manufacturing processes. Those  companies have invested billions of dollars in buildings and equipment,  which take many years to recover their investments.

Once the  ballpark is changed with a 40-90 per cent minimum wage increase and no  productivity increase, those investors will have effectively been  cheated and will never return. One does not return to the place where  one got cheated.

There seem to be many people who have a short  memory in Thailand. They think that times are good and we have a large  trade surplus, so no need to worry about exports any more. Good luck  with that.

Thailand is a large importer of oil. Without strong  export and tourism industries, the trade surplus will disappear and  Thailand will be in trouble once again.

Another problem that will  make Thailand less competitive is that inflation will lead to higher  interest rates and consequently a stronger baht.

Higher inflation  will cause the Bank of Thailand to increase interest rates. Higher  interest rates will attract more short-term speculative capital to  Thailand and therefore a stronger Thai baht. Any exporting company with  anything but low levels of debt may go insolvent.

It will be the  perfect storm — 40-90 per cent higher labour costs, higher borrowing  rates and stronger exchange rate. In global markets, where exporters are  price takers, how can they survive?

So a 40-90 per cent wage increase destroys Thailand’s export competitiveness.

So  what about inflation? The inflationary effects of such a wage increase  are driven by domestic effects. All companies who employ significant  numbers of lower-paid employees will have to increase their prices. It  is not about if, it is about how much.

Then there will be a  second and third round of price increases as employees need a further  increase to offset the higher goods and services prices. Many companies —  SMEs in particular — will struggle to pass on the price increases. The  central bank will have to increase interest rates. The same companies  suffering will suffer more through having to pay higher borrowing rates.

The  government claims that it will reduce income tax to offset the cost to  companies of the wage increase. That doesn’t quite make sense.

The  companies which gain the most from the tax cut are companies such as  banks and finance companies, which are hardly affected by the wage  increase.

The companies seriously affected by the wage increase  would gain little if anything. Where will the tax revenues come from to  pay for the tax cut?

I have lived in Thailand for over 20 years  and the 1997 financial crisis is still very fresh in my mind. I don’t  want to see another crisis in Thailand, I don’t want to see Thailand as  the laughing stock of the region, and I don’t want to see my friends,  staff and the rest of the Thai people suffer again.

The next crisis, like the 1997 crisis, can be seen coming and is avoidable if the government makes the right decisions.

_Terry Weir is chief financial officer of Hana Microelectronics Plc_.

----------


## StrontiumDog

*Bangkok Post : Wage groupings may be restructured
*
*Wage groupings may be restructured*
Published: 27/07/2011 at 12:00 AMNewspaper section: News
 The Labour Ministry is considering restructuring  its wage scale for skilled labourers to align with the 300-baht daily  minimum wage promised by the Pheu Thai Party.

 Permanent secretary for labour Somkiart Chayasriwong said the new  wage rates would be enforced tomorrow for skilled labourers in the 11  job categories. The regulation requires enterprises to base their pay  rates based on workers' skill groupings.

 Under the new wage rate structure, however, workers in some jobs  would still be paid less than 300 baht a day. As a result, the structure  will be adjusted if the new government pushes ahead with its promised  minimum wage policy.

 The 11 work categories under the wage scale are car painting, car  reshaping, car repair, Thai cooking, Thai massage, western spa work,  computer repair, household and factory electricity maintenance, air  conditioner repair and electrical appliance repair.

 The wage rates vary across different fields as well as within certain  fields, while workers are classified according to their abilities, said  the Labour Ministry.

 Car engine repair workers get lower wages than car painters and car  reshapers. Level 1 car engine repairmen are entitled to 275 baht a day,  at Level 2 360 baht and 445 baht for Level 3, while Level 1 car painters  start on 315 baht, Level 2 gets 380 baht and Level 3 445 baht. Car  reshaping workers get the highest salaries in the group. Level 1 workers  are entitled to 335 baht, Level 2 420 baht and Level 3 505 baht.

 There are two skill levels for cooking Thai food and western spa workers.

 Level 1 Thai cooks get 280 baht and Level 2 360 baht, while Level 1  western spa workers get 350 baht and Level 2 are paid 460 baht.

 Level 1 Thai masseurs and masseuses are paid 310 baht, Level 2 410 baht and Level 3 510 baht a day.

 Workers in the electricity and electrical appliance repair areas get  300 baht for Level 1, 400 baht for Level 2 and 500 baht for Level 3.

 Currently, the daily minimum wage for all types of workers varies by province, from a low of 159 baht up to 221 baht.

 Mr Somkiart said the ministry would enforce the new pay rates for  skilled workers in the 11 job categories on Oct 6. It has set a target  to enforce set wage rates for 120 types of jobs by the middle of next  year.

 Yukhol Julla-apai, adviser to the Thai Welding Society, said the Pheu  Thai-led government's wage hike policy would force the ministry to  adjust wage scales for skilled workers.

 One business operator said the ministry's wage scale for skilled  workers was good news, but he believed many enterprises would not  cooperate.

 In Phitsanulok, a petrol station has offered to give the daily  minimum wage of 300 baht to workers in line with the Pheu Thai's policy,  but in return for longer hours.

 Settha Kittijarurak , provincial councillor and owner of Payong  Petroleum station, said he would adjust the minimum wage at his petrol  station to 300 baht a day in line with the next government's policy.

 Currently, his petrol station pays workers per shift, with each  working day comprising two shifts. Each worker is currently paid 150-160  baht per shift.

 Mr Settha said he would adjust this system so that employees would  work a single, but longer, shift and be paid 300 baht per day.

----------


## StrontiumDog

*What is the minimum wage of Thailand
*
*What is the minimum wage of Thailand’s competitors?*

_By Bangkok Pundit Jul 27, 2011 11:00AM UTC_ 

As a follow-on to yesterday’s post  about the minimum wage and whether it should be increased which focused  mainly on Thailand, this post will look at Thailand’s  competitors/neighbours.

 The below chart from the WSJ from last year is interesting on AVERAGE monthly wage for manufacturing:



 JETRO’s survey of Japanese-affiliated firms on average manufacturing base salary for 2010:


 Source: JETRO (page 51)
 NOTE: Excludes contractors and those on probation.

 Note: Again, this is for average, not minimum wages, but it is useful  when thinking about average and minimum wages for other countries and  also foreign firms salaries

*BP*: That China was so high surprised BP and is  relevant to the idea of investment fleeing because if it was simply  about wages then wouldn’t those companies in China be fleeing to  Thailand and the other countries in Southeast Asia. Of course, there are  a variety of factors, but in recent discussions of increases in the  minimum wage there is often mention of companies leaving Thailand to go  abroad to neighboring countries. However, there is little mention of  China which Thailand is also competing with…

 The current minimum wage is between 159 to 221 Baht – with the amount  being higher in urban provinces and lower in rural provinces. When you  average this out, as the _Bangkok Post_ reports from December 2010 you get:The raise, which amounts to an increase of 6.7% on average, is considered a big jump.

 The increase takes the average minimum wage to *176.3 baht a day*, said Somkiat Chayasriwong, the permanent secretary for labour and chairman of the wage committee.

 Mr Somkiat attributed the raise to the government’s policy to reduce disparity in society.Which is why BP was struck by the below from _The Nation_:Moreover, the brainstorming meeting agreed that any wage  increase should be in line with the Kingdom’s competitors. For instance,  *the daily minimum wage in China is fixed at Bt277-Bt281 a day,  in the Philippines at Bt290, in Indonesia at Bt225 but Bt115-Bt150 in  remote areas, and in Vietnam at Bt103. The Vietnamese rate is expected  to increase to Bt126 in the near future.*

 These figures show that manufacturing industries related to exports  would be the hardest hit by a rise in the daily minimum wage to Bt300,  the FTI said.*BP*: These figures don’t take into the different  living costs/purchasing power parity in each country,* but if businesses  are going to leave based on a higher minimum wage in Thailand, is it  really better elsewhere? Currently, China, Philippines, and Indonesia  have higher maximum minimum wages so there is plenty of scope for an  increase in Thailand although, of course, at certain thresholds the  larger the increase, the more difficult for businesses to adjust.

 Remember the 300 Baht a day minimum wage for Thailand still has not  been implemented and BP thinks it is not likely to be fully implemented  until 2013  (i.e instead of it going up to 300 Baht in one hit, they  will likely stagger the increases to get to a minimum of 300 baht a day  in each province over the next 2 years) and if this is the case the  minimum wage of Thailand’s competitor’s will have also increased by  then. For example,  the Chinese government has already announced the current minimum wage will increase at least 13% annually over the next 5 years.

 Having said, FTI’s China figures are incorrect. The minimum wage in China varies  more dramatically by province or region, although am not sure how many  foreign factories are in the outer provinces. The 281 baht seems roughly  accurate based on 22 work days a week for Shenzen (BP gets 277 Baht  given 1320 RMB monthly wage although the exchange rate used may be  slightly different).

 *When looking at purchasing power parity (PPP), Thailand appears to  do better as you can see from the ILO’s “Global Wage Report 2010/11 Wage  policies in times of crisis” (PDF). On page 118:



*BP*: Their China figures seem off given minimum wage increases in the last few years…

----------


## StrontiumDog

Thai-ASEAN News Network



JETRO: Delay Wage Hike Policy for Recovering Businesses 

UPDATE : 27 July 2011                     *

The Japanese External Trade Organization  said they want the Thai government to delay their minimum wage hike plan  as many Japanese businesses are still recovering from the natural  disasters. 

The Japan External Trade Organization, or JETRO, vice president Seiya  Sukegawa said many Japanese businesses want the Thai government to  postpone implementing their policy to increase the wage rate to 300 baht  per day. 

He said the wage hike will increase production costs for entrepreneurs. 
*

Seiya said JETRO will not give its opinion regarding the Pheu Thai  government's policies, however, he said all Japanese investors would  like to hear a concrete policy plan in order to best develop strategic  plans for their businesses. 

He went on to urge the new government to delay their proposed wage hike  policy as many Japanese businesses are just now recovering from the  natural disaster and are unable to handle the increasing production  costs that will come with the wage rate increase.

----------


## StrontiumDog

*Bangkok Post : Rangsit workers back wage hike
*
*Rangsit workers back wage hike*
Published: 27/07/2011 at 01:10 PMOnline news:
 About 20 members of a factory labour union in  Rangsit area on Wednesday submitted a letter to Pheu Thai leader  Yongyuth Wichaidit, demanding the party to push ahead with its 300 baht  daily minimum wage policy.

 The letter was received by party secretary general Jarupong Ruangsuwan.

 Saneh Chumharuethai, leader of the workers, said all 25,000 members  of the Rangsit labour union had passed a resolution supporting the Pheu  Thai Party’s policy for a nationwide rise in the daily minimum wage to  300 baht.

 Mr Saneh said Pheu Thai should quickly implement the promised policy to improve the living standard of workers.

 In addition, the government must oversee prices of consumer goods to  prevent them from increasing without justification, he added.

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## SteveCM

*FPO backs minimum wage hike policy : National News Bureau of Thailand*

 

BANGKOK,  29 July 2011 (NNT)  

The Fiscal Policy Office (FPO) has voiced its  supports with the policy of the new government to increase daily minimum  wage nationwide to 300 baht as it is confident that the government will  have policies to take care of possible negative impacts. 

FPO Director Naris Chaiyasoot elaborated that his office has assessed  the potential impact from the minimum wage hike policy and believed that  the policy will neither affect the national inflation rate much nor  overheat the economy. 

The director further explained that the skyrocketing inflation can be  attributed to many factors, not just the rising minimum wage. He  indicated that the expensive oil price is the major factor driving the  inflation rate up. 

Mr Naris believed that the new government will take many measures to  control product prices, reduce living cost, cut corporate income tax and  boost liquidity in the system.  

The director estimated that at present there are about 5.4 million  labourers, whose daily minimum wages are less than 300 baht. He said the  private consumption will increase 2% immediately when the minimum wage  hike policy is effective.                                 


Reporter : Santibhap Ussavasodhi

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## sabang

> inflation will lead to higher interest rates and consequently a stronger baht.


Nonsense- inflation leads to a deteriorating currency.



> 40-90 per cent higher labour costs,


Which are a modest portion of a companies operating expenses in Thailand. Clearly, labor intensive & low mark-up industries will be most affected. Yet CP, one of the very biggest employers, isn't bothered

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## Gerbil

> Yet CP, one of the very biggest employers, isn't bothered


You obviously missed the point they throw in at the bottom. "No problem with the pay rises, but we'd like you to remove price controls from our products." 

Massive profits rise if they get away with that. Never mind contributing to run away inflation which will only hurt those at the bottom who would otherwise benefit from a rise.

----------


## Butterfly

> Originally Posted by StrontiumDog
> 
> inflation will lead to higher interest rates and consequently a stronger baht.
> 
> 
> Nonsense- inflation leads to a deteriorating currency.


not entirely correct, inflation will force higher interest rates and the higher interest rates should offset the currency from deteriorating

this is of course when there is a real motivation to stop inflation,

----------


## StrontiumDog

> Originally Posted by StrontiumDog
> 
> inflation will lead to higher interest rates and consequently a stronger baht.
> 
> 
> Nonsense- inflation leads to a deteriorating currency.


Actually, it depends on whether you look long-term or short-term. 

Initially, the usual response to inflation is to put up the cost of borrowing (interest rates), this usually has the effect of attracting speculators looking to buy government bonds etc. The currency will surge due to demand. Longer term there may be negative effects, but short-term the Baht is likely to strengthen. The worry is on the effect upon exporters....as Thailand's economy is heavily export based. 

Here is a news article today in fact...

*Baht Poised for Biggest Monthly Gain Since 2008 on Fund Inflows*

*Baht Poised for Biggest Monthly Gain Since 2008 on Fund Inflows*

 July 28, 2011, 10:27 PM EDT                                                  

 By Yumi Teso                     
_
July 29 (Bloomberg) -- Thailand’s baht was set for its biggest  monthly advance in more than three years after global investors added to  holdings of the nation’s assets on optimism elections held on July 3  will usher in political stability._

_     International funds bought $1.2 billion more Thai  equities than they sold during this month, the most since March 2010,  exchange data show. The election commission has certified 496 winning  candidates, meeting the threshold needed for the legislature to open.  The baht fell today on concern the central bank will curb appreciation  that may threaten the nation’s exports._

_     “There has been a good amount of inflows into  Thailand since the end of election earlier this month, providing a boost  to the baht,” said Kozo Hasegawa, a currency trader at Sumitomo Mitsui  Banking Corp. in Bangkok. “But there’s concern about intervention, which  is weighing on the baht at the moment.”_

_     The baht strengthened 3.3 percent this month, the  most since February 2008, to 29.76 per dollar as of 8:10 a.m. in  Bangkok, according to data compiled by Bloomberg. The currency advanced  0.2 percent this week and fell 0.1 percent today. The baht’s advance in  July was the biggest among Asia’s 10 most- traded currencies excluding  the yen._

_     Thailand had a current-account surplus of $1.35  billion in June, compared with a deficit of $511 million a month  earlier, according to the median forecast of economists in a Bloomberg  survey before official data today._

_Government bonds were headed for a second weekly  gain. The yield on the 5.25 percent notes due May 2014 dropped four  basis points, or 0.04 percentage point, to 3.77 percent, according to  data compiled by Bloomberg. The rate fell three basis points today._

_     Global investors bought a net $4.2 billion of  Thai government debt this month, according to the Thai Bond Market  Association._

_     The one-year onshore interest-rate swap, the  fixed cost needed to receive a floating payment, jumped 45 basis points  this month and two basis points this week to 3.64 percent. The rate was  unchanged today._

‎

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## Butterfly

> You obviously missed the point they throw in at the bottom. "No problem with the pay rises, but we'd like you to remove price controls from our products."


that's basically the trade off, they need an excuse to raise their price as their profit margin are being squeezed

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## sabang

What interests people is real interest rates- ie after inflation. Inflationery economies always have a deterorating currency, and I've always considered these short term interest rate bounces foolish, unless the market is really saying it considers the higher inflation rate to be reducing again soon. The wage rise will only have a mildly inflationary result anyway. The 'runaway inflation' types sound like the 'expert expat' Baht doomsayers we used to hear from.

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## Butterfly

if you want to talk real interest rate, then you need to address the issue of real exchange rate

the problem is that we are paid in nominal terms, so nominal exchange rates is what bring real impact for everyone

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## StrontiumDog

Thai-ASEAN News Network

What Can a 300-Baht Wage Hike Do? 

UPDATE : 29 July 2011                     

The Pheu Thai Party's policy to raise daily  minimum wage to 300 baht has been a controversial issue in Thai society  since before the July 3rd election. The policy drew opposition from the  Federation of Thai Industries and the Thai Chamber of Commerce , but  also saw support from some big names like Managing Director of Siam  Cement Group Karn Trakulhun and Vice President of CP Group Suparat  Kawatkul.

The latter group declared their support for the 300-baht minimum wage  openly and without condition. The policy, in addition, received a nod  from those in the academic sphere.

Earlier, Pasuk Pongpaijit, a former economics professor at Chulalongkorn  University, pointed out that over the past decade, the country's  production competence has increased several times faster than the wage.

Most recently, Lae Dilokwittayarat, an academic specialized in labor,  said the labor cost represents an average ten percent of the total  production cost. The wage hike, therefore, could have less impact on the  economy than was originally thought.

Direk Pattamasririwat, an economics lecturer, had a similar opinion and  suggested that businesses and employers adapt themselves to change.

Another economics professor at Chulalongkorn University, Narong  Phetprasert, said Thailand is currently moving toward an aging society  and it is necessary that the state comes up with some kind of incentive  to boost the country's workforce productivity at any levels.

Such active expression of opposition and support for a government policy  have been almost unprecedented in political history of Thailand.

The questions are how long the Pheu Thai Party will allow the debate to  go on, whether it will willingly accept criticism and advice in order to  fine tune its policy, and how the incoming government will be able to  maintain and promote the ongoing atmosphere of wisdom and democracy.

*Editorial, Khao Sod, Page 2, July 29th, 2011

Translated and rewritten by Wacharapol Isaranont*

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## Rural Surin

> Thai-ASEAN News Network
> 
> What Can a 300-Baht Wage Hike Do? 
> 
> UPDATE : 29 July 2011 
> 
> The Pheu Thai Party's policy to raise daily minimum wage to 300 baht has been a controversial issue in Thai society since before the July 3rd election. The policy drew opposition from the Federation of Thai Industries and the Thai Chamber of Commerce , but also saw support from some big names like Managing Director of Siam Cement Group Karn Trakulhun and Vice President of CP Group Suparat Kawatkul.
> 
> The latter group declared their support for the 300-baht minimum wage openly and without condition. The policy, in addition, received a nod from those in the academic sphere.
> ...


Ever noticed that such analysis and twisted punitry derives from those already quite comfortable?

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## Mid

> Ever noticed that such analysis and twisted punitry derives from those already quite comfortable?


Yep .

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## SteveCM

^^
Not the best article to illustrate the point but, yes - aka "pull the ladder up after you". More musically (to the tune of "The Red Flag"):

_The working class
Can kiss my arse -
I've got the foreman's
Job at last_.

----------


## Sailing into trouble

> Quote:
> Originally Posted by Rural Surin
> Ever noticed that such analysis and twisted punitry derives from those already quite comfortable?
> Yep .


Are you guys against the rise? If so why?

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## Mid

don't know how you read that SIT ?

I'm certainly pro , 

and rather surprised that you think otherwise  :Confused:

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## StrontiumDog

Exporters concerned over minimum wage hike policy : National News Bureau of Thailand
*
Exporters concerned over minimum wage hike policy   

* 

BANGKOK,  30 July 2011 (NNT) – The private sector, especially exporters is  worrying about the policy of the new government to increase daily  minimum wage to 300 baht nationwide, according to a senior Ministry of  Commerce official. 

Export Promotion Department Director-General Nuntawan Sakuntanaga  admitted that the private sector is worrying if the minimum wage hike  policy will affect the Thai exports in the latter half of this year  because it can reduce the competitiveness of Thai exports. 

Based on her discussions with exporters, Ms Nuntawan elaborated that  they want the new government to increase the daily minimum wage only in  some industries and provinces, not all of them at one go because foreign  investors might delay their investment in some products. 

The director-general added that the minimum wage hike might exacerbate  the situation for some small and medium enterprise (SME) owners as they  are now experiencing labour shortage, and some of them might have to  close down their business. 

Ms Nuntawan cited a study as showing that the minimum wage hike policy  would cause inflation to rise by 4% and thus would make the current  inflation rate to climb up to 8% once implemented. She added that  exporters are also worried about the appreciating Thai baht.

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## Tom Sawyer

Only bottom-feeders should be worried about this. Sadly they tend to be the majority of the SMEs in Thailand. Names like Chaiswaikwaikeenok or Srinamkhwaikeelan, etc, sem to have no vision of a future - only continued appealing for favoritism and exploitation of "their" workers.

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## StrontiumDog

*Call for new body to set wages
*
*Call for new body to set wages*

                            By The Nation
                                             Published on August 1, 2011                


*Tripartite panel always favoured bosses: unionist*

                                                            An independent body to calculate minimum daily wage  should be set up to replace the current system under the national Wage  Tripartite Committee, whose government representatives have regularly  sided with employers, a Bangkok seminar on subject was told yesterday. 

Labour activist Sakdina Chatkul na Ayutthaya said labourers'  representatives had regulary been at disadvantage under the WTC  mechanism, because the wages were calculated and approved based on  favouritism and negotigations between authorities and employers, not on  fair criteria relying on economic factors. 

"Labourers who make up a vast majority in the Thai society have  never had leverage power in the body which designate the minimum income  for them. The new body to be set up will serve as a tool to ensure  better welfare and more pay, and fairness in overall in their lives," he  added. 

"The hike in wage should be increased through a new perspective  which sees employeremployee relations, not as master and servant, the  way it has been," he said. 

According to figures by the Labour Ministry's own tripatite  panel, inflation had increased by 2.76 per cent each year in the past  decade while the wage was increased by 2.57 per cent. 

A deputy head of the The Federation of Thai Industries (FTI),  Thaweekij Jatujaroenkhun, as a speaker in the seminar, said a government  fund should be set up to support employers at the small and medium  levels as well. He said SME businesses would be hardest affected by the  Bt300 wage and the decrease of valueadded tax announced by the incoming  government. 

The chief of the shoemaking sector under the FTI, Thamrong  Thitiprasert, said shoemakers would be most affected, because manpower  was needed in most businesses, around 2,000 in the SME level compared to  only 30 largescale makers, who rely mostly on machinery. 

A senior economist at Tisco Securities, Kamphol Adireksombat,  said the flat Bt300 rate would cause inflation and another hike would be  needed soon afterwards because of much higher costs of living. He  agreed with a proposal that career or skill trainings should be required  of workers who demanded Bt300 from their employers. 

Labour leader Chalee Loisoong called on government subsidy for  both workers, in the flat Bt300 daily wage, and a fund for employers  after the hike was in effect. 

He said a statistics of SMEs to be affected by the Bt300 should  be made available soon so that the government could decide on what  measures to be taken and seeking extra money to fund those affected  SMEs.

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## The Bold Rodney

> the problem is that we are paid in nominal terms, so nominal exchange rates is what bring real impact for everyone


Amd exactly WHO are they?

As usual "pupa" yet another astounding post from our TD finance chocolate manufacturing belgie plumber! :Smile:

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## Buksida

> Only bottom-feeders should be worried about this. Sadly they tend to be the majority of the SMEs in Thailand.


Bottom feeders? Once again you show you know nothing. 

An idiot may think a boss would get away with raising only the wages of his lowest paid. For us it will mean a rise of a similar percentage for everyone. 

Our suppliers will also be raising wages and passing most of this on to us. Over the past few months we've already seen materials go up considerably due to fuel prices.

Then consider that over the past few years exporters have seen Western currencies and their economies dive. Europe and America will cannot accept a price rise, they simple stop ordering.

It may be difficult for the tefler's and blog addicts to understand, but for anyone in business it's clear.

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## StrontiumDog

^ Indeed, Tom isn't exactly the brightest spark....some folks, and he may be one of them, seem to think businesses will do the right thing, not put up prices and reduce their profits, for the good of the country  :rofl: 

Businesses are well known for their altruism.  :Smile:

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## The Bold Rodney

> ^ Indeed, Tom isn't exactly the brightest spark....some folks, and he may be one of them, seem to think businesses will do the right thing, not put up prices and reduce their profits, for the good of the country


Yet another patronising comment from someone who IS without doubt "Seriously Dumb"

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## StrontiumDog

^ Yet another stupid comment from someone who is without doubt lacking in anything worthwhile or intelligent to add. 

It isn't patronising. It is what it is. 

Anyone who really, truly believes businesses give a crap about anything other than profit margin lives in cloud cuckoo land. And Tom's comments about SME's is not only wrong, but utterly naive and ignorant.

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## The Bold Rodney

> It isn't patronising. It is what it is.


Exactly..so add something NEW instead of parroting the same old hymn sheet!

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## Butterfly

Rodney has escaped the patient ward again  :Yawn:

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## Buksida

Whether or not ALL business owners care less about their staff is debatable. But we are all selfish and will put ourselves first.

If they can, businesses will pass on the increase, otherwise they will try to absorb it themselves. Failing that they will go under. 

In our case, wages for everyone will have to rise, not just those on min wage. Fresh grads are being promised 15k, those with degrees presently employed will be expecting to receive just as much.


None of it is feasible, I can't see PT doing it.

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## FailSafe

^

Yup- it's not just a matter of giving the lowest-paid workers more money- it will have to be an across-the-board increase (workers who make in the 10K range at the moment because they have more responsibility/seniority than their lower-paid co-workers are going to expect a raise as well when those with less experience or lower responsibilities are suddenly at parity wage-wise)- business owners aren't just going to grin-and-bear-it and take the hit alone- the consumers are going to foot the bill, or businesses will go under and unemployment will increase.

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## sabang

Aide to Thaksin- _"they were saying that last time too sir"_

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## Buksida

> Aide to Thaksin- _"they were saying that last time too sir"_


Last time, when was that? What was the highest percentage min wage rise during the Thaksin years? Bureaucrats wages go up to a 12k min, uni grads start on 15k. Has there ever been a country that has raised wages so steeply? If so what were the results?




> Clearly, labor intensive & low mark-up industries will be most affected.


Care to name some of these industries? Agriculture and export garments are two that spring to mind.

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## StrontiumDog

Thai-ASEAN News Network

Steep Wage Hike Feared to Spur Mass Layoff 

UPDATE : 1 August 2011                     *

The furniture business association warns  that the push for the daily minimum wage to 300 baht could result in a  layoff of some 300,000 workers in the sector.

Vice president of the Thai Furniture Industry Association, Arak  Suksawad, said the planned daily minimum wage hike to 300 baht by the  new government will cause severe and immediate impact on 50 percent of  operators in the sector and related businesses, such as home decoration.  
*

Arak said the wage hike policy will move labor cost up by 40 percent and  total cost by 16 percent, so product prices may need to be adjusted. 

Arak stated this could result in cancellation of purchase orders as the  prices of products from other countries remained unchanged. 

This could lead to roughly 100 billion baht in damage for the furniture and garment businesses. 

He said 12 industrial associations do not agree with implementing the  wage hike policy straight away while noting that consideration on the  matter should rely on the tripartite panel made up of representatives  from the government, employers and employees. 

Arak said the panel's decision must not be interfered with by  politicians while the hike should be made in steps as proposed by  business operators. 

He suggested the new government improve workers' welfare via existing means, such as the the social security fund 

He said if the government enforces the 300-baht wage policy, more than  1,000 furniture manufacturers will have to close down and roughly  300,000 workers will be laid off.

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## StrontiumDog

Thai-ASEAN News Network



Private Sector Ponders Joint Stand on Mimimum Wage 

UPDATE : 1 August 2011 

*The Joint Standing Committee on Commerce,  Industry and Banking holds another meeting today to discuss the  300-baht daily minimum wage before submitting its recommendations to the  new government for consideration. 

Meanwhile, the industry minister has reported the lowest number of new  factory permit requests as investors are concerned about possible higher  labor cost.

The Joint Standing Committee on Commerce, Industry and Banking,  consisting of the Federation of Thai Industries, the Thai Bankers  Association and the Thai Chamber of Commerce, held a meeting to discuss  possible consequences from the implementation of the 300-baht daily  minimum wage. 
*

The committee announced its opposition to the new minimum wage during  its previous meeting held on July 20, claiming that it would severely  affect the economy. 

President of the Federation of Thai Industries, Payungsak Chartsutipol,  said that the committee will consider how industries can prepare for the  wage hike and submit recommendations to the new government for  consideration. 

In its last meeting, the committee announced its opposition to the  300-baht minimum wage on the grounds that it would have adverse effects  on the country's economic structure and advised that the wage hike  should follow market mechanisms. 

The committee also said that if the new government is adamant about the  implementation of the policy, it should roll out measures to assist the  private sector to cover the higher cost. 

Meanwhile, according to the latest report from the Industry Ministry,  the number of new factory permit requests has dropped to a record low in  July at only four with a total investment value of 209 million baht. 

The figure dropped by more than 14 times from the same period last year. 

The ministry believes that this was largely due to investors' concern  about the 300-baht daily minimum wage and the 15,000-baht monthly  minimum salary policies which would bring up production costs. 

Most investors are waiting to see how the new government will proceed on the matter. 

Director of the Industrial Economics Research Office, Ithichai Yodsri,  pointed out that a recent survey among industrial operators on the new  government's policies found that most respondents expected inflation to  increase by four percent from the current rate of lower than three  percent. 

However, Ithichai does not expect the industrial sector to be affected  much as most businesses are export-oriented but the higher prices of  goods will have an impact on consumers' purchasing power.

----------


## Tom Sawyer

> Originally Posted by Tom Sawyer
> 
> 
> Only bottom-feeders should be worried about this. Sadly they tend to be the majority of the SMEs in Thailand.
> 
> 
> Bottom feeders? Once again you show you know nothing. 
> 
> An idiot may think a boss would get away with raising only the wages of his lowest paid. For us it will mean a rise of a similar percentage for everyone.


I am in business. I can only guess you're running a bottom end low or no skilled enterprise where pretty much all your staff at at or near the present min wage. But if you are running an added value business (with at least semi-skilled workers as the main workforce) you would be paying most of them well above the minimums. 

So the cleaner goes from 203 to 300 THB per day. Five cleaners - so another 500 per day.
The assembly line staff are around 290 per day so it's a tiny increase. There are 30 of them so the big increase is a total of 300 baht.
The semi and skilled staff including the office staff - salespeople, accountant, office manager and production manager and a couple of secretaries and driver make up the other half of the payroll - maybe 20 and they are already earning nearly twice the others. Why would you increase thei pay?

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## longway

> Originally Posted by Buksida
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Tom Sawyer
> ...


Do you think your assembly line staff will be happy being paid the same as the cleaners? If you increase assembly line and cleaners pay by 40 to 50 percent, whatbwill your office staff think of their pay then?

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## LooseBowels

increased wage/overhead costs get passed on to the customers. :Smile: 
Its the same the whole world over.

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## FailSafe

> I am in business. I can only guess you're running a bottom end low or no skilled enterprise where pretty much all your staff at at or near the present min wage. But if you are running an added value business (with at least semi-skilled workers as the main workforce) you would be paying most of them well above the minimums.  So the cleaner goes from 203 to 300 THB per day. Five cleaners - so another 500 per day. The assembly line staff are around 290 per day so it's a tiny increase. There are 30 of them so the big increase is a total of 300 baht. The semi and skilled staff including the office staff - salespeople, accountant, office manager and production manager and a couple of secretaries and driver make up the other half of the payroll - maybe 20 and they are already earning nearly twice the others. Why would you increase thei pay?


You may be 'in business' but you seem to have very little understanding of how pay structure works.  You also have an arrogance towards small businesses that are able to operate due to low overhead (salaries being a major part of that overhead) and turn a modest profit IN THAILAND- that might mean less that $2000 per month for the owner, which isn't a lot in the States or other western countries but is a very comfortable income over here.

Businesses that earned the owner 60K (~$2,000) per month will now earn that owner ~36K per month (say, in a small restaurant or shop, using an 800 baht per day salary increase, which would be the equivalent of eight employees who were earning 6K bumped up to 9K)- profits will have effectively dropped 40%- if you owned that business, what would you do?

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## Bettyboo

^ you make a good point, from experience which is valid, but it's more complex than that - both at the immediate level and a more socially contextualized level.

At the (your) local level, you could consider: increasing turnover, diversifying, increasing costs to customers, cutting production costs, the list goes on. I'm not suggesting that you don't know all of this already, and have not looked into it in detail, I'm just saying that there are many many more factors than have been stated thusfar.

At the contextualized socio-cultural level, it's about balancing wealth distribution, and this might include change of business practices and/or business base/type. It's no surprise that the 'elites' want to send the farmers back to the fields and factories with low salaries and no benefits in a 'self-sufficiency' economy. It's no surprise that the 'Kwai' want to increase their kids education and move them out of the farms and factories and into IT jobs, midlle management, etc.

The 'elites' want Thailand to be a production based economy where workers have a low skillset and earn low salaries; this is because it helps these 'elites' to be very rich. The gap between the price a farmer gets for his work and the price a consumer pays is massive, for example; normal in any country, but extreme and exploited here (yes, by people of all political colours...).

The Kwai would like Thailand to have a large middle class where their kids and grand kids have a better life.

I'd say it's about opportunities and equality of opportunities. At the moment we do not have that, and no army/PAD/dem run government is willing to address these issues because they look after themselves instead (and solely, ideologically...). The reds/PT have made their bed on a base of promises to the 'Kwai' masses, so even though many of them are the same type of folk who make money out of low salaried 'Kwai', they are gonna have to implement some policies if they are gonna stay in power: improve education, opportunities to quality education, increased salaries, equality of opportunities within the workplace, workplace training schemes, etc...

Some companies will struggle under these changes, and your company may well fit into that area. The reality is that social changes provide opportunity for some and hardships for others, and yes, some layoffs will occur...

----------


## FailSafe

> At the (your) local level, you could consider: increasing turnover, diversifying, increasing costs to customers, cutting production costs, the list goes on. I'm not suggesting that you don't know all of this already, and have not looked into it in detail, I'm just saying that there are many many more factors than have been stated thusfar.


As I said earlier in this thread, I've already done that- I'll be cutting some staff (I now keep more people on than I necessarily need because, frankly, it's cheap to do so- there are areas where I pay three people 6K that will change to two people being paid 9K- it won't make a lot of difference to me, but it will make a big difference to the person who will be unemployed, and the two remaining will have to pick up the slack)- in one case I will probably close one small business entirely as it won't be worth it to me anymore as increased salaries will eat my already small profit (and cutting staff won't work)- that will mean a further six people out of a job (I won't be able to compete with 'family-run' businesses in the same market anymore as their costs will not increase like mine will as their workers are 'off-the-books').

The wage increase will end up hurting the middle-class businessman and increase the unemployment rate for the lower classes, while not making much of a difference to the upper-class 'elite'.





> Some companies will struggle under these changes, and your company may well fit into that area. The reality is that social changes provide opportunity for some and hardships for others, and yes, some layoffs will occur...


I will make the necessary changes to keep my losses to a minimum- I would guess that my current work-force of ~80 people will drop to ~65 people (maybe even 60)- it won't be easy for those 15-20 workers to find new jobs as I sure won't be the only business owner cutting staff.

----------


## Buksida

TS, you imply you're running an 'added value' business with skilled workers, yet you don't have a clue about the basics of employing ppl and making a profit. 

BB, all this stuff about 'increasing turnover, diversifying, increasing costs to customers, cutting production costs,' is straight from a book. In business you just do them automatically, without all the fancy lingo.

Bottom line is, PT is likely to back down on it's wage policies.

----------


## sabang

> PT is likely to back down on it's wage policies.


I wonder. My bottom line is, Yingluck appears to have access to a stronger economic team than the Dem's, hidebound as they are by being the party of the established hierarchy. No surprise of course, because so did Thaksin.

They say money talks and bullshit walks, and the Thai stock market (up 7% post election as of yesterday) is money talking. I, incidentally, have a considerable clue about employing people and making a profit, and perhaps of human nature too. It is rather disengenous of a Democrat supporter exhibiting considerable sour grapes over the election result to give such a draconian estimate of the staff he will need to drop, if Yingluck's onerous new minimum wage comes into being. The plain fact is, if all of those staff are that marginal Buksida it is not really a commercial business at all, rather a charity you can no longer afford.

The wage rise will provide a spur in one aspect of Thai employment practise though- being productivity. With wages here so low, employers have been quite content to hire two or three people to do a job that one competent person could easily do. You see overstaffed businesses everywhere here, I mean everywhere. Also, wages being so low, there is absolutely no job loyalty, or incentive to stay. People come and go all the time in most small businesses- but if you contrast that with multinationals like Toyota, who pay decent wages & benefits and put their employee's through ongoing training (ie invest in them) you will see it is the opposite in their case, they have considerable employee loyalty and retention. So this is not a cultural Thai phenomenon at all.

I'm not sure how the wage rise will be introduced, there may well be concessions, stages, regional variations etc. I think it will happen though. I see the policy entirely in line with the overall Thaksinite vision of Thailand's development along 'western' liberal economic terms. This contrasts quite sharply with the more closed shop, centralised,  oligopolistic practise of the Democrats controlling influences. It is definitely a fact that employers are entitled to expect that a fair wedge of the 40% wage rise for the lowest paid to be recuperated from increased productivity.

----------


## SteveCM

Being no expert on being an employer in Thailand (though I have operated successful businesses elsewhere), I'll just pose this as a question. Why no mention of what I understand is proposed as the counterpart/offset to increased employment costs for businesses - i.e. the reduction in corporation tax? It's largely absent from the media reports of various bodies predicting mass lay-offs - and wholly absent from the first-hand accounts offered by members here.

----------


## FailSafe

^^
My businesses are certainly over-staffed- I would be happy to pay 2 people 9K each rather than three people 6K each for an increase in productivity, but how will the increase in unemployment be dealt with (your scenario will certainly cause it to rise)?  I agree that the 'cream will rise to the top' and only the best workers will be kept around, but if one or two workers can do the job of three current workers, it bodes poorly for the 'third man out'.

^
There has been mention of it- tax reductions will not come close to off-setting the wage increase.

----------


## DroversDog

> *
> Meanwhile, the industry minister has reported the lowest number of new  sweat shop permit requests as investors are concerned about possible higher slave labour cost.*


The above translation reads better now...

----------


## DroversDog

> There has been mention of it- tax reductions will not come close to off-setting the wage increase.


That depends very much on the type of business. There will be alot that are better off. I can see the government will have to do something extra to assist some small businesses.

----------


## FailSafe

> Originally Posted by FailSafe
> 
> 
> There has been mention of it- tax reductions will not come close to off-setting the wage increase.
> 
> 
> That depends very much on the type of business. There will be alot that are better off. I can see the government will have to do something extra to assist some small businesses.


Yes, the businesses owned by the 'elite'- I very much doubt anything extra will be done for smaller businesses.

----------


## SteveCM

> There has been mention of it- tax reductions will not come close to off-setting the wage increase.


By whom? I misused "offset" given the tax context - i.e. it usually implies 100% - so "set against" or "mitigate" is more appropriate here.

----------


## FailSafe

^

It's been mentioned in a couple of the articles posted (on this thread and elsewhere) by SD.

The proposed reduction will be pretty modest, especially for smaller businesses (many of which pay very little corporate tax- some very small ones pay none- my corporate tax reduction wouldn't off-set two months of the salary increase):

_Indeed, barely had the election celebrations died down when two of  the  policy changes proposed sent chills down many an economist's spine.   Firstly, lifting the minimum wage to THB300 ($10) per day, which implies   a 35-90 per cent increase from current levels, and raising the  starting  monthly salary in government jobs by about 30 per cent.  Secondly, a  reduction in the corporate tax rate from 30 per cent to 23 per cent in  2012, and to 20 per cent in 2013._

----------


## Fondles

> Businesses that earned the owner 60K (~$2,000) per month will now earn that owner ~36K per month (say, in a small restaurant or shop, using an 800 baht per day salary increase, which would be the equivalent of eight employees who were earning 6K bumped up to 9K)- profits will have effectively dropped 40%- if you owned that business, what would you do?


Assuming the legal maximum of a 48hr/6 day working week I calculate an averaged Bt.7800 salary for the month (based on a day rate of Bt.300) up from Bt.5200 (based on a day rate of Bt.200).

Where did you get your Bt.6000/Bt.9000 figures from or does said business owner only allow employees to have a day off on the months totaling 31 days ?

----------


## FailSafe

> Assuming the legal maximum of a 48hr/6 day working week I calculate an averaged Bt.7800 salary for the month (based on a day rate of Bt.300) up from Bt.5200 (based on a day rate of Bt.200).  Where did you get your Bt.6000/Bt.9000 figures from or does said business owner only allow employees to have a day off on the months totaling 31 days ?


Using round numbers makes it easier, and your numbers don't take into account monthly contributions towards social welfare tax and insurance, and many employees have the option of working overtime (for which they are correctly compensated).

Even using your numbers without taking anything else into account it's still a drop in profit of nearly 35% (based on a 60K monthly average income for the owner at current rates).

----------


## SteveCM

> It's been mentioned in a couple of the articles posted (on this thread and elsewhere) by SD.


Acknowledged already.




> It's largely absent from the media reports of various bodies predicting mass lay-offs - and wholly absent from the first-hand accounts offered by members here.

----------


## FailSafe

^

I offered a 'first-hand account' in post #269 after you first brought this up in post #263:




> *my corporate tax reduction wouldn't off-set two months of the salary increase*


What else do you want, Steve?  There aren't very many people on this thread who actually do business in Thailand- you're not going to hear much as far as first-hand experience goes (though there is no shortage of opinions).

----------


## Buksida

> It is rather disengenous of a Democrat supporter exhibiting considerable sour grapes over the election result to give such a draconian estimate of the staff he will need to drop, if Yingluck's onerous new minimum wage comes into being. The plain fact is, if all of those staff are that marginal Buksida it is not really a commercial business at all, rather a charity you can no longer afford.


I'm a Democrat supporter? I've given draconian estimates of the staff I have to drop? More BS from a nutter. 

Bureaucrats wages go up to a 12k min, uni grads start on 15k. Has there  ever been a country that has raised wages so steeply? If so what were  the results? 

To say that businesses would just shrug off rises of this scale is stupidity.

Does PT even have a proper policy for all these wage rises? When was the last time they spoke of them?



> Quote:
>                                  Clearly, labor intensive & low mark-up industries will be most affected.


Care to name some of these industries? Agriculture and export garments are two that spring to mind.

----------


## Sailing into trouble

> Even using your numbers without taking anything else into account it's still a drop in profit of nearly 35% (based on a 60K monthly average income for the owner at current rates).


SO what is 35% of a million? (it's Ok I can do the math)
Every time, any place a pittance is offered to the minions of this world the same cries of woe goes up by the hard done by bosses. 

Left of centre FS? You must be left of a centre close to MAggie Thatcher!
So your cost of production goes up. Like Oil, gas, electricity, rubber, wood, water etc what do you do? Come on you know. Yes you pass it on whenever possible to the consumer.

If your enterprise is such that it is competing on such slim margins that you can not because this is not competitive, then the general idea is that you make less profit, so that the peasants you employ can earn $ 30+ extra. THe next time I am on expenses and pigging out at some spot, do you think I give a toss about the buggers scraping by?

That is what this legislation is about. A very minor redistribution of wealth. You get less they get more. Comprendy ! So instead of the Range ROver buy a Toyota and suck it up!

----------


## SteveCM

^^^
I do appreciate the input based on at least one first-hand experience (now that it's here). Unlike some, I don't presume to know how other members spend their time away from TD - but I instinctively agree with you about the opinions vs first-hand experience point. Plainly enough, different businesses will have very different situations - so nothing like a broad view picture is likely to emerge from the limited sample available here.

But the tax side of the proposed equation _is_ a factor - hence my wondering why it (had) all but dropped off the radar.

----------


## FailSafe

> Left of centre FS? You must be left of a  centre close to MAggie Thatcher! So your cost of production goes up.  Like Oil gas electricity rubber wood water what do you do? Come on you  know you pass it on whenever possible to the consumer.


I'm not a socialist like you, this is true- I'm sure you give the  indigent in Canada rides on your sailboat to give them a a taste of the  'good life'. :Roll Eyes (Sarcastic): 

I'm going to have to fire people- THAT'S how I'm going to control my costs- I would rather not have to do that- apparently that's OK with you, though, if jobs I've created are lost.




> If your enterprise is such that it is competing on such slim margins that you can not this is not competitive, then the general idea that you make less profit so that the peasants you employ can earn $ 30+ extra.


You are really looking at this like a simpleton- it's not about '$30'- it's something closer to $100 x 50 x 12 (I know you can do the math, but that's $60,000- a pittance for you, I'm sure, but for me it's a nice piece of change out of my pocket).





> That is what this legislation is about. A very minor redistribution of wealth. You get less they get more. Comprendy ! So instead of the Range ROver buy a Toyota and suck it up!


Again, you're a socialist- I'm not- I'm also a bit more concerned about the wealth that's being redistributed when it's coming directly out of *my* pocket- believe me, I'd be pretty free-and-easy if we were talking about _your_ money.

----------


## FailSafe

> Plainly enough, different businesses will have very different situations - so nothing like a broad view picture is likely to emerge from the limited sample available here.


Of course not- I speak from having middle-end businesses (both on the lower and higher spectrum of the 'middle')- I also know a lot of other people at my same economic standpoint, and they are in the same boat as me.  I can also speak from the lower-end side as I currently have a very small business as well (the one I said I will probably have to close).

I can't speak from the position of the 'big boys' (sadly...)

----------


## Butterfly

the corporate tax reduction will not be enough to pay for the salary increase, mostly because company do tax optimization and don't pay that much tax in the first place

actually corporate tax here should be increased, it will be a more stable source of revenue in the long run. 

regardless, the 300 THB minimum salary is a necessity because the cost of living have risen sharply here and companies are too slow to adjust.

----------


## Buksida

I'm not arguing that wages aren't low, it's the attitude that having sharp increases (not just on min wages), is something easily absorbed by employers, especially those exporting to the EU and US whose economies and currencies are shite.

----------


## Fondles

> Using round numbers makes it easier, and your numbers don't take into account monthly contributions towards social welfare tax


I bet the employers were not up in arms when the compulsory contributions was lowered from 5% to 3% in 2009. 

quote=FailSafe;1834271]
and many employees have the option of working overtime (for which they  are correctly compensated).
[/quote]

Errm if the employees are doing overtime one would assume the company is busy and actually turning a profit, if the overtime is such a burden employ more staff.

----------


## FailSafe

> Errm if the employees are doing overtime one would assume the company is busy and actually turning a profit, if the overtime is such a burden employ more staff.


Yeah, when overtime was worth offering- now it won't be.




> I bet the employers were not up in arms when the compulsory contributions was lowered from 5% to 3% in 2009.


What's your point?  It still has an effect on how much is paid per month- the more employees there are, the higher the overall amount (and, using 3%, it increases the loss of profit from 34% to 36% if you accept the example I originally used and we use the salary numbers you previously provided, which closes in on the 40% that I came up with using round numbers- if we're going to be pedantic...)

How long have you been operating a business in Thailand, Fondles?  Got any real-world opinions to offer?  Just making a few sniping posts doesn't really add anything to the argument.

----------


## Buksida

^ We have several who claim to be knowledgeable in business that support the policy, even though it's not clear what the policy is.

They make meaningless statements like:



> It is definitely a fact that employers are entitled to expect that a  fair wedge of the 40% wage rise for the lowest paid to be recuperated  from increased productivity.


It is definitely a fact that being entitled to expect something does not mean one will receive it.

----------


## SteveCM

I'm never sure whether it's better to show admiration for or sympathy to any farang attempting to operate a business here in Thailand. 

All through my own experience elsewhere, I received plentiful comments (sometimes praise) from onlookers who often had no first-hand experience of _any_ - let alone _my_ - business. My response was to listen politely..... and change the subject.

Accordingly, I now find it better to leave others to mind their own business - for good or ill it's _their_ business and not mine.

----------


## FailSafe

> I'm never sure whether it's better to show admiration for or sympathy to any farang attempting to operate a business here in Thailand.


I'm not looking for either, Steve- I've been fortunate to do well over here, but I just as easily could have gone home with my tail between my legs.

I remember scouring the internet for information over ten years ago looking for some help with my planned business venture in Thailand- there was pretty much nothing (other than some names and email addresses, few of which were of any help)- I would like to contribute some of my experience to the TD forum in the hopes that someone who comes here after me will be able to benefit from my own story- this is why I tried to (and will continue to) post my opinions and real-world information here, and why I will 'fight the good fight' against what I consider to be ill-informed opinions and outright disinformation (based on rumor and second-hand experience) re: doing business in Thailand.




> All through my own experience elsewhere, I received plentiful comments  (sometimes praise) from onlookers who often had no first-hand experience  of _any_ - let alone _my_ - business. My response was to listen politely..... and change the subject.
> 
> Accordingly, I now find it better to leave others to mind their own business - for good or ill it's _their_ business and not mine.


If this was a US-based (on non-Thailand-based) forum, I would feel the same way, but it's not, and it's important to have some decent info available on TD.

I'm not saying I'm 100% right all the time, but I can definitely offer a needed perspective around here. :Wink:

----------


## Fondles

> How long have you been operating a business in Thailand, Fondles?  Got any real-world opinions to offer?  Just making a few sniping posts doesn't really add anything to the argument.


Technically have never operated a business here, however 5yrs ago I did assist in the setting up of one,  I still currently work for the same business.

----------


## FailSafe

^

Actually I shouldn't have posted that- you're as entitled to your opinion as I am regardless of your business experience here- I just went a bit overboard. :Roll Eyes (Sarcastic):

----------


## SteveCM

^^^
Can't argue with any of that - and all credit to you. But I guess you also realise that the News threads tend to be more about political football and associated point-scoring. "Decent info" seems to be _way_ down the list of priorities for many here.

P.S. I'm not always this sanctimonious - IMO.  :mid:

----------


## FailSafe

^

Yeah- I learned that a few weeks ago when I made (what I thought was) an innocent (though in hindsight admittedly not well-thought-out) remark over a politically-charged issue- the retaliatory attacks were brutal.

I'm not above a bit of 'point-scoring' at times...

----------


## Tom Sawyer

My comments earlier were about the average mid-range company where most of the workers aren't far off 300 baht per day already, and most well above it (thus not really caring about those getting bumped up to 300). 

I agree for mom and pop operations, or real shoestring joints, it will be tough. But frankly if you're making some Thai or some migrant worker virtually slave at well below the minimum wage so you can eek out an extra thousand baht per day to buy your kids toys at Central World every weekend you ought to find another occupation.

That said, Thailand clearly needs to move to a higher skilled labor force economy. It can't compete with low-cost China or Vietnam - it just can't. It's unsustainable.

There's no question productivity needs to improve - and Thailand has good infrastructure like roads and communications - it just needs to make that move. But underskilled workers are the achilles heel of under-investing in a nation's people and their public education system. If you spend most of your time indoctinating them rather than teaching them and challenging them to think - then this is the result.

Time to pay the piper it seems.

----------


## Gerbil

> My comments earlier were about the average mid-range company where most of the workers aren't far off 300 baht per day already, and most well above it (thus not really caring about those getting bumped up to 300).


Uhmmm... Wrong. They *do* care about that, very much so. The idea that entry level staff will now be on a wage closer to their own will be hard for them to stomach. They will demand to be perceived as correspondingly more valuable.

This is why many companies in Thailand have flat bonus rates & fixed % salary increases rather than performance related ones. As long as each person in the organization structure feels superior to the 'nong' below, then everyone is happy.

Cultural structures cannot be changed overnight.

----------


## StrontiumDog

> Originally Posted by FailSafe
> 
> Even using your numbers without taking anything else into account it's still a drop in profit of nearly 35% (based on a 60K monthly average income for the owner at current rates).
> 
> 
> Yes you pass it on whenever possible to the consumer.


Indeed, thus creating inflation. Prices for everything will rise.

And eroding the gains the individual will make from the minimum wage rise. In effect it will be a pointless and worthless rise. 

Prices for goods will spiral as businesses look to recoup their lost profit margins. There's a knock-on effect across the entire economy. That's how it works here and everywhere. It is a inflation busting raise. The ripples will be significant. There are a lot of people here on the minimum wage. 

Thus the minimum wage rise can be seen for what it is. A headline grabbing, fake promise. It will change nothing. Give with one hand, take with the other. Price rises will eat in to any gains the individual makes. Price rises for goods and services will hit those who are on the minimum wage the hardest. 



With regards to an earlier point made, I think by Failsafe. 

If employers do layoff staff, using the idea that many businesses are overstaffed as labour is so cheap, what will become of the unemployed? This policy could end up creating more unemployment and thus increasing poverty (remembering the Pheu Thai promise to eradicate poverty here in 4 years, something which no government on earth has ever achieved completely).

----------


## Tom Sawyer

> The idea that entry level staff will now be on a wage closer to their own will be hard for them to stomach. They will demand to be perceived as correspondingly more valuable.
> 
> This is why many companies in Thailand have flat bonus rates & fixed % salary increases rather than performance related ones. As long as each person in the organization structure feels superior to the 'nong' below, then everyone is happy.
> 
> Cultural structures cannot be changed overnight.


I do understand this - and it's why everyone is "vice-president" of whatever.. even a lower level sales person. Again - a fixed rate minimum is just that - a minimum.

----------


## StrontiumDog

Thailand's SMEs Unaffected By New Policies

*Thailand's SMEs Unaffected By New Policies*

 *by Mary Swire, Tax-News.com, Hong Kong
* 
                    Last updated 7 hours ago |

 Thursday, August 04, 2011                     

 Thailand’s Office of Small and Medium Enterprises Promotion (OSMEP) has    expressed the opinion that small and medium enterprises (SMEs) in the country    would not be much affected by the policies of the new government to increase    the minimum wage and reduce corporate income tax.  The Pheu Thai party, and the next Prime Minister Yingluck Shinawatra, won a    large majority in last month’s election by promising government policies    that included a national daily minimum wage of THB300 (USD10), an increase of    some 90% over current levels, and, to relieve the consequent increase in business    costs, a reduction in corporate income tax from its present level of 30% to    23% as soon as possible, and then, later, to 20%.

 The government subsequently confirmed that it would invite all interested parties,    to confer about those policies, and, as a consequence, the OSMEP’s Director    Yuthasak Supasorn has expressed his agreement with the minimum wage hike policy,    believing that it would not harm entrepreneurs seriously.

 He cited a SME database as showing that between 70% to 80% of SMEs in Thailand    hire only four to five workers each, and pointed out that larger SMEs already    pay their workers more than THB300 a day.

 On the other hand, with regard to the planned reduction of corporate income    tax, Yuthasak also believed that it might not benefit SMEs that much, as they    usually earn between THB150,000 to THB1m in profit a year, which subjects them    to a tax rate of 15%, while those with profits above that level, but lower than    THB3m, pay 25%.

----------


## StrontiumDog

Thai-ASEAN News Network

Govt Urged to Gradually Raise Minimum Wage 

UPDATE : 4 August 2011                     *

The 7-Eleven convenience store chain and  experts have urged the new government to gradually implement the  300-baht daily minimum wage policy to mitigate its impact on businesses.

CP All, the operator of 7-Eleven convenience stores, and the Wisdom  Society for Public Opinion Research of Thailand have organized a special  seminar on the topic of how the private sector could adapt to the new  government's policies. 
*

The event was attended by President of CP All Korsak Chairasmisak,  Chancellor of Panyapiwat Institute of Management Sompop Manarangsan and  Research Director for Labor Development, Human Resources and Social  Development Program at Thailand Development Research Institute Yongyuth  Chalaemwong. 

Sompop said that the new government must give special consideration on  two main factors; the selection of Cabinet members and the  implementation of policies. 

He also commented that the 300-baht daily minimum wage policy is good,  saying during the past years, the minimum wage has only been raised by  1.8 percent annually while inflation has gone up by around two percent  each year. 

As a result, the minimum wage rate in many areas is still lower than it should be. 

The Panyapiwat Institute of Management chancellor advised the new  government to raise the minimum wage gradually to mitigate the impact it  might have on different sectors. 

At the same time, he also urged the private sector to hike the pay rate to boost productivity. 

Furthermore, the implementation of the wage policy must involve  consideration of possible investment flight and influx of foreign  workers into the country. 

Meanwhile, the CP All president said that his company is willing to  comply with the 300-baht daily minimum wage even though it may increase  the production cost. 

He said what private firms should do is boost production along with the integration of technology to promote efficiency. 

At the same time, Yongyuth believes that the implementation of the wage  policy must be fair to everyone in the country in order to reduce wealth  disparity. 

He also urged the new government to assist those who might be affected  by the new wage policy, particularly manufacturers who may need a couple  of years to adjust, by providing subsidized low-interest loans to  ensure adequate cash flow especially among small and medium enterprises,  or reducing employers' contribution to the social security fund.

----------


## StrontiumDog

Thai-ASEAN News Network

Wage Hike Feared to Drive Property Prices Up 

UPDATE : 4 August 2011                     *

The House Builder Association believes property prices will soar by ten percent after the 300-baht wage policy is implemented.

House Builder Association Chairman Wibul Chantaradilok pointed out the  wage hike policy will lead to a ten-percent rise in retail house prices,  as labor cost will go up by 40 percent. 

According to Wibul, labor cost makes up 30 percent of total house  construction cost, while the rest involves materials and other  equipment. 
*

Apart from the rising wage, Wibul viewed that interest rate is another major factor property developers must consider. 

The chairman anticipated that house prices will go up in the second half of the year. 

As for the Pheu Thai's five-year debt-free first house offer, Wibul said  the platform will totally benefit the real estate sector, as it will  help ease the burden of first-time home buyers. 

Wibul said the 'House Builder 2011' Fair will be held between August 25  and 28 at the Queen Sirikit National Convention Center, to offer the  general public a one-stop fair featuring a full spectrum of the latest  first-rate innovations in home building. 

He said 40 contractors will join the fair and expected that sales of 2.5  billion baht will be generated, as most home purchasers are likely to  make a decision before the wage hike policy comes into effect.

----------


## Tom Sawyer

> Thai-ASEAN News Network
> 
> Wage Hike Feared to Drive Property Prices Up 
> 
> UPDATE : 4 August 2011 
> 
> *The House Builder Association believes property prices will soar by ten percent after the 300-baht wage policy is implemented.*
> 
> *House Builder Association Chairman Wibul Chantaradilok pointed out the wage hike policy will lead to a ten-percent rise in retail house prices, as labor cost will go up by 40 percent.* 
> ...


Let's deconstruct that wild claim, shall we? The average new house of reasonable modern quality seems to be around 1 million to build (ave. being 3 bedrooms and 2 bathrooms). And the contractor isn't paying 300,000 in wages that's for sure.

Seeing many built here, I'd say it takes them probably 4 months or so to build and let's say another month of leveling the property and driving/laying the foundations. So 5 months or around 140 working days.

If there are, say, 4 guys working that one house on average at any time that's 560 workman days that the developer must pay.

If the going rate right now is 210 baht per day that would be a total of *117,600 THB* in wages to build the house. If he has to pay 300 Baht per day, it would be a total of *168,000 THB* in wages. A difference of 50,400 baht extra that must be paid out. 

That means the house price needs only increase by *FIVE* percent to cover the extra costs.

----------


## StrontiumDog

*Some labourers may get pay rise by October: Jaruphong
*
*Some labourers may get pay rise by October: Jaruphong*

                            By The Nation
                                             Published on August 5, 2011                

*The flat Bt300 minimum daily wage could initially be  introduced in October among government and state-enterprise contract  workers and later offered to the rest of the labour force in January,  Pheu Thai Party secretary-general Jaruphong Ruengsuwan said yesterday.*

                                                            "But I cannot tell you if the hike would be granted to  workers across the country by January or only in Bangkok and other large  provinces first," he added. "All I can say is that the Pheu Thai  Party is confident that this policy can be implemented. We need to  discuss the matter further with relevant agencies in business and public  sectors," the new government's manager said.

He added that the  Pheu Thai Party, which will lead the new coalition, welcomed a meeting  proposed by the Federation of Thai Industries and the Thai Chamber of  Commerce two weeks after the Cabinet is set up to discuss the wage hike.

Jaruphong  said he had faith in the existing mechanism to calculate the minimum  wage through the Wage Tripartite Committee, though he had earlier  dismissed the panel, saying a new structure would be set up to replace  it.

----------


## FailSafe

> If there are, say, 4 guys working that one house on average at any time that's 560 workman days that the developer must pay.


'Four guys'? There is an entire crew that's being paid- some days there might only be a few of them working on a particular house (these companies usually work on multiple builds at the same time), on other days there might be 20 of them- it depends on what stage of the build they're on (unless you're talking about a small bungalow or something, but those generally won't be built by the construction companies that are being referred to in the article you quoted).

It's great you've 'seen many built'- how many decent houses have you actually had built in Thailand, or how many have you been on-site pretty much every day of the build? I'm guessing 'zero'.

Ever been to the 'House Builder Fair' at the Queen Sirikit Center that's mentioned in the article? Again, I'm guessing you haven't- try going to the next one and price some decent construction (not some 1mil jungle crap-shack) and see the labor that actually goes into it- you might be surprised.

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## Tom Sawyer

^
Doesn't matter how you slice it FS. The news report said labor costs make up 30% of the house costs. It said a 40% hike in laborer wages would add 10% to the house price. The math doesn't work out that way - whether 4 workers or 100 workers. The percentages don't add up.

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## Buksida

Tom, do you have much experience building in Thailand or are these just general observations from a passer by? Maybe it's best you and the other nutters don't post about things you know nothing about, unless of course you have experience running your own labor intensive business here.

It takes more than using a calculator or reading the business pages to understand how these wage rises will affect manufacturers in Thailand. While some of you can find a blog supporting the rises, nobody has posted details of the actual policy.

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## Tom Sawyer

Math doesn't add up - and stop yer fuckin whining.

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## SteveCM

> ,,,nobody has posted details of the actual policy.


..... including the yet-to-be formed government who will define it.

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## Buksida

> Originally Posted by Buksida
> 
> ,,,nobody has posted details of the actual policy.
> 
> 
> ..... including the yet-to-be formed government who will define it.


Nonetheless plenty of blind faith support among the nutters here.

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## SteveCM

^
..... swamped by the posts from those who already [cough] "know" it's a con, can't work, will achieve nothing, will be an employment/inflation disaster etc etc.

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## sabang

The sinoThai business community and the old style Amat, would like nothing more than the indigenous Thai population to have remained in a condition of demi-feudal ignorance and servitude, thus easily manipulated. But that bird has already flown the coup (pardon the pun :mid: ), and they know it. Basically, that is what the last five years have been about establishing. It is also quite likely (and in spite of himself) Thaksin's most significant and historic achievement. It certainly wasn't his wealth, or his corruption. Nothing special about either of them.

They screamed economic collapse about 'thaksinomics' and they're screaming economic collapse now- the same people. The political opponents, the partisans, the democratic losers. They were wrong then, and they are wrong now. Meanwhile PT are in the final stages of assembling a considerably stronger Cabinet and economic advisory team than the Dem's were ever able to muster. Face facts- PT/TRT/PPP are here to stay, and they are currently the nations dominant political force. They will remain so until the Dem's get their act together. Sour grapes washed down with a pint of Bitter will not achieve this, neither will insulting the majority of their own nations population as 'uneducated peasants', amongst other slanders. Building a political party apparatus outside of the capitol is a start, as is divorcing themselves from the considerable anti democratic elements in this country- I mean seriously, being in bed with Coup conspirators and apologists is hardly likely to appeal to the average voter, is it?

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## FailSafe

> ..... swamped by the posts from those who already [cough] "know" it's a con, can't work, will achieve nothing, will be an employment/inflation disaster etc etc.


Those of us who have been spouting the negatives are the people who are actually in the trenches of the Thai economy trying to make a good living here (and who have made huge investments, pay taxes, and  have created scores of jobs- not all of which are at minimum wage, but a fair percentage of them are at that level).

It's pretty simple to plug it into an existing business model, Steve- I know how it will potentially affect my business as well as other businesses at the same level, and I've talked to other business owners (both foreign and Thai- frankly, the Thais will be much more mercenary when it comes to making cuts, at least the ones I've spoken to)- we will end up firing people as any costs that can be cut we've most likely cut already ('raising prices' is not an easy thing to do in a competitive market, but that will happen as well, though not to the level where laying people off won't be necessary)- we definitely benefit from cheap labor, but at the same time we have a lower expectation of productivity from our workers (and we hire more than we really need) than we will after giving them a very stiff pay raise, and the bottom 15% or so will be gone, and they will find it difficult to find other jobs (and the illegal labor market will get even bigger, taking even more jobs away from Thais).

That it will lead to unemployment is a virtual certainty.

----------


## sabang

> That it will lead to unemployment is a virtual certainty.


^ Yeh, just like thaksinomics before it. Same old, same old. Like it or not, Thailand is in transition to a market economy. a certain amount of purchasing power amongst the hoi polloi is requisite to achieve this, and yes it means the price of some goods and services will inflate, albeit modestly. Such as blow jobs.
I am sure you are a magnificent, hardworking, successful businessman Failsafe. You told me so yourself.
But Dhanin of CP is not exactly a lightweight himself, neither are many other economists and academics who have come out in favor of the policy.
Nothing personal, but I'll go with them on this one. I prefer PT's forward looking policies and economic advice than the closed shop, regressive policies of the Dem's anyway.

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## FailSafe

Basically what I'm saying is this- if the minimum wage goes up, I will  take a hit to my wallet- I'm going to minimize that hit as much as  possible (I'm not running a cooperative business- I make all the  payments in the bad times as well as the good times, and everybody gets  their salary regardless of the state of my operation- I get paid last-  usually I get the most, but sometimes I end up with less at the end of  the month that I started with).

If I can't employ as many people as I do now and still make an acceptable profit, I will employ fewer people, pay the good ones more money with the expectation of higher productivity, and proceed from there- I figure I can cut my losses to ~10% or less, but I will do it at the cost of jobs- I would prefer not to do this, but I may not have a choice.

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## FailSafe

> ^ Yeh, just like thaksinomics before it. Same old, same old. I am sure you are a magnificent, hardworking, successful businessman Failsafe. *You told me so yourself.*


If you have a point to make, make it- don't be a douche about it- the only time I said I did well was to counter the people who said foreigners can't make it in business over here- that's not true.





> But Dhanin of CP is not exactly a lightweight himself, neither are many other economists and academics who have come out in favor of the policy. Nothing personal, but I'll go with them on this one. I prefer PT's forward looking policies and economic team than the closed shop, regressive policies of the Dem's anyway.


Yeah- economists are NEVER wrong...

----------


## sabang

> counter the people who said foreigners can't make it in business over here- that's not true.


Seriously, good for you. I didn't come here to make money as such- but I am fortunate to know several foreigners that did, and have. I wasn't taking a poke at you, merely reminding you that neither yourself, or other Democrat supporters, have a monopoly on business experience here. Not even close.

The point about your pending wage increase is that it will be shared by your competitors also. Get it? I don't know your business obviously, but you won't be put at a singular competitive disadvantage.

A 'side issue' that is a bit of an interest of mine is labor productivity, which is truly awful here. I don't think anyone is in a great hurry to tell _la Masa_ that you have to show more 'value added' for 300bht per day, than 220 or whatever it is now.

The wage rise will herald more long term changes than just putting more cash in brown peoples pocket. Changes in productivity, domestic consumption patterns, vocational training, labor retention rates, social welfare funding, and being able to address the expensive agricultural subsidy mechanisms here, which surely are not sustainable. They are changes that, longer term, are necessary. Short term however, I believe that you will find the disruption considerably less than you think. Longer term, you should benefit.

----------


## SteveCM

Failsafe, I don't include what I recall you saying before (and now) in my earlier comment - I'm referring to other much more sweeping "statements" that have appeared form TD's home-brew "experts".  Any far-reaching economic policy will create winners and losers at different stages/levels and in different areas - it would hardly count as far-reaching (effective) if it didn't. The policy has yet to be actually defined (one could also say _re_fined) and many commentators (the balanced ones, it seems to me) sensibly focus on the "how" of the actual implementation. That it _won't_ be a near-instantaneous and nationwide/business-wide roll-out (as sloganised) seems almost certain.

Fine for some to make the usual hay about campaign pitches versus the later reality of what a government actually does. That difference doesn't strike me as a revelation - we're just back to the familiar "campaign in poetry - govern in prose". As always (forgive the further cliche), the devil will be in the detail.

----------


## FailSafe

> merely reminding you that neither yourself, or other Democrat supporters, have a monopoly on business experience here. Not even close.


Please don't assign a political affiliation for me- I don't have much support for either Reds or Yellows, frankly- it's 'six of one, half a dozen of the other' as far as I'm concerned- I'm speaking about one particular issue, not about either party's ideology.





> The point about your pending wage increase is that it will be shared by your competitors also. Get it? I don't know your business obviously, but you won't be put at a singular competitive disadvantage.


Yes, which is why I have never once mentioned a 'competitive disadvantage'- I have only mentioned my bottom line, which will take a hit- when I mentioned other business owners, I only said that they will take a hit as well, and that most of us (if not all of us) will cut our workforce.

I appreciate that you're responding to my posts and I respect your right to have an opposing viewpoint, but at least read them first rather than making assumptions.





> A 'side issue' that is a bit of an interest of mine is labor productivity, which is truly awful here. I don't think anyone is in a great hurry to tell la Masa that you have to show more 'value added' for 300bht per day, then 220 or whatever it is now. The wage rise will herald more long term changes than just putting more cash in brown peoples pocket. Changes in productivity, vocational training, labor retention rates, social welfare funding, and being able to address the expensive agricultural subsidy mechanisms here, which surely are not sustainable. They are changes that, longer term, are necessary. Short term however, I believe that you will find the disruption considerably less than you think. Longer term, you should benefit.


As I said, I believe it will lead to unemployment, which isn't going to benefit anyone.

Also, when you mentioned economists earlier, are they talking about businesses that count their monthly profits in the tens or hundreds of millions (like, say, CP) or have they considered the businesses that count their monthly profits in the tens or hundreds of thousands? There's a HUGE difference.

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## FailSafe

> Failsafe, I don't include what I recall you saying before (and now) in my earlier comment - I'm referring to other much more sweeping "statements" that have appeared form TD's home-brew "experts".


My mistake- perhaps I saw a bit of myself in it as I do tend to get a bit carried away with the subject... :Roll Eyes (Sarcastic):

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## Mid

how anyone who has ever spent 10 minutes in Tesco's can sleep at night defending the paltry pittance that is the minimum wage is simply a disgrace .

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## FailSafe

> how anyone who has ever spent 10 minutes in Tesco's can sleep at night defending the paltry pittance that is the minimum wage is simply a disgrace .


There's a difference between 'defending a paltry pittance' and talking about an economic reality- if 67% of Tesco employees received a substantial raise and the other 33% lost their jobs, would that be acceptable?

Of course, a large company like Tesco isn't really a fair example as it can easily absorb the pay raise (though I bet there will be some cuts- if there was ever a place where there are redundant employees it's on the Tesco sales floor) where it will be more difficult or impossible for a smaller company to do so.

I'd love to pay everybody a lot more and still make a good living here (one where it's worth it for me to sustain a business, which isn't easy in Thailand)- I won't be able to do that with the proposed salary increase.  You can say that's just too bad for me and if I go out of business that's life, but where will my employees go when everyone else is in the same boat as me?

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## Mid

a fair days work for a fair days pay .

get rid of the corruption and nepotism 

there is absolutely no reason why the pittance of a minimum wage can not be raised except for the greed of the few .

I fully understand you as a solo entity can not make a difference BUT any attempt to argue against a living wage is faganism .

faganism . > Oliver Twist

----------


## StrontiumDog

Thai-ASEAN News Network

Toshiba Attributes Higher Sales to Stabler Political Situation 

UPDATE : 5 August 2011                     *

Toshiba, a major appliance manufacturer  and distributor, has pointed to the current stabler political situation  as the main factor behind a surge in sales. 

However, it has admitted that the 300-baht daily minimum wage will affect production costs. 
*

President of Toshiba Thailand, Korbkarn Wattanawarangkul, said sales of  electrical appliances this year have been growing continuously at  between 10 and 15 percent due to strong economic growth and the  relatively stable political situation which has boosted consumer  confidence and consumption. 

Korbkarn also asked the new government to gradually implement its  300-baht daily minimum wage policy to give the private sector time to  adjust. 

She said that Toshiba is willing to comply with the new wage policy even though it may raise production costs. 

She said that the company's parts suppliers, which are mostly small or medium enterprises, will be affected by the hike. 

As a result, Korbkarn said that the company may have to raise the prices of its products as well. 

The Toshiba Thailand president also reported that the company has raised  its projected sales growth from between 10 and 15 percent to 27  percent, or a total value of 9.4 billion baht, increasing from last  year's figure by 7.4 billion baht.  

The company expects its television product sales to grow by 58 percent and IT products by 21 percent. 

In addition, Toshiba has recently introduced its latest innovation, the  Super Direct Drive Inverter washing machines which have been well  received in the market. 

At the same time, the company has positioned Thailand as the primary  manufacturing base for the ASEAN market in preparation for the  introduction of the ASEAN Economic Community in 2015.

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## Mid

> Stabler


 _one who keeps a stable_

Stabler - Definition and More from the Free Merriam-Webster Dictionary

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## SteveCM

*^^^
*Maybe more Scrooge than Fagin - I always thought of Fagin as an equal-opportunity employer dedicated to wealth re-distribution  :Wink: . Anyway, plenty more examples in Dickens.....*

...........

More than the Minimum | Prachatai English*

Fri, 05/08/2011
by *prachatai* 

Harrison George        

 Having had my progressive, liberal, egalitarian credentials brought  into question last week, I feel that this weeks article must further  discuss the pro and cons of a substantial increase in the minimum wage.

 The reaction from the employers side has been as predictable as it  has been one-sided.  Theres only so much money in the kitty and if we  have to pay more per worker, we can only afford fewer of them.  So  unemployment will rise. This is what happens whenever the government  interferes in the magical workings of the marketplace - inefficiencies,  market distortions and other ideological disasters.

 Their arguments seem quite logical.  Raising the minimum wage will  help some workers, especially those with the wit or capacity to improve  productivity so that the higher labour cost to their employers is offset  by higher output and consequently higher revenue.  But others,  especially the least qualified and skilled, who normally double as the  poorest, will lose out because they will be fired or never hired in the  first place.

 The motivation behind the minimum wage is to put a floor under the  income of the poorest, and keep them from being so poor.  But if raising  the minimum wage costs them their jobs, then it seems to achieve  exactly the opposite of what we want.

 So much for logic.  How about reality?

When a minimum wage was mooted for the UK in the late 1990s, the  business sector (and their political wing, also known as the  Conservative Party) was using much the same arguments.  The national  minimum wage went into effect in 1999 anyway, and the argument quietly  disappeared.  If there was an effect on unemployment, it was so small  the army of statisticians couldnt find it.  And while the Conservatives  are now dismantling benefits of all shapes and sizes, they no longer  see any point in going after the minimum wage.

 Similar results have been found elsewhere.  Though some studies find a  negative impact on employment, the effect is normally minimal.
 So how come logic so consistently leads to the wrong conclusion?

 One reason is that minimum wage laws normally cover only part of the  employment scene.  The self-employed do not, in any meaningful sense,  receive a wage, so they are left out.  And in Thailand, this means the  millions involved in agriculture and in the informal economy.  In fact,  employment in agriculture and fisheries, even if waged, is normally  excluded from minimum wage law.

 So even if the minimum wage does reduce employment in that sector of  the economy where the minimum wage applies, there is nothing to stop  people shifting to the uncontrolled sector, but remaining employed, if  only selling khanom khrok on the street corner.

 And if the minimum wage law is poorly enforced, as we saw last week,  and if the labour force includes a few million undocumented foreign  workers, then the effect of the minimum wage, and any change to it, is  again diluted.

 But think what happens when the minimum wage is increased and a  substantial number of workers now have more money at the end of the day.   That extra cost to employers doesnt just sit there.  What happens  to it?

 Well we can bet it wont be salted away in foreign tax havens; it  wont be splurged on imported luxury goods; and it wont be spent on  trips to see the midnight sun in the Arctic reaches of Norway.

 It will be spent.  Immediately.  Here.  (Or maybe back home in the  countryside as remittances).  For a lucky few, a fraction may be put  aside as savings (which for most of the working class in Thailand means  reducing the size of their negative savings - debts to the loan sharks).

 Whatever.  It will immediately go back into the economy.  Perhaps to  buy more of the products from the factory whose owners were thinking of  retrenching the workforce in the face of higher costs and who now might  need those workers to keep up with demand.

 The capitalists who have invested in production for the export market  cant expect the same rebound effect and are still stuck in a race to  the bottom against competitors in lower-wage countries.  But nobody  forced them to join this race and it was an export-vulnerable economy  that collapsed on them in 1997.  Do they never learn?

 And the idea that a minimum wage distorts the market and everyones  earnings should be should be determined by Economics 101s law of supply  and demand is just bunk.  How many employees dictate their terms of  conditions of employment who are not called Wayne Rooney?  There is  precious little choice about wages when looked at from the employees  side of the table beyond take it or leave it.

 Employers set wage levels according to one criterion and one only   whats the lowest pay they can get away with?  The more enlightened  might look at the effect of slightly higher pay on lowered turnover  rates, or retaining corporate knowledge.  But none will factor the  social justice of a living wage into the calculations.

 Whether the minimum wage is the ideal mechanism for increasing the  spending power of the poor sods on the bottom rungs of the economy is  another matter, but its what weve got.  Pheu Thai have promised to  raise it and heaven only knows they have enough capitalist employers in  their ranks, so they should know what theyre getting themselves into.

 So do it.

 Now.

----------


## longway

> ^
> Doesn't matter how you slice it FS. The news report said labor costs make up 30% of the house costs. It said a 40% hike in laborer wages would add 10% to the house price. The math doesn't work out that way - whether 4 workers or 100 workers. The percentages don't add up.


Million baht house means labour 300,000 + 40% = 420,000 so the increase is actually 12%.

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## Tom Sawyer

> Those of us who have been spouting the negatives are the people who are actually in the trenches of the Thai economy trying to make a good living here (and who have made huge investments, pay taxes, and have created scores of jobs- not all of which are at minimum wage,


Then you have nothing to worry about, do you?

----------


## Tom Sawyer

> we will end up firing people as any costs that can be cut we've most likely cut already ('raising prices' is not an easy thing to do in a competitive market, but that will happen as well, though not to the level where laying people off won't be necessary)- we definitely benefit from cheap labor, but at the same time we have a lower expectation of productivity from our workers (and we hire more than we really need) than we will after giving them a very stiff pay raise, and the bottom 15% or so will be gone,


I call bullshit. Why? Because they are ten-bucks a day, that's why. And yes they'aren't too swift or too productive. But lose 20 % and hey - guess what? YOU ARE 20% LESS PRODUCTIVE.

So nice try. If you can't make it as a bottom feader then fuck off.

----------


## FailSafe

> I call bullshit. Why? Because they are ten-bucks a day, that's why. And yes they'aren't too swift or too productive. But lose 20 % and hey - guess what? YOU ARE 20% LESS PRODUCTIVE.  So nice try. If you can't make it as a bottom feader then fuck off.


Tom, you claim to be 'in business' (you probably have a couple of rental properties and no employees) but your every post screams ignorance of the subject- you've been reduced to _ad hominem_ attacks which is a sure sign that there are no decent contributions you're able to make.

The point is that employees are not robots- some are more productive than others, and, at the moment, there are those on the payroll that can do a better job than they do now as well as some that are close to worthless and are on the cusp of just not showing up one day for their own reasons (always after their last payday with no notice)- they are both paid the same, and neither group is in particular jeopardy- that looks like it will change- the ones who can manage to increase their productivity through the 'carrot' of higher pay or the 'stick' of being possibly fired will stay- the others will go.

Get it?  Probably not...

----------


## Mid

> Maybe more Scrooge than Fagin - I always thought of Fagin as an equal-opportunity employer dedicated to wealth re-distribution


Fair Point .

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## FailSafe

In the end I'm willing to pay a higher minimum wage (if it becomes law, I will have no choice)- I will not, however, pay it to as many employees as I do now- it will take time and trial-and-error, but I will find better people to work for me (or I will expect more from the ones I keep), but my workforce will decrease, as will the workforces of a lot of other businesses (and you can bet that none will be rushing to add more jobs for a while, regardless of their level).

Perhaps I should have done this earlier, but it was easier to hire more people, let 'the cream rise to the top', and promote/give raises to the ones that proved to be worthy- I couldn't afford to give as many a chance at a significantly higher rate of starting pay.

Mid made the point of 'A fair day's work for a fair day's wages'- that logic cuts both ways, and it's not one-sided and biased towards the employee- the employer also has an expectation that has to be met as well- right now, I don't get as many 'fair day's work' as I would like- that will change, especially if I'm paying a high wage for it.

----------


## sabang

> Perhaps I should have done this earlier, but it was easier to hire more people, let 'the cream rise to the top', and promote/give raises to the ones that proved to be worthy-


That seems to be the modus operandi in Thailand, Indon & the Fil's actually. I guess some things will have to change.

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## BillyBobThai

Having just read all of the post here on this subject, the one thing that I have noticed that seems to be missing, is little talk about improved education.  If the same amount of money that is going to be spent nation wide on increasing peoples wages, were spent on improving the educational system and giving every child a solid, based on global standards, education, Thailand would be better in the long run.  Thailand has so many areas that need improvement, that concentrating so much effort on wage increases seems to me a waste.  Educate your populace before asking for more money. 

The PT government have  promised more than they can deliver, *much the same as my president's, Change You Can Believe In* .  Bullshit and nothing more.

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## sabang

Lets hope they make use of those laptops- I would think they would be an excellent resource for learning English, or other languages.

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## nostromo

> Lets hope they make use of those laptops- I would think they would be an excellent resource for learning English, or other languages.


Given any guidance how to use them, some might not even need any, it might lead to information revolution in Thailand

I am all for laptops for children. Actually I recall before military coup government was about to issue "tablet pc"s to children, now times have advance

----------


## SteveCM

*Thai PM prepares minimum wage overhaul | Democratic Voice of Burma*

By AYE NAI

Published: 8 August 2011   


_Yingluck Shinawatra leaves the parliament after being elected as Thailand's 28th prime minister in Bangkok (Reuters)_

                                                                                                                                                                                                                        The administration of new Thai Prime Minister Yingluck  Shinawatra has said that its campaign promise to raise the countrys  minimum wage could be realised by October, but any hope for an  improvement to salaries for migrant workers remains tentative.

 Yingluck, who was officially named premier on Friday last week  and who is expected to announce her cabinet within days, said that the  countrys minimum wage will rise to 300 Thai baht, almost doubling the  current average of 160 baht.

 Jarupong Ruangsuwan, secretary-general of Yinglucks Puea Thai  Party, told NNT news recently that the first stage of the policy to  raise salaries for public sector workers will be carried out within  three months, and the remaining by early next year.

 Opposition politicians attacked the policy with claims that it  would create a pull factor for more migrants to choose Thailand as their  destination for work. More than four million migrants are believed to  be working in Thailand, around 80 percent of which are Burmese.

 The Thai Chamber of Commerce has also said that it will put  pressure on the countrys garment industry, which relies heavily on  cheap migrant labour, while denting the prospects for future foreign  investment in the country.

 Despite existing legislation, however, migrant workers  regularly report that they are paid less than the minimum wage, begging  the question of whether any improvement to salaries will reach them.

 Ko Aye, a Burmese community worker who assists migrants in the  Thai border town of Mae Sot, said that while the policy sounds very  delightful for migrant workers, they are rarely paid the current  minimum wage.

 He added that more companies may look to exploit the lax  enforcement of labour laws surrounded migrants, the majority of whom  work in low-skilled industries and often do not enjoy the same workplace  conditions as their Thai counterparts.

 In April this year a police raid on a garment factory in Bangkok discovered 60 Burmese migrants who had been locked inside, some for up to eight months, and forced to work.

 The majority of these had been forced to work on average 16  hours a day and were paid only 200 Thai baht ($US7) a month, something  not uncommon in reports given by migrant workers.

 A survey  carried out recently by the International Labour Organisation exposed  high levels of animosity among Thais of migrants. Of 1000 people  questioned, 84 percent believed that unauthorised migrants have broken  the law, while the majority also say that even authorised migrants  cannot expect the same working conditions as nationals when carrying  out the same job.

 In another report last year, the ILO accused the Thai  government of breaching international law in its denial of work accident  compensation for migrants, despite high rates of workplace injury.

----------


## Mickmac

I believe this 300 baht minimum wage business is only the first of many major disasters for Yingluck and her mob. Will be interesting to sit back and watch the Takki supporters explain their way out of these disasters. The opposition is going to have a field day.

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## Tom Sawyer

Okay - well enjoy the show. Let us know when you have something useful to say.

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## StrontiumDog

Thai-ASEAN News Network

Govt Urged to Review Wage Hike Policy 

UPDATE : 10 August 2011                     *

The Federation of Thai Industries  president urges the Pheu Thai-led government to review its planned  increase of the daily minimum wage and the price of liquefied petroleum  gas for the industrial sector.
*

Federation of Thai Industries, or FTI, President Payungsak Chartsuthipol  said the FTI will propose to the Pheu Thai-led government that its  policies to raise the daily minimum wage to 300 baht nationwide and  increase the price of liquefied petroleum gas for industrial use by  three baht per kilogram as well as free electricity for those who  consume less than 90 units per month should be urgently reviewed. 

Payungsak said these policies would increase the private sector's  production cost and thus could affect business operators' capability. 

He insisted that the FTI does not oppose the wage hike policy, but  demanded the government roll out measures to assist the private sector  to cover the higher cost.

The FTI president proposed the government reduce import duty on  machinery, suspend compulsory contribution from employers to the Social  Security Fund, and improve the private sector's competitiveness. 

Furthermore, Payungsak said the FTI will propose seven strategies on industrial development to the government. 

They included promotion of cooperation between the government and the  private sector through the Joint Public-Private Committee on the  resolution of economic problems, amendment of existing laws deemed  obstacles to the development of the industrial sector and development of  special economic zones along the border to promote trade with  neighboring countries.

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## StrontiumDog

Bangkok Post : Minister gives wage policy details

*Minister gives wage policy details*
Published: 10/08/2011 at 04:03 PMOnline news:
 A minimum labour wage of 300 baht per day and  15,000 baht monthly salary for new graduates with a bachelor's degree  will be included in the government's policy statement to be delivered to  parliament before the cabinet officially assumes its duty, Labour  Minister Padermchai Sasomsap said on Wednesday.

 He said the Pheu Party wanted to  show voters that the policies announced during the election campaign would be implemented.

 These policies were not populist but based on real conditions, especially the rising cost of living.

 All workers and new graduates deserve higher pay, Mr Padermchai said.

 All parties concerned would be invited to meet to explore ways of  implementing the 300 baht daily wage, with approval from the tripartite  Central Wage Committee.

 Mr Padermchai said the 300 baht per day minimum wage might be first  implemented in areas where companies  were ready to introduce it and  then be gradually extended elsewhere.

----------


## LooseBowels

> I believe this 300 baht minimum wage business is only the first of many major disasters for Yingluck and her mob. Will be interesting to sit back and watch the Takki supporters explain their way out of these disasters. The opposition is going to have a field day.


Ahhh whimpered like a real sour guts loser  :Smile: 

What opposition monkey arse ?  Your PAD yellow nutter pals

----------


## StrontiumDog

*Bangkok Post : Wage hike long overdue
*
*Wage hike long overdue*

*Workers at the low end of the pay scale say that rising living costs are making it almost impossible for them to survive* 
Published: 14/08/2011 at 12:00 AMNewspaper section: SpectrumAranya Chaiyamee, 38, is one of millions of  workers whose life will become a little easier if  Pheu Thai Party keeps  its campaign promise to raise the minimum wage to 300 baht per day. She  has been working six days a week at a lacework garments factory in  Samut Sakhon province for almost 20 years, and now receives 220 baht a  day, without much overtime.  Each month she pays about 250 baht into the  Social Security Fund.

 
_BUILDING CREW: Labourers tie steel at a construction site in Bangkok._

 ''The factory doesn't provide accommodation so I rent a room, buy  food and take care of all my expenses,'' said Ms Aranya, who is single  but contributes to the support of her family in Yasothon province. She  feels lucky to have found an affordable place near the factory so she  can save on transport.

 Workers can continue to work after they reach 60, the mandatory  retirement age in many workplaces, but there are no provisions for  retirement such as a provident fund or pension. ''After 20 or 30 years  working for the factory, we leave with empty hands,'' said Ms Aranya,  who is an officer in the factory labour union.

 A network of labour unions in the Oomnoi-Oomyai industrial area where  her factory is located has set up a savings group, but as she struggles  to make ends meet each month she is only able to put aside about 200  baht a month.

 Support for a substantial minimum wage increase has come from many  corners, including the UN Economic and Social Commission for Asia and  the Pacific (Escap), but the move brought warnings from the business  sector and some foreign investors that it would hit the economy hard.

 Pheu Thai backtracked after hearing the warnings, saying the increase  might be delayed in provinces other than Bangkok and Phuket.

 Last week Pheu Thai secretary-general Jarupong Ruangsuwan said the  party hopes to implement the 300-baht minimum daily wage for employees  in the government sector in October, and it will probably be granted to  workers in the private sector on Jan 1, 2012. However, he didn't say if  the wage rise will take effect nationwide at that time.

 Tanawan Chomhom, 40, works for another garment factory in Sam Phran  district of Nakhon Pathom province that manufactures brand-name apparel  for export.

 She receives 250 baht a day or about 6,000 baht a month with some  overtime. Like most of her co-workers, she helps to support family  upcountry.

 The factory provides a dormitory for single workers, but she is  married. She and her husband, who drives a school van, rent a room for  1,000 baht a month. Water and electricity come to about 800 baht a month  and she pays around 600 baht a month for transport.

 Besides the subsistence wages, she also has to deal with what she  describes as unstable working conditions. ''The factory management  issued a letter to our union saying that all workers must take an unpaid  holiday if there are no orders from clients,'' said Ms Tanawan.

 Ton is a construction worker, paid a daily wage of 250 baht by a  small contractor who also provides him and three other workers with a  rented room. His employer also pays the utilities.

 ''I send money back home when they have to hire someone to work in  the fields,'' said Ton. Most of what he doesn't send to his family is  spent on meals, and his employer sometimes gives the workers food such  as noodles and eggs. Once he develops more skills his employer has  promised to pay him up to 400 baht a day. He feels more fortunate than  many young workers, like some he knows who work at a petrol station and  receive only 150-167 baht a day.

 These workers do have job security, however. Ton's life becomes much  tougher when his employer can't line up any jobs, and his job entails  more risk of injury. Like most workers, when he needs medical attention  he uses the free services provided by the government.

 Wages have always been low in Thailand, but in recent years the  rising cost of living has brought new pressures to those in the lowest  economic brackets, and a great many workers and their families are  becoming trapped in debt.

 
_SUSPENDED ANIMATION: Window cleaners abseil down the side of the  19-storey glass-fronted Port Authority Building in Bangkok, which  reflects a large Thai flag._

 ''It's not hard to understand,'' said Ms Aranya. ''Just look at our  wages and what we need just to get by, with the prices of consumer goods  always increasing. It seems easy for the policy makers and the  entrepreneurs to forget about us low-income workers,'' said Ms Aranya.

 Ask any worker, and they'll say an increase in the minimum wage to  300 baht is an improvement, but it's still not enough to live on,  especially if other family members are depending on them.

 Yet the Pheu Thai policy is facing vehement opposition. The Thai  Chamber of Commerce says both the domestic private sector and foreign  investors are worried about the potential impact of a substantial  increase in minimum wage on production costs, which they say will lead  to inflation at home and hurt the competitiveness of exports.

 Opponents also argue that a wage hike would lead to higher unemployment.

 Wilaiwan Saetia, deputy president of the Thai Labour Solidarity  Committee (TLSC), says the debate has put workers in an awkward  position. ''The private sector has continuously opposed an increase in  minimum wage, saying the economy will be damaged and a large number of  small and medium companies will be closed down or lay off a huge number  of employees. So workers are worrying about their futures.''

 Nevertheless, the TLSC and the vast majority of workers continue to  insist the minimum wage increase is vital for their survival. ''A large  number of workers support Pheu Thai Party because of this policy,'' said  Ms Wilaiwan.

 Late last year the Democrat Party-led government initiated a broad  discussion on increasing the national minimum wage. The now-dissolved  National Reform Committee's subcommittee on labour led by Narong  Petchprasert proposed a figure of 250 baht, the Industrial Council 226  baht and the Labour Ministry 211 baht. At the same time, the TLSC  proposed an appropriate minimum wage to match the increase in cost of  living would be 421 baht.

 Actually the TLSC came up with this figure after a 2009 study in  which it determined that, out of the total 421 baht, 198 baht is needed  for food, transport and medicine and the remaining 223 baht is needed  for accommodation, utilities, family and social activities, household  expenditures and education.

 TLSC president Chalie Loysung recently proposed the appropriate  minimum wage for 2011 should be upped to 441 baht for a worker with two  family members.

 Ms Chalie said the government has a duty to control prices of  consumer goods, and at the same time it should help factories that are  affected by the new minimum wage.

 Ms Wilawan remarked that while an increase in the minimum wage is  already being blamed for higher consumer costs, prices have been rising  steadily for some time without a substantial wage increase.

 Therefore, she said, people should realise that other factors could  be involved if prices continue to rise after the wage increase comes  into force.

 She recommended the new government set up a working group composed of  policy makers, labour experts, workers, academics and entrepreneurs all  working together to consider the effects of the wage hike.

 ''We should work with the facts. Then we will know if any argument is  overstated.'' She added that the country must move from  labour-intensive industries that underpay workers to an economic system  in which workers receive a fair share of the rewards. Adequate income  distribution and increased social justice will enhance domestic market  strength. Escap executive secretary Noeleen Heyzer said the wage  increase will send a signal that Thailand is moving away from unskilled  labour industries to more value-added activities, making it more  attractive to foreign direct investment.

 The TLSC is proposing a rethink of the concept of minimum wage. Ms  Chalie said: ''Minimum wage should refer to a wage for an unskilled  worker in his or her first year of employment. The rate must be enough  for living costs of the worker and two family members.'' She said  workers who accumulate more experience should be given higher salaries,  and noted that some employers continue to pay workers minimum wage for  many years regardless of their experience.

 A labour union should be established in every industry so that  workers can negotiate for better working conditions, welfare or even  salaries. Labour Ministry figures show only 300,000 workers are  represented by 1,400 labour unions. She also said the minimum wage  should be increased annually by a designated percentage, and that this  should be applied nationwide.

----------


## StrontiumDog

*Thailand wage hikes may cost US$3.29 bil. in FDI - The China Post
*
*Thailand wage hikes may cost US$3.29 bil. in FDI*

BANGKOK--Thailand  may lose 100 billion baht (US$3.29 billion) per year in foreign direct  investment (FDI) if the new government immediately raises the daily  minimum wage to 300 baht (US$9.86), the Joint Standing Committee on  Commerce, Industry and Banking (JSCCIB) says.  Chairman Dusit Nontanakorn  yesterday said the minimum wage in Malaysia was 10 percent higher than  the minimum wage in Thailand, whereas in Indonesia it was 10-20 percent  lower.

If Thailand adjusts the daily minimum wage to 300 baht  (US$9.86) throughout the country, it will be more expensive than other  production bases in Southeast Asia. In the long term, foreign investors  may consider relocating to other countries such as Vietnam, he said.

Thailand attracts FDI of about 400 billion baht (US$13.14 billion) per  year. If the country raises minimum wages, FDI is likely to drop 25  percent per year or 100 billion baht (US$3.29 billion), he said.

Dusit said he had discussed the issue with many foreign chambers of  commerce in Thailand. Most said foreign investors considered  competitiveness before deciding to invest in a country. If labor costs  rose, some investors could relocate to other countries and it would be  very difficult to bring them back.

“The ASEAN Economic Community  will happen in the next four years. Investors have many choices for  their investments. It is not necessary for them to stick with Thailand  all the time,” he said.

Dusit said that in the short term, about  90 percent of small- and medium-sized enterprises would be affected, as  they would not be able to absorb the increased costs.

The JSCCIB is ready to discuss the policy with the new government to find a way to reduce its impact, he said.

Payungsak Chartsuthipol, chairman of the Federation of Thai Industries,  said the daily minimum wage should be adjusted through the Wage  Tripartite Committee without political interference. If the Pheu  Thai-led government insisted on the policy, the FTI would require it to  pay the wage difference.

In a separate matter, Payungsak said the  Thai Industries Sentiment Index (TISI) in June dropped to 107.4 from  108.3 in May because of higher oil prices, financial problems in Europe  and concern about political problems.

Flooding in Northern provinces was also a concern for industrialists, as it was affecting production volumes.

Over the next three months, the TISI is forecast to increase slightly  to 113.5 from 111.2 in May, reflecting industry confidence in terms of  orders, sales and production volume.

----------


## StrontiumDog

Thai-ASEAN News Network

Plastic Industry Welcomes Wage Hike Policy 

UPDATE : 17 August 2011                     *

The chairman of the Thai Industries'  Plastic Industry Club says the plastic industry has no problem with the  government's policy to raise the daily minimum wage to 300 baht, since  its current minimum wage rate is already high.

Chairman of Federation of Thai Industries' Plastic Industry Club  Weerasak Kositpaisan says the overall export of Thai plastic products  this year was worth nearly three billion U.S. dollars, up from last  year's export value of 2.3 billion dollars.

He attributed the rise to the transformation of plastic products and the increase in production capacity.
*

The plastic industry accounts for 3 percent of the country's GDP and is worth 300 billion baht.

Weerasak noted that Siam Cement and PTT Chemical have increased their  production to keep up with the expected growth in domestic and regional  demand. 

This makes Thailand the largest production hub in the region with a production capacity of over five million tons per year.

He said that the debt crisis in the U.S. and Europe has had no effect on  the Thai plastic industry, since those countries are not important  markets for Thai plastic products.

As for the government's policy to raise the daily minimum wage to 300  baht nationwide, Weerasak said manufacturers in the plastic industry are  ready to cooperate with the government, as their current minimum wage  rate is already higher than the government's wage rate.

The Plastic Industry Club chairman admitted that the plastic industry  still needs more skilled workers and that government support is also  needed for the research and development of plastic product quality.

The Thai Plastic Industries Association has collaborated with the  Federation of Thai Industries to organize the 3rd International Plastics  and Rubber Exhibition or TIPREX, at BITEC Bangna Exhibition Hall, from  August 31 to September 3.

It will be the key avenue for over 200 international suppliers in the  plastics and rubber industries to extend their reach into the growing  and increasingly important ASEAN markets.

At least 8,000 visitors are expected throughout the four-day event.

----------


## nostromo

> I believe this 300 baht minimum wage business is only the first of many major disasters for Yingluck and her mob. Will be interesting to sit back and watch the Takki supporters explain their way out of these disasters. The opposition is going to have a field day.


And we will see. You fear for your gardener asking for higher wage like 180 to 300 will break your neck - joking your likes dont have a gardener. 
300 baht policy might lead to upward cycle. i think this is behind of thinking of government

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## Bobcock

> I don't get as many 'fair day's work' as I would like- that will change, especially if I'm paying a high wage for it.


Ain't that a fact...we have severe deadlines at the moment, my expat Lead designer said that he didn't want to push the guys much harder (introducing overtime) as he felt they were at their limit.

I watch them arrive late, go early for lunch, sleep a bit and leave early, never completing their full compliment of hours. On the edge, my arse.

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## Buksida

^Nonetheless you may find they will quit fast enough if pushed, there are plenty of jobs about. Fact is there is a labor shortage and it's very hard to find skilled, responsible staff.

Wage rises will only be part of the solution if they are combined with increased productivity, some seem to feel increased efficiency will happen automatically but I can't see why.

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## StrontiumDog

*Labour minister decline to be specific on Bt300 wage timeframe
*
*Labour minister decline to be specific on Bt300 wage timeframe* 

                                             Published on August 17, 2011                 

                                                            Preparations are ongoing for the government's plan to honour the Pheu Thai Party's election policy of raising the daily minimum wage to Bt300, according to Labour Minister Padermchai Sasomsap.

However, he refused to give any timeframe about when the pay raise can really take place.

On  his first day at the Labour Ministry, Padermchai Wednesday said, "I  cannot say whether it will happen in six months or in one year. I cannot  be specific".

He only said some works had been going on to prepare for the implementation.

The Nation

----------


## StrontiumDog

Thai-ASEAN News Network

Bt300 Minimum Wage Feared to Affect Hotel Industry 

UPDATE : 17 August 2011                     *

The Thai Hotels Association president is  looking forward to discussing the 300-baht minimum wage policy with the  new tourism and sports minister. 

Meanwhile, many attractions and hotels have been damaged by floods and are waiting for government aid.
*

Thai Hotels Association President Prakit Chin-amornpong said the  association plans to meet with the tourism and sports minister to  discuss assisting business operators affected by flooding as well as the  proposed 300-baht minimum wage issue. 

The president believes that increasing the minimum wage will affect two- and three-star hotels.

He stated that in Phayao Province, the current minimum wage is 159 baht. 

If it is increased to 300 baht, it will affect labor cost, in some cases, up to 88 percent. 

Prakit said that many issues need to be discussed with the minister  regarding the upcoming ASEAN Economic Community that will go into effect  in 2015.

He said hotel operators want the government to support them by promoting tourism. 

The number of visiting foreign tourists reached nine million over the  past six months, which is a 30-percent increase from last year. 

However, the average number of days that European tourists spend in the kingdom is down to three or four. 

The Thai Hotels Association, Thai Chefs Association and Thailand  Restaurants Association have joined hands in organizing the Food and  Hotels Thailand 2011 event to promote hotel businesses, food and  services. 

It will be held from September 13  to 16 at the Royal Paragon Hall, Siam Paragon. 

There will be more than 750 businesses participating in this event. 

Over 25,000 attendees and combined spending of 2.5 billion baht are expected during the fair.

----------


## StrontiumDog

*Bangkok Post : Kittiratt: Wage hike meeting today
*
*Kittiratt: Wage hike meeting today*
Published: 18/08/2011 at 02:33 PMOnline news:
 There will be a meeting to discuss the 300 baht  daily minimum wage policy with the private sector this afternoon,  Commerce Minister Kittiratt Na-Ranong said on Thursday.

 The meeting, to discuss  implementation of the election promise,  would be attended by representatives from the  Finance and Labour  ministries and the Joint Private Committee on Commerce, Industry and  Banking (JCCIB) said Mr Kittiratt.

 The JCCIB comprises representatives of the Thai Chamber of Commerce,  the Federation of Thai Industries and the Thai Bankers Association.

 The deputy prime minister said he hoped the meeting could reach a  resolution acceptable to all parties. The desired outcome would be a  guideline that makes the private sector feel it is worthwhile raising  the daily minimum wage, in exchange for direct and indirect incentives  from the state.

 He said the government will also try to reduce production costs for  manufacturers, such as lowering interest rates and reducing corporate  income tax.

 Mr Kittiratt said the government would not try to force the private  sector to comply with the wage hike policy. The government would take  the lead by increasing the minimum wage for workers of state enterprises  and employees of state agencies.

 “The informal discussion with the JCCIB will also cover the impacts of the wage hike on each industry,” he said.

  Thai Chamber of Commerce chairman Dusit Nonthanakorn said he agreed  with the government’s policy to increase workers' incomes,  however the  actual increase in the minimum wage should be decided by the tripartite  wage committee.

 Surapong Paisitpattanapong, spokesman of the Automotive Industry Club  at the Federation of Thai Industries, said increasing the daily minimum  wage to 300 baht could drive investors to other countries.

 Mr Surapong said in the short-term the wage hike would increase  labour costs in the automotive industry by 40 per cent. Auto-parts  makers might have to increase prices of their products. Car makers in  Thailand might be forced to import cheaper parts from other countries.

 In the long-run,  Japanese car makers planning to increase investment  in Thailand might consider moving production  to neighbouring countries  where the labour costs are lower, he said.

----------


## StrontiumDog

Thai-ASEAN News Network

Siam Cement Backs Minimum Wage Hike 

UPDATE : 18 August 2011                     *

Siam Cement Group voices its support for  the new government's proposal on the increase of the daily minimum wage  to 300 baht and the entry salary for new graduates to 15,000 baht.

SCG Chemical executive and Map Ta Put Olefins Managing Director Somchai  Wangwattanapanit said the company will cooperate with the government to  increase the daily minimum wage to 300 baht and the entry salary for new  graduates to 15,000 baht.  
*

Somchai said the wage hike will not have much impact on the company's  labor cost because it has been investing in more advanced technology to  replace laborers. 

Somchai commented that prices of petrochemical products move in the same direction as oil. 

With the economic growth of Thailand and Asia, he expects higher demand for petrochemical products.

In addition, Somchai said SCG Chemical is developing the first and  biggest smokeless factory in Thailand under the green manufacturing  practice and to promote a cleaner environment, utilizing a budget of 2.5  billion baht. 

Construction will start next month at the Map Ta Phut industrial estate  in Rayong Province and will be completed by November 2013.

----------


## StrontiumDog

Thai-ASEAN News Network

Steel Company Plans Price Hike 

UPDATE : 18 August 2011                     *

A steel company has announced its decision to raise product prices in two months due to an increase in production cost. 

The company welcomes the daily minimum wage increase as initiated by the Pheu Thai-led government.

TATA Thailand Steel President Larptawee Senawong said the company  maintained its steel rod price at 22 baht per kilogram, well below the  Commerce Ministry's reference price, despite expectation of a price  increase during the rainy-season.
*

However, the company will seek a meeting with the ministry's Internal  Trade Department to ask for a price hike in the next two months. 

Regarding the proposal for a daily minimum wage increase to 300 baht, he  stated that it would not affect the steel industry much. 

Larptawee predicted that the construction sector will see a growth of  five to ten percent this year in accordance with the expansion of the  condominium and hotel industries in Bangkok and its vicinity. 

It is expected that the steel industry will continue to grow at least five percent every year. 

TATA aims to increase its production from 1.5 million tons to 1.7  million tons by the end of this year and to three million tons by 2015  with the hope of expanding export to the ASEAN market.

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## StrontiumDog

Thai-ASEAN News Network

Minimum Wage Hike Still Inconclusive 

UPDATE : 18 August 2011                     *

The private sector recommends the  government gradually raise the daily minimum wage to provide time for  industries to adapt themselves. 

Meanwhile, the deputy prime minister for economic affairs pledges the hike will not be forced on business owners.
*

The Joint Standing Committee on Commerce, Industry and Banking,  comprising the Federation of Thai Industries, the Thai Chamber of  Commerce and the Thai Bankers Association, today had a meeting with  Deputy Prime Minister in charge of economic affairs Kittirat Na Ranong,  Labor Minister Padermchai Sasomsap and Finance Minister Thirachai  Phuvanatnaranubala over the government's planned to raise the minimum  wage to 300 baht a day.  

Kittirat said the government's policy of raising the daily minimum wage will not be implemented as a compulsory measure. 

He stated the government will pilot the policy by increasing the pay at state offices and state enterprises. 

The minister maintained the wage hike must be in accordance with the  efficiency of workers and the government will seek measures to help  companies cover their rising labor cost. 

Meanwhile, President of the Federation of Thai Industries, or FTI,  Phayungsak Chatsuthipol, suggested the minimum wage be hiked on  step-by-step basis to 300 baht a day in four years to give time for  entrepreneurs to adapt themselves. 

Phayungsak stated the immediate increase in the wage to 300 baht a day  will severely hurt many industries, such as processed food, garment and  footwear. 

He maintained the wage increase must be approved by the tripartite  committee made up of representatives from the government, employees and  employers as the labor law requires. 

The FTI chief stated the government accepted the suggestion for the step wage increase for consideration. 

He said the two sides will have another meeting on the wage hike issue in one week or two.

----------


## Carrabow

> Thai-ASEAN News Network
> 
> Steel Company Plans Price Hike 
> 
> UPDATE : 18 August 2011 
> 
> 
> *TATA Thailand Steel President Larptawee Senawong said the company maintained its steel rod price at 22 baht per kilogram, well below the Commerce Ministry's reference price, despite expectation of a price increase during the rainy-season.*.


That is a ridiculous offset, they must be processing steel by a 1 gallon bucket.

This is just like when the FAA stopped collecting taxes for airfares in the US but the airlines forgot share the savings with the customers and profitted from it. 

Typical excuses for a regulated market.

----------


## StrontiumDog

*Govt plans to be clear by October
*
*Govt plans to be clear by October*

                            By The Nation
                                             Published on August 19, 2011                


*Labour Ministry official ready to consider staggered raise over 3-4 years*

                                                            How the government will implement its policy to raise  the daily minimum wage to Bt300 will become clear by October, Labour  Ministry permanent secretary Somkiat Chayasriwong said yesterday.

The  top official did not rule out a request by the Federation of Thai  Industries (FTI) to gradually lift the minimum wage step by step over  three to four years. 

"We are ready to listen to all sides," Somkiat said. 

The Labour Ministry, he added, was now surveying wage rates across the country.

Somkiat  said the Department of Skill Development (DSD), in the meantime, had  been instructed to promote skill training by offering eServices to  interested employers. 

He said improved skills would make workers well qualified for a daily wage of at least Bt300.

At  present, laws encourage employers to provide training for their  workers/employees by giving tax benefits. Employers should be able to  claim tax deductions of an amount two times of the training cost.  However, due to complicated procedures, some employers have not  organised the training, paying fines to the Skill Development Fund  instead.

"To simplify procedures to claim tax deductions as part  of training costs, the DSD will launch eServices on September 8,"  Somkiat said.

He said employers could also check out useful training courses at www.dsd.go.th, and register the courses they were going to provide to their employees/workers via the web site.

Jiyuan  Wang, the International Labour Organisation's country office director  for Thailand, Cambodia and Lao People's Democratic Republic, downplayed  any concern that rising wages would worsen inflation.

He said it was inflation that was now putting pressure for higher wages. 

He said Thailand's daily minimum wage had clearly not risen in line with the country's inflation rate during the past decade.

In  1995, wages accounted for 72 per cent of the country's total income. By  2006, they accounted for just 63 per cent of total income. 

Wang  also pointed out that the Gini coefficient of Thailand, a measure of  inequality of income or wealth, was the highest in Asia. 

"It's at 0.43," he said.

According  to Wikipedia, Gini coefficients for income ranged from around 0.23  (Sweden) to 0.70 (Namibia) although not every country has been assessed.

Wang  said although some economic sectors would offer less job opportunities  if the minimum daily wage rose, workers would still be able to switch to  other economic sectors. 

"Higher wages will mean higher consumption. It will stimulate the country's economy too," he said.

----------


## StrontiumDog

*Bangkok Post : Deal on wage hike reached
*
*Deal on wage hike reached*
Published: 19/08/2011 at 12:24 PMOnline news:
 The government and private sector have reached  an initial agreement on the implementation of the 300 baht daily minimum  wage policy, Payungsak Chartsuthipol, chairman of the Federation of  Thai Industries (FTI), said on Friday.

 Representatives of the ministries of finance and labour and the Joint  Private Committee on Commerce, Industry and Banking (JCCIB) on Thursday  afternoon met to discuss the promised wage hike policy by the Pheu Thai  party. The meeting was chaired by Commerce Minister Kittiratt  Na-Ranong, who is in charge of economic matters.

 Mr Payungsak said at this stage, the government agreed to the JCCIB’s  proposal that the increase in daily minimum wage should be made  step-by-step. The government admitted that if the labour cost is  increased to 300 baht a day at one time, several industrial groups would  be severely affected.

 The agricultural product processing, food, textile, garment and  electronics component industries are likely to suffer most, he added.

 “The state agreed to once again bring this issue to the meeting of the tripartite wage committee for consideration.

 The private sector proposed that the increase in minimum wage should  be gradually done in four-year period in order to allow manufacturers to  adapt themselves to the increasing labour cost.

 The government accepted the proposal but will soon after this discuss  the wage hike timeframe with the JCCIB,” said Mr Payungsak.

 The FTI chairman insisted that the private sector has no objection on  the wage hike policy and that any industry groups can raise the minimum  wage immediately, if they are ready.

 However, the government should also introduce measures to minimize  effects of the increasing labour cost on the industry sector in the  lone-run, particularly the labour intensive industries, he said.

 Mr Kittiratt said the government would not try to force the private  sector to comply with the wage hike policy and will come up with direct  and indirect incentive offering scheme to help reduce the adverse  effects of the new minimum wage policy.

 Finance Minister Thirachai Phuvanartnaranubala the agreed initial  agreement showed that the private sector support the wage hike policy of  the government.

 “After the policy statement making, I will invite the JCCIB for a  meeting to discuss ways to raise the minimum wage with least impact on  the private sector,” Mr Thirachai said.

 Labour Minister Phadermcha Sasomsap took the same tone, saying after  the delivery of government’s policy statement to parliament, scheduled  for Aug 23 and 24, he would be able to provide more details on the wage  hike timeframe.

 Permanent secretary for labour and chairman of the Central Wage  Committee Somkiat Chayasriwong said his ministry is now conducting a new  round of survey on workers’ cost of living nationwide. The outcome is  expected sometime in October and at that time there will have a clear  conclusion on the new minimum wage plan.

 Chairman of the Thai Labour Solidarity Committee Charlee Loysoong  called on the government to nationwide raise the daily minimum wage to  300 baht within next January as promised.

 He did not agree that the new minimum wage rate should be introduced  only in Bangkok and nearby provinces as suggested by some parties.

----------


## sabang

For over five years of the past decade, Thailand has only had a government preoccupied with struggling to maintain or justify it's own survival and tenure. The last year or so of the Thaksin administration was a time of trumped up civil unrest and disruption- with governance and reform brought to it's knees, the military Junta was laughably inept, the PPP government was never allowed to function before being drummed out of office, and then there were the Abhisit years. As a result, no government has been willing or able to focus on the several issues- very real and important issues- facing Thailand. Wages have stagnated, the rural sector has grown increasingly uncompetitive, wealth concentration predictably increased, and FDI has dropped markedly from the cracking pace being set in the late 90's and early noughties. Thailand has only gone backward in real terms, a stark contrast to it's neighbours. Thailand has rejoined the Phillipines as an Asian basket case, and the reasons why are very similar.

Addressing minimum wages is one thing, and will have somewhat predictable and necessary flow on effects in domestic consumption, investment and productivity. How it is introduced is indeed important, because on an industry specific basis there is bound to be some dislocation. Capital and knowledge intensive industries will shrug it off, because it is nothing to them. Low wage and labor intensive industries have some adjusting to do. At the end of the day though, we know exactly what to expect from the oligarchic sector that the Democrats owe their fealty to, being to delay and stymie it as much as they possibly can. The reason, quite simply, is naked and short sighted Greed.

It's a start, and an actual policy initiative that exceeds anything broached or considered during the stagnant, fractious Abhisit years. But there is much more to be addressed-

The rural sector is increasingly and hopelessly uncompetitive, because it is totally innefficient- and not just at the farm level. It desperately needs change- it is being propped up with unsustainable subsidies, even while indebtedness on the part of the average farmer is growing, and returns and wages are abysmal. Improving minimum 'official' wages will only make the plight of the small farmer worse in the short term actually.

The Thai Bureaucracy is a major drag on reform of any kind. They require more accountability, outside governance, promotion based on merit, and open hiring policies based on merit and diversity, rather than family and skin color. The 'Club' or cartel needs to be smashed, to call a spade a spade.

The educational sector patently does not meet the requirements of an emerging industrialised economy- in fact it is farcical, and that even extends to the so called prestigious alma maters. It urgently requires reform- I was in Cambodia a month ago and holy cow, the contrast in the people there I found hard to believe- yet fundamentally, they are the same people and their society faces several of the same problems and impediments. A lot of the reason for this lies with Bureacratic ineptitude and intransigence, but it is also systemic and self fulfilling- the people themselves do not believe in education, in a society where so much is determined by family and skin color, ones predetermined position on the ladder being much more important than merit. Cheating, skiving and corruption are rampant in a system where nobody fails, and 'success' is largely preordained. The Notebooks are a promising initiative, if implemented effectively.

Then theres the 'judiciary', innacountabilty, selective justice and impunity, rampant corruption and, underpinning it all, the entrenched attitudes of an insular, spectacularly greedy oligarchy. 

Oh boy, a load of catching up to do just to get back to the starting gate. Take a deep breath. And there is a destructive cadre of existing privilege  that will battle and attempt to stymie you every step of the way Thailand.

----------


## aprilF

Increase in daily minimum wage is hard to get and yet every worker hopes for it..

----------


## sabang

Captivating analysis.  :Roll Eyes (Sarcastic):

----------


## nostromo

Very good post. 




> For over five years of the past decade, Thailand has only had a government preoccupied with struggling to maintain or justify it's own survival and tenure. The last year or so of the Thaksin administration was a time of trumped up civil unrest and disruption- with governance and reform brought to it's knees, the military Junta was laughably inept, the PPP government was never allowed to function before being drummed out of office, and then there were the Abhisit years. As a result, no government has been willing or able to focus on the several issues- very real and important issues- facing Thailand. Wages have stagnated, the rural sector has grown increasingly uncompetitive, wealth concentration predictably increased, and FDI has dropped markedly from the cracking pace being set in the late 90's and early noughties. Thailand has only gone backward in real terms, a stark contrast to it's neighbours. Thailand has rejoined the Phillipines as an Asian basket case, and the reasons why are very similar.
> 
> Addressing minimum wages is one thing, and will have somewhat predictable and necessary flow on effects in domestic consumption, investment and productivity. How it is introduced is indeed important, because on an industry specific basis there is bound to be some dislocation. Capital and knowledge intensive industries will shrug it off, because it is nothing to them. Low wage and labor intensive industries have some adjusting to do. At the end of the day though, we know exactly what to expect from the oligarchic sector that the Democrats owe their fealty to, being to delay and stymie it as much as they possibly can. The reason, quite simply, is naked and short sighted Greed.
> 
> It's a start, and an actual policy initiative that exceeds anything broached or considered during the stagnant, fractious Abhisit years. But there is much more to be addressed-
> 
> The rural sector is increasingly and hopelessly uncompetitive, because it is totally innefficient- and not just at the farm level. It desperately needs change- it is being propped up with unsustainable subsidies, even while indebtedness on the part of the average farmer is growing, and returns and wages are abysmal. Improving minimum 'official' wages will only make the plight of the small farmer worse in the short term actually.
> 
> The Thai Bureaucracy is a major drag on reform of any kind. They require more accountability, outside governance, promotion based on merit, and open hiring policies based on merit and diversity, rather than family and skin color. The 'Club' or cartel needs to be smashed, to call a spade a spade.
> ...

----------


## Carrabow

What good is the increase if the business community raises the prices to profit from the action. With their mentality you know it will happen.

----------


## FailSafe

I heard from more than a few Thai business owners that they will avoid the pay increase by paying the social welfare taxes on the higher salaries (only a 3% bump) while continuing to pay their employees less than (the proposed new) minimum wage- that's something I would never consider doing, but I can see it being very hard for an employee to make a claim and follow it through to a successful conclusion as the government won't be too anxious to investigate if they are receiving their proper tax payment.

Games will be played, as always.

----------


## nostromo

> I heard from more than a few Thai business owners that they will avoid the pay increase by paying the social welfare taxes on the higher salaries (only a 3% bump) while continuing to pay their employees less than (the proposed new) minimum wage- that's something I would never consider doing, but I can see it being very hard for an employee to make a claim and follow it through to a successful conclusion as the government won't be too anxious to investigate if they are receiving their proper tax payment.
> 
> Games will be played, as always.


I consider it a plausible scenario that government will come across to meet the cost of wage increase, by reduction in social payments. Seem you have taken the law into your own hands. So will you be giving the money back? Thought so.

----------


## nostromo

> What good is the increase if the business community raises the prices to profit from the action. With their mentality you know it will happen.


If you want to be given lesson 001 in economics or business science then it is on prepaid basis, money first.

----------


## FailSafe

Did you read my post?




> Seem you have taken the law into your own hands.






> that's something I would never consider doing

----------


## nostromo

> Did you read my post?
> 
> 
> 
> 
> 
> 
>  Originally Posted by nostromo
> 
> ...


No, why?

Really, when you post something "your friend did" it is you

----------


## FailSafe

> No, why? 
> Really, when you post something "your friend did" it is you


Brilliant deduction, numb-nuts. :bananaman: 

I wouldn't do it as I would lose the trust and good relationship of my employees, which I rely on, but most of all I would never jeopardize my work permit and business status by taking such a stupid chance- the only people I spoke to who have mentioned considering doing it were Thai- believe what you want, but I haven't lied on this thread in any of my many posts- why would I start now?  And if I actually planned to do something like that, I sure as hell wouldn't have mentioned it here.

----------


## nostromo

And "if I actually planned to do something like that, I sure as hell wouldn't have mentioned it here" 
Not a good point there, people are generally very stupid. Dont worry, I dont shop you, I dont consider you a serious criminal.

----------


## FailSafe

Wow- I used to give you a bit more credit (even with your moronic political rambling)- guess I misjudged you (and I believe I know your former nic now)- people _are_ generally pretty stupid, you're right about that.  I'll treat any further posts by you with all the respect and consideration they deserve. :Smile:

----------


## nostromo

> Wow- I used to give you a bit more credit (even with your moronic political rambling)- guess I misjudged you (and I believe I know your former nic now)- people _are_ generally pretty stupid, you're right about that.  I'll treat any further posts by you with all the respect and consideration they deserve.


I know. Today is not a day to make friends. Sorry if I made you feeling bad.

----------


## FailSafe

I'm not 'feeling bad' (don't give yourself that much credit)- I just feel like I wasted my time contributing a valid (and disturbing) piece of information to this thread due to your silly response to it, and I don't particularly care for your unfounded accusation.

----------


## nostromo

> I'm not 'feeling bad' (don't give yourself that much credit)- I just feel like I wasted my time contributing a valid (and disturbing) piece of information to this thread due to your silly response to it, and I don't particularly care for your unfounded accusation.


If I said sorry would it make a difference

----------


## FailSafe

> If I said sorry would it make a difference


I'm a big boy and it's not necessary- I said my piece- if you were just fooling around, fine, no hard feelings- I just take this subject pretty seriously.

In any case, I'm sorry I got wound up over it- I prefer to keep things on an even keel as far as this thread is concerned as it's a pretty volatile subject.

For the record, as I've said several times previously, I may have to decrease my workforce if the wage increase goes through, but I will always operate my business properly as losing my work status would be a devastating blow, and potentially saving some money wouldn't be worth taking the chance.

----------


## nostromo

OK. I run a businesses too and know only too well the issues. I just hate the Hi-So crap scewing their employees. I pay right for talent money. And oh it is always more than 300 anyways.

----------


## Carrabow

> Originally Posted by Carrabow
> 
> 
> What good is the increase if the business community raises the prices to profit from the action. With their mentality you know it will happen.
> 
> 
> If you want to be given lesson 001 in economics or business science then it is on prepaid basis, money first.


I do not need the lesson, I was only voicing a opinion. 

Business as usual... :Smile:

----------


## nostromo

> I may have to decrease my workforce if the wage increase goes through,


Interesting, what you pay your workers now, 169 baht? BKK min? And you will sack them if you need to pay some USD2-3 more?

----------


## FailSafe

> Interesting, what you pay your workers now, 169 baht? BKK min? And you will sack them if you need to pay some USD2-3 more?


If the wage increase means my monthly income will drop 80K or more by keeping staff at present levels, then yes, I'll let some people go as that's more of a hit (~1mil per year or more) than I'm willing to take- as I've already said, I do keep more staff on than I really need as they aren't very expensive- if that changes, I will have to make cuts (I have a lot of people working for me)- perhaps with your business that kind of money is small change- if so, I'm not at your level.

I've got a lot of posts in this thread, Nostromo- I really don't feel like rehashing them for your benefit- if you want to know, go back and read them.

----------


## Carrabow

[quote=FailSafe;1849936]


> Interesting, what you pay your workers now, 169 baht? BKK min? And you will sack them if you need to pay some USD2-3 more?


 I do keep more staff on than I really need as they aren't very expensive-quote]


From a business perspective, why would you do that?

----------


## sabang

^ I see loads of overstaffed businesses here, and I'm sure part of the reason for that is that wages are so low. It's also a bit self fulfilling- with wages so low, people aren't much bothered about their jobs, and staff turnover is rampant.

I remember once we helped a lady from Chiang Mai get her daughter a job in an English pub in the darkside of Pattaya- not a sex place, a straight job. She lasted all of two days, then just never bothered showing up again- no resignation or explanation given. They were paying well over minimum wage btw, plus tips were distributed equally. Never again.

----------


## FailSafe

> From a business perspective, why would you do that?


Mostly because they aren't very productive and motivated- they do as little as possible, and they tend to quit without notice after payday- it's not really a money thing- they know they'll get their salary at the end of the month regardless of how much it is, whether it's 7K, 9K, or whatever- I don't think they'd work harder no matter how much they were paid.

I've got some great people that have risen in position and pay over the years, but, unfortunately, they are few and far between, and I often find I need two people to do the work of one hard-working person.

As I've said earlier, the wage increase will cause me to keep only my best people and increase their job responsibilities along with their pay- I don't mind paying more, but they had better not mind working harder- in the past it's been economical to throw a lot of bodies at a job rather than going through the excruciating process of finding someone really stellar (that's laziness on my part, but it's also many years of never-ending frustration)- now that will have to change- more money will come with higher expectations, and I'll be way quicker to replace people than I was before.

----------


## nostromo

> Originally Posted by nostromo
> 
> Interesting, what you pay your workers now, 169 baht? BKK min? And you will sack them if you need to pay some USD2-3 more?
> 
> 
> If the wage increase means my monthly income will drop 80K or more by keeping staff at present levels, then yes, I'll let some people go as that's more of a hit (~1mil per year or more) than I'm willing to take- as I've already said, I do keep more staff on than I really need as they aren't very expensive- if that changes, I will have to make cuts (I have a lot of people working for me)- perhaps with your business that kind of money is small change- if so, I'm not at your level.
> 
> I've got a lot of posts in this thread, Nostromo- I really don't feel like rehashing them for your benefit- if you want to know, go back and read them.


Clearly we operate in different industries, your is labour-intensive, like a bar perhaps, and there is nothing bad in that, and mine is perhaps like upmarket consulting company, and there is nothing bad in that

----------


## nostromo

> ^ I see loads of overstaffed businesses here, and I'm sure part of the reason for that is that wages are so low. It's also a bit self fulfilling- with wages so low, people aren't much bothered about their jobs, and staff turnover is rampant.
> 
> I remember once we helped a lady from Chiang Mai get her daughter a job in an English pub in the darkside of Pattaya- not a sex place, a straight job. She lasted all of two days, then just never bothered showing up again- no resignation or explanation given. They were paying well over minimum wage btw, plus tips were distributed equally. Never again.


Maybe it was just because of being in darkside :Smile:  Last time I went there I could not park the car anywhere near the b.. library I was heading to.

----------


## FailSafe

I don't own a bar, but, like I said, I have quite a few employees in different businesses (and I'm going to be starting another before the end of the year, and that will only add to the current number)- I do have many workers at the lower end of the pay scale, and will thus be hit harder by the wage increase than some other business owners.

I've never argued over the rightness or wrongness of the increase, but I have given my perspective as to what will I will have to do to 'weather the storm' of a significant wage hike, and I know many others in the same boat- it will lead to a decrease in the number of jobs for people with less education or job skills, and I believe it will lead to an increase in unemployment- maybe I'm wrong- time will tell.

I've become repetitive in this thread and I don't think there's anything else I can add- the rest of you can have at it- I'll sit back and see what the future brings.

----------


## Carrabow

> Originally Posted by Carrabow
> 
> From a business perspective, why would you do that?
> 
> 
> Mostly because they aren't very productive and motivated- 
> 
> I've got some great people that have risen in position and pay over the years, but, unfortunately, they are few and far between, .


A little recruiting and coaching will produce a desired staff. Star performers are out there, you can produce more with less with the right people. Finding them is the hard part. When you do, compensate them. Managing them will be easier.

----------


## nostromo

> I don't own a bar, but, like I said, I have quite a few employees in different businesses (and I'm going to be starting another before the end of the year, and that will only add to the current number)- I do have many workers at the lower end of the pay scale, and will thus be hit harder by the wage increase than some other business owners.
> 
> I've never argued over the rightness or wrongness of the increase, but I have given my perspective as to what will I will have to do to 'weather the storm' of a significant wage hike, and I know many others in the same boat- it will lead to a decrease in the number of jobs for people with less education or job skills, and I believe it will lead to an increase in unemployment- maybe I'm wrong- time will tell.
> 
> I've become repetitive in this thread and I don't think there's anything else I can add- the rest of you can have at it- I'll sit back and see what the future brings.


You are quite OK

----------


## StrontiumDog

*Labour groups say minimum wage policy not what was promised
*
*Labour groups say minimum wage policy not what was promised*

                            By The Nation
                                             Published on August 24, 2011                

*Prime Minister Yingluck Shinawatra's policy  declaration to the parliament yesterday, that the government would  ensure workers to earn at least Bt300 income per day and the  bachelordegree holders to earn at least Bt15,000 income per month as  according to the person's productivity and efficiency, made labour  advocates unhappy, as they felt it was to avoid fulfilling the Pheu Thai  Party's promise for Bt300 minimum daily wage.*

                                                            President of the Thai Labor Solidarity Committee (TLSC)  Charlie Loysung said yesterday that such declaration was a diversion  from the party's promise during the voterwooing campaign at Bangkok's  Rajamangala National Stadium and a lie to the people who voted for them,  most of whom did so because of the Bt300 daily wage policy. Saying that  he would give the government six months to work, he said that the  workers wouldn't take it, if the minimum wage weren't hiked to Bt300 by  next January. Charlie said he was asking to see Labour Minister  Phadermchai Sasomsab to get some clarity regarding this matter. 

Lamenting  that the commodity prices were on rise whilst the minimum wage remained  the same, say Bt215 per day in Bangkok, Charlie said the government hit  a second blow by linking the wage hike to labour skills. "So what will  the new workers do? The government should do as they promised during the  votewooing time," he said adding that, under this "labor  skillincreasing and the employers' tax decreasing", how many workers  would actually get skill development while the private sector  immediately got more profits because of the reduced tax.

Prof Lae  Dilokwittayarat from the Faculty of Economics, Chulalongkorn University,  said the premiere's declaration on labour policy wasn't the same as  what the party had promised to people during the voterwooing campaign  because all people understood that the minimum wage and bachelordegree  holders' salary hike was unconditional. Explaining that the minimum wage  had nothing to do with the working efficiency because it was the basic  right of workers to maintain the sufficiently dignified living  condition, he said that, after the workers already started working then  the labour skill development to boost productivity and work efficiency  would follow. Expressing concerns over how to properly assess bachelor  degree graduates' quality for the entitlement to Bt15,000 salary, Lae  said the government's labour policy would not tackle problems at the  root. He said the major challenge for the government to tackle was to  hike the workers' wages for better life quality and without having to do  overtime (OT) and to ratify the International Labour Organisation (ILO)  Convention 87 and 98, which would enable workers, without the risk of  being fired, to set up labour unions to bargain with their employers for  welfare and benefits. He also urged the government to bring the  offsystem workers into the legal systems so they are protected while  also registering immigrant workers fast and with transparency. 

  Thailand Development Research Institute's labour development research  director, Yongyuth Chalaemwong, said the policy declaration showed that  the government has included suggestions from private sector such as the  Federation of Thai Industries and the Thai Chamber of Commerce into the  policy draft. The policy declaration was an income guarantee for  workers, not the minimum wage hike and not as written in the voterwooing  signs of Pheu Thai Party, hence it might make some workers upset due to  appointment. However, he said that the government did this possibly  after assessing that the minimum wage hike to Bt300 was difficult and  would cause many SMEs to shut down and many people to loose their jobs.

----------


## StrontiumDog

^ Yep, it appears they lied considerably...what a surprise......

----------


## DroversDog

> ^ Yep, it appears they lied considerably...what a surprise......


So did you ever think Mark would implement everything he promised before the election?

You seem to have a very immature view of what politicians promise and what they can deliver when the come into government.

We will forgive your nativity as your previous posts have shown your immaturity. SD thats not a bad thing but you just need time to develop.  :Smile: 

For an opposition party it is very difficult before the election as they have no idea how bad the books are.

----------


## longway

^ The book you need to read is 'Animal Farm'.




> So did you ever think Mark would implement everything he promised before the election?


He would have kept his promise regarding the increases in minimum wage he proposed IMO.

----------


## DroversDog

> ^ The book you need to read is 'Animal Farm'.
> 
> 
> 
> 
> 
> 			
> 				So did you ever think Mark would implement everything he promised before the election?
> 			
> ...


You are a longway away from reality.  ::chitown:: 
BTW I read animal farm many many years ago lassie.

----------


## StrontiumDog

> Originally Posted by StrontiumDog
> 
> 
> ^ Yep, it appears they lied considerably...what a surprise......
> 
> 
> So did you ever think Mark would implement everything he promised before the election?
> 
> You seem to have a very immature view of what politicians promise and what they can deliver when the come into government.
> ...


What the hell are you on about?

Pheu Thai built their election campaign on this promise. They have promised to eradicate poverty in 4 years, which was no doubt tied to this (ya know, people get paid more...). 

I was certainly under the impression, as were most people I would imagine (and I am sure most of the low paid who no doubt voted for Pheu Thai), that the rise in the minimum wage didn't have conditions or strings attached. It was proposed as a blanket rise. Everyone currently on the minimum wage was to benefit. That was the election promise.

Please don't try to make some lame excuse for what is a total letdown and amounts to a lie. The government have given business enough wriggle room ("*according to the person's productivity and efficiency")* to avoid having to raise wages. 

The poor have been conned. 

This is a gross betrayal.

----------


## longway

> Originally Posted by longway
> 
> 
> ^ The book you need to read is 'Animal Farm'.
> 
> 
> 
> 
> 
> ...


not as far away from reality as the 300b min wage pledge sugarplum.

----------


## StrontiumDog

TAN_Network   TAN News Network                                                       

            Thaksin tells NHK he advised Pheu Thai on the daily minimum wage hike to Bt300; trusts sister to manage govt

----------


## StrontiumDog

PM: Govt sincere in wage hike policy : National News Bureau of Thailand

*PM: Govt sincere in wage hike policy   

* 

BANGKOK, 24 August 2011 (NNT) – Prime Minister Yingluck Shinawatra has  confirmed that the government will implement the policy to increase the  daily minimum wage to 300 baht while asking the society to wait and see  its result. 

Speaking at Parliament, Ms Yingluck countered the attempt of the  opposition to interpret the wordings used in the policy statement  concerning the minimum wage hike. She stressed that she was sincere in  raising the minimum wage to enable labourers to have higher income and  wanted the society to watch the result of her policy rather than trying  to find fault with the description in the policy statement. 

The prime minister believed that people will listen and understand this  issue despite the opposition’s interpretation. She said she is intent on  pushing forward the policies announced during her election campaigns  into implementation. 

Ms Yingluck noted that some details of the policies might change when it  comes to the actual operation while the policy statement is just to  elaborate the general framework. She however stressed that the intention  of her Pheu Thai Party announced in election campaigns remain the same. 

Writing via her facebook this morning, Ms Yingluck assured the public  that all policies of the government will be able to solve both facing  and long-term problems for the best benefits of people and the nation.  She asked all sides to wait for the results of the operation.

----------


## Buksida

> Writing via her facebook this morning, Ms Yingluck assured the public  that all policies of the government will be able to solve both facing  and long-term problems for the best benefits of people and the nation.


Bold statement.

----------


## StrontiumDog

BoT: Govt’s wage, salary hike policy still unclear : National News Bureau of Thailand

*BoT: Govt’s wage, salary hike policy still unclear*  

BANGKOK, 24 August 2011  (NNT) – The Bank of Thailand (BoT) has indicated that more  clarifications are still needed for the Government’s policy to increase  the minimum wage to 300 THB and the salary for new graduates to 15,000  THB. 

Speaking of the policy of the Pheu Thai-led administration to raise the  minimum wage to 300 THB per day and the salary for bachelor’s degree  graduates to 15,000 per month, BoT Assistant Governor for the Monetary  Policy Group Paiboon Kittisrikangwan admitted that he was still  uncertain whether the policy would cause inflation to go up as feared by  many.  

Despite the Government’s policy statement recently delivered to  Parliament, the Assistant Governor noted that the wage and salary hike  policy remained ambiguous. He said the Monetary Policy Committee (MPC)  would need to look into details of the policy, particularly methods of  implementation, related procedures, timeframe as well as its ability to  boost the national economy, before the next meeting in October.

----------


## baldrick

> Thaksin tells NHK he advised Pheu Thai on the daily minimum wage hike to Bt300


ah ,  wisdom  the economic guru spake

----------


## StrontiumDog

CP, Bangchak support wage hike policy : National News Bureau of Thailand

*CP, Bangchak support wage hike policy *  

 

BANGKOK,  25 August 2011 (NNT) – CP Group and Bangchak as well as other listed  companies are taking the lead in showing support and readiness to  increase the daily minimum wage to 300 baht and the salary for fresh  graduates to 15,000 baht in response to the government policy. 

According to Deputy Prime Minister and Commerce Minister Kittirat Na  Ranong, the minimum wage increase and salary hike policies will be  implemented on 1 January 2012. Many private companies such as CP Group  and other listed companies are ready to follow suit. 

The decision in other business sectors will depend on the consideration  of the tripartite panel, which will convene for wage adjustment  according to normal legal steps. Under this procedure, the rate of  adjustment will be made in conformity with the readiness of industries  and will be gradually raised until it is equal to the  government-stipulated wage. 

Meanwhile, Bangchak President Anusorn Saengnimnuan announced that his  company will increase the daily minimum wage for petrol station  employees from 250 baht a day to 300 baht. He said the wage hike will be  made together with operational efficiency development. 

The president admitted that doing so will increase the operating cost by  0.07 baht per litre of oil, and the company itself will shoulder this  burden but will add partial cost to the oil prices.

----------


## StrontiumDog

*Minimum wage and the migrant ‘bogeyman’ | Democratic Voice of Burma
*
*Minimum wage and the migrant ‘bogeyman’* 


A migrant worker in Mae Sot (Reuters)

 By DAN WAITES
Published: 25 August 2011

In the unmarked offices of Burma Lawyer’s Council in the Thai  border town of Mae Sot, Saw Htun is laughing. The source of this  36-year-old labour rights advisor’s amusement is the idea that Burmese  migrant workers might soon be earning 300 baht a day – set to become  Thailand’s minimum wage if Yingluck Shinawatra’s newly elected  government gets its way. “This won’t apply to Burmese workers,” he says.  “They don’t have the ability to make Yingluck Shinawatra prime  minister. Thai workers do.” Given that migrant workers in Mae Sot are  lucky if they make even two-thirds of Tak province’s current minimum  wage of 162 baht, you can forgive Saw Htun the cynicism.

 The campaign to derail the Pheu Thai Party-led government’s plans to  raise daily minimum wages has been determined and at times shrill. Since  the party’s election victory on 3 July, groups representing vested  interests like the Federation of Thai Industries and the Thai Chamber of  Commerce – not to mention Democrat Party politicians anxious to score  points against the government following a humiliating electoral defeat –  have been aided by large sections of the Thai media in waging what  amounts to a propaganda war against the policy.

 Perhaps inevitably, the Burmese bogeyman has featured heavily. In an  editorial entitled “Pheu Thai’s wage hike doesn’t add up for Thailand”, _The Nation_  claimed that boosting minimum wages could “open the floodgates for  illegal migrant workers”. On the same day in Thailand’s largest tabloid,  _Thai Rath_, columnist Lom Plianthit was making similar  doom-laden predictions. “Burmese, Lao and Cambodian workers will flood  in to dig for gold in Thailand… If one million more flood in, the  security of Thailand will undoubtedly be shaken.” Given the vital role  migrant workers play in so many of Thailand’s key industries, this was  an unseemly display of hypocrisy meeting hyperbole. Was there any  substance to the scare tactics?

 The first observation to make is that few of the 3-4 million migrant  workers in Thailand, 80% of whom are Burmese, are paid the minimum wage  anyway. Indeed, you’d be forgiven for thinking that Thai law links  labour rights to a worker’s nationality or immigration status. In line  with international standards, it doesn’t. That hasn’t prevented a  depressing tendency to underpay migrants – not to mention worse abuses.

 In Mae Sot district, home to some 300 textile and garment factories  that operate in a kind of labour-law no man’s land, almost no migrant  workers make the legal minimum of 162 baht per day. Moe Swe, head of  Yaung Chi Oo Workers Association, which fights for workers’ rights in  the border area and across Thailand, said workers in Mae Sot had to be  satisfied with what employers were willing to pay – and that was never  162 baht.

 “The employers keep their work permit and migrant registration card.  So the workers cannot move. If they run away, they become illegal. The  other problem is that it is quite difficult to change jobs,” he said.  “These limitations make workers powerless.”

 Moe Swe, who says Thai factory owners displeased with his work  fighting exploitation once put a price on his head, said many companies  paid just 60 baht for an 11-hour shift. The reward for compulsory  overtime is frequently nothing more than a tub of instant noodles. The  average wage, he said, is 65-80 baht per day. “In Mae Sot, nobody gets  the minimum wage, this is quite sure,” he said. The idea that workers on  the border might earn 300 baht for their daily toils, then, is clearly  fanciful.

 But for migrants, it can get much worse. Many are not merely  exploited, but enslaved. During UN Special Rapporteur on trafficking Joy  Ngozi Ezeilo’s recent mission to Thailand, she heard shocking tales of  victims of the trade in human beings. The case of Ye, a Burmese man  trafficked into Thailand with promises of a monthly salary of Bt4,200 a  month, was one of them. Arriving, he was told he would have to work on a  fishing boat for free to pay off debts incurred in bringing him here,  according to _The Nation_. “Ye told of migrants who, exhausted  and unable to continue working, were simply pushed into the sea. He said  he felt hopeless and hated the captain of the boat, who took advantage  of him and the other workers… Ye worked for eight months on one boat. He  was never paid for his work and forbidden to keep any cash of his own.”  This is an extreme case, but by no means isolated.

 It would nevertheless be wrong to pretend that every migrant worker  is underpaid or a victim of abuse. In the provinces that surround  Bangkok, Thailand’s industrial heartlands, workers are more often  treated in line with the law. Export-oriented businesses such as  manufacturing and seafood processing plants are subject to inspections  and have to pay minimum wages.

 Frequently, though, they will have fully paid workers on the books  and underpaid employees off them. Workers with many years’ experience  and those in more senior positions – foremen in factories and on  construction sites, for example – are the most likely to be rewarded.  Still, Jackie Pollock, head of the Chiang Mai-based Migrant Assistance  Programme, estimates that “no more than 10 percent” of migrant workers  in Thailand are paid at the legal levels.

 So can Thailand expect a “flood” of migrants across its borders? Such  claims rest on a misconception of the factors and mechanisms that bring  migrants to Thai workplaces. Assoc. Professor Sean Turnell of  Australia’s Macquarie University, an expert on the economics of Burma,  told _DVB_ that the concerns of some Thai commentators “do not hold water”;

 “Burmese workers are overwhelmingly motivated by ‘push’ factors (i.e.  conditions in Burma, economic and otherwise) rather than ‘pull’ factors  (the intrinsic attractiveness of Thailand’s labour market),” he said.

 There is also a myopic assumption that people in Burma know about  labour laws in Thailand. “If migrant workers knew that they were  entitled to minimum wage and labour rights, then that would be a great  thing,” said Pollock.

 “But I don’t think they do – and certainly when they’re in Burma they  don’t. It’s not a great pull factor because it’s unknown to migrants.”

 Turnell agreed. “I would suggest that the average person fleeing  Burma for Thailand would have no idea about Thailand’s labour laws, and  these would have zero impact on their movement,” he said.

 Still, the misconceptions didn’t stop news outlets claiming the  policy had already led to illegal migrants setting foot on Thai soil. On  July 10, _The Nation_ reported that 113 Cambodian workers had  entered Thailand “in the hope of getting paid a minimum wage of Bt300  per day as promised by the Pheu Thai-led government.” Not so much as a  single quote was supplied to back the suggestion that the Cambodians  would not have entered the country anyway, as they do every day.

 “If you look at the statistics, there’s been no evidence at all that  there’s been any substantial increase in people coming into the country  since the policy of the Thai government was announced,” said Andy Hall  of the Human Rights and Development Foundation.

 This somewhat inconvenient, if spurious, story led to  then-prime-minister-elect Yingluck coming out with a worrying denial.  “Alien workers are not connected to the 300 baht minimum wage,” she  declared, prompting labour organisations and NGOs to point out that  migrants are legally entitled to the same wages as Thais. Is the new  prime minister of Thailand ignorant of her own country’s laws? Or is  this a sign that she is content with the status quo – where some workers  are more equal than others?

 Opposition to the 300-baht wage – which might have gone some way to  correcting the widening gap between Thailand’s rich and poor – already  seems to have forced the government to backtrack. According to the _Bangkok Post_,  Commerce Minister Kittiratt Na-Ranong recently told a major meeting on  the wage hike policy that the government “would not try to force the  private sector to comply with the wage hike policy” but would “take the  lead by increasing the minimum wage for workers of state enterprises and  employees of state agencies.” Perhaps migrant workers will not be the  only ones left out in the cold.

----------


## StrontiumDog

*Labour Unions give government 6 months on Bt300/day minimum wage issue
*
*Labour Unions give government 6 months on Bt300/day minimum wage issue*

  วันศุกร์ ที่ 26 ส.ค. 2554

 

BANGKOK, Aug 26 -- The Thai Labour Solidarity Committee (TSLC)  said it has given the government six months to increase minimum wage for  workers to Bt300/day after the Pheu Thai Party had earlier pledged in  its election campaign.

 TSLC Chaiman Charlie Loisoong said the Pheu Thai Party should implement  its Bt300 wage policy within six months; otherwise the workers would  take action to press the government.

 He did not specify what the TSLC would do to pressure the government if  it is unable to put into practice what it had promised the people. 

 The Pheu Thai Party had pledged in its election campaign to raise the  national minimum wage to Bt300 per day and to ensure that college  graduates have a minimum starting salary of Bt15,000 per month. The  party assured voters that it stands ready to implement the policy within  its first year in office as the government.

 Mr Charlie said if the government failed to increase the minimum wage, it was considered as a breach of its campaign promise.

 If the government twists its words by including overtime payment, other  welfare components including food, transportation and housing allowances  into Bt300 wage, it could be considered that it has failed to honour  its election pledge, he said.

 The labour activist said that if overtime pay is included, workers would normally receive more than Bt300 per day.

 Mr Charlie said only 30 per cent of Thailand's workers get paid over Bt300 daily and that the remainder were underpaid.

 Although the employers generally disagreed with the increase, both the  government and workers in the Wage Tripartite Committee comprised of  representatives from government, employer and worker organisations  agreed with the move, so it should mean that the Tripartite wage  Committee agreed with the plan.

 Mr Charlie said he is confident that the plan could be achieved.

 Prime Minister Yingluck Shinawatra had earlier said repeatedly said a  Bt300 minimum wage was feasible, but the business sector had voiced  concerns over the move.

 The Federation of Thai Industries (FTI) earlier said the government  should consider the process of the minimum wage rise to Bt300/day to be  brought into effect within 3-4 years, not immediately, as it would be  too big change for the economy's wage structure to absorb. (MCOT online  news)

----------


## SteveCM

*Special Report: Minimum Wage VS Living Cost : National News Bureau of Thailand*

27 August 2011                          


 

Upon  the criticisms and analysis both for and against the policy of the  government to increase the minimum wage to 300 baht and the salary for  fresh graduates to 15,000 baht, the Bank of Thailand (BoT) recently  revealed the figures of living costs compared with income of labourers  in the society. 

As of the end of May 2011, there were 17,310,300 employees, comprising  3,560,000 in the public sector and 13,750,300 others in the private  sector. Their average income was at 9,775.1 baht a month. Those in the  agricultural sector earned only 4,900.3 baht a month while those outside  gained 10,501.5 a month, which are considered low compared with the  expensive living costs. 

Compared with the same period last year, average income of employees  improved as it generally went up by 5% while workers in the agricultural  sector got their income increased by 11%. Wages for workers in other  industries went up by 5.6%. 

BoT Board Chairperson MR Chatu Mongol Sonakul expressed his opinion that  minimum wage hike for labourers is very necessary at present because  labourers have low incomes. He said their wages actually should be  boosted up to match the current economic situation, lessen the yawning  gap of wealth and prevent social clashes. 

MR Chatu Mongol however noted that the government must not only increase  the minimum wage rate, but also improve basic infrastructure to  increase competitiveness and production potentials as well as improve  skills of labourers to meet with the Thai economic expansion.  

BoT Governor Prasarn Trairatvorakul earlier stated that the minimum wage  adjustment so far did not meet with the skyrocketing living costs while  labourers did not receive fairness in the minimum wage adjustment  because the wage rate remained low after deducting the inflation rate.  He however admitted that increasing minimum wage to 300 baht or 40% in  one time might affect the business sector as it cannot adjust itself.  

It is evident that labourers need a wage increase to enable them to  survive the high living costs; however, the government must ensure that  entrepreneurs can cope with the rising operating costs so that their  business can go on as well.                               

                         Reporter : Sarun Saelee

----------


## StrontiumDog

Thai-ASEAN News Network

Pizza Company Prepared for Minimum Wage Rai 

UPDATE : 29 August 2011                     *

In response to the 300 baht daily minimum  wage raise policy, the Pizza Company says it is confident it can handle  the new rates despite its large workforce. 

However, it admits that it may downsize its workforce to optimize efficiency.
*

The Pizza Company Marketing Director under the Minor Food Group  Chitchaya Tuchinda said that the Pizza Company is prepared to deal with  the government's minimum wage raise to 300 baht per day despite its  large workforce. 

Presently, salaries make up 14 percent of the total production costs. 

Nonetheless, the Pizza Company is confident it can cope with the changes. 
It's likely the company will downsize and hire new employees to improve efficiency. 

Chitchaya said that the company will not raise prices to cope with higher cost. 

The Pizza Company marketing director also said that competition in the  pizza market in the latter half of this year will be a close one with  the Pizza Company dominating with 75 percent of the market share. 

The Pizza Company expects revenue of five to six billion baht. 

The company is also projecting a ten-percent sales growth this year, worth four billion baht from the current 3.7 billion baht. 

The Pizza Company launched its latest promotion for chicken enthusiasts  and plans to expand, adding additional branches across the country.

----------


## Butterfly

> However, it admits that it may downsize its workforce to optimize efficiency.


surprise, surprise  :mid:

----------


## SuaDum

Geee, another joke of an idea by the reds,  Imagine that!  Whodathunkit!

HiYa, Strony!  I've decided to join you here from there and tell the truth, as usual.  People (eerrrr, cheap cunts with no idea about anything) already hate me here and call me a fraud.  Success in less than 20 posts LOL!








> *Concern over promise for Bt300 minimum daily wage
> *
> *Concern over promise for Bt300 minimum daily wage*
> 
>                             By The Nation
>                                              Published on July 5, 2011                
> 
> *The new minimum daily wage has become a major  concern for employers and officials at the Labour Ministry, who are  awaiting word from the incoming government, which promised voters  during the election campaign it would back a pay hike for workers.*
> 
> ...

----------


## SuaDum

Damn, I have to piss along here for another seven posts to just be able to answer a PT from an old friend from a year ago.

Boring.

----------


## sabang

One of the reasons for T's enduring popularity is he raised incomes 40% in real terms. The economy hardly fell in a heap, quite the opposite. Since then, income growth- at least at the lower level- has largely stagnated. This has also been accompanied by inflation on basic commodities such as food & building materials. The minimum wage has not kept up, and is overdue for a significant increase. It is not like the affluent have been 'sharing the pain' either, they have been doing very well and the Gini coefficient (income inequality) has markedly increased post coup. A significant rise in the minimum wage is certainly well justified, both socially and economically.

Otoh, I question some aspects of the policy as originally stated- such as starting a graduate teachers on 15K, when it takes several years before an experienced teacher can be earning that. There are also regional considerations, the obvious examples being Bkk & Pooket, where the price of living is higher. And of course, certain industries will be affected more than others. So I think there is a strong case to be made that it just cannot be introduced at the stroke of a pen- although it looks almost definite that it will not be.

----------


## The Bold Rodney

> it will lead to a decrease in the number of jobs for people with less education or job skills


So there's a distinct possibility "pupa" and "social" will never be gainfully employed here or anywhere else for that matter! 

Sad :rofl:

----------


## socal

> Originally Posted by FailSafe
> 
> it will lead to a decrease in the number of jobs for people with less education or job skills
> 
> 
> So there's a distinct possibility "pupa" and "social" will never be gainfully employed here or anywhere else for that matter! 
> 
> Sad


You and most people don't know shit about economics. 

Minimum wages lead to unemployment just like a minimum rent law would lead to homelessness.

----------


## Butterfly

> One of the reasons for T's enduring popularity is he raised incomes 40% in real terms. The economy hardly fell in a heap, quite the opposite.


it was hardly a miracle, there were below potential GDP since 1997, in the big recession gap, therefore plenty of room for growth without inflation pressure




> Since then, income growth- at least at the lower level- has largely stagnated. This has also been accompanied by inflation on basic commodities such as food & building materials.


in line with a fast growing economy reaching their top or potential GDP. Without further investment in infrastructure or technology, their potential GDP is stuck and they enter the inflationary gap. Could explained why Thaksin was so desperate for the new Mega projects, there were very much needed at that stage. It would have forced heavy borrowing from the Thai government, something also to consider.




> It is not like the affluent have been 'sharing the pain' either,


they never do,

----------


## Buksida

> One of the reasons for T's enduring popularity is he raised incomes 40% in real terms.


Do you have a link or further info on this? Who were the main beneficiaries of this 40% wage increase?

----------


## StrontiumDog

Thai-ASEAN News Network

Finance Ministry: Govt Can't Force Private Sector to Raise Minimum Wage 

UPDATE : 30 August 2011 

*The Finance Ministry insists the government has no authority to force the private sector to adjust minimum wages.

Finance Minister Teerachai Phuvanatnaranubala reaffirmed that the  government has no authority to force the private sector to abide by the  government's policy to increase daily minimum wage to 300 baht and to  adjust new-graduate's starting salary to 15,000 thousand baht per month.  

However, he said the pilot project would be implemented with the state sector and then state-enterprises. 
*

The ministry will ask for cooperation from listed companies on the stock exchange to alter their wages. 

Currently, the ministry is rushing to draft details of the project to present to the Cabinet for approval.

Meanwhile, he declined to express his opinion regarding criticism  against the Pheu Thai Party, that the party cannot fulfill its promise  given during the election campaign of a guaranteed 300 baht daily  minimum wage.

----------


## StrontiumDog

^ Policy pledge....guaranteed 300 Baht daily wage..

Reality....

_The Finance Ministry insists the government has no authority to force the private sector to adjust minimum wages.
_
_The ministry will ask for cooperation from listed companies on the stock exchange to alter their wages._

----------


## StrontiumDog

Thai-ASEAN News Network

The Wonders of Semantics 

UPDATE : 30 August 2011                     

Over 15 million eligible voters, ranging the  gamut of Thai society, last month cast their ballots in favor of the  Pheu Thai Party, granting the new government leaders an ironclad mandate  in Parliament to do as they please. Though some may have voted due to  an allegiance to the party and its ties to ousted premier Thaksin  Shinawatra, there are undoubtedly those that placed their faith in Pheu  Thai believing that it would make good on its very enticing assurances.  Runners in the party avoided using the term 'promise' on the campaign  trail as it is actually banned by election law, but were full ready to  toss out the word 'assurance' at every opportune moment.

Safely in power now, however, it has been revealed that the 'assurances'  that filled the voting public with so much hope and optimism were mere  'campaign techniques' that should not have been attached to any  certainty.

One such assurance that has been exposed to be a completely lip-said  proclamation is that of the minimum wage hike to 300 baht per day. Its  not that the project has been scrapped, but rather that the word 'wage'  has been replaced with 'income'. The reason Pheu Thai prefers the slight  change in wording is because it allows them a vast amount of wiggle  room in implementing what was assured during the campaign; for it is the  word 'wage' that is used in the nation's Labor Act when specifying a  set rate of money to be paid by an employer to an employee upon  fulfilling the employee's duty. A 'minimum wage' of course is the least  amount an employer can employ a laborer as set by the state.

The word 'income', meanwhile, is defined as benefits derived from  employment which may be monetary, but can also be given in the form of  shelter, food, transport and even uniforms. Income includes wage, but  employers are not compelled by law to furnish their employees with any  further 'income' if not needed.

The switch up has had employers cheering after a tense month of fearing  that they would have to up minimum wages, which in some areas are below  200 baht, to the proposed 300 baht. Widening the smile on their faces is  another government plan to reduce corporate tax from 30 percent to 23  percent, an act the administration says was conceptualized to assist  employers pay the increased minimum wage, which is no longer compulsory.

While it may be true, Thai companies pay a corporate tax higher than  other regional countries such as Hong Kong and Singapore, every single  percent cut from the rate means an annual loss of 15 billion baht to  state revenue. This loss, through the wonders of semantics will be a  direct gain of employers and employers alone as there is no requirement  that they pass their savings along to Thailand's suffering workforce.

Even though words may be easy to twist and meanings easy to manipulate,  people and emotions are not so malleable as to simply be complacent when  their hopes and dreams are made out to be built on lies. Giving  half-hearted 'assurances' may make for good 'campaign technique' but  they make for poor governance and are not only a disservice to voters  but to the sacredness of democracy all together.

*Matichon, August 30, 2011

Translated and Rewritten by Itiporn Lakarnchua*

----------


## The Bold Rodney

^^^
Wage = payment for labour or services to a worker, especially remuneration on an hourly, daily, or weekly basis or by the piece.

Income = The amount of money or its equivalent received during a period of time in exchange for labor or services, from the sale of goods or property, or as profit from financial investments.

I suppose it's time to snipe, whine and split hairs againnnnnnnnnnnnn?  :Roll Eyes (Sarcastic): 

Something definitely got lost in this translation and definitely by design!

Rewritten by Itiporn Lakarnchua...(wanker)  :rofl:

----------


## LooseBowels

You have to remember that the 300 baht pledge was made on the basis of abisits junta proxy governments financial figures.   :Smile: 
In actual fact now that the legal democratic government is duly elected to power it became clear that abisits proxy government had lied about the state of the countries finances and they had been raped and pillaged by them.

But whats 300baht a day, I'd like to see the PAD yellow nutter falangs on here get by on that, on second thoughts cos most of em are on the run they prolly do.

You can't argue with that

----------


## OhOh

Politicians lie, get used to it.

----------


## The Bold Rodney

> Politicians lie, get used to it.


May I add to that "and live with it"?  :Roll Eyes (Sarcastic):

----------


## OhOh

> Originally Posted by OhOh
> 
> Politicians lie, get used to it.
> 
> 
> May I add to that "and live with it"?


And spoil a good verbal fight, no way

----------


## StrontiumDog

*Wage hike will begin in only 7 provinces

PRE-POLL PROMISES* 

*Wage hike will begin in only 7 provinces*

                            By THE NATION
                                             Published on September 1, 2011                


*Labour committee warns if it's not implemented across country, it could be public deception*

                                                            The Pheu Thai-led government risks raising the ire of  blue-collar workers by lifting the minimum wage to Bt300 next year in  just seven provinces, not at once across the whole country.

"The  immediate hike in the minimum daily wage across the country was a  highlight of the Pheu Thai Party's election campaign," Wilaiwan sae Tia,  vice president of the Thai Labour Solidarity Committee (TLSC), said  yesterday. 

"If the Pheu Thai Party fails to keep its word, its empty promise  may be considered public deception. We will consult with legal experts  and academics about the issue," he said. 

Labour Minister Padermchai Sasomsap said the party's hallmark  policy would be implemented first in Bangkok, Samut Prakan, Samut  Sakhon, Pathum Thani, Nakhon Pathom, Nonthaburi and Phuket.  

More than three million workers are expected to benefit. 

Somkiat Chayasriwong, permanent secretary of the ministry, said  the plan was possible because the current wage rate in those provinces  is now quite close to Bt300, so employers should not be too bothered. 

In Phuket it is Bt221 and in the other provinces Bt215. 

All parties must discuss the issue with the Central Wage  Committee in the middle of the month before coming to any conclusion, he  said.  

"I think things should become clear by October. We hope to see the new wage take effect on January 1," he said. 

The minimum wage in other provinces may rise by 40 per cent first and to Bt300 later, he added.  

TLSC is not happy about this, though.  

TLSC president Chalee Loysoong said all workers around the  country were suffering from the rising cost of living and deserved a  similar wage.  

In Phayao, the rate is just Bt159. 

On Monday, Chalee would present information on inflation,  workers' income and household expenses at a press conference to make  clear why the Bt300 wage should be applied to all workers.  

On September 14, the Central Wage Committee will meet to discuss the wage-hike plans.  

Pannapong It-atthanon, who sits on the committee as a  representative of employers, said small businesses would incur severe  problems dealing with the government's move.  

"If the government takes sides with workers, it will be hard for  us to do anything. The representatives of employers may walk out the  first time the Central Wage Committee considers this issue but our  boycott won't mean anything when the committee picks up the issue again.   

"Our walkout for the second time won't affect the quorum," he said.  

Now, employers could only pin their hopes on the representatives  from the Finance Ministry, National Economic and Social Development  Board and Commerce Ministry, who should recognise the ramifications of  the big jump in minimum wages, he added.  

Somkiat said the government would consider remedial assistance for those employers experiencing the greatest difficulties.  

"The labour minister will hold discussions on the measures with  Deputy Prime Minister Kittiratt na Ranong and Commerce Minister  Thirachai Phuvanatnaranubala late this week," he said.  

Yongyuth Chalamwong, director of labour research at the Thailand  Development Research Institute, said the government might use tax relief  to cushion the blow to employers.

----------


## jamiejambos

> Originally Posted by LooseBowels
> 
> I would like to see the coalition tax the very same falang nutters till the pips squeek and give it to those same "peasants"
> 
> 
> better idea, kick out the farang keenok like yourself who are on a 30,000 THB monthly budget and don't contribute anything to the country materially


Well,sir as i myself see it,the so-calld farang kee-nok are contributing their 30,000 THB  per mnth,360,000 per annum,What, sir are you contributing ??????? :kma:  :kma:   Apart from your own sad self .......

----------


## StrontiumDog

*Bangkok Post : B15,000/month from Jan 1
*
*B15,000/month from Jan 1*
Published:  1/09/2011 at 03:16 PMOnline news:
 The Finance Ministry has assigned the  Comptroller General's Department to work out a programme to ensure a  minimum monthly income of 15,000 baht per month for state employees with  a bachelor's degree, to be presented to the cabinet by the middle of  this month.

 The new rate is expected to start from Jan 1, Deputy Finance Minister Wirun Techapaiboon said on Thursday.

 According to the Comptroller General's Department's draft programme  submitted to the ministry, there are five categories of state employees  with bachelor's degrees eligible for a raise.

 They are civil servants, permanent employees, temporary staff hired  with a state budget, contracted employees, and military personnel.

 There are now 649,323 government officials and employees receiving  less than 15,000 baht per month.  Of these, 346,365 have a bachelor's  degree or better and 302,958 do not.

 Those with a degree would be paid a subsistence allowance in addition  to their current salary, to raise the total to  a minimum 15,000 baht   per month.

 Officials without a degree but earning more than 9,000 baht per month  would get a subsistence allowance to lift  their income to 12,285 baht  per month.

 Those on less than 9,000 baht per month would get a allowance to increase their income to 9,000 baht per month.

 This would cost about 24.5 billion baht extra in the first year.

 "This programme, to be proposed by the Finance Ministry for cabinet  approval, is in line with the government's policy to increase state  officials' income to meet the cost of living and to spur the economy,"  Mr Wirun said.

 "The programme is expected to start in January 2012.  It will be a New Year's present to state employees. 

 "The Comptroller General's Department has been assigned to also  consider a similar increase in income for other groups of officials," Mr  Wirun said.

----------


## StrontiumDog

*Labour grouups push for wage rise nationwide
*
*Labour groups push for wage rise nationwide*

                            By THE NATION
                                             Published on September 2, 2011                

*Two leading labour organisations are demanding that  the government raise the minimum daily wage to Bt300 across the country  from next month onward.*

                                                            "We hope to see the hike take effect from October,"  Manas Kosol said yesterday in his capacity as president of the National  Congress of Thai Labour.

 He said workers should be allowed to enjoy higher pay at  around the same time as civil servants and state-enterprise employees,  who will all get their wages hiked in October. 

 Manas said his organisation would join hands with the Thai  Labour Solidarity Committee to push for workers across the country to  get the Bt300 minimum daily wage. 

 On Wednesday, the government unveiled a plan to increase the  minimum daily wage to Bt300 from January 1 onward, but in just seven  provinces initially. This is an attempt to honour one of the Pheu Thai  Party's campaign pledges.

 "During its election campaign, Pheu Thai Party promised to  raise the minimum daily wage for all workers at the same time," Manas  said yesterday.

 Many employers, meanwhile, complained that the government should not push for the hike in the daily minimum wage. 

 The government should let the Central Wage Committee consider  the issue in line with law, they advised. The Central Wage Committee  comprises representatives of workers, employers and government agencies.  

 The Department of Labour Protection and Welfare said it would  seek another Bt200 million to offer compensation to workers who are  unfairly laid off. The move is apparently planned in the belief that  increasing the minimum daily wage to Bt300 would lead to lay-offs. 

 "Currently, the fund has Bt273 million, but will likely need  another Bt200 million," the department's director-general Amporn  Nitisiri said.

----------


## StrontiumDog

PTT to adopt daily minimum wage hike policy in 2012 : National News Bureau of Thailand

*PTT to adopt daily minimum wage hike policy in 2012 *  

 

BANGKOK, 2 September 2011 (NNT) – Domestic refinery and retailer PTT Plc  is preparing to increase the daily minimum wage to 300 baht beginning 1  January 2012 following the policy of the Pheu Thai-led government. 

PTT Plc CEO and President Prasert Bunsumpun announced that the minimum  wage hike will be applied to labourers holding direct contracts, and the  company will shoulder the rising operating cost of over 500 million  baht per year. 

The president elaborated that the minimum wage will be adjusted for PTT  workers in major provinces first such as Bangkok, Nonthaburi,  Pathumthani, Nakhon Pathom, Samut Sakhon, Samut Prakan and Phuket while  wages in other provinces will be adjusted in due course. 

As for employees working in PTT petrol stations owned by private  entrepreneurs, Mr Prasert said the PTT has a policy to encourage those  owners to adopt the same policy by raising the minimum wage at the  beginning of next year. He said studies are being made on how the PTT  can support the entrepreneurs to do so. 

The president expressed his hope that the daily minimum wage hike policy  will be able to uplift life quality of labourers working in the company  as well as boost their morale which will lead to greater operational  efficiency later on.

----------


## StrontiumDog

Thailand to Raise Minimum Wage - WSJ.com
SEPTEMBER 2, 2011*Thailand to Raise Minimum Wage* 

*By ORANAN PAWEEWUN                And LEIGH MURRAY* 

BANGKOK—The Thai government will raise the minimum  monthly wage of civil servants to 15,000 baht (about $500) as of Jan. 1,  Deputy Finance Minister Viroon Techapaiboon said.

 The increase from the current 10,000 baht will cost the government 20  billion baht a year, he said on Thursday. The government also hopes to  encourage private-sector companies to raise the starting monthly salary  of newly graduated employees to 15,000 baht. 

 The prospect of the pay raise has spurred concerns about an increase  in price pressures. Inflation in Thailand accelerated last month, with  the consumer price index up 4.29% from a year earlier, compared with  July's 4.08%, Commerce Ministry Permanent Secretary Yanyong Phuangrach  said. 

 The acceleration, driven by food and fuel prices, also raises the  prospect of further policy-rate increases even though the central bank  expects upward pressure on core inflation to ease.

 "This upward surprise on inflation is rather worrying," said  Santitarn Sathirathai, an economist with Credit Suisse in Singapore.  "Inflation pressure is still very much alive" with the risk of core  inflation breaching the upper end of the central bank's range now  "incredibly likely." 

 Core CPI, which excludes energy and food costs, was up 2.85% from a  year earlier, still within the central bank's 0.5% to 3% target range.  The August CPI was up 0.43% from a month earlier, while core CPI was up  0.27%.

 A Dow Jones Newswires poll of six economists had forecast the CPI  would be up 3.97% from a year earlier and 0.1% from the previous month,  while core CPI would be up 2.7% and 0.04% over those periods.

 Mr. Yanyong told a news conference the ministry still expects  headline inflation for the full year to be 3.7%, with price pressures  starting to ease in the fourth quarter because of declining oil prices. 

 Separately, Bank of Thailand Governor Prasarn Trairatvorakul said  Thursday he now believes softer oil prices should help prevent the  central bank's inflation target from being breached this year—a switch  from his previous projection. 

 Still, Credit Suisse's Mr. Sathirathai said the upward surprise in  August inflation may complicate the Bank of Thailand's next monetary  policy decision on Oct. 19, particularly given signs of an economic  slowdown. 

 After raising its policy rate by 0.25 percentage point to 3.5% on  Aug. 24, bringing the total increase since the upward cycle began in  July 2010 to 2.25 percentage points, the central bank suggested the  cycle may soon end.

 The Bank of Thailand is under pressure to steer the economy, as the  new government has pledged to focus on economic growth. The central bank  prefers stability to growth.

----------


## Tom Sawyer

*Higher wages will do Thailand much good*

Published: 24/08/2011 at 10:35 AMNewspaper section: NewsThe recent debate over proposed changes to the statutory minimum wage in Thailand demonstrates the central importance of wages in a society and economy. Indeed, this may be an ideal opportunity for workers, employers and government to discuss the bigger picture of wages in general _ not only minimum wages _ and the policies that determine them.

Wages are at the heart of the International Labour Organisation's mandate. The ILO believe it is timely to offer some dispassionate views on wages in Thailand based on facts and figures available, and with reference to international labour standards developed over the past 90 years by member states, including Thailand, which is a founding member.

The ILO's analysis of global wages over the past 30 years reveals three clear trends. The share of wages in gross domestic product is falling while the share going to profits is rising; workers are reaping an ever smaller part of the national wealth.

In addition, wage growth is not keeping up with labour productivity growth, resulting in flat or diminishing real wages for most workers. Finally, income and wage inequality within countries, between the highest and lowest paid, is increasing.

Thailand's economic performance is strong. It is a world leader in manufacturing, food products, mining and tourism. Profits of companies listed on the Stock Exchange of Thailand as well as for foreign investors are robust. Unemployment is around 1.2%, and demand for workers is very high.

Yet these three trends _ decreasing wage share of GDP, flat wage growth and rising inequality _ are evident here.

The share of wages as a part of Thailand's national income has declined from 72% in 1995 to 63% in 2006.

Average real wage growth has been flat for most workers. Minimum wage rates have not kept up with inflation over the past 10 years. The country's Gini coefficient _ the measure of income inequality _ is 0.43, among the highest in Asia.

A minimum wage works most effectively when designed to ensure that the most vulnerable and lowest paid workers and their families can enjoy a basic standard of living.

Too low a minimum wage results in the phenomenon of ``working poor''.
Concerns have been raised about potential inflationary and employment effects of minimum wage increases. Recent rounds of inflation are unrelated to wage growth, since real wage growth in Thailand and most of the world is flat.
Rather, increased demand for raw materials and energy is driving up food and fuel prices.

Inflation is creating pressure for wage increases, rather than the opposite.
China's experience is interesting.

After years of suppressing wages, the government is now pursuing deliberate policies to increase both minimum and average wages. This has had no impact on aggregate employment, GDP growth or investment, although some low-cost industries have shifted inland, reducing pressure on internal migration.

In Thailand, higher wages may cause employment to drop in certain sectors of the economy that pay very low wages, but given the large overall demand for labour, these workers should be absorbed.

Moreover, higher wages will shift aggregate demand upwards and stimulate growth in the domestic economy.

Minimum wage policy must be complemented by other measures to raise average wages.

Employers must reward education, skills and productivity. Trade unions must be able to play a role in ensuring a greater return for workers.

The ILO has found that in countries where union bargaining power is strong, labour productivity growth and average wage growth are more closely linked.

Labour migration has a large impact on Thailand's wage and employment situation. Most analysis shows that inbound migrant workers have a dampening effect on wages for unskilled Thai labour.

To avoid this, migrant workers must be guaranteed the same minimum wage as Thai workers, and receive equal treatment under the law.

The Bangkok Post reported a recent survey in which over 97% of employers stated that they would respond to the proposed minimum wage increase by hiring more migrant workers.

These employers might presume that they can pay migrants less than the legally required minimum.

Meanwhile, tens of thousands of skilled Thai workers go abroad to earn higher wages than they can in their home country.

Some policy-makers in Thailand have raised the possibility of a tax deduction in exchange for the minimum wage increase. A number of countries around the world have successfully introduced incentives to increase wages based on corporate profits or stock performance.

These profit-sharing schemes, which tend to be adopted by larger companies, are then subject to different tax treatment.

Support targeted at small- and medium-sized enterprises that may be disproportionately affected by an increase in minimum wage, could include other kinds of tax deductions, better access to credit, and training on a range of productivity-enhancing measures that will make increased wages more affordable.
All such schemes should be reviewed regularly to ensure that they meet stated objectives.

Rebalancing the global economy following the financial crisis will require export-oriented countries to stimulate domestic demand and consumption. Wages are a vital component of domestic demand, making wage policy central to this debate, as well as to a more equitable future for Thailand.

----------


## socal

[quote=Tom Sawyer;1861509]*Higher wages will do Thailand much good*
Published: 24/08/2011 at 10:35 AMNewspaper section: News


> The recent debate over proposed changes to the statutory minimum wage in Thailand demonstrates the central importance of wages in a society and economy. Indeed, this may be an ideal opportunity for workers, employers and government to discuss the bigger picture of wages in general _ not only minimum wages _ and the policies that determine them.
> 
> Wages are at the heart of the International Labour Organisation's mandate. The ILO believe it is timely to offer some dispassionate views on wages in Thailand based on facts and figures available, and with reference to international labour standards developed over the past 90 years by member states, including Thailand, which is a founding member.
> 
> The ILO's analysis of global wages over the past 30 years reveals three clear trends. The share of wages in gross domestic product is falling while the share going to profits is rising; workers are reaping an ever smaller part of the national wealth.
> 
> In addition, wage growth is not keeping up with labour productivity growth, resulting in flat or diminishing real wages for most workers. Finally, income and wage inequality within countries, between the highest and lowest paid, is increasing.



Let the Baht float higher, that is the only natural way of raising wages.


> Thailand's economic performance is strong. It is a world leader in manufacturing, food products, mining and tourism. Profits of companies listed on the Stock Exchange of Thailand as well as for foreign investors are robust. Unemployment is around 1.2%, and demand for workers is very high.
> 
> Yet these three trends _ decreasing wage share of GDP, flat wage growth and rising inequality _ are evident here.


That is because they are suppressing the baht. A higher baht has the same effect as a higher wage only better. A higher baht makes everything priced in US dollars(oil, energy, food) cheaper for Thais.





> The share of wages as a part of Thailand's national income has declined from 72% in 1995 to 63% in 2006.
> 
> Average real wage growth has been flat for most workers. Minimum wage rates have not kept up with inflation over the past 10 years. The country's Gini coefficient _ the measure of income inequality _ is 0.43, among the highest in Asia.


The baht has risen allot over the last 10 years and they are not accounting for that. That is a raise in the hourly purchasing power of their labor.




> A minimum wage works most effectively when designed to ensure that the most vulnerable and lowest paid workers and their families can enjoy a basic standard of living.


That is wrong. Singapore and Germany have no minimum wages. 




> Too low a minimum wage results in the phenomenon of ``working poor''.
> Concerns have been raised about potential inflationary and employment effects of minimum wage increases. Recent rounds of inflation are unrelated to wage growth, since real wage growth in Thailand and most of the world is flat.
> Rather, increased demand for raw materials and energy is driving up food and fuel prices.


Real wage growth in Singapore is up allot because they are allowing their currency to rise which is the opposite of inflation.




> Inflation is creating pressure for wage increases, rather than the opposite.
> China's experience is interesting.


China has the same problem as Thailand only 10 times worse. The problem is that the Central bank of China has the RMB pegged way too low which forces them to print more RMB to but dollars to manage the peg. Drop the peg and the inflation is gone.




> After years of suppressing wages, the government is now pursuing deliberate policies to increase both minimum and average wages. This has had no impact on aggregate employment, GDP growth or investment, although some low-cost industries have shifted inland, reducing pressure on internal migration.


Let the market find equilibrium for wages, not clueless govt. 



> In Thailand, higher wages may cause employment to drop in certain sectors of the economy that pay very low wages, but given the large overall demand for labour, these workers should be absorbed.
> 
> Moreover, higher wages will shift aggregate demand upwards and stimulate growth in the domestic economy.


A higher CURRENCY will cause employment to drop in certain areas(tourism) but given overall demand for labour, these workers will be absorbed.

Moreover, a higher CURRENCY will shift aggregate demand for domestic consumption because workers will pay less for everything priced in USD (food, energy) and have more discretionary income to spend on other things



> Minimum wage policy must be complemented by other measures to raise average wages.


Minimum wages are totally irrelevant. The only way for people to realize a high standard of living is if the currency rises.




> Employers must reward education, skills and productivity. Trade unions must be able to play a role in ensuring a greater return for workers.
> 
> The ILO has found that in countries where union bargaining power is strong, labour productivity growth and average wage growth are more closely linked.


labour unions bankrupted General Motors



> Labour migration has a large impact on Thailand's wage and employment situation. Most analysis shows that inbound migrant workers have a dampening effect on wages for unskilled Thai labour.
> 
> To avoid this, migrant workers must be guaranteed the same minimum wage as Thai workers, and receive equal treatment under the law.


Again, Singapore and Germany have no minimum wages and they are the best economies in the world. 





> Some policy-makers in Thailand have raised the possibility of a tax deduction in exchange for the minimum wage increase. A number of countries around the world have successfully introduced incentives to increase wages based on corporate profits or stock performance.
> 
> These profit-sharing schemes, which tend to be adopted by larger companies, are then subject to different tax treatment.


Cuba ?




> Support targeted at small- and medium-sized enterprises that may be disproportionately affected by an increase in minimum wage, could include other kinds of tax deductions, better access to credit, and training on a range of productivity-enhancing measures that will make increased wages more affordable.
> All such schemes should be reviewed regularly to ensure that they meet stated objectives.


All socialist government distortions that do nothing but harm an economy which makes the economy less competitive which drives down the value of the currency which drives down the living standard of the people. This is where all basket case economies start.




> Rebalancing the global economy following the financial crisis will require export-oriented countries to stimulate domestic demand and consumption. Wages are a vital component of domestic demand, making wage policy central to this debate, as well as to a more equitable future for Thailand.


Rebalancing the global economy following the financial crisis will  require export-oriented countries to stimulate domestic demand and  consumption. The CURRENCY is the most vital component of domestic demand. The more the currency is worth against the reserve currency, the cheaper food and energy becomes.

----------


## sabang

> The more the currency is worth against the reserve currency, the cheaper food and energy becomes.


Only if it is imported. For domestic manufactures & commodities, the opposite is the case. Australia is a classic case in point.



> labour unions bankrupted General Motors


Nope- poor management bankrupted GM. And United Airlines, Chrysler, etc etc.
American management is very good at blaming the unions, and raiding their pension funds, selling off assets, shipping jobs overseas etc- while doing nothing to address the underlying issue of poor product and service quality. Germany is the largest exporter in the world, and is highly unionised. They also pay more (apart from top management, obviously)- and I don't see them blaming the unions. Irrelevant to Thailand anyway- unions here are just a thinly disguised organ of the establishment- state sector unions in particular were very prominent in the PAD economic vandalism.

Thailand suffers from a very real structural problem, namely it has an increasingly uncompetitive agricultural sector that takes up an inordinately high level of employment, and is buoyed by unsustainable subsidies. To rationalise, more jobs need to be created in the service and manufacturing sector. If the 'thaksinomics' experience is anything to go by, a tangible rise in the minimum wage will have a considerably Multiplier effect on the service economy in particular, particularly in the largely rural sector provinces. That means more jobs, to take the overspill from the land.

Coming back to Australia, the capital intensive, massive farms there are now pushing out rice and other staples far cheaper than supposedly low cost Thailand can do- this in spite of a very strong currency. Somchai with his Kubota 'iron horse', odd shaped little paddies, and 20 rai just can't compete.

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## socal

[quote=sabang;1861767]


> The more the currency is worth against the reserve currency, the cheaper food and energy becomes.





> Only if it is imported. For domestic manufactures & commodities, the opposite is the case. Australia is a classic case in point.


That's wrong. Commodities are priced on international exchanges. 




> labour unions bankrupted General Motors





> Nope- poor management bankrupted GM. And United Airlines, Chrysler, etc etc.
> American management is very good at blaming the unions, and raiding their pension funds, selling off assets, shipping jobs overseas etc- while doing nothing to address the underlying issue of poor product and service quality. Germany is the largest exporter in the world, and is highly unionised. They also pay more (apart from top management, obviously)- and I don't see them blaming the unions. Irrelevant to Thailand anyway- unions here are just a thinly disguised organ of the establishment- state sector unions in particular were very prominent in the PAD economic vandalism.


Regardless what happened at GM. If you think that unions are the answer to creating  high standards of living then you are hopeless. 




> Thailand suffers from a very real structural problem, namely it has an increasingly uncompetitive agricultural sector that takes up an inordinately high level of employment, and is buoyed by unsustainable subsidies. To rationalise, more jobs need to be created in the service and manufacturing sector. If the 'thaksinomics' experience is anything to go by, a tangible rise in the minimum wage will have a considerably Multiplier effect on the economy, in particular the largely rural sector provincial economies.


It is good to have an uncompetitive agricultural sector because it means that a country poorer then the Thai's can grow rice for less then they can. That is the essence of a rising standard of living. More jobs will be created in the service sector when Thai's have more discretionary income to spend because they are paying less for food and energy. A higher value currency is a raise of minimum wages, it is a raise for anyone getting paid in baht.




> Coming back to Australia, the capital intensive, massive farms there are now pushing out rice and other staples far cheaper than supposedly low cost Thailand can do. Somchai with his Kubota 'iron horse', odd shaped little paddies, and 20 rai just can't compete.


Thailand still has the biggest rice industry in the world. Australia cannot come close to supplying the market. If Australia can produce any rice at competitive prices with debt and capital intensive farms then obviously the Aussy dollar is overvalued and the Thai baht is undervalued. A look at the chart also indicates that the US dollar is overvalued too.

*Top Rice Exporters by Country*

 The rice exporting countries on the list below are responsible for 97% of world rice exports, led by Thailand.
Thailand  10 million tons (34.5% of global rice exports)India  4.8 million tons (16.5%)Vietnam  4.1 million tons (14.1%)United States  3.1 million tons (10.6%)Pakistan  1.8 million tons (6.3%)China (including Taiwan)  901,550 tons (3.1%)Egypt  836,940 tons (2.9%)Italy  668,940 tons (2.3%)Uruguay  609,170 tons (2.1%)Spain  346,030 tons (1.2%)Argentina  257,750 tons (0.9%)Guyana  256,330 tons (0.9%)United Arab Emirates  164,350 tons (0.6%)Belgium-Luxembourg  157,190 tons (0.5%)Myanmar  150,030 tons (0.5%).

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## sabang

> That's wrong. Commodities are priced on international exchanges.


Yes, and domestic manufactures aren't. It doesn't alter the fact that, as your currency rises, you receive 'less' (in local terms) for commodities, while your domestic costs are rising. In the case of commodities, this is a very minor point in Australia. In the case of manufacturing, quite critical. There is little Aussie industry left, and I believe GM are looking for a bailout from the government there too.



> If you think that unions are the answer to creating high standards of living then you are hopeless.


I don't think unions are the answer, and I certainly know unfettered management and capital isn't- just look at the comparitive experience of Germany and the US. It's pretty obvious which country has done better in both export performance and domestic income terms- so it rather blows the 'blame the unions' crowd out of the debate.

As far as rice is concerned, from the FAO-

_With annual average output of 1.35 million tons, Australia is not a major rice producer. But it is an important rice exporter: about 85% of the harvest is exported and up to 40 million people across the globe eat Australian rice every day. Australians themselves consume just 10 kg per head a year. 

Australian rice growers are considered among the most efficient and productive in the world.
_
IYR 2004: All about rice: Australia

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## socal

[quote=sabang;1861780]


> That's wrong. Commodities are priced on international exchanges.





> Yes, and domestic manufactures aren't.


Yes, domestic manufacturers are. 



> It doesn't alter the fact that, as your currency rises, you receive 'less' (in local terms) for commodities


But you are also paying more, in international terms for commodities when your currency falls. The more you pay for commodities in international terms, the lower your standard of living is. If other countries have more competitive prices for commodities then why export the commodity ? Just import it if your currency is worth that much and the people of the country will have more income to spend on other things, like vacations to countries that are poorer then them because their currency is worth less.




> , while your domestic costs are rising


You only export in order to pay for imports. Exports are what you pay for imports. If domestic costs rise and put some industry out of business, it is bad for that particular business but good for everyone else in the country because they can afford to invest in more capital intensive industry.




> . In the case of commodities, this is a very minor point in Australia. In the case of manufacturing, quite critical. There is little Aussie industry left, and I believe GM are looking for a bailout from the government there too.


Why manufacture if you can afford to import it ? 





> If you think that unions are the answer to creating high standards of living then you are hopeless.





> I don't think unions are the answer, and I certainly know unfettered management and capital isn't- just look at the comparitive experience of Germany and the US. It's pretty obvious which country has done better in both export performance and domestic income terms- so it rather blows the 'blame the unions' crowd out of the debate.


Germany has a savings rate that is always double digit. It is always 10%+, same with Japan. The US, since the 80's has never had a savings rate in double digits. In the last 10 years it has been under 5% and even negative. What Germany does blow out of the water is the idea that you need a low currency to stay competitive in exports. Germany has a higher value currency then the US yet it has trade surpluses with China. Japan is one of the biggest creditor nations in the world and it has no natural resources. It also has a trade surplus with China. I never said the unions where totally at fault either. 




> As far as rice is concerned, from the FAO-
> 
> _With annual average output of 1.35 million tons, Australia is not a major rice producer. But it is an important rice exporter: about 85% of the harvest is exported and up to 40 million people across the globe eat Australian rice every day. Australians themselves consume just 10 kg per head a year. 
> 
> Australian rice growers are considered among the most efficient and productive in the world.
> _
> IYR 2004: All about rice: Australia


That just proves that savings and capital is the key to wealth and a high standard of living. Not minimum wage laws, labor unions and bullshit.  How is Thailand going to afford more efficient irrigation systems if their currency is constantly being devalued ?

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## Buksida

Sabang, did you miss this?




> One of the reasons for T's enduring popularity is he raised incomes 40% in real terms.


Do you have a link or further info on this? Who were the main beneficiaries of this 40% wage increase?




> Why manufacture if you can afford to import it ?


To create jobs, give people something to do that and the sense of worth that comes from being skilled. This is sadly missing in Thailand, where the only thing valued is money.




> Originally Posted by *socal* 
> _If you think that unions are the answer to creating high standards of living then you are hopeless._


Unions are part of the answer, besides increasing wages, they create safer work places and a more skilled workforce.

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## sabang

Why are you referring to a weak Bht Socal- with the exception of Australia, the baht has been about the strongest currency out there in recent years.  :Confused: 

Many large employers and economic groups have said the same thing- a minimum wage rise is good for Thailand, and it also happens to be overdue. Implementation is the key. It will have a profound Multiplier effect on the domestic economy, particularly in the Provinces. That is quite important to tackle Thailands structural problems.

The structural problems facing Los are real, and they are not to do with minimum wage costs or wages as a percentage of manufacturing costs- which are both very low. They are to do with an increasingly uncompetitive agricultural sector, a dislocated economy in the Provinces (ie most of Thailand) that more resembles the third world in labor allocation than an NIC (ie too many agricultural laborers, not enough service and manufacturing sector jobs), and an abysmal education system that is currently inadequate to meet these challenges.

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## DrB0b

> Sabang, did you miss this?
> 
> 
> 
> 
> 
> 
>  Originally Posted by sabang
> 
> ...


Are you congenitally incapable of finding out anything for yourself? At least this inability serves to highlight that your loudly stated opinions are based on absolutely nothing.

Firstly "raising income in real terms" is not the same as a "wage increase". That should be obvious but as with so much that is obvious it seems to have passed you by.
Secondly, here are the links you asked for and which I have no doubt you'll, as usual, totally ignore. I post them for those who have a genuine, rather than a pretended to justify their ignorance, interest in the subject;

Economic Data, 1995–200
Thailand Economic Monitor November 2005
Asian Development Outlook 2006: Thailand

----------


## sabang

> Sabang, did you miss this?
> 
> Quote:
> Originally Posted by sabang  
> One of the reasons for T's enduring popularity is he raised incomes 40% in real terms.
> Do you have a link or further info on this? Who were the main beneficiaries of this 40% wage increase?


_Economic Policies

Thaksin's government designed its policies to appeal to the rural majority, initiating programs like village-managed microcredit development funds, low-interest agricultural loans, direct injections of cash into village development funds (the SML scheme), infrastructure development, and the One Tambon One Product (OTOP) rural small and medium enterprise development program.

Thaksin's economic policies, helped Thailand recover from the 1997 Asian Financial Crisis and substantially reduce poverty. GDP grew from 4.9 trillion baht in 2001 to 7.1 trillion baht in 2006. Thailand repaid its debts to the International Monetary Fund two years ahead of schedule.

Income in the Northeast, the poorest part of the country, rose by 46% from 2001 to 2006. Nationwide poverty fell from 21.3% to 11.3%. Thailand's Gini coefficient, a measure of income inequality, fell from .525 in 2000 to .499 in 2004 (it had risen from 1996 to 2000) ). The Stock Exchange of Thailand outperformed other markets in the region. After facing fiscal deficits in 2001 and 2002, Thaksin balanced the national budget, producing comfortable fiscal surpluses for 2003 to 2005. Despite a massive program of infrastructure investments, a balanced budget was projected for 2007. Public sector debt fell from 57 per cent of GDP in January 2001 to 41 per cent in September 2006. Foreign exchange reserves doubled from US$30 billion in 2001 to US$64 billion in 2006
_
Thaksin Shinawatra - Wikipedia, the free encyclopedia

I didn't miss it buksida, I just grew tired of repeating myself ad infinitum several months ago. There are several more detailed analyses out there, some of which I have referenced in previous Posts if you can be bothered going back several months.

But lets keep it simple- both Capital and Labor did well during the Thaksin years, accompanied by a reduction of government debt.

----------


## Buksida

> Originally Posted by Buksida
> 
> 
> Sabang, did you miss this?
> 
> 
> 
> 
> 
> ...


Your like a old dog Dr.BOb, loyal to the senile end, attacking completely without reason.

Was there anything in my question that indicated I thought 'raising income in real terms' was the 'same as wage increase'. Time for new glasses?

Anyway, thanks for the documents, surely it would have been easier to have posted them without all the abuse?

----------


## StrontiumDog

*Bangkok Post : Kittiratt defends 300 baht minimum wage policy
*
*Kittiratt defends 300 baht minimum wage policy*
Published:  3/09/2011 at 12:00 AMNewspaper section: News
 The government has yet to deliver its election  campaign promise of a 300 baht minimum wage and starting salary of  15,000 baht for bachelor degree graduates, notes Thai Rath.

 _
The government is confident that private employers will agree to  implement its policy of a 300 baht minimum daily wage for workers,  despite their concerns that it could hurt their bottom line. The  coalition government says it is pressing ahead with the policy despite  concerns on other fronts too, including that it will make Thai  businesses uncompetitive compared to others in the region._

 Employer groups insist the 300 baht minimum wage policy must be  decided by the tripartite committee set up under the law to prescribe  the country's minimum wage, not by the government alone.

 They also argue that it is unrealistic to enforce a uniform minimum  wage throughout the country as the cost of living in each province is  not the same.

 Some SME (small, medium enterprise) industries have also complained  that they cannot afford to pay a 300 baht minimum wage for unskilled  workers as they cannot absorb the increased costs.

 Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong, interviewed here, is taking the criticisms in his stride.

*Is it certain that the 300 baht minimum wage will be enforced on Jan 1 next year?*

 It can begin before that. Let's talk about the implementation steps.  If the government issues an instruction through the tripartite committee  to enforce the 300 baht minimum wage nationwide and employers don't  want to pay, then unemployment results, making the policy ineffective.  The government wants people to have jobs as well as higher wages. The  government, as the biggest employer, knows that some government workers  earn less than 300 baht a day. This can be easily fixed.

 However, the policy of paying a 15,000 baht starting salary to  bachelor degree graduates will be harder as there is no legal body such  as the tripartite committee to prescribe a minimum salary for a degree  holder.
 We must lead the way, which means revising the budget.

 The other day I met the labour union federation. They asked me whether the government can implement the minimum wage on Jan 1.

 I told them they had been waiting for so long that it did not hurt to  wait a little longer. I told them that if we failed to implement the  policy, the government would probably not be re-elected.

*What is the principle behind the starting salary of 15,000 baht for bachelor degree graduates?*

 Income redistribution, or the idea that the lowest-income people must get help.

 I don't believe it is necessary to raise salaries for all workers as claimed by some businessmen.

 But workers who get 16,000-18,000 baht may get an appropriate raise  as well. Those on higher incomes, meanwhile, should make a sacrifice.

*Do we know how many civil servants and state workers are eligible?*

 I cannot recall. If we haven't allocated enough, we can divert money from other projects.

 One must realise that Thailand is not in a dire state such as when we  faced unemployment as high as 7-8%. That's when earning even a small  wage is better than being jobless. Right now the country has nearly full  employment.

 Those who oppose raising salaries tend to come from labour intensive industries employing many cheap foreign workers.

*My question is, do we really want to rely on foreign workers to drive our growth?*

 But will the policy of raising the minimum wage and starting salary  of bachelor degree graduates drive out Thai workers to be replaced by  alien workers?

 If we want to continue to grow our businesses through cheap labour,  we must allow illegal alien workers to enter the country. There is no  need to increase the minimum wage as the present wage is attractive  enough for alien workers.

*What will happen if the private sector does not follow the wage and salary hike in the government sector?*

 I have met Dhanin Chearavanont, chairman of the CP Group, who says  that even if the government does not implement the pay rises, he will go  ahead anyway. Mr Dhanin says it could cost the group about 1 billion  baht. He says he believes workers should be paid more to cope with high  prices.

 I have also received word from the Bangchak oil refinery, another big  employer, that even petrol station hands will get 300 baht a day. I  believe other companies will follow their lead.

 Pheu Thai campaigned for a 300 baht minimum wage throughout the  country. Now you say it will start in the state sector, and in Bangkok  first. The rest must wait for the tripartite committee's resolution.

 Any government worker in Bangkok, Mae Hong Son or Krabi will get 300 baht when the revised budget comes into force.

 Any 7-11 worker will get 300 baht because CP cooperates with the government.

*It seems the 300 baht minimum wage policy is not binding or  compulsory, but the government is asking the private sector to  cooperate?*

 We are not pressuring them, but trying to persuade the private sector to pay.

 Pheu Thai campaigned for a uniform 300 baht minimum wage policy. Now it seems you won't be able to deliver.

 It is easy to implement the wage rise through the tripartite  committee because the government has the votes of employee  representatives. In the past, the government always sided with the  employers. It is easy now to side with employees. But will it really be  good for the country?

 Several SMEs are protesting against the 300 baht minimum wage.

 Some said the wage rise could result in their running losses, but I  wonder if they have fixed their books to avoid paying corporate tax. Why  would they want to do that? The simple answer is the 30% corporate tax  rate is too high. Singapore's corporate tax is 18%, but Thailand is 30%.  How can we compete? That is why we will reduce it to 23% in 2012 and to  20% in 2013.

*What is the impact of the 300 baht minimum wage?*

 We will transform the country together. If we continue paying low wages, the country will suffer in the long run.

 We would continue to import illegal alien workers whose children are  born in Thailand but cannot enter Thai schools, creating social  problems.

 Riches will be concentrated in the hands of a few. We have to pray  that exports can grow at least 30% to achieve growth of 4%. We can  achieve 4% growth only by relying heavily on the export engine as our  domestic consumption is so weak.

 Isn't the point of GDP growth to distribute happiness throughout the  country? Should we rely so much on exports? What happens if our  customers can no longer buy so much from us?

*Several foreign investors say they would shift production to neighbouring countries if the wage rise goes ahead.*

 It does not mean that they will shut up shop in Thailand. I think it is a good thing that our neighbouring countries benefit.

*If new investments disappear, it means no new employment opportunity.*

 I think Thailand has enough capital already. Why worry about new  employment opportunities when the country is near full employment? Our  problem is low wages. We want full employment with high wages.

*Are you sure the government has enough clout to convince employers?*

 I am confident.

----------


## Buksida

> Originally Posted by Buksida
> 
> Sabang, did you miss this?
> 
> Quote:
> Originally Posted by sabang  
> One of the reasons for T's enduring popularity is he raised incomes 40% in real terms.
> Do you have a link or further info on this? Who were the main beneficiaries of this 40% wage increase?
> 
> ...


Fair enough, to be honest I didn't have the time to go back several months.

Thanks for the info and the civil reply.

----------


## DrB0b

> Was there anything in my question that indicated I thought 'raising income in real terms' was the 'same as wage increase'. Time for new glasses?


 :Confused: Err, yes. This.



> Originally Posted by sabang
> 
> 
> One of the reasons for T's enduring popularity is he raised incomes 40% in real terms.
> 
> 
> Do you have a link or further info on this? Who were the main beneficiaries of this 40% wage increase?

----------


## socal

[quote=Buksida;1861849]




> Why manufacture if you can afford to import it ?give people something to do that and the sense of worth that comes from being skilled. This is sadly missing in Thailand, where the only thing valued is money.


That is not what drives the world economy. You are commenting on economics like a mechanic would comment on heart surgery.



> Originally Posted by *socal* 
> _If you think that unions are the answer to creating high standards of living then you are hopeless._





> Unions are part of the answer, besides increasing wages, they create safer work places and a more skilled workforce.


Unions can be a luxury if you can afford them, like Germany. They are not a means of expanding an economy.

----------


## socal

[quote=sabang;1861853]


> Why are you referring to a weak Bht Socal- with the exception of Australia, the baht has been about the strongest currency out there in recent years.


It is still soft pegged to the USD, you can see it in the BOT reserves. The Bank of Thailand has finally started to let it appreciate.




> Many large employers and economic groups have said the same thing- a minimum wage rise is good for Thailand, and it also happens to be overdue. Implementation is the key. It will have a profound Multiplier effect on the domestic economy, particularly in the Provinces. That is quite important to tackle Thailands structural problems.


Germany and Singapore do just fine without them



> The structural problems facing Los are real, and they are not to do with minimum wage costs or wages as a percentage of manufacturing costs- which are both very low. They are to do with an increasingly uncompetitive agricultural sector, a dislocated economy in the Provinces (ie most of Thailand) that more resembles the third world in labor allocation than an NIC (ie too many agricultural laborers, not enough service and manufacturing sector jobs), and an abysmal education system that is currently inadequate to meet these challenges.


LOS has one of the lowest unemployment numbers in the world. LOS has almost a quarter trillion dollars in forex reserves. There is no major problems in Thailand. All they need to do is continue to let the baht rise.

----------


## Tom Sawyer

> LOS has one of the lowest unemployment numbers in the world.


That's deliberately misleading though. It reflects only the formal economy (e.g. those working for companies that pay taxes and collect social insurance premiums for the government). Most people work informally or under the table.. when they lose their jobs no one knows as they are not elligible for any kind of social security like unemployment benefits.

The majority of Thai workers are in the informal economy. Having said that I would agree that Thalland is in better shape than many western countries.

----------


## Hampsha

I see the 300 baht wage due but also a good thing for the province nearby. It will encourage employers to move just a tad more into the countryside. Something is better than nothing.

----------


## nostromo

> Why are you referring to a weak Bht Socal- with the exception of Australia, the baht has been about the strongest currency out there in recent years. 
> 
> Many large employers and economic groups have said the same thing- a minimum wage rise is good for Thailand, and it also happens to be overdue. Implementation is the key. It will have a profound Multiplier effect on the domestic economy, particularly in the Provinces. That is quite important to tackle Thailands structural problems.
> 
> The structural problems facing Los are real, and they are not to do with minimum wage costs or wages as a percentage of manufacturing costs- which are both very low. They are to do with an increasingly uncompetitive agricultural sector, a dislocated economy in the Provinces (ie most of Thailand) that more resembles the third world in labor allocation than an NIC (ie too many agricultural laborers, not enough service and manufacturing sector jobs), and an abysmal education system that is currently inadequate to meet these challenges.


Now that went over their heads no impact.

----------


## nostromo

> Originally Posted by socal
> 
> 
>  
> LOS has one of the lowest unemployment numbers in the world.
> 
> 
> That's deliberately misleading though. It reflects only the formal economy (e.g. those working for companies that pay taxes and collect social insurance premiums for the government). Most people work informally or under the table.. when they lose their jobs no one knows as they are not elligible for any kind of social security like unemployment benefits.
> 
> The majority of Thai workers are in the informal economy. Having said that I would agree that Thalland is in better shape than many western countries.



Actually Thailand is in better shape than Europe, or Eurozone. Why I moved my positions from euro to asia long time ago? I cant tell

----------


## StrontiumDog

NESAC to brainstorm on wage and salary rise policy : National News Bureau of Thailand

*NESAC to brainstorm on wage and salary rise policy* 

BANGKOK, 4 September  2011 (NNT)-National Economic and Social Advisory Council, NESAC will  conduct a brainstorming session on the government’s 300 THB minimum wage  policy and 15,000 THB salary for new graduates to find appropriate  solutions that would minimize impact on businesses once they are  implemented. 

Participants will consist of those who are from the labor and the  industry departments of the NESAC.  They will study the impact and how  these policies can be implemented. The NESAC said the wage and salary  rise should be executed slowly within 3-4 years to allow businesses to  adapt to the higher cost of production.  

The Council said if the government insisted to implement these policies  right away, it should also have a plan to help the industrial sector  cushion the financial burden that would eventually ensue as a result of  wage rise.

----------


## StrontiumDog

BMA to seek 3 billion THB for payraise : National News Bureau of Thailand

*BMA to seek 3 billion THB for payraise*  

BANGKOK, 4 September  2011 (NNT)- ฺThe Bangkok Metropolitan Administration is planning to seek  an additional budget for the BMA staff’s pay rise in the next fiscal  year.   

According to deputy Bangkok governor Teerachon Manomaipibul, the BMA  needs three billion THB more in order to cover the extra spending  resulting from the wage hike. 

Mr. Teerachon explained that BMA employees currently receive the same  rates of pay which already represents 39 percent of the BMA’ s budget  while the law stipulates that the BMA is allowed to spend no more than  40 percent of its budget on employing staff. 

The BMA has 30,000 permanent employees and 60,000 temporary employees.  To be able to pay staff with a bachelor's degree 15,000 THB a month and  to raise the daily wages to 300 baht per day as required by the  government would mean that three billion THB more should be added to its  budget.  

Executives of the BMA have planned to meet Deputy PM and Interior  Minister Yongyut Wichaidit to discuss the issue on September 6.

----------


## StrontiumDog

*Academics give Bt300 wage the nod
*
*Academics give Bt300 wage the nod*

                            By The Nation
                                             Published on September 5, 2011                


*Academics from various agencies, including the  Thailand Development Research Institute (TDRI), yesterday expressed full  support for the idea of raising the daily minimum wage to Bt300 across  the country.*

                                                            "The current wage is not sufficient for workers to  avoid poverty," TDRI Labour Development Research Director Assoc Prof Dr  Yongyuth Chalamwong said yesterday. 

Yongyuth  said while the cost  of living has risen by 3.25 per cent over the past 10 years, the daily  minimum wage has risen by just 2.84 per cent. 

Ammorn Chavalit, an  academic adviser to the Labour Ministry's Office of the Permanent  Secretary, added that while product price had soared by 28.2 per cent  over the past decade, the daily minimum wage had increased by 25.7 per  cent only. 

They were speaking at a seminar entitled, "What do you think about the Bt300 daily wage?"

Federation  of Thai Industries representative Thaweekij Jatujarernkhun, warned that  the sharp rise in the daily minimum wage might prompt many employers to  relocate their manufacturing bases to a neighbouring country like  Cambodia. 

"The monthly wage for workers there is just a little over Bt2,000," he said. 

Wanlop  Kingcharnsin, who represents employers in the Central Wage Committee,  urged the government to think about unregistered workers if the daily  minimum wage suddenly rose.

"Product price will increase too and  while more than 10 million registered workers who get the pay raise will  be able to cope - what about the 24 million people outside the  registered labour sector, such as farmers?" he asked.

----------


## StrontiumDog

*Wage moves spark fears of big jump in jobless.

ANALYSIS* 

*Wage moves spark fears of big jump in jobless.*

                            By Petchanet Pratruangkrai
The Nation
                                             Published on September 5, 2011                

*Job opportunities for low-skilled workers and new  university graduates will evaporate after the minimum daily wage is  hiked to Bt300 and minimum monthly salary to Bt15,000, as employers will  refuse to hire them and shift to using foreign labour and more  automated equipment while upgrading existing staff.*

                                                            It is expected that the government  would face a high unemployment rate in the near future. Manufacturers  will consider reducing or just maintaining levels of both workers and  office staff to keep costs down. They will try to maximise the  productivity of remaining staff to cope with higher production costs.

The  unemployment rate is 0.8 per cent. There are about five million  unskilled workers out of 23 million registered workers. In  manufacturing, more than 3 per cent of production costs is claimed to be  labour costs.

Aat Pisanwanich, director of the International  Trade Studies Centre, said last week that although Thailand currently  has low unemployment, the rate could gradually rise as many industries  have moved to automating production, downsizing operations, recruiting  foreign workers and transferring investment to other countries.

"Employers  will shift to getting their workforce from neighbouring countries with  the free flow of labour under Asean, but low human resource development  in our country," he said.

Under the Asean Economic Community,  Thailand has committed to opening its market to foreign skilled workers  in 2015. The higher labour cost without skill development here could  encourage workers with low and medium skills from Vietnam, Indonesia and  the Philippines to flood into Thailand. After finding higher labour  costs without higher productivity here, foreign investors would think  about relocating or starting projects in other countries in Asean.

According  to the Board of Investment, the cost of workers in Vietnam is  Bt103-Bt126 a day, in Indonesia Bt225 and in the Philippines Bt290.

Many  large companies plan to focus more on automated production. For  instance, the country's leading conglomerate has recently imported many  automatic packaging machines to replace workers.

A higher  employment rate would also create a domino effect on enterprises here,  as they would have to pay more to their existing workers. Many companies  would also try to increase the productivity of current workers rather  than employ new ones.

To prevent future problems, the government  should formulate a plan to develop human resources and education as one  of its priorities.

Businessmen both local and foreign are  concerned that the government has only promoted raising wages and  salaries early next year without putting in place a concrete plan to  boost workers' skills and reform the education system to develop human  resources.Top executives from foreign chambers noted that Thailand has  failed to develop human resources to meet market requirements for  several years. 

"The education system needs to be restructured by  increasing vocational students and technicians rather than focusing on  ordinary (Matthayom Suksa) study," one said.

About 400,000 new  university graduates enter the labour market each year, but only 25 per  cent of them or 100,000 will land a job. In contrast, more than 90 per  cent of about 150,000 new vocational or technical school graduates each  year will be hired.

However, vocational schools have an image  problem that must be fixed. Brawls between students from rival  institutes have caused parents and students to worry about studying at  vocational and technical schools.

----------


## sabang

> LOS has one of the lowest unemployment numbers in the world.


If you actually believe that, well you would also believe Pattaya beach is clean. The official unemployment numbers in Thailand are in fact below the internationally accepted 'full employment' rate. Does that tell you something, perhaps?

I won't bother explaining it to you, because facts found out for oneself tend to stick more. Think 'informal economy'. Incidentally, I live in it and can tell you much, much more about employment conditions in Thailand than those 'official' figures.

----------


## SteveCM

*Bangkok Post : OECD: Thai SMEs self reliant but driven mainly by necessity*

DEVELOPMENT
*OECD: Thai SMEs self reliant but driven mainly by necessity*

Published:  5/09/2011 at 02:47 AMNewspaper section: Business
 Despite some minor obstacles facing Thailand's  small and medium-sized enterprise (SME) sector, the country's  self-reliant entrepreneurship is the envy of developed countries, says  an official with the Organization for Economic Cooperation and  Development (OECD).

 ``From the outside, what is remarkable about Thailand is the fact  that people have a will to find their own solutions. It's a country  where people don't stay  idle waiting for someone else to take care of  them, and self-reliant grassroots development is the best way to ensure  economic development,'' said Sergio Arzeni, director of the OECD's  Centre for Entrepreneurship.

 Over the last five years, he noted, 98% of new job creation had been by small firms.

 While the major economies that make up the OECD are striving to  tackle unemployment, Thailand's low unemployment rate is made possible  since it is a  ``world leader in entrepreneurship'', Mr Arzeni said at a  seminar discussing policy review by a team from the OECD.

 Jon Potter, the senior economist at the OECD Centre for  Entrepreneurship's Local Economic and Employment Development, said 20%  of the working-age population in Thailand operate a business, one of the  highest rate in the world. ``Nearly 50% of entrepreneurs in Thailand  are women, but in the OECD there's an enormous untapped potential among  women. In this sense I think  Thailand is a model for other countries,''  he said.

 Thailand was the first country in Southeast Asia to undergo an SME  policy review, and the OECD team identified a number of weaknesses in  the Thai government's support for SMEs.

 The agency reported that too many of Thailand's entrepreneurs had  gone into business because of necessity, rather than because of  opportunity, and many had limited education.

 It said 30% of entrepreneurs went  into business because they didn't  see any alternative, compared to about 4% in other efficiency-driven  economies and 2% in innovation-driven economies.

 Other issues are regional inequality, as two-fifths are in Bangkok, a  shortage in the growth of medium-sized enterprises, and lack of  innovation and finance.
 Mr Arzeni said countries including Thailand should change from using  politics as a method of assessing programmes to a mechanism of  evaluation.

 ``Public policy should be as objective  as possible.

 [Using politics] is very subjective. For instance, a new government  may kill existing programmes that are just starting to function, which  does not provide continuity,'' he said.

 ``[But in the end] you have to adapt to your own culture as there is  no recipe. You can be inspired by what happens in [other countries], but  don't copy them.''

 The findings of the policy review are already being incorporated in  the country's third SME promotion master plan (2012-16). Officials said  the plan and the proposed policy improvements would be presented to the  new cabinet for approval.


Writer: Nanchanok Wongsamuth
Position: Business Reporter

----------


## SteveCM

^



> The agency reported that too many of Thailand's entrepreneurs had gone into business because of necessity, rather than because of opportunity, and many had limited education.  It said 30% of entrepreneurs went into business because they didn't see any alternative, compared to about 4% in other efficiency-driven economies and 2% in innovation-driven economies.


This has struck me before. Walking around any of CM's malls, supermarkets and open markets - one's struck by the number of small units/stalls offering XYZ for sale. From casual observation, they get very little business - barely enough to cover the rents let alone generate a viable income I suspect. The "start-up" may have been provided by a better-off family member - but where the sustaining business (let alone growth/success) is expected to come from is anything but clear. A key point is that such "enterprises" don't require educational qualifications from those "staffing" them - with (it seems) much of the time devoted to the ubiquitous cellphone.

----------


## socal

> Originally Posted by socal
> 
> LOS has one of the lowest unemployment numbers in the world.
> 
> 
> If you actually believe that, well you would also believe Pattaya beach is clean. The official unemployment numbers in Thailand are in fact below the internationally accepted 'full employment' rate. Does that tell you something, perhaps?
> 
> I won't bother explaining it to you, because facts found out for oneself tend to stick more. Think 'informal economy'. Incidentally, I live in it and can tell you much, much more about employment conditions in Thailand than those 'official' figures.


The world fact book has it low too.

----------


## sabang

^ point is, a huge percentage of people in the Provinces who appear as 'employed farmers' are in fact itinerant casual laborers. Their paltry 'farm' income is not sufficient to feed a family. My wife has three male cousins, all 'employed farmers', all currently away working in a neighbouring province. That is considered a good thing.

When tourism takes a downturn, or off season comes, a sizable army of itinerant workers from bar girls to shop assistants moves back to the moo ban. Effect on the 'official' unemployment rate- zero.

----------


## StrontiumDog

*Bangkok Post : Committee to mull B300 wage Sept 14
*
*Committee to mull B300 wage Sept 14*
Published:  5/09/2011 at 02:58 PMOnline news:
 The Central Wage Committee will meet on Sept 14  to consider the Labour Ministry’s proposal to increase daily minimum  wages to 300 baht n seven provinces.

 An approval from the tri-partite committee, made up of state  officials, employers and employees’ representatives, is essential in  pushing ahead the wage increase rise policy of the Pheu Thai party.

 The current labour wages in the seven provinces - Bangkok, Phuket,  Samut Prakan, Nonthaburi, Samut Sakhon, Nakhon Pathom and Pathum Thani -  are close to the 300 baht target, so the committee can consider  increasing them before other provinces, said permanent secretary for  labour Somkiart Chayasriwong.

 Workers in Phuket currently get 221 baht a day while those in Bangkok receive 215 baht daily.

 The minimum wages 70 other provinces should be first increased by  40%.  After that they should gradually go up to 300 baht next year,  according to the Labour Ministry's proposal.

 The Central Wage Committee would also discuss ways of reducing  impacts on the employers of small and medium enterprises (SME) to be  affected by the wage increase, said Mr Somkiart.

----------


## StrontiumDog

tulsathit   tulsathit                                                       

            RT [at]Urisara_NT: Labour movement threatens to take legal action against Govt if minimum wage doesn't rise to Bt300 across country by Jan

----------


## DrB0b

> tulsathit   tulsathit                                                       
> 
>             RT [at]Urisara_NT: Labour movement threatens to take legal action against Govt if minimum wage doesn't rise to Bt300 across country by Jan


For those who don't know how the process of making changes to the minimum wage works in Thailand this handy little graphic should give some idea of what's involved. This is the process as it was done 7 years ago, some things have changed but the basic process remains the same. At that time the process of dealing with proposed changes to the minimum wage took about 7 months. I think a deadline of January 2012 is not unreasonable.

----------


## StrontiumDog

*We'll sue if govt reneges on Bt300 minimum wage promise: unions
*
*We'll sue if govt reneges on Bt300 minimum wage promise: unions*

                            By THANONGSAK MUENNOO
THE NATION
                                             Published on September 6, 2011                 

*Labour organisations are threatening to take legal  action against the government if it fails to honour the ruling party's  election policy of raising the daily minimum wage to Bt300 across the  country by January.*

                                                            "Failure to honour the election policy is a legal  offence under the 2007 law about the election of MPs," Thai Labour  Solidarity Committee (TLSC) chairman Chalee Loysoong said yesterday. 

He was speaking at a seminar on wage policies at the Century Park Hotel in Bangkok. 

Labour organisations have stepped up pressure on the government  after the Pheu Thai-led administration unveiled a plan to increase the  daily minimum wage to Bt300 first in just seven provinces -Bangkok,  Samut Prakan, Samut Sakhon, Nakhon Pathom, Pathum Thani, Nonthaburi and  Phuket. 

Although Labour Minister Padermchai Sasomsap assured that the  daily minimum wage in other provinces would significantly rise in  January and soar to Bt300 in less than two years, representatives from  the labour organisations were not satisfied. 

Confederation of Thai Labour (CTL) chairman Manas Kosol said all  branches of superstores sold commodities at the same price and all  workers, regardless of which provinces they were based in, should enjoy  the Bt300 daily wage. 

A statement signed by TLSC and its allies today said workers voted for the Pheu Thai Party because of its promise to raise the daily minimum wage to Bt300 across the country. 

"We, therefore, call on the government to honour its election  policy for the reduction of inequality and the better life of  workers/employees," Chalee read from the statement.  

State Enterprise Workers Relation Confederation (Serc)  secretary-general Sawit Kaewwan added that the minimum wage of Bt300 a  day should be applied to farm hands and alien workers too. 

"If the government can't do so, please step down," he said.  

Chalee said TLSC and its allies would gather the signatures of  about five million workers in initiating the lawsuit against the  government if it did not raise the daily minimum wage to Bt300 in all  provinces by January. 

His alliance now plans to seek a meeting with Prime Minister  Yingluck Shinawatra on October 7 to ask for clarification of her  government's labour policy.  

Chalee said according to a survey, the cost of living had already  soared above Bt300 per head per day in 16 provinces. The survey covered  3,660 workers in 16 provinces including Bangkok, Pathum Thani,  Ayutthaya, Angthong and Prachin Buri. 

"Workers want a fair rate of wage. The current daily minimum wage is not sufficient for them," Chalee insisted. 

He also urged the government to  honour the Pheu Thai Party's policy of ensuring a starting salary of Bt15,000 for all bachelor's degree holders.  

Employers have been reluctant to welcome the government's promise  of a wage hike, saying the sudden increase in wages would hurt small  and medium-sized businesses and lead to layoffs.

----------


## StrontiumDog

Thai-ASEAN News Network

Furniture Manufacturers Concerned over Proposed Wage Hike 

UPDATE : 6 September 2011 

*The Thai furniture industry council has  voiced concern about the 300-baht minimum wage policy, saying that it  could depress export earnings by five percent and take a toll on small  and medium sized manufacturers.
*

Veerachai Kunavichayanont, Chairman of the Thai Furniture Industry Club  of the Federation of Thai Industries, reported consistent growth overall  in the furniture industry, but he noted that most manufacturers still  have concerns about the impact of the 300-baht daily minimum wage policy  since labor costs account for 30 percent of their total expenditures.

He added that an increase in the minimum wage would cause furniture  prices to go up by around 12 percent, which will affect exports.

Veerachai projected that the country's furniture exports next year could  fall short of the target of ten-percent growth, or 1.1 billion baht.

He expects about that a third of all furniture manufacturers will likely  struggle due to the higher costs of raw materials, which will be  brought about by the increased wages.

It is estimated that Thailand's furniture industry employs 300,000 workers.

The chairman of the furniture industry group went on to say that most  manufacturers are calling for tripartite discussions and a gradual wage  increases so that they have enough time to adjust.

The Thai Furniture Industry Club is organizing the TFIC Furniture Outlet  2011 event, which will take place from September 14 to 18 at Hall 7 and  8 at Impact Exhibition Center, Muang Thong Thani. 

There will be more than 100 exhibitors offering furniture items at special prices. 

The event will also showcase some 45 products from the market-oriented  development and design program of the Office of Small and Medium  Enterprises Promotion.

----------


## StrontiumDog

Thai-ASEAN News Network

Wage Dilemma 

UPDATE : 6 September 2011                     

The issue of 300 baht daily minimum wage was  heated up again after President of the Thai Labor Reconciliation  Committee Charlie Loysoong demanded the government implement the policy  immediately throughout the entire country. He strongly opposes the plan  thought up by Labor Minister Phadermchai Sasomsap that the 300 baht  daily minimum wage would first be carried out in seven provinces, namely  Bangkok, Samut Prakarn, Samut Sakorn, Pathum Thani, Nakhon Pathom,  Nonthaburi and Phuket. 

The laborers have urged the government to stress equality, particularly  for workers in the other 70 provinces who would have to work more more  than 8 hours a day to get paid 300 baht. At the same time, many  employers want the government to form a central wage committee to  supervise the wage hike as it promised during the election campaign and  to close the pay rate gaps between the various provinces. They have also  asked the government not to interfere with the wage committees and let  it take its course. 

The labor minister has explained why the minimum wage will not be raised  simultaneously in all provinces,  saying it is because of existing pay  gaps. However, he has pledged that the government will keep its promise  and the wage hike will be implemented throughout the country within two  years. 

However, the labor groups were not convinced by the explanation. The  Thai Labor Reconciliation group has planned to join up with many labor  organizations to demand Prime Minister Yingluck Shinawa to initiate the  minimum pay raise by January, otherwise they will petition for 5 million  names to file a complaint with the Administrative Court against the  government on grounds that it made false campaign promises. 

After listening to all sides, certainly, the employers, employees and  the government have their own reasons. Even though they may disagree on  the issue, they can work together to solve this problem. Most  importantly, the Yingluck administration must give priority to the 300  baht daily minimum wage policy, not seeing it as merely something  promised only to win the election. Otherwise, the current administration  will be branded a hypocrite for having criticized the previous  government as “only good at talking and bragging.”

*Taken from Editorial Section, Kom Chad Leuk Newspaper, Page 4, September 6, 2011

Translated and Rewritten by Kongkrai Maksrivorawan*

----------


## StrontiumDog

*Bangkok Post : Students sceptical of B15,000 pay
*
*Students sceptical of B15,000 pay*
Published:  6/09/2011 at 12:56 PMOnline news:
 Most fourth-year university students are  sceptical of the government's policy to guarantee graduates a minimum  monthly salary of 15,000 baht, with many of them saying they just don't  believe it will happen, Bangkok Poll said on Tuesday.

 The pollsters at the research centre of Bangkok University  questioned 1,185 fourth-year students at both state-run and private  universities in Bangkok and nearby provinces.

 Asked whether they believed the 15,000 baht salary for graduates with  a bachelor's degree  would be effectively implemented,  41.9 per cent  said they were sceptical, 29.5 per cent said they were confident it  would be effective, and 28.6 per cent said they just did not believe it  would materialise.

 A clear majority, 69.4 per cent, of the respondents said if the  policy was implemented they might find it more difficult to get a job  on  graduation, while 30.6 per cent did not think they would be affected  because  there were jobs available for graduates in their areas of  study and some of them would further their studies for a master's  degree. 

 About 30 per cent of the students polled felt worried private  companies would have fewer vacancies for  graduates, 18.5 per cent were  afraid they would be laid off after a while  because  employers would  not be able to cope with the higher cost, and 17.9 per cent were afraid  they would be left jobless.

 On their work prospects, 39.6 per cent wanted to work in a private  company, 25.7 per cent wanted to have a business of their own, 18.2 per  cent wanted to work in the public sector, and 16.5 per cent hoped to be  employed by a state enterprise.

----------


## StrontiumDog

*5.5 million workers entitled to Bt300/day minimum wage
*
*5.5 million workers entitled to Bt300/day minimum wage*

  วันอังคาร ที่ 06 ก.ย. 2554

 

BANGKOK, Sept 6 - Some 5.5 million people working in factories,  trade and services sectors are entitled to receive the government's  minimum wage of Bt300/day, according to the Ministry of Labour and  Social Welfare.

 The figure was disclosed to Federation of Thai Industries (FTI) chairman  Payungsak Chartsuthipol in an informal discussion with ministry  permanent secretary Somkiat Chayasriwong and Skill Development  Department director-general Jiraporn Kesornsujarit.

 FTI agreed with the wage rise, the chairman said, but informed the  ministry it should have strategies affecting entrepreneurs the least,  particularly small and medium-sized entreprises (SMEs), while asking the  Labour Ministry to allow SMEs' wage rise for tax deduction.

 FTI also wanted the adjustment period of 3-4 years for the wage hike in  order to adapt with the market mechanism. However, the labour ministry  has not responded to this request.

 The two organisations initially agreed to work together to prepare  labour's readiness with, for instance, an orientation for new workers  and skill development training for existing workers, while increasing  labour potential would be a medium-term strategy.

 The Labour Ministry and FTI still differently define 'income', Mr Payungsak said.

 The ministry views it as the daily wage, whereas FTI sees it should  include other welfares offered to workers in regards to the earning.

 As many entrepreneurs already provide some welfare to their workers, the  chairman viewed they would face difficulties in adjusting the wage and  did not agree if any existing welfare was to be cut.

 Mr Payungsak added he would meet with new Labour Minister Phadermchai  Sasomsab to congratulate him on his position and to acknowledge his  working style with the private sector as well as the Bt300/day minimum  wage policy.

 Meanwhile, a recent survey by the Bangkok Poll Center of Bangkok  University's Research Institute on the government's policy of  Bt 15000  salaries for new graduates found that 41 per cent of senior-level  undergraduate students in the capital and its vicinity agreed with the  policy but were not certain if it would be possible.

 Twenty-nine per cent believed it would be possible, while 28 per cent believed otherwise. 

 Sixty-nine per cent said if the new salary policy becomes effective,  private companies might open less job applications, resulting in  difficulties in finding jobs and shorter period of employment. (MCOT  online news)

----------


## StrontiumDog

*Better skills will make Bt300 wage worth it
*
*Better skills will make Bt300 wage worth it*

                            By The Nation
                                             Published on September 8, 2011                

*In order to make Bt300 daily minimum wage fair on  employers, a skill-enhancement exercise and evaluation strategies should  be put in place in large provinces before the hike can take effect  nationwide, the Labour Ministry told a Bangkok seminar yesterday.*

                                                            Workers and employers should try to make compromises in  the meantime because the higher wages will possibly burden employers  and likely force tens of thousands of small businesses to immediately  close down, permanent secretary Somkiat Chayasriwong said. Therefore, he  added, skill enhancement and evaluation should become part of the  national agenda and be implemented throughout 2012.

The Bt300  daily wage should then be introduced in Bangkok in 2013 and in other  large cities before it is extended to the rest of the country, he said.  The Labour Ministry will propose to the government that it tentatively  make 2012 the "year of increased productivity" and make skill  enhancement and evaluation part of the national agenda. 

"More  skilled labour will make employers feel it is worthwhile having to  shoulder higher expenses because they will get better returns," he  added.

A budget of Bt3 billion is being sought to improve the  ministry's 12 skill-development institutes and 65 provincial  skill-training centres. More emphasis will be placed on regional centres  to develop labourers' skills in relevant fields, such as planting and  producing rubber in Region 12 based in Songkhla, and in the assembly of  vehicles and machinery in Region 1 based in Samut Prakan.

Under a  planned joint cooperation between the Labour Ministry and waterworks and  electricity agencies, small- and medium enterprises that agree to pay a  daily wage of Bt300 to workers who undergo training will be given  discounts in utilities as well as tax incentives, he said.

Asst  Prof Wichai Thosuwannajinda from Kasem Bundit University (KBU) said  government subsidies for SMEs should be a short-term measure because it  would not be fair to taxpayers.

He said another populist policy  guaranteeing that every university graduate would make a minimum monthly  salary of Bt15,000 would result in fewer students studying arts and  humanities and more focusing on skills needed in the employment market. 

Anusorn  Thamjai, dean of KBU's Economics Faculty, said he was all for  increasing the daily wage to Bt300 because it would lift the standard of  living and help cut down problems associated with poverty. He called  for cost-related incentives for SMEs and government-assisted improvement  of logistical structure for them.

Meanwhile, a clay-doll factory  with no labour union in Nakhon Pathom is planning to cut down on work  incentives and meal subsidies once it starts paying the Bt300 daily  wage, local labour counsellor Daorueng Chanok said.

----------


## SteveCM

From the blog world.....


*Will the Thai middle class rebel against populist policies? | Asian Correspondent*

_By Bangkok Pundit 
Sep 08, 2011


__The Nation_ in an editorial:_The small number of people who actually pay taxes in Thailand are being forced to finance potentially disastrous schemes they dont support_

_It is now almost certain that the Yingluck government will not make  balancing the budget one of its policy priorities, largely because the  Pheu Thai Party has to fulfil its campaign promises to supporters. But has the government asked the nations small number of taxpayers whether they want these massive spending schemes?_
_
The countrys tax revenue is provided by only a small group of people. According to statistics released last year, only 2.3 million people nationwide pay personal income tax  to help finance public spending for the countrys population of more  than 64 million. Some 9 million people file personal income tax returns  each year, but the majority are exempt from tax liability as they earn  less than Bt20,000 per month._

_In the meanwhile, middle-income earners have been squeezed between  the rich and poor. Some 60,000 people each year pay taxes in the highest  bracket of 37 per cent, which applies for an annual income of more than  Bt4 million per year. This group of 60,000 accounts for as much as 50  per cent of total personal income tax collected each year. And a full  one-third of income tax collected is paid by just 2,400 people in the  country who earn over Bt10 million per year. The richest 20 per cent of  the population accounts for 54 per cent of total income, while the  poorest 20 per cent accounts for just 4.8 per cent, according to the  Finance Ministry._

_The Yingluck governments populist policies are unlikely to  address this inequality in income figures. But even worse, they could  make the gap even wider.

This small group of taxpayers does not expect a populist windfall to  benefit them, but it does expect a decent return for hard work and a  productive, fair and conducive environment for their businesses to  thrive on. Unfortunately, their voices are being ignored by the  government._

*BP*: Raising the minimum wage wont address  inequality in income and will make the gap wider? Below are some  excerpts from an Asian Development Bank report (PDF) in relation to Indonesia:_Between 1993 and 2007, nominal minimum wages have  increased more than eight-fold while real minimum wages have  increased by roughly 50%.

Wage inequality has decreased in Indonesia over the past few  decades. Our results suggest that minimum wage legislation has played a  significant role in reducing wage inequality in Indonesia by raising the  wage levels of working individuals in the formal sector who initially have monthly wages below 90% of the monthly minimum wage line,  while having no effect on working individuals with monthly wages 90%  and above the monthly minimum wage line. We found these results are  robust to variations in the specification. Our findings are in contrast  to much of the development literature on minimum wages (Fajnzylber 2001  and Maloney and Nunez 2001) that have found that increases in the  minimum wages in the formal sector often spill over to the self-employed  or informal sector, as we find no such effect._

_Rises in minimum wages however are accompanied by significant and  substantial increases in the number of hours worked per week for those  who make roughly the minimum wage. Moreover, increases in minimum wages  are accompanied by a decrease in the probability of employment in the  formal sector. These potentially negative effects can work to mitigate  any overall benefits that may accrue from increases in the minimum wage.  In particular, given that formal sector work provides more stable and  consistent income streams and leads to better health outcomes as emphasized by Loewenson (1998), especially at the bottom end of the wage  distribution, then gains in wages make it difficult to assess whether  the lower end of the distribution of working individuals are actually  better off overall given that they also experience significant decreases  in formal sector employment. Bird and Manning (2008) suggest that on  the whole, minimum wages really do not have a positive beneficial effect  for the majority of the population. Our results seem to confirm this  conclusion as working individuals throughout the wage distribution  appear to lose formal sector employment. However, if policy  makers are simply concerned with combating rising wage inequality in  Indonesia, it does appear that marginally raising minimum wages may  serve as a somewhat effective tool as the increase in monthly wages at  the bottom end of the wage distribution overall outpaced any loss in  monthly wages from people transitioning to the self-employed sector.  Further work is needed to assess whether minimum wage legislation is  truly an effective tool for combating inequities between the rich and  poor populations by jointly estimating the wages, hours worked, and  sector of employment._

*BP*: Obviously, not in all circumstances, will  increases in the minimum wage have benefits, but it is relevant that for  Thailand, according to the ILO,  unemployment is very low and wage increases have not kept pace with  productivity. The government will need to find a way to help SMEs who  are likely to be disproportionately affected by an increase in minimum  wage.  There are also some downsides to a rise in a minimum wage, but in  regards to inequality in income the above report shows it does not make  the gap wider  the editorial doesnt cite a source or study either..

 On the other point about the small number of taxpayers, the editorial _only_  seems to count those who pay personal income tax, but government  revenues do not only come from those who pay personal income tax. From  the Budget Bureau for 2011 (at p29 of this PDF)*For FY 2011, various types of revenues are estimated at 1,958,500 million baht.*

Deductions consist of the Revenue Departments tax rebates of 212,800 million baht, allocation of Value Added Tax to the Provincial Administrative Organization of 11,900 million baht, export compensation of 13,300 million baht, and allocation of 70,500 million baht to the Local Administrative Organizations as specified by the Determining Plans and Process of Decentralization to Local Administrative Organization Act B.E. 2542 (A.D. 1999).

*Net revenue amounts to 1,650,000 million baht.*

Collection of revenues can be classified as follows:

(1) Taxes (Net)

Net taxes amount to 1,510,387.7 million baht, equivalent to 73.0 percent of the estimated receipts.  They consist of direct and indirect taxes.

 (1.1) Direct taxes of 737,200.0 million baht include

* A. Personal income tax 217,000.0 million baht*

B. Corporate income tax 430,200.0 million baht

C. Petroleum income tax 90,000.0 million baht


 (1.2) Indirect taxes of 1,081,687.7 million baht include

A. General sales tax 568,150.0 million baht
- Value added tax 536,800.0 million baht
- Specific business tax 23,000.0 million baht
- Stamp duties 8,350.0 million baht

B. Specific sales tax 424,867.2 million baht
- Petroleum and petroleum products 151,700.0 million baht
- Excise tax on imports 36,590.0 million baht
- Consumption tax 198,771.8 million baht
- Mining royalties 802.0 million baht
- Petroleum royalties 36,997.2 million baht
- Natural resources royalties 6.2 million baht

C. Export  Import duties 86,100.0 million baht

D. Licensing fees 2,570.5 million baht

*BP*: Last time that BP checked poor people paid VAT and they also pay various other taxes. The poor will be paying more VAT too.

 In regards to [b]ut has the government asked the nations small  number of taxpayers whether they want these massive spending schemes?,  how would we ask the personal income taxpayers? Perhaps, a New  Politics-style functional constituency  where people from various professions are appointed instead of a  one-person-one-vote system? Or we could think of some system of asking  all citizens who pay taxes to vote for groups of people who propose  spending schemes, oh wait, we had one of those on July 3

 btw, one game BP likes to play everyday is guessing who wrote the editorial. This one screams Thanong.

----------


## nostromo

> From the blog world.....
> 
> 
> *Will the Thai middle class rebel against populist policies? | Asian Correspondent*
> 
> _By Bangkok Pundit 
> Sep 08, 2011
> 
> 
> ...


It is like do you believe in the Nation or BP. Well, I think BP is quite a lot smarter than Nation action room combined. Wasnt Thanong kicked off to ASTV or something? - Just a rumour, sorry if inaccurate, Khun Thanong.

----------


## The Bold Rodney

> btw, one game BP likes to play everyday is guessing who wrote the editorial.


Maybe we should edit every "Bangkok Pundit" attributed post to "Bangkok Paddite"?  :rofl: 

Sorry couldn't resist the comment!  :Smile:

----------


## SteveCM

> It is like do you believe in the Nation or BP. Well, I think BP is quite a lot smarter than Nation action room combined.


Well, it's difficult to find much to point to on The Notion's side that suggests much to recommend them in a "who's smarter" (as in quality journalism) contest - but I suspect that the comparison is anyway misplaced here. This looks to be rather more about what The Notion _chose_ to leave out. At least their Editorial stopped short (but only just) of including the claim made by one of their Letters correspondents the next day (Handouts will leave Thailand destitute?) :

_"A few years back, an official from the Tax Revenue Department, when  asked, told me that I'd be shocked regarding the number of people  actually paying tax. He said it was about 2 million, and yesterday your  editorial states 2.3 million Thais paying taxes._
_
So it looks like the 2.3 million (me included) will be paying while the  poor benefit. This figure is rather shocking for a country with more  than 64 million people - which works out to only 3.5 per cent of the  public shouldering the rest of the population._"

I sent a brief response (though who  knows whether it'll be used):

_"Both C. Tan and your Editorial leave out a crucial detail - that these figures refer only to those paying personal income tax. Both figures glaringly and conveniently ignore all  the other taxes paid - many of them paid by most if not all of those in  Thailand every time they make a purchase or other kind of taxable  transaction. The net total of these for fiscal 2011 is estimated at  1,650,000 million baht - with net personal income tax payments making up  about 13% of that.

Only by conspicuously ignoring that overwhelming 87% of_  _other  net tax revenue does C. Tan's imaginative (and emotive) suggestion of  "3.5 per cent of the public shouldering the rest of the population" take  on the (false) appearance of making any sense whatever."_

----------


## OhOh

^Your fuller paragraph does put the report into better perspective.

----------


## BobR

> *We'll sue if govt reneges on Bt300 minimum wage promise: unions
> *
> *We'll sue if govt reneges on Bt300 minimum wage promise: unions*
> 
>                             By THANONGSAK MUENNOO
> THE NATION
>                                              Published on September 6, 2011                 
> 
> *Labour organisations are threatening to take legal  action against the government if it fails to honour the ruling party's  election policy of raising the daily minimum wage to Bt300 across the  country by January.*
> ...


Typical laughable journalism here; has there ever been a case in any country in which a political campaign promise was found to have created a valid enforceable contract by any court?  This is as ridiculous as reporting on 2 children trading insults and threats in a sand box.   You think The Nation might have thought of that angle before running such a silly story?

----------


## SteveCM

^
Again (cf. ^^^ above https://teakdoor.com/thailand-and-asi...ml#post1867622), I think this has much more to do with what The Notion consciously _chooses_ to put into/leave out of what they publish. Fairly plain (IMO) that there's a readership that laps this stuff up - you'll see it echoed in their published letters and re-appearing in the many comments under similar Bkk Post pieces.

Having said that, it seems a fine line between which of the stuff is conscious misdirection and which is simply crap [cough] "journalism".

----------


## StrontiumDog

*Bt15,000 pay plan 'unfair'
*
*Bt15,000 pay plan 'unfair'*

                            By The Nation
                                             Published on September 10, 2011                


*The Civil Service Commission (CSC) has recommended  the comprehensive salary restructure in the public sector if the  government is going to enforce Bt15,000 salary for all bachelor'sdegree  holders.*

                                                            "It will not be fair if only the new recruits enjoy the higher pay rate," a source at the CSC said yesterday.

Presently,  bachelor'sdegree holders who have joined the civil service are given  Bt8,700 starting salary plus a living allowance of up to Bt1,500.  

During  its election campaign, the Pheu Thai Party promised Bt15,000 salary for  all bachelor's degree holders. After it successfully formed the  government, it instructed the Finance Ministry to work on a plan to give  at least Bt15,000 salary to all civil servants. 

While this plan  will not increase the government's budget burden much, it clearly will  be unfair to those joining the civil service before the new pay rate  take effect. The move, if implemented, will mean thousands of civil  servants with years of service will see the newcomers earning the same  rate. 

"The salary of all civil servants must be adjusted," the  CSC source thus insisted, "The government must recognise work  experiences of the current civil servants too".

It added that for  the restructure of the civil servants' salary, the government must issue  a royal decree or amend the 2008 Civil Servant Act.

The  Federation of Teachers Association of Thailand suggested that the  government increase the salary of all civil servants by an amount  equivalent to the gap between the current starting salary and the new  starting salary for the bachelors' degree holders. 

"The concept  is simple. The government should raise the salary for all civil servants  (not just newcomers or those earning less than Bt15,000 a month)," the  federation's secretary general Prawit Beungsai said.

A source  said the Finance Ministry had also considered an option of giving the  monthly income of Bt15,000, not the salary, to all bachelors' degree  holders.  

"This option will do away with the complications  related to the government's contributions to the Government Pension Fund  and military pension," it said. 

Deputy Finance Minister Viroon  Tejapaibul has recently disclosed that it was not yet concluded as to  whether the Bt15,000 should be the salary or monthly income.

He,  so far, tried to point out that procedures involved were going to be  less complicated if the issue was about the monthly income. 

Viroon said he expected this policy to take effect from January onward. 

Ammar  Siamwalla, former chair of the Thailand Development Research Institute,  declined to comment on whether the government should honour this  election policy of the Pheu Thai Party. 

"But I must say that the salary of civil servants is not low if their welfare is also taken into account," he said. 

Civil  Service Association of Thailand president Jadoon Apichartbut expressed  support for the higher pay for civil servants. So far, he said he was  worried that the living cost might rise too. 

"This is a concern of all civil servants," he said.

----------


## SteveCM

*Bangkok Post : New proposal would offer gradual increase*

CIVIL SERVICE SALARIES 
*New proposal would offer gradual increase*Published: 10/09/2011 at 12:00 AMNewspaper section: BusinessThe government has found a solution to defuse  criticism of its 15,000-baht starting salary for university  degree-holders by raising the minimum base salary over four years, says  Deputy Finance Minister Wirun Techapaiboon.

 The Finance Ministry originally proposed offering a cost-of-living  allowance to officials with university degrees to help lift total  compensation to a minimum of 15,000 baht per month.

 But during the government's policy reading to parliament last month,  opposition politicians took the leading Pheu Thai Party to task for  backtracking on its campaign promise to raise minimum base salaries, not  total compensation.

 The government's policy platform used the word "income" rather than "salary" when discussing the wage-hike policy.

 Mr Wirun said the ministry would propose the minimum base salary for  cabinet approval on Tuesday. The plan is to raise the minimum base  salary for bachelor's degree holders by extra-high percentages over four  years to meet the target of 15,000 baht a month as promised.

 In the first year, 2012, state officials will get a salary increase  of 8%, followed by 16% in the second year, then 12% and finally 11%.

 Normally, government officials get a salary increase of 5% a year on average.

 Under the new rates, degree-holding officials will earn a starting  salary of 10,300 baht, rising to 12,000 baht in the second year, then to  13,500 and 15,000 in the third and fourth years. Also, during the four  years of adjustment, the ministry will provide an allowance for those  officials to redress the gap and bring their total income 15,000 baht  per month.

 Meanwhile, undergraduates and conscripts who earn a minimum base  salary of less than 9,000 baht per month will get a raise to 9,000 baht,  equal to the minimum wage of 300 baht per day.

 The policy will benefit 649,000 state officials in all beginning from  Jan 1 and cost an additional 18.3 billion baht for fiscal 2012. But for  the whole year the policy will cost 24.5 billion baht.


Writer: Wichit Chantanusornsiri
Position: Business Reporter

----------


## StrontiumDog

*Bangkok Post : Informal workers feel left out
*
*Informal workers feel left out*
Published: 11/09/2011 at 12:00 AMNewspaper section: NewsInformal workers are calling for equal attention  from the government as it implements its 300 baht daily minimum wage  policy for workers in the formal sector.

 The country's 24 million informal workers, including contract  farmers, housemaids, and home workers, contribute about 45% of gross  domestic product, said the Foundation for Labour and Employement  Promotion, a network of informal workers.

 The minimum wage policy was driving up the price of consumer goods,  leaving informal workers struggling, said Phunsap Tulaphan, the  foundation's manager.

 Many informal workers were also losing their jobs to cheaper migrant  workers who were paid only one-fourth of the average rate earned by Thai  workers in the informal sector.

 Another concern was that most informal workers had yet to register to  receive benefits under the social security law that allows them to be  included in the social security system.

 Informal workers can contribute at two rates if they join the Social  Security Fund _ 100 baht and 150 baht per month, including state  contributions.

 Under the first option, for example, the worker contributes 70 baht a month, with the state paying in an extra 30 baht.

 Less than 500,000 informal workers had joined the social security  system. Most were reluctant to do so because they doubted whether the  new government would continue to pay the contributions, said Sunthari  Hatthi Sengking, of the foundation. Thailand should ratify the  International Labour Organisation (ILO) convention for home-based  workers and the organisation's convention on domestic workers to better  protect workers in the sector, she said.

 The Labour Ministry proposes to launch a pilot scheme to raise the  daily minimum wage to 300 baht in seven provinces where the daily  minimum rate are closest to that amount.

 Employers say the wage rise policy could lead to loss of jobs.

 Phakon Wangsirabat, president of the Ayutthaya Industrial Council,  said small factories in particular would struggle to cope with a sudden  rise in labour costs.

 Almost half the 400,000 workers in Ayutthaya, one of the country's  largest industrial provinces, earn less than 300 baht a day, said Mr  Phakon.

 If forced to suddenly increase the minimum wage, employers wanting to  avoid such a burden would tend to lump in benefits they give employees  such as travel and food allowances together with the daily wage, to meet  the minimum requirement, he said.

 That would lead to disputes between employers and workers, said Mr Phakon.

----------


## StrontiumDog

*Bangkok Post : Private sector can't be made to raise pay
*
*Private sector can't be made to raise pay*

*STICKING POINT IN MINIMUM WAGE HIKE* 
Published: 11/09/2011 at 12:00 AMNewspaper section: News
 Commerce Minister Kittiratt Na-Ranong yesterday  admitted the government could not force private employers to comply with  an increase to the minimum wage.

 Mr Kittiratt said the government wanted to deliver on its campaign  promise to raise the daily minimum wage for unskilled workers to 300  baht. However, he said the government could not force all private  employers to comply.

 "If the employers say they can't do it [raising the minimum wage],  then the government can't move forward," Mr Kittiratt said during a  seminar on the government's economic policies held by the Economic  Reporters Association at Thammasat University.

 However, the government would encourage major companies that are  ready to pay their workers 300 baht a day to do so immediately, he said.

 Mr Kittiratt said the 300-baht minimum wage policy was still being prepared and had yet to be officially launched.

 He insisted that the wage rise was not a populist policy, but rather it was aimed at tackling economic and social inequality.

 "What the government is saying is that low-income people cannot make  ends meet. Do we want them to do something low-income people in other  countries have done? We should change before they force us to change,"  he said.

 Mr Kittiratt added that the government is focusing its efforts on increasing domestic consumption to spur economic growth.

 The Thai economy is heavily export dependent, he said, and the public  wants to see measures from the government and spending that drives  private investment and encourages domestic consumption.

 Phonsin Phacharinthanakul, vice chairman of the Chamber of Commerce  said everybody wanted to reduce economic disparities in the country.

 However, he said raising the minimum wage would not solve the problem.

 The government's economic strategies were far more important, Mr Phonsin said.

 To set a policy on the minimum wage, the government should first  determine the number of unskilled workers in Thailand, many of whom are  not Thais, said Mr Phonsin.

 Phanuphong Nithiprapha, the dean of Thammasat University's economic  faculty, said that while the government's aim is to increase workers'  income, it should also pay attention to developing schemes that ensure  farmers receive a fair price for their produce.

----------


## sabang

> Informal workers feel left out


Finally, something relevant. PT's proposal only directly effects the formal economy- the same economy that officially tells us this country has an unemployment rate lower than the internationally accepted natural unemployment rate. From my observation, Thailand's economy is largely informal. The effect on them will be indirect, and quite possibly negative in the short term.

----------


## Tom Sawyer

Good point about income taxes though. The answer to many of Thailand's revenue issues are of course to enforce payment and collection of income taxes. A no-brainer really. If the 2.3 million figure is correct, that means only around ten percent of the workforce is paying income tax. Thailand could increase its revenues by 1,000% and do a hell of a lot more with social programmes like better schools a state pension fund for all, etc..

----------


## StrontiumDog

Thai-ASEAN News Network

  

Finance Ministry to Table Salary Raise Proposals Tomorrow 

UPDATE : 12 September 2011                     *

The Finance Ministry will discuss a  proposal to increase the salaries of state employees and civil servants  at the Cabinet meeting tomorrow, while the Office of the Civil Service  Commission recommends complete salary restructuring to ensure fairness.

The Finance Ministry is prepared to propose salary upgrades for state  employees, civil servants, temporary staff and military recruits at  tomorrow's Cabinet meeting.

Deputy Finance Minister Wirun Techapaiboon clarified that the pay raise  will initially come in the form of a provisional cost-of-living  allowance.
*

He said the new base salary plus allowance will be no less than 15,000  baht for Bachelor's degree graduates and no less than 9,000 baht for  first-level military enlistees. 

The new salary bases are expected to go into effect in January of next year.

As for the call for complete salary restructuring, Wirun said his  ministry has tasked the Office of the Civil Service Commission, OCSC,  and the Comptroller General's Department with overseeing the matter.

He expects the restructuring to start next year and to be completed  within four years, with a ten-percent increase for state officials--  from 9,600 baht to 10,300 baht--in the first year of the program.

While, the ministry also plans to consider pay raises for those with higher than 15,000 baht salaries in April 2012.

Meanwhile, the OCSC suggested that the government restructure the entire  state payroll system and amend the Civil Service Act 2008, or issue an  executive decree to ensure fairness.

The agency noted that the salary increase should not be limited to new employees.

----------


## SteveCM

From the blog world.....

*
Can Thai govt force private sector to pay higher minimum wage? | Asian Correspondent*

_By Bangkok Pundit 
Sep 12, 2011_

The _Bangkok Post_ on September 11:Commerce Minister Kittiratt Na-Ranong yesterday admitted *the government could not force private employers to comply with an increase to the minimum wage.*

 Mr Kittiratt said the government wanted to deliver on its campaign  promise to raise the daily minimum wage for unskilled workers to 300  baht. However, he said the government could not force all private  employers to comply.

 *If the employers say they cant do it [raising the minimum wage], then the government cant move forward*,  Mr Kittiratt said during a seminar on the governments economic  policies held by the Economic Reporters Association at Thammasat  University.

 However, the government would *encourage* major companies that are ready to pay their workers 300 baht a day to do so immediately, he said.
The _Bangkok Post_ in an editorial on September 12:There was nothing more attention-grabbing and little as  important in the Pheu Thai Partys election campaign than the promise to  raise the minimum daily wage to 300 baht. *It was disappointing  and somewhat disconcerting then that Commerce Minister Kittiratt  Na-Ranong suddenly discovered on the weekend that the government  actually cannot order such an act. His statement that authorities  including the government have no power to mandate a minimum wage was  certainly surprising*. No one has questioned the power to set a  wage standard. But it is troubling at best to hear Mr Kittiratt intimate  that if a company refused to raise salaries to a set standard, nothing  would happen.
The _Bangkok Post_ on September 3 translating a _Thai Rath_  article where they interviewed Deputy Prime Minister and Commerce  Minister Kittiratt Na-Ranong. Key excerpts below (emphasis in italics):*[Q] Is it certain that the 300 baht minimum wage will be enforced on Jan 1 next year?*

 [A] It can begin before that. Lets talk about the implementation steps._  If the government issues an instruction through the tripartite  committee to enforce the 300 baht minimum wage nationwide and employers  dont want to pay, then unemployment results, making the policy  ineffective._ The government wants people to have jobs as well as  higher wages. The government, as the biggest employer, knows that some  government workers earn less than 300 baht a day. This can be easily  fixed.

 
*[Q] What will happen if the private sector does not follow the wage and salary hike in the government sector?*

 [A] I have met Dhanin Chearavanont, chairman of the CP Group, who  says that even if the government does not implement the pay rises, he  will go ahead anyway. Mr Dhanin says it could cost the group about 1  billion baht. He says he believes workers should be paid more to cope  with high prices.

 I have also received word from the Bangchak oil refinery, another big  employer, that even petrol station hands will get 300 baht a day. I  believe other companies will follow their lead.

 Pheu Thai campaigned for a 300 baht minimum wage throughout the  country. Now you say it will start in the state sector, and in Bangkok  first. _The rest must wait for the tripartite committees resolution._

 Any government worker in Bangkok, Mae Hong Son or Krabi will get 300 baht when the revised budget comes into force.
 Any 7-11 worker will get 300 baht because CP _cooperates_ with the government.

*[Q] It seems the 300 baht minimum wage policy is not binding  or compulsory, but the government is asking the private sector to  cooperate?*

 [A] We are not _pressuring_ them, but trying to _persuade_ the private sector to pay.

 [Q ??] Pheu Thai campaigned for a uniform 300 baht minimum wage policy. Now it seems you wont be able to deliver.

_It is easy to implement the wage rise through the tripartite  committee because the government has the votes of employee  representatives._ In the past, the government always sided with the  employers. It is easy now to side with employees. But will it really be  good for the country?

 Several SMEs are protesting against the 300 baht minimum wage.
*BP*: Without changing the law, the government on its _own_ cannot force employers to increase the minimum wage, but the tripartite committee can.

_The Nation_:In Thailand, the minimum wage is* legally enforceable* and determined by a tripartite committee, consisting of government, employer and employee representatives._Reuters_:NOTE: Minimum wages in Thailand are set by a tripartite  committee of 15 members  five representing workers, five for employers  and five Labour Ministry officials. *Yingluck can push through  her wage increase if the employee representatives and the ministry  officials outvote the employer representatives.*
*BP*: If you read the full interview, you can see what  the Commerce Minister is saying. The government wants to persuade the  private sector to get them to cooperate. This seems to be the message he  wants to convey to companies although he does note the government can  through the tripartite committee can force the private sector to  increase the minimum wage. Hence, the Commerce Minister has been meeting  with Federation of Thai Industries to work out a deal.  The _Bangkok Post_ on August 19:Mr Kittiratt held informal talks on the issue yesterday  with the joint standing committee on commerce, industry and banking. He  was joined by Finance Minister Thirachai Phuvanatnaranubala and Labour  Minister Padermchai Sasomsap.

 Nonetheless, *Payungsak Chartsutthipol, the chairman of the  Federation of Thai Industries (FTI), reiterated hopes that the  government would gradually raise the minimum wage to 300 baht over three  years and not do so all at once.*

 *Actually, business operators want a four-year period, but I think three is appropriate to have everything in place*,  he said, adding that the decision on the wage hike should rest with the  tripartite committee, consisting of civil servants, businesspeople and  labour representatives, to better reflect the market mechanism.
*BP*: So it is not complete opposition, but just a  more delayed implementation. Even just after the election there was talk  of a gradual implementation and while the Commerce Minister is talking  about persuasion, the Labour Minister is pushing forward. _The Nation_ on September 1:Labour Minister Padermchai Sasomsap said the partys hallmark policy would be implemented first in *Bangkok, Samut Prakan, Samut Sakhon, Pathum Thani, Nakhon Pathom, Nonthaburi and Phuket.*

 More than three million workers are expected to benefit.
 Somkiat Chayasriwong, permanent secretary of the ministry, said the  plan was possible because the current wage rate in those provinces is  now quite close to Bt300, so employers should not be too bothered.

 In Phuket it is Bt221 and in the other provinces Bt215.
 All parties must discuss the issue with the *Central Wage Committee* [BP: This is the tripartite committee] *in the middle of the month before coming to any conclusion, he said.*

 I think things should become clear by October. We hope to see the new wage take effect on January 1, he said.

*The minimum wage in other provinces may rise by 40 per cent first and to Bt300 later*, he added.
From the Ministry of Labour website regarding a statement made on September 5:*Mr. Padermchai Sasomsab, Minister of Labour,*  delivered a lecture on the governments policy on minimum wage and  labour to the audiences, saying that the governments 300-baht minimum  daily wage policy is intended to guarantee workers of all kinds  including home workers and agriculturalists *to have an income of no less than 300 baht a day, excluding overtime payment*.  He said the policy will be first implemented in pilot provinces which  are most qualified to receive the wage hike, expecting to be implemented  in 2012, noting that in other provinces, wage bases must gradually be  adjusted upward first before the policy can be fully implemented. Mr.  Padermchai also said that wage adjustment must be acceptable for both  employers and employees; workers who benefit from the policy must work  harder and more efficiently.
*BP*: The Ministry of Labour website also quotes  the Minister referring to a 40% increase nationwide which is how you  get to 7 provinces getting 300 Baht a month first and the other 70  getting a 40% increase although he refers to the governments new  terminology of income and not minimum wage.

 Depending on how quickly the government wants to push the issue, the  September 14 meeting may not come to a conclusion and there could be  another meeting after this while negotiations are undertaken and more  compensation, particularly for small and medium enterprises, is worked  out. 
But as the Permanent Secretary states it is likely to be settled by  October as the government will not want it to drag on for too  long. This is a gradual implementation, but it is somewhat faster than  many in the business community want. Nevertheless, the strength of the  opposition will also depend on what compensation is offered in return.  Many big companies will not be that greatly affected and from what BP  understands tacitly support the policy because once the corporate tax  reduction (from 30% to 23% in 2012 and then to 20% in 2013) is taken  into account, they will take a short-term hit, but will gain more in the  long-term.

 However, the compensation for small and medium enterprises is unclear  and this is where the government will face the greatest pressure. _Reuters_:*Smaller firms account for about 78 percent of total employment and contribute 37 percent to GDP*, according to the Office of Small and Medium Enterprises Promotion.
*BP*: What will the government offer such businesses?  When will the 300 Baht a month be finally implemented nationwide? (ie.  what percentage increase next year for the 70 provinces? Enough to  increase to 300 Baht or will it be 2014?). Will workers in the 70  provinces be satisfied with an up to 40% increase and not immediately to  300 Baht? What allowances* will be taken into account in the inclusion  of income? For the private sector, this later question more relates to  bigger companies where employees receive food and transport allowances.

 Finally, there is the issue of employees groups and the Thai Labour  Solidarity Committee and has threatened to sue although, will employee  representatives refuse to vote for a 40% pay increase in the minimum  wage? That seems unlikely given the small increases over the past 15  years with the government representatives siding with employer  representatives.

 *For many multinationals, bonuses of 2-3 months is not uncommon.  Bonuses will likely not be included as allowances as they are not paid  daily or calculated daily. Hence, for some companies, if profits are  down, bonuses may also be down. Together with the changing of wording  from minimum wage to minimum income, this means most multinationals are  unlikely to face many problems as they will already pay close to/if not  more the minimum wage now.

 btw, BP has already done a direct comparison  with Thailands competitors over the minimum wage, but mistakenly did  not point out one other important point. For businesses, it is not the  just the money that an employer pays to the employee that is relevant  for an employer, it is the total cost of employment. For example, social  security and other compulsory payments that a company must pay where in  Thailand the % of wages is quite low:



Source: JETRO  2010  page 110 (PDF)

----------


## StrontiumDog

*Union workers petition PM seeking promised wage hike
*
*Union workers petition PM seeking promised wage hike*

  วันจันทร์ ที่ 12 ก.ย. 2554

 

  BANGKOK, Sept 12 - Representatives of Bangkok workers on Monday  delivered a petition addressed to Prime Minister Yingluck Shinawatra at  Government House seeking the promised Bt300 minimum wage which her Pheu  Thai Party pledged during the recent election campaign.

 Members of labour unions from industrial zone in Rangsit and adjacent  areas urged the government to implement the campaign promise nationwide  immediately.

 Referring to the statement made by Labour Minister Padermchai Sasomsap  last Monday that the government will pilot the higher wage in seven  designated provinces to take effect in January, Saneh Chumharuethai, who  heads the group, questioned the government's move and said it was  tantamout to dishonouring its campaign promise.

 Mr Saneh said the labour unions urged the prime minister to urgently  raise the daily minimum wage to Bt300 and a startup salary of Bt15,000  for bachelor's degree graduates nationwide. 

 The workers also want the government to speed up its measures to fight  against poverty as well as cap the rising prices of consumer goods, and  to urgently rehabilitate flood victims in many provinces. (MCOT online  news)

----------


## StrontiumDog

*Business sector feels pinch of govt's minimum wage hike
*
*Business sector feels pinch of govt's minimum wage hike*

  วันจันทร์ ที่ 12 ก.ย. 2554 

BANGKOK, Sept 12 – The Pheu Thai-led coalition government’s  planned 300 baht daily minimum wage hike has forced some businesses to  shift their production bases to areas bordering Cambodia and Myanmar,  the Employers’ Confederation of Thailand (ECOT) told a seminar on  Monday.

 At a seminar on implementing the Bt 300 daily minimum wage policy held  here by ECOT and the International Labour Organisation (ILO),  ECOT  President Anantachai Khunanantakul warned that the government’s planned  wage increase would inevitably hurt tens of thousands of small and  medium-sized enterprises (SMEs) as well as subcontractors. 

 “ Some electronics entreperneurs have relocated their plants to Sa Kaeo  province’s Aranyaprathet district bordering Cambodia and Tak province’s  Mae Sot district bordering Myanmar,” Mr Anantachai said. 

 In an attempt to allay concerns among entrepreneurs, Labour Minister  Phadermchai Sasomsab said the ministry is heeding complaints from all  stakeholders, in particular the SMEs, to work out a possible solution. 

 Among measures the government will introduce to help ease their burden  are a corporate tax reduction plan from 30 per cent to 23 per cent next  year and 20 per cent the following year, and a reduction for the  employers’ contribution to the Social Security Fund as well as reduced  utility fees to reduce production costs.

 The minister said the planned wage hike will be piloted in seven  designated provinces in January, while the remaining provinces will be  initially have wage increases of about 40 per cent and to be gradually  raised to 300 baht within two years.

 Meanwhile, ILO employer actiivity senior specialist Dragan Radic advised  the Thai government to establish a committee to service as many as 3  million SMEs likely to be heavily affected by the wage hike, especially  labour-intensive businesses. 

 He urged a gradual implementation of the wage increase to facilitate  adaptation by the private sector, rather than a quick implementation of  the pilot scheme in the first seven provinces, which he viewed as being  too early. (MCOT online news)

----------


## StrontiumDog

*Bt300 wage push will hit SSO contributions, govt warns
*
*Bt300 wage push will hit SSO contributions, govt warns*

                            By The Nation
                                             Published on September 13, 2011                

*The government may cut its contribution to the  Social Security Office (SSO) fund because of the financial burden from  the Bt300 minimum wage - but retirement and medical treatment payments  would not be affected, Labour Ministry permanent secretary Somkiat  Chayasriwong said yesterday.*

                                                            The government would subsidise medical treatment to  beneficiaries if SSO funds were insufficient, while payment of  retirement returns starting in 2014 would not be affected, he said. 

Somkiat did not say how much the government's SSO contribution - currently at five per cent - would be reduced by.

He  did not support his statement by explaining what he or the SSO would do  to secure a government subsidy, or provide a guarantee that the  government would subsidise SSO treatment funds. 

Somkiat was  speaking at a Bangkok seminar for employers and owners of small-medium  businesses worried about their operations being affected or forced to  shut down because of the Yingluck government's election promise to raise  the daily wage to a flat Bt300.

The seminar was told that a  number of foreign electric appliance firms were preparing to move  operations to locations in Burma, across from Kanchanaburi and Tak's Mae  Sot district, and to Cambobia's Poi Pet and Koh Kong Island, where an  Bt80 daily wage is allegedly paid to local assembly workers.

"The  foreigners are all worried about the flat Bt300 to be imposed in  Thailand. They vow to move when the new rate is in effect, because they  will have to shoulder higher costs," said Chianchuang Kalayanamitr, a  partner with a foreign company.

Dragan Radic, a senior  International Labour Organisation official, suggested a government  measure be put in place immediately to assist around 300,000 SME owners  in Thailand who will be affected.

Help would also be needed for a  large number of new graduates who could be without jobs for many years,  as employers would seek only experienced workers to get full value for  having to pay them Bt300 a day, he said.

Labour Minister  Phadermchai Sasomsap said a request was made to the Financial Ministry  on ways to cut corporate tax from 30 to 27 per cent next year - and to  reduce electricity and water bills for SME owners, hopefully with the  cooperation of electricity and waterworks agencies.

Phadermchai  said skill enhancement would be crucial for all parties involved, and a  request for Bt3 billion had been made to the government to improve  existing skill and career training centres or to build new ones.

Anantachai  Khunananthakul, chairman of the Employers Confederation of Thailand,  said subcontractors likely to be hit hard by the push for a flat Bt300 a  day wage should be granted immediate assistance, because they relied  solely on labourers and the increased cost would be a big burden.

----------


## StrontiumDog

*Bangkok Post : Wage hike dubbed 'disruptive'*

*Wage hike dubbed 'disruptive'*

*Policy Watch warns  of mass layoffs * 
Published: 13/09/2011 at 12:00 AMNewspaper section: Business
 A rapid increase in wages would be economically  disruptive and could lead to higher unemployment as companies shed jobs  to reduce production costs, economists told a seminar yesterday.

 Pranee Tinakorn, a Thammasat University economist, said the  government's policy of boosting the daily minimum wage to ease income  disparities is well intentioned.

 "However, it should be phased in over a period of, say, three years to give the private sector time to adjust," she said.

 Speaking at an economic seminar hosted by Thammasat's Policy Watch  group, Dr Pranee estimated 23% of the labour force or some 3 million  people nationwide now work at or below the existing minimum wage.

 In recent years, wage growth has also fallen behind inflation, squeezing the lowest segments of the workforce, she said.

 The government has announced its intention of setting the minimum  daily wage at 300 baht, an increase of 40% for workers in Bangkok to as  much as 80% in Phayao province.

 Minimum wages are currently determined by a tripartite committee  comprising government, labour and private sector representatives and  vary depending on economic conditions and living expenses in each  province.

 Dr Pranee added that authorities should expand schemes to help  depressed groups to cope with rising costs using targeted measures such  as food stamps or subsidised housing.

 Sakon Varanyuwatana, another Thammasat economist, cautioned that  fiscal spending on populist policies had risen sharply in recent years.

 From 2000-04, government revenue rose by an average of 10.3%  annually, with expenditures rising by 7.3%, he said. But from 2005-10,  revenue grew by just 5.7% annually against 11% for government spending.

 Meanwhile, new government investment remains relatively low at just  10% annual growth, a potential problem for the country's long-term  economic competitiveness.

 Praipol Khumsap, also a Thammasat economist, said the state Oil Fund  should be managed independently of politics and the government, with a  clear mandate to stabilise prices.

 He warned that if reforms are not implemented, public debt, now  standing at 40% of the gross domestic product, could rise to 50% within  the next two or three years and 60% within five years due to  unsustainable energy policies.

 Dr Praipol said the government's role should be to set broad policy guidelines for the Oil Fund.

 Authorities last month scrapped surcharges on petrol and diesel in a  bid to cut pump prices and fulfil a key election promise made by Pheu  Thai.

 But levies on petrol and diesel have long been used to help offset  subsidies on gasohol, biodiesel and cooking gas. Without the revenue  from the fuel levies, the government must either divert tax revenue to  help offset fund losses or reduce existing subsidies offered on cooking  gas and other fuels.

 Dr Praipol said the Oil Fund's original purpose was two-fold _ to  offer price support for fuels such as gasohol and liquefied petroleum  gas (LPG) while helping to stabilise domestic fuel prices amid  volatility in the global oil market.

 But politicians have generally been reluctant to collect levies on  fuel sales when oil prices drop while quick to use the fund to subsidise  local fuel sales when oil prices are high.

 Dr Praipol said that in principle, domestic retail prices should match global prices, with taxes used to help encourage diversity in fuel use.

 Assuming taxes are set at 15-20% of retail prices, gasohol in  principle should be at least three baht cheaper than petrol to help  encourage its use, he said.LPG, compressed natural gas, diesel and  petrol should also not have an excessively high gap in prices.

 "The government should consider subsidising LPG, which is used as a  cooking gas, for low-income households such as by offering coupons  allowing the purchase of 10 kilogrammes a month at a subsidised price of  maybe 10 baht/kg," said Dr Praipol.

 "Assuming 10 million low-income households nationwide, a subsidy  scheme structured in this manner would significantly help to reduce  expenses for the government overall. LPG subsidies are now running at  about 3.5 billion baht a month."

----------


## Buksida

> In Phuket (the min wage) is Bt221 and in the other provinces Bt215.
> 
> Somkiat Chayasriwong, ... said the... current wage rate in those provinces is  now quite close to Bt300, so employers should not be too bothered.




Quite close? Not too bothered? 


> *Smaller firms account for about 78 percent of total employment* ,


...and will not simply agree to a huge increase, as PT is hoping.

The govt is capable of pushing the rises through, but is pretending it can't unless employers agree.

----------


## Tom Sawyer

I'm now waiting for HRW and AI's Thai "officials" to pipe up about how disruptive and oppressive raising the minimum wage would be to human rights and prisoners.

I'm sure they have an opinion that their bosses will yet again ignore - how many have last names beginning with "na"?

----------


## Tom Sawyer

Amnesty International - how many years, months, days and counting til you will break your silence against the Thai oppressors in the aristocracy and corrupt military-bureaucracy? Just wonderin..

----------


## StrontiumDog

*Employers' representatives still blocking wage hike
*
*Employers' representatives still blocking wage hike*

                            By The Nation
                                             Published on September 15, 2011                

*Employers' representatives at the Central Wage  Committee yesterday objected to the plan of raising the daily minimum  wage to Bt300 in seven provinces from January, leading to a resolution  to set up a working panel to study the plan first.*

                                                            "Employers, especially those in the textile, service  and security guard businesses, do not make enough to pay each worker  Bt300 daily," Attayut Leeyawanich said in his capacity as employers'  representative. 

The Central Wage Committee is a tripartite unit, comprising representatives from employers, employees and government agencies. 

The  government has been pushing for this significant hike in the daily  minimum wage because this was one of the pledges the Pheu Thai Party  made while campaigning for votes. 

However, due to an outcry from  employers, the government recently floated the idea of raising the  minimum wage in seven provinces first. However, the employers are still  not happy. 

"Political interference should not take place here. We  should let the tripartite committee function independently," Attayut  said.

He pointed out that the committee was considering several  factors in determining how much the minimum daily wage should be. "We  are considering factors like the cost of living, employers' ability to  pay and the current economic conditions," he said. 

According to  Attayut, employers will agree to gradually raise the minimum daily wage  over four years. However, if the government wants the hike to be put in  place immediately, the government must provide subsidies, not offer  impractical measures like lowering monthly contributions to the  social-security fund. 

"Even tax measures are not good enough," he opined.

Suradej  Chumanee, who represents employees, said the Labour Ministry's  permanent secretary Somkiat Chayasriwong had instructed all parties to  find a way of raising the daily minimum wage to Bt300 in Bangkok, Samut  Prakan, Samut Sakhon, Nakhon Pathom, Pathum Thani, Nonthaburi and  Phuket.

The minimum daily wage in Bangkok and nearby provinces is currently Bt215, and is Bt221 in Phuket.

Suradej  said that if employers' representatives continued blocking the wage  hike, employees' representatives would demand a 40-per-cent raise across  the country.

Labour Ministry's academic adviser Ammorn Chawalit said the Central Wage Committee would convene again early net month.

----------


## StrontiumDog

> I'm now waiting for HRW and AI's Thai "officials" to pipe up about how disruptive and oppressive raising the minimum wage would be to human rights and prisoners.
> 
> I'm sure they have an opinion that their bosses will yet again ignore - how many have last names beginning with "na"?


You mean like, Dep. PM, Minister of Commerce Kittirat Na Ranong ???

----------


## Butterfly

looks like the wage increase thing is proving to be a nice distraction while the current PM focus on the return of her brother

----------


## The Bold Rodney

> looks like the wage increase thing is proving to be a nice distraction while the current PM focus on the return of her brother


 :smiley laughing:  :deadhorsebig:  :smiley laughing: 

Coup,coup..........................WANKER  :smiley laughing:  :smiley laughing:  :smiley laughing:

----------


## sabang

300 bht a day, 6 days a week = 1800 bht per week, *after* raise.
How is it possible to feed, clothe and educate a family on this?  :Confused: 
Beats me. That is far below what we would call poverty level in the West.

----------


## StrontiumDog

*PM quizzed on Bt300 wage
*
*PM quizzed on Bt300 wage*

                            By The Nation
                                             Published on September 16, 2011                

*During Parliament yesterday, Yala Democrat MP  Prasert Pongsuwanasiri asked about the Bt300 daily minimum wage - to  which Labour Minister Phadermchai Sasomsap replied the government had  actually promised voters that "labourers will get Bt300."*

                                                            In his question to Prime Minister Yingluck Shinawatra,  Prasert said the Pheu Thai Party used the word "minimum wage" during the  election campaign and later changed it to "income" - as "minimum wage"  was net payment for work while "income" could include work payments and  other welfare. He wondered when the government would deliver the Bt300  wage.

 Prasert said the voterwooing campaign promised to increase  the minimum wage to Bt300 nationwide right away, but only seven pilot  provinces have so far received it  such as Phuket with a rise from Bt221  per day to Bt310. 

Phadermchai, answering on the premier's  behalf, said the government had campaigned by promising only "labourers  will get Bt300." The hike in income to Bt300 must wait for the consent  from tri parties and undergo the annual budgeting for fiscal year 2012,  combined with the individual income tax reduction from 30 per cent to 23  per cent next year and 20 per cent soon. He said it would take 34 years  before all provinces received the Bt300 income per day.

-----
Bangkok Post : Wage reps to urge 40% nationwide hike

*Wage reps to urge 40% nationwide hike*

*Employers won't back B300 a day pilot plan* 
Published: 16/09/2011 at 12:00 AMNewspaper section: News
 Representatives of the government and employees  on the tripartite wage committee are to propose a 40% boost in the  minimum wage around the country to the panel's meeting late this month.

 The chairman of the wage panel, labour permanent secretary Somkiart  Chayasriwong, said in his view the minimum wage should be raised equally  across the country by 40%. He came up with his recommendation after  employer representatives on the committee flatly refused to support the  government's plan to raise the daily minimum wage to 300 baht a day in  seven pilot provinces. These pilot provinces are Bangkok, Samut Prakan,  Nonthaburi, Samut Sakhon, Nakhon Pathom, Pathum Thani and Phuket.

 The 40% rise in the minimum wage in all provinces could take effect on Jan 1, 2012, said Mr Somkiart.

 The wage committee met on Wednesday but could not agree on the  government's proposal that the 300-baht minimum wage be introduced first  in the seven pilot provinces.

 Atthawut Leeyawanit, an employer representative on the wage  committee, told the panel that employers viewed that the minimum wage  should be adjusted according to the negotiation framework of the  tripartite committee without any political intervention.

 To raise the minimum wage to 300 baht a day throughout the country,  it should be increased gradually over the course of four years.

 If the government wanted employers to boost the minimum wage to 300  baht a day right away, it would have to compensate employers to make up  for the additional payments they would have to shoulder to meet the new  rate.

 Employers in labour-based industries, particularly small- and  medium-sized businesses such as textiles, tourism, security guards and  cleaning could not afford to pay a 300-baht daily wage at the moment,  said Mr Atthawut.

 Suradet Chumanee, the employees' representative, said if employers  still disagreed with the 300 baht a day plan in seven pilot provinces,  he would propose a 40% wage hike in all provinces.

 However, the 40% boost means the minimum wage in the pilot provinces  would be higher than 300 baht, while that in 70 other provinces would  remain at under 300 baht a day.

 The Thai Labour Solidarity Committee (TLSC) has scheduled a mass  rally on Oct 7 to pressure the Yingluck Shinawatra government to raise  the minimum wage to 300 baht a day nationwide.

 Phonnarai Thuiyakhai, a member of the TLSC's wage subcommittee in  Saraburi, said the TLSC disagreed with the government's plan to lift the  minimum wage by 40% in all provinces because workers in Bangkok and  other provinces have to shoulder the same cost of living and commodity  prices.

----------


## StrontiumDog

Commerce Ministry expects wage rise to boost economy : National News Bureau of Thailand

*Commerce Ministry expects wage rise to boost economy* 

BANGKOK, 18 September  2011 (NNT)- Deputy PM and Commerce Minister Kittirat Na Ranong has  defended the government’s plan to increase minimum wages, saying that  the move will be a major boost to the economy. 

   Mr Kittirat explained that the aim of the wage increase was to help  improve the livelihood of low-income earners so that the gap between the  rich and the poor would be narrowed. For example, if people in this  group are better paid, they will be able to buy more food or better  clothes.      

Kittirat also said that the launch of the much- criticized rice pledging  project was in fact intended to help improve incomes of farmers and  enable the public to consume the staple food at lower prices.  

He added the government was also planning to cut corporate income taxes  from 30 percent to 23 percent, so that companies would be able to earn  more and to comply with the pay raise policy without difficulty.  

The Deputy PM believed that the scheme would help push the national GDP  up by 2.5 percent. However, he said the ultimate goal of government’s  policies was to make all Thai people the driving force behind the  economic development, consequently lessening the country’s reliance on  international trade.

----------


## Gerbil

> He said it would take *34 years* before all provinces received the Bt300 income per day.


 :rofl:

----------


## The Bold Rodney

> Quote:
> He said it would take 3 to 4 years before all provinces received the Bt300 income per day.


Fixed that one for you "furry cretin"  :rofl:

----------


## Gerbil

^ Still too fucking long when the election pledge was "immediately", fuckwit.

----------


## The Bold Rodney

> Still too fucking long when the election pledge was "immediately", and yes I'm a fuckwit.


Still grasping at straws while banging your hollow drum to "pupa's" tune "furry cretin"

----------


## Gerbil

^ You really are a sad little man. Get back to your fantasizing over barely legal German Katoeys, now that you've come out.

----------


## StrontiumDog

*Dems attack govt for basic wage 'deceit'
*
*Dems attack govt for basic wage 'deceit'*

                            By The Nation
                                             Published on September 19, 2011                

*The Democrats yesterday accused their rival, the  Pheu Thai Party, of deceiving voters on their campaign pledge to raise  the minimum wage to Bt300 per day.*

                                                            "The people have the right to check on Pheu Thai's  campaign pledge on the minimum wage, which did not happen - this is  deceitful," Democrat spokesman Chavanont Intarakolmayasut said.

 Chavanont said the government has failed to raise the minimum wage as  promised. The plan to adjust the workers' earnings to Bt300 per day in  seven provinces starting next year was not the same as guaranteeing and  enforcing the minimum wage nationwide, he said.

 By this lopsided income adjustment, the government would end up compounding the wage disparity among workers, he said.

 Should the government opt to increase the wage nationwide, workers  would benefit equally. But the income hike of 40 per cent in seven  provinces would accelerate the disparity, he added.

 He went on to attack the government's failure to tackle the rising cost of living.

 Despite the lowering of petrol and diesel prices, there was no  corresponding cut in transport charges, he said. Pheu Thai had attacked  the Democrats over the price of hen eggs, which had continued to rise  regardless of the change in government, he said.

 The government had acted in haste to cut the fuel price without  considering the full ramifications on energy conservation, alternative  fuel, cost of living and transport charges, he said, arguing that the  hasty decision favoured oil suppliers, while the state and people did  not benefit.

 Suan Dusit Poll has released an opinion survey showing that 34 per  cent of 2,187 respondents ranked the government's inability to ensure a  wage hike nationwide as its most critical issue.

 Other issues faced by the government included tackling the cost of  living and the dispensing of favours in the bureaucratic reshuffle.

 Asked to list five issues of concern, respondents singled out floods  as causing the most anxiety, followed by social divisions, the cost of  living, illicit drugs and vice, and southern violence.

----------


## StrontiumDog

*Bangkok Post : B15,000 pay for state officials approved
*
*B15,000 pay for state officials approved*
Published: 20/09/2011 at 02:11 PMOnline news:The cabinet on Tuesday approved a proposal to  increase the cost of living allowance for state officials to ensure they  receive at least 15,000 baht per month starting on Jan 1, 2012, deputy  government spokeswoman Anuttama Amornvivat said.

 Ms Anuttama said the cost of living increase will be for state officials whose base salaries are below 15,000 baht per month.

 About 18.3 billion baht will be used from the 2012 budget for this  purpose and will increase to 24.5 billion baht in fiscal 2013, she said.

 A total of 649,000 state officials in five categories are eligible  for the cost of living increase.  They are civil servants, permanent  employees, temporary employees, contracted employees, and military  personnel.

 Ms Anuttama said the cabinet also passed a resolution that the Civil  Service Commission  adjust pay structures of government officials for  four consecutive years until their base salary reaches 15,000 baht per  month.

----------


## StrontiumDog

*http://www.nationmultimedia.com/2011...-30165753.html

* *Bt300 wage will be enforced by 2012 end*

                            By The Nation
                                             Published on September 21, 2011                


*The Labour Ministry expects to push the daily  minimum wage up to Bt300 across the country before the end of next year  after a signifiฌcant raise of about 40 per cent appeared likely to take  effect on January 1.*

                                                            "It's the government policy," permanent secretary Somkiat Chayasriwong said yesterday. 

"If necessary, the issue may have to be resolved via a vote by the tripartite Central Wage Committee," he said.

The Central Wage Committee, with representatives from employers,  employees and the government, has always agreed on hikes in the daily  minimum wage for each province through discussions. Voting has never  been used before. 

During its winning election campaign, the Pheu Thai Party  promised to raise the daily minimum wage to Bt300. Now, workers and  labourrights organisations are pressing hard on the government to honour  its election comฌmitments, while many employers have raised howls of  complaints. 

However, Somkiat was now quite optimistic after the Board of Trade acquiesced to a 40percent hike across the country 

"We just had the discussion on Monday," Somkiat said.

Currently, the daily minimum wage ranges from Bt159Bt221. Phuket has the highest at Bt221, while Phayao has the lowest.

The ministry is trying to complete by next month the  preparaฌtions for the big hike in the daily minimum wage. Among the many  measures to ease the pain on entrepreneurs is a proposal to lower the  corporate income tax from 30 per cent to just 23 per cent. 

"We will communicate with entrepreneurs to create better understanding," he said. 

The ministry also plans to provide skilldevelopment training for workers to ensure that they deserved the Bt300 wage.

Chatchai Boonrat, vice president of the Board of Trade, said he  believes that the Central Wage Committee could force employers to accept  the Bt300 wage by law. 

"If the government is going to push for such a raise, it should  have effective remedies in place for suffering employers," he said.

The Bt300 wage might not be fair to skilled workers with years of  experience, who would be earning the same rate as new workers with just  days of training, he said.

Some employers might take advantage of this opportunity to seek  government help even though the higher wages did not hurt their  business, he added. 

Somkiat said authorities would screen employers asking for help.

----------


## nostromo

> ^ You really are a sad little man. Get back to your fantasizing over barely legal German Katoeys, now that you've come out.


Now this rodent can speak. Jurassic Park material, sure. But cut off.

----------


## StrontiumDog

Thai-ASEAN News Network



Govt Assures Private Sector's Cooperation in Wage Hike Policy 

UPDATE : 21 September 2011                     *

The commerce minister expresses  confidence that the private sector will agree to raise the daily minimum  wage for workers to 300 baht in the beginning of next year.

In a seminar entitled, “Two trillion baht in tourism revenue, a  challenge to the new government”, Deputy Prime Minister Kittirat Na  Ranong gave a speech on driving the Thai economy under the government  led by Yingluck Shinawatra. 
*

Kittirat expressed confidence that on January 1, next year, the private  sector will voluntarily comply with the government’s policy to raise the  daily minimum wage to 300 baht. 

This is because the government will cut the corporate income tax from  the current 30 percent to 23 percent next year and to 20 percent in  2013, to help offset the higher labor cost. 

The minister noted that he will ask the Bank of Thailand to put on hold  its plan to raise the policy rate to allow the government to implement  its promised policies and to accomplish the planned targets. 

He also urged the Finance Ministry to expand the tax base to prepare  Thailand for the establishment of the ASEAN Economic Community in 2015.

----------


## StrontiumDog

*Thailand expects US$10 minimum wage to come into effect before 2013 - The China Post
*
*Thailand expects US$10 minimum wage to come into effect before 2013*

Bangkok--The  Thai Labor Ministry expects to push the daily minimum wage up to 300  baht (US$10) across the country before the end of 2012 after a  significant raise of about 40 percent appeared likely to take effect on  Jan. 1.     “It's the government policy,” permanent secretary Somkiat Chayasriwong said Tuesday.

“If necessary, the issue may have to be resolved via a vote by the tripartite Central Wage Committee,” he said.

Thailand's Central Wage Committee, with representatives from employers,  employees and the government, has always agreed on hikes in the daily  minimum wage for each province through discussions. Voting has never  been used before.

During its winning election campaign, the Pheu  Thai Party promised to raise the daily minimum wage to 300 baht (US$10).  Now, workers and labor-rights organizations are pressing hard on the  government to honor its election commitments, while many employers have  raised howls of complaints.

However, Somkiat was now quite optimistic after the Board of Trade acquiesced to a 40-percent hike across the country.

“We just had the discussion on Monday,” Somkiat said.

Currently, the daily minimum wage ranges from 159 baht (US$5.2) to 221  baht (US$7.2). Phuket has the highest at 221 baht (US$7.2), while Phayao  has the lowest.

The ministry is trying to complete by next month  the preparations for the big hike in the daily minimum wage. Among the  many measures to ease the pain on entrepreneurs is a proposal to lower  the corporate income tax from 30 percent to just 23 percent.

“We will communicate with entrepreneurs to create better understanding,” he said.

 The ministry also plans to provide skill development training for  workers to ensure that they deserved the 300 baht (US$10) wage.

Chatchai Boonrat, vice president of the Board of Trade, said he believes  that the Central Wage Committee could force employers to accept the 300  baht (US$10) wage by law.

----------


## SteveCM

*Cabinet to consider measures to ease employers' burden*

               By The Nation
                                             Published on September 23, 2011                

                                             Four measures, including tax exemption and a  Bt10billion government fund for small and mediumsized enterprises  (SMEs), to help ease employers' burden from the Bt300 minimum daily wage  will be tabled for Cabinet approval next week, Labour Ministry  permanent secretary Somkiat Chayasriwong said yesterday.

               If all four measures are adopted, they should benefit  5.3 million workers, including the 1.7 million in the SME sector, once  the flat rate is put into effect February, he said. 

One of the  proposals is to waive tax on the purchase of used machinery and offer  soft loans for the purchase of new machines. A socalled Bt10billion  "machine fund" will be set up to support further operations. These  measures are expected to boost competitiveness among 2,000 existing or  new SMEs as well as cut down on the import value of machinery by Bt4  billion, thereby boosting the productivity of around 20,000 skilled  workers.

The second measure is to allow tax waivers for employers  who register their workers for free or lowcost skillenhancement courses  provided by the ministry.

The third proposal is to set up another  fund worth Bt50 billion under the Small Business Credit Guarantee  Corporation in order to provide longterm subsidies as well as amend  relevant regulations that make the application for loans easier. The  fourth measure is to cut down corporate income tax from 30 to 23 per  cent.

These proposals and the final decision on them as well as  the payment of the new daily wage should be completed within this month,  he added. 

Somkiat said he would ask for another Bt10billion fund  to be set aside to provide soft loans for SMEs to help maintain their  cashflow provided no workers are laid off. 

Labour Minister  Phadermchai Sasomsap said his ministry was studying employers' demand to  not increase the minimum daily wage for three years once the Bt300 rate  is put in place. He said a study was needed to determine whether this  was against the labour law, but added that he would do what he could to  help.

----------


## Tom Sawyer

> Originally Posted by Gerbil
> 
> 
> ^ You really are a sad little man. Get back to your fantasizing over barely legal German Katoeys, now that you've come out.
> 
> 
> Now this rodent can speak. Jurassic Park material, sure. But cut off.


Has he been jailed?

----------


## The Bold Rodney

> You really are a sad little man. Get back to your fantasizing over barely legal German Katoeys, now that you've come out.


At least you now admit that's she's of a legal age which is the opposite of what you originally posted. 

Sounds like your very  :Confused:  about many issues, best you take a rest for a while!  :rofl:

----------


## StrontiumDog

Chalermchai warned about the minimum wage policy : National News Bureau of Thailand

*Chalermchai warned about the minimum wage policy* 

BANGKOK, 25 September  2011 (NNT)- Secretary-General of the Democrat Party Chalermchai Srion  spoke about the government’s policy to raise the minimum wage to 300  baht at the beginning of next year, saying that it must be extensively  discussed among representatives from the government, the employers and  the employees. 

He said that each province had a subcommittee that handles wage  estimates, which took factors in standard cost of living in a particular  province into considerations. 

Mr. Chalermchai also mentioned that the said subcommittees would have to  be the ones to preliminarily decide if their provinces even need to  have the minimum wages raised. He implied that this was another  indication that Phue Thai party could not fulfill its promise to  immediately raise the minimum wages. 

The Secretary-General of the Democrat Party continued that the  government’s move to lower taxes to the companies cooperating with the  policy would only benefit big firms. The controversial policy will first  be implemented in the capital then gradually expands to the rest of the  country.

----------


## StrontiumDog

*Employers state demands ahead of wage hike
*
*Employers state demands ahead of wage hike*

         The Nation September 26, 2011  9:26 pm 

*ECOT wants overtime included, wage set for three years*

          The Employers Confederation of Thailand (Ecot) is pushing the  government to take its demands into account before it goes ahead with a  plan to raise the daily minimum wage to Bt300 across the country from  January 1.

The group’s key demand is that the law must clearly state that the  increased daily minimum wage will be fixed for three full years. 

“The government is expected to amend laws related to wages urgently,” Ecot chairwoman Siriwan Romchatthong said yesterday.

The demands were formulated at a recent workshop held by Ecot members, she said. 

Ecot also wants the definition of the daily minimum wage amended to  include overtime wage, living allowances and other forms of income. Ecot  believes unskilled alien workers and workers aged between 15 and 18  years old should be paid just 75 per cent of the rate for six months  before they can receive Bt300 a day.

“Also, hourly wages must be applied in the service sector and any  sectors where workers are not required to work eight hours a day,”  Siriwan said. She said Ecot wanted the government to reduce employers’  contributions to the Social Security Fund, and to stop collecting them  for one year, if the Bt300 minimum daily wage were implemented. 

Ecot also wants tax benefits provided to employers for three years,  during which period wage costs should be treated as three times the  actual amount paid on tax forms; taxing of small and medium-sized  enterprises only on that portion of their corporate income exceeding Bt3  million; the extension of Board of Investment privileges for an  additional three years; and the raising of the ceiling on tax-exempt  machinery replacement from Bt10 million to Bt20 million. 

“The government should also provide small and medium-sized enterprises with access to soft loans,” Siriwan said.

If the government wants employers to raise the daily minimum wage to  Bt300 across the country, it should ensure infrastructure standards are  equal across the country, she said. 

“The government should also reduce legal obstacles to investment in  technology, and relax rules governing the hiring of alien workers.” 

Siriwan said she hoped the government would soon give clear answers  about how it intends to help employers when it comes to the policy to  raise the minimum daily wage. 

“The measures should become clear by next month. We need to make  preparations for the wage hike and work out our business plan too,” she  said.

----------


## StrontiumDog

*Thai Stock Drop Fuels Row Over Minimum Wage - Bloomberg*

*Thai Stock Drop Fuels Row Over Minimum Wage*

                                                                                                                    By                     Daniel Ten Kate and Suttinee Yuvejwattana 
Sep 27, 2011 10:45 AM GMT+0700                             

   
                     Yingluck Shinawatra, Prime Minister of Thailand. Photographer: Dario Pignatelli/Bloomberg 

                                The biggest drop in Thailand’s main stock index since 2008 prompted brokerages, fund managers and the bourse to call on Prime Minister Yingluck Shinawatra’s two- month-old government to alter plans to raise the minimum wage. 

 The Federation of Thai Capital Market Organizations, a six- member grouping that includes the Stock Exchange of Thailand and Association of Investment Management Companies, urged policy makers to review any measures that would hurt exporters. The SET Index gained 2.6 percent as of 10:02 a.m. in Bangkok after falling 5.7 percent yesterday, the most among Asian benchmark gauges and the biggest drop since Oct. 27, 2008. 

 The sell-off “might bring some more common sense into the equation,” said Terry Weir, chief financial officer of Hana Microelectronics Pcl (HANA), Thailand’s biggest publicly traded semiconductor packager, which fell 6.1 percent a day ago. “If the minimum wage goes up far quicker than the productivity increase, then of course that will have a negative impact on our profits and on our competitiveness.” 

 Concern that Europe’s debt crisis and a weakening U.S. recovery will slow exports, which account for about 60 percent of the economy, have contributed to a sell-off in Thailand’s equities and currency this month. 

Government plans to boost the minimum wage and purchase rice at guaranteed prices have added to investor uncertainty, said Kongkiat Opaswongkarn, chief executive officer of Asia Plus Securities Pcl. 

*Reserve Ammunition* 

 “The government should reserve some ammunition for some hard times going forward,” said Kongkiat, who heads Thailand’s third-biggest brokerage. “They have been spending and spending and I’m afraid they probably never realized how long the global slowdown is going to last.” 

 Thailand’s baht snapped a four-day drop on speculation exporters will take advantage of the currency’s decline to a one-year low to convert income at a more-favorable exchange rate. The baht gained 0.6 percent to 30.96 per dollar as of 10:25 a.m. in Bangkok after touching 31.22 earlier, the weakest level since September 2010, according to data compiled by Bloomberg. 

 In 2009, the year after Lehman Brothers Holdings Inc. collapsed, Thailand’s economy contracted 2.3 percent as overseas sales shrunk 14 percent. Last year growth reached 7.8 percent, the fastest pace since 1995, as exports climbed 19 percent. The central bank expects gross domestic product to increase 4.1 percent in 2011 and 4.2 percent next year. 

*‘Accelerate Layoffs’* 

 “With the global economic slowdown, Thai exports will be affected,” the Federation of Thai Market Organizations said in a statement yesterday. “We would like to urge the government to review any policies that will affect production costs. That includes attempts to raise minimum wages. The hike in wages during this economic slowdown may accelerate layoffs by manufacturers.” 

 Governor Prasarn Trairatvorakul said in a Sept. 24 interview that the Bank of Thailand may cut its economic growth projections as the global recovery falters, signaling there may be less scope for interest rates to rise further. The central bank raised its key rate for a seventh straight meeting last month, citing inflation risks posed by the government’s plan to raise wages and support rice prices. 

 Goldman Sachs lowered its consumer price index forecast for Thailand this year to 3.8 percent from 4.1 percent on declines in global commodity prices, economist Mark Tan wrote in a note today. The bank maintained GDP forecasts of 3.8 percent in 2011 and 4.2 percent next year, the note said. 

*‘Policy Backfire’* 

 The minimum wage policy “is not exactly a fiscal boost” and “looks more like a transfer from one sector to another,” Santitarn Sathirathai, a Singapore-based economist at Credit Suisse Group AG, said by phone. The government “might see this policy backfire because it actually hinders growth and may cause social problems as well because people are getting laid off.” 

 Deputy Prime Minister Kittiratt Na-Ranong, who oversees economic policy, said the government would proceed with policies to strengthen domestic demand because the country has already “wasted much time” attempting to reduce its reliance on exports. Higher wages will “create more spending” and “increase productivity,” he said. 

*Shift in Demand* 

 “Export-related businesses may face a difficult time because they rely on global markets,” Kittiratt, who is also commerce minister, told reporters in Bangkok yesterday. “When our policies are effective, many businesses that rely on local demand will have a good chance to benefit from stronger purchasing power because the balance is changing.” 

 Kittiratt rejected comments from former Finance Minister Pridiyathorn Devakula reported in the Nation newspaper that the government’s rice-buying plan would lead to losses of 250 billion baht ($8 billion), without saying how much it might cost. Thailand, the world’s largest rice exporter, canceled a plan to sell the grain to Indonesia because the price offered was too low, he said yesterday. 

 The government expects to use as much as 400 billion baht ($13 billion) to fund the rice-price guarantee program, which will run from Oct. 7 until Feb. 29, deputy government spokeswoman Anuttama Amornvivat said Sept 13. Funding for the rice program isn’t included in the government’s budget deficit estimate of 350 billion baht for the fiscal year starting Oct. 1, Kittiratt said in a Sept. 12 interview. 

*Bonds Drop* 

Government bonds dropped this month after data from the Thai Bond Market Association showed overseas investors sold $160 million more local debt than they bought in September through yesterday. The yield on the government’s 3.65 percent debt due December 2021 has gained 31 basis points, or 0.31 percentage point, to 3.82 percent this month, according to data compiled by Bloomberg. 

 To be sure, government and corporate debt is “very low” and imports “basically” balance out the net position for the baht, Andrew Stotz, a Bangkok-based strategist at Kim Eng Securities (Thailand) Pcl, told Bloomberg Television today. 

 “You’ve got a problem in Thailand that you don’t have almost anywhere in the world: Unemployment is about 1 percent,” he said. “You cannot increase the economic growth of Thailand by getting more people to work, so you have to increase the income of the people.” 

 In July elections, Yingluck’s Pheu Thai party won 153 of 195 seats in the north and northeast, where incomes are about a third of those in Bangkok. That helped her to win a parliamentary majority for the first time since her brother Thaksin Shinawatra was ousted in a 2006 military coup. 

 “Fears have overwhelmed the Thai stock market,” Petcharat Powattanasatien, the head of Kasikorn Asset Management Co., the nation’s largest money manager, with $22 billion of assets, said yesterday. 

“Fundamental analysis is unlikely to be justified as long as the problem in Europe and the U.S. remains unresolved.”

----------


## StrontiumDog

Thai-ASEAN News Network

High Labor Cost Worries Textile Industry 

UPDATE : 30 September 2011                      *

The textile business association says  operators may leave Thailand behind in favor of its neighboring  countries to reap benefits from their cheaper labor cost and cope with  risks from global economic uncertainty. 

 President for the National Federation of Thai Textile Industries,  Pilant Thammoongkol, stated the direction of the global economy and the  government's planned daily minimum wage hike to 300 bath nationwide will  bring about risks for operators in the industry. 
*

Pilant remarked that Thai textile business operators have already  prepared measures for handling future risks and the establishment of the  ASEAN Economic Community. 

He said they would relocate parts of their manufacturing base to  neighboring countries where labor cost is cheaper, but they will keep  the production of whole textile sheets in the country.

----------


## SteveCM

*More than 24,000 workers to get Bt300 daily wage*

The Nation October 1, 2011  12:27 pm 

 
*
The board of State Enterprises Workers' Relation  Confederation yesterday approved the payment of the flat Bt300 daily  minimum wage to more than 24,000 workers from today onwards.*

      This means that an additional Bt23.9 million would be spent on the  daily wages of 24,419 qualified recipients, Labour Minister Phadermchai  Sasomsap said in his capacity as the board's chairman. The Cabinet will  endorse this payment next Tuesday.

      Labour Ministry's permanent secretary Somkiat Chayasriwong said the  Bt300 daily wage would be paid in 50 provinces from January 1 as a  result of initial approvals by provincial wage tripartite committees.  The approvals will be presented to the central wage tripartite committee  by next Wednesday for a final endorsement.

      Meanwhile, a Bangkok seminar was told that bigtime human traffickers  who kept smuggling immigrant workers into Thailand had never been  arrested because they paid off corrupt officials.

      "Around 600,000 workers are arrested, deported and again smuggled into  Thailand, but the authorities never arrest the traffickers because they  know each other," Suraphong Kongjanthuek, an official from the Lawyers  Council of Thailand, said.

      Citing a study conducted by the council, he said migrant workers were  required to pay traffickers up to Bt20,000 every time they enter  Thailand, and nearly all of them are asked for anything between Bt500  and Bt10,000 by corrupt police officers. 

      He said immigrant workers should also be paid the Bt300 minimum wage,  because this will encourage Thai workers to do jobs they were refusing  to do before. Meanwhile, businesses that pay low wages at the workers'  consent should move out of Thailand, he said.

      Somphong Sakaew, director of the Labour Rights Promotion Network, said  migrant workers had complained to him that corrupt officials wanted up  to Bt15,000 in exchange for dropping wrongful charges of illegal  gambling, or returning their properties or passports. Even though more  than 1 million migrant workers had registered after the latest deadline,  up to 4 million are still unregistered, he said.

----------


## Carrabow

> *More than 24,000 workers to get Bt300 daily wage*
> 
> 
> "Around 600,000 workers are arrested, deported and again smuggled into Thailand, but the authorities never arrest the traffickers because they know each other," Suraphong Kongjanthuek, an official from the Lawyers Council of Thailand, said.
> 
> Citing a study conducted by the council, he said migrant workers were required to pay traffickers up to Bt20,000 every time they enter Thailand, and nearly all of them are asked for anything between Bt500 and Bt10,000 by corrupt police officers. 
> 
> 
> .


With that kind of profit and turn over. This will never stop.

----------


## StrontiumDog

*French firms adjust wage
*
*French firms adjust wage*

         Petchanet Pratruangkrai

The Nation
 October 3, 2011  12:23 pm 
*
French companies in Thailand plan to adjust their  employees' daily minimum wage to Bt300 in line with the government's  policy to boost domestic spending.*

Many French companies here have already increased the minimum wage to Bt300, and the rest have committed to do so next year. 

In  a recent meeting, French Ambassador to Thailand Gildas Le Lidec told  Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong that  about 400 French companies, which employ more than 100,000 Thais, plan  to pay a minimum wage of Bt300 in accordance with the government's  policy. "The ambassador said that French firms already pay their workers  well. They are ready to pay more, believing this will boost spending  and benefit the country's growth, Kittiratt said.

Paris  has urged the Thai government to start bilateral talks with the  European Union (EU) in order to boost trade and investment between the  two markets. 

Kittiratt  said the Thai government would carefully consider the issue, as a  free-trade agreement (FTA) would have both positive and negative impacts  for Thai industries.

Thailand  was invited to start bilateral trade talks with the EU a couple of  years ago after negotiations on an Asean-EU FTA collapsed over  differences of opinion among Asean members. The EU then sought bilateral  talks with certain countries in Asean, including Thailand, seeing  potential to strengthen trade and investment growth.

A  draft negotiation plan between Thailand and the EU is being considered  by the Trade Negotiation Department involving many areas, including  intellectual property rights, human rights and trade barriers. The  department plans to propose the draft plan to the Cabinet in the near  future, and eventually for Parliament's endorsement.

----------


## The Bold Rodney

> With that kind of profit and turn over. This will never stop.


I assume you're referring to "Seriously Dumb's" copy and pastes?  :Roll Eyes (Sarcastic):

----------


## StrontiumDog

*Bangkok Post : Building a new society
*
*Building a new society*

*Kittiratt defends plan to redistribute income  * Published:  3/10/2011 at 12:00 AMNewspaper section: NewsBoosting minimum wages and farm income is all  part of a larger strategy aimed at nothing short of rebalancing  Thailand's society and economy, says Kittiratt Na-Ranong, the deputy  prime minister in charge of economic policy.

  Thailand needs to steer away from the export-driven growth model used  for the past five decades to one based on domestic consumption.



  "Do you agree that 250 baht a day is a decent wage? Or even the 300  baht per day that I am proposing," Mr Kittiratt, also the commerce  minister, said in an interview with the Bangkok Post.

  "Working for eight full hours ... do you think that is good enough  for these people who are Thai human beings, and foreign human beings ...  whether this kind of level is considered decent? I don't. I wouldn't  let my son, or my brothers, or my good friends work and earn that  little. I'll do anything that I can to help them."

  The government will raise minimum wages, now set at 226 baht per day  in Phuket to 156 baht in Phayao, to 300 baht per day in Bangkok and six  other provinces starting Jan 1, 2012. Authorities will also raise civil  service salaries for university graduates to 15,000 baht per month under  a programme that will push state salary spending up by 27 billion baht  per year.

  The increases are a step backwards from prime minister Yingluck  Shinawatra's campaign promises to boost wages nationwide in one go,  after stiff opposition from the business sector.

  But Mr Kittiratt said he was confident that the rate hike would push wages at the bottom upwards across the system.

  "Some companies have already committed to raising wages on their own,  even for provinces not yet targeted under the programme," he said.

  "It's good that they are volunteering to do so _ that way I won't  have to force them. The tripartite committee decides by majority vote.  For decades, the government has sided with the employers. Now it's time  to look after the workers."

   Minimum wages are set by a committee comprised of labour, industry  and government representatives. Wages differ from province to province  based on living standards.

  Mr Kittiratt, whose background includes team manager of the national  football team, president of the Stock Exchange of Thailand and deputy  director at the Sasin Graduate Institute of Business Administration,  said he was committed to pushing for a paradigm shift in development  policies.

  "Export growth of 20% [per year] has done very little to boost  domestic consumption. And the wealth that we have has not been evenly  distributed to all people," he said.

  Thailand's income gap has increased in recent years, and has one of  the highest inequality rankings in the region. Economic inequality  meanwhile has helped contribute to social and political infighting and  instability over the past several years.

  "Economics, society and politics are all tied together. Do we want to  wait for the time when the poor will rise up and fight?" Mr Kittiratt  asked.

   The former investment banker stressed that he believed in capitalism  and free markets. "It's not necessarily true that the middle or upper  class must subsidise the costs of these policies. It's not a zero-sum  game.

  "Please trust me. It's not a populist policy just to please workers  in the city and farmers in the rural areas. It's actually a package of  policies which tries to rebalance the country."

  Mr Kittiratt said for years, the poor had been asked to bear an  unfair burden through policies that kept wages low to encourage  labour-intensive industries to invest in the country.

  "We have 7 million people at the minimum wage. They are [living] almost not as human beings," he said.

  "Exports account for 72% of gross domestic product. I don't know what  it should be. But I do know that I don't want to see it become 73%."

   Raising income levels and boosting rural income through programmes  such as the rice mortgage scheme will boost household income, domestic  consumption and the economy overall.

  Higher consumption in turn will help drive growth in tax revenues to  help offset the costs of programmes to strengthen social welfare  programmes and tax cuts for the private sector.

  And strengthening the domestic economy will be crucial considering the economic turmoil in the US and Europe, Mr Kittiratt said.

  "Some have interpreted His Majesty the King's teachings as  sufficiency economy. I prefer 'self-contained' economy. We must reduce  our dependence on others," he said. "I believe in capitalism. But we  need to guard against the perils of globalisation."

  The wage hike policy and the rice mortgage programme will be the main  tools for pushing up rural incomes. The government this week will begin  accepting pledges for paddy rice at 15,000 baht per tonne and 20,000  per tonne for jasmine hom mali rice, a price 50% higher than market  prices last month.

  Critics have blasted the government for the programme, saying it  could lead to hefty losses for taxpayers as the state essentially  becomes the main buyer of rice in the country.

  The Abhisit Vejjajiva government halted the mortgage scheme in favour  of an insurance programme that compensated farmers when prices fell  below benchmark rates.

  But Mr Kittiratt argued that past support programmes had subsidised  global rice consumers. Thailand is the world's largest rice exporter,  accounting for one-third of total global trade.

  ''Consider that the price insurance scheme cost some 60 billion baht.  If I use less money [for the mortgage programme], and farmers receive  15,000 baht per tonne, do I pass,'' he asked.

  Higher salaries will help raise competition for workers and encourage  firms to raise productivity through investments in automation and  skills training. Companies will also move out of low-wage industries to  produce higher-value goods and services, Mr Kittiratt said.

  Even if wage hikes lead to higher inflation, Mr Kittiratt said that's  a tradeoff worth accepting if it results in greater wealth _ and wealth  distribution _ for the country.

  More also needs to be done to encourage market competition and break oligopolies to help small companies better compete.

  ''I'm not a politician. I believe actions speak louder than words,  and my goal is to see a lower gap between the rich and poor,'' Mr  Kittiratt said. ''It will take time. We are setting a new direction.  Fast or slow, it's okay, as long as we are heading in the right  direction.''

----------


## StrontiumDog

^ A lot of what he says I agree with and fully support. However, I think some of it is naive or misguided, such as his views on globalisation. You can not operate in isolation anymore.

----------


## StrontiumDog

*Body to discuss provincial wages
*
*Body to discuss provincial wages*

         The Nation October 4, 2011  12:37 pm 

*The Central Wage Committee will meet tomorrow to  consider proposed hikes in the daily minimum wage from all provincial  subcommittees, Somkiat Chayasriwong, permanent secretary of the Labour  Ministry, said yesterday.*

He heads the centre to help carry out the government's policy to raise the minimum wage to Bt300 across the country.

Currently, the minimum wage ranges from Bt159 in Phayao to Bt221 in Phuket.

Labour Minister Phadermchai Sasomsap said the subcommittees in most  provinces had agreed with raising the minimum wage by 40 per cent on  January 1.

The subcommittees for 23 provinces have asked for a hike of only 30-35 per cent.

The subcommittees for Buri Ram and Mukdahan have resolved that the  minimum wage should be raised by more than 80 per cent to Bt300 from  just Bt166 in Buri Ram and Bt155 in Mukdahan now.

"The wage subcommittees for Chaiyaphum, Prachin Buri, Nong Bua Lamphu  and Phatthalung have also pushed for a hike of over 40 per cent," he  said.

The subcommittee for Samut Songkhram has asked for an increase of 40  per cent on January 1 and an increment to Bt300 within three years.

"In Bueng Kan, there's no subcommittee in action yet," he said.

The subcommittees for Samut Prakan, Samut Sakhon, Rayong and Surat Thani had not yet reached a conclusion, Phadermchai said.

Somkiat said his centre had listened to the opinions of all parties.

"We're implementing the government's policy to raise the daily minimum wage to Bt300 with caution," he said.

----------


## StrontiumDog

*Wage committee expected to approve 40-per cent hike Wednesday
*
*Wage committee expected to approve 40-per cent hike Wednesday*

         The Nation October 4, 2011  9:09 am 
*
The Central Wage Committee looks set to approve a  40-per-cent hike for daily minimum wage across the country at its  meeting Wednesday, according to Labour Ministry's permanent secretary Dr  Somkiat Chayasriwong.*

          With the approval, the significant pay raise will take effect from  January 1 onward. Moreover, Somkiat yesterday expressed confidence that  the government would be able to finally push the daily minimum wage to  Bt300 nationwide by the start of 2013.

----------


## StrontiumDog

Thai-ASEAN News Network

 

Workers Plan Rally to Push for Wage Hike 

UPDATE : 4 October 2011                     *

Workers are planning to gather at  Government House to demand that the minimum daily wage be increased as  soon as possible to keep up with the rising cost of living. 

Confederation of Thai Labor President Manus Kosol said thousands of  workers plan to gather at the United Nations office in Bangkok before  proceeding to Government House to submit a letter to Prime Minister  Yingluck Shinawatra on Friday. 
*

Manus urged the prime minister to give more clarity on the daily wage hike policy. 

He also voiced his opposition to the plan to raise the daily minimum wage to 300 baht nationwide in two phases next year. 

During the first phase, the rate will be increased  by 40 percent nationwide, effective January 1 next year. 

In the second phase, the nationwide minimum wage will be adjusted to 300 baht before the end of next year. 

He called on the government to increase the minimum wage to 300 baht as  soon as possible to match the rising cost of living and inflation rate. 

He also demanded that the hike be made retroactively to October 1. 

In the meantime, Labor Minister Phadernchai Sasomsup said during a  speech at the opening of the administrative center for the 300-baht  minimum wage hike that the ministry is moving forward cautiously with  the plan. 

He insisted that the ministry is willing to listen to opinions from all sides. 

According to Phadermchai, the ministry is in the process of studying the impact of the policy on each province. 

The results of the study will be submitted to relevant agencies to determine the most effective assistance measures. 

Meanwhile, Labor Ministry Permanent Secretary Somkiat Chayasriwong  stated that the Central Wage Committee will meet tomorrow to consider  the proposed minimum wage increase. 

He noted that the wage panel's subcommittees in six provinces have yet  to submit their proposals on the daily minimum wage adjustment for 2012  to the committee. 

The six provinces are Samut Prakan, Samut Sakhon, Rayong, Surat Thani, Samut Songkram and Bueng Kan. 

Other provinces have proposed the minimum wage be raised by 40 percent in 48 provinces and 30 to 35 percent in 23 provinces. 

Buri Ram Province will see the highest increase of 83.7 percent from its  current rate of 166 to 300 baht, followed by Mukdahan with 81.8-percent  rise from the current 165 to 300 baht.

----------


## StrontiumDog

*Across-the-board hike of 40% likely today
*
*Across-the-board hike of 40% likely today*

         The Nation October 5, 2011  12:58 pm 

 
*
Labour permanent secretary confident of Bt300 by 2013*

The Central Wage Committee looks set to approve a 40-per-cent hike in  the daily minimum wage across the country at its meeting today,  according to the Labour Ministry's permanent secretary Somkiat  Chayasriwong.

With the committee's approval, the significant pay raise will take effect on January 1.

Moreover, Somkiat said he was confident that the government would be  able to push the daily minimum wage to Bt300 around the country by the  start of 2013.

"I have already spoken to representatives of the government, the employers and the workers," he said.

During the recent election campaign, the Pheu Thai Party promised to  immediately raise the daily minimum wage to Bt300 across the country.  Since Pheu Thai now heads the government, labour organisations have been  pushing hard for it to deliver on its promise. Leaders of labour  organisations will call on Prime Minister Yingluck Shinawatra to discuss  the matter on Friday.

In response to their planned visit, Somkiat said yesterday he was  confident that they would listen to his explanation of the issues  involved.

"I believe they will understand the impacts if we push for an immediate hike to Bt300 a day," he said.

As it is, relevant authorities are now preparing to ensure that  affected small- and medium-sized enterprises have access to soft loans.  The Social Security Office (SSO) board will soon be asked to grant Bt10  billion in soft loans to affected entrepreneurs via commercial banks, he  said.

The SSO will charge commercial banks a 1-per-cent interest rate, and  the banks will impose a 2.5-per-cent interest rate on the entrepreneurs.  Only entrepreneurs participating in the social-security scheme can seek  soft loans under this project. Those outside the social-security scheme  will be able to seek soft loans from the Small Business Credit  Guarantee Corporation's fund.

Somkiat said the government also proposed that the SSO reduce  employers' contributions to the social security fund from 5 per cent to  just 3.5 per cent of the amount equivalent to employees' salaries.

The maximum salary recognised by the scheme is no more than Bt15,000 a month.

Somkiat said the decrease would affect the amount of money allocated  for employees' benefits in the event of illnesses, disabilities,  childbirth and deaths.

"The drop in employers' contributions is just a temporary measure for  about one or two years only. This is if the SSO board agrees and the  Cabinet approves the plan," Somkiat said.

As for the government's contributions to the social-security scheme,  Somkiat said it would be proposed that the government make up the  1.5-per-cent contribution the SSO would not longer receive from  employers, and that this be directed to employees' benefits in the event  of illnesses, disabilities, childbirth or deaths, to employees'  benefits in the event of unemployment, and to pensions.

----------


## SteveCM

*Bangkok Post : FTI to lobby committee once more*
Published:  5/10/2011 at 12:00 AMNewspaper section: Business
        Business leaders today will propose guidelines  on minimum wage increases to the central wage committee in a last-ditch  effort to persuade the government to revise plans for a big hike in  daily wages nationwide.

 Sommat Khunset, secretary-general of the Federation of Thai  Industries (FTI), said members would propose two options to the wage  committee comprising government, employer and labour representatives.

 The first option, which Mr Sommat said the FTI prefers, involves  defining ''minimum wages'' to cover employee benefits provided by each  company _ including overtime, transport costs and daily allowances.

 The measure, he said, should apply to seven pilot provinces including  Bangkok, Nonthaburi, Pathum Thani, Nakhon Pathom, Phuket, Samut Prakan  and Samut Sakhon, beginning in January.

 The remaining provinces, which have an average daily wage of 180  baht, would start with an increase of 40 baht per day in January, with  the wage rising to 300 baht per day in 2014.

 The second option involves the government paying compensation of half  the increased amount and then gradually increasing the minimum wage to  300 baht within four years.

 ''For instance, the minimum wage in Thailand is on average 215 baht  per day,'' Mr Sommat said. ''A 40% increase, which is 86 baht, would  result in the government needing to pay 43 baht spread over four  years.''

 He said the proposals took into account the economic effects of  flooding and the slowdown in the global economy expected to affect  Thailand next year.

 If the government were to compensate businesses for half of the  increase as proposed, the 40% increase in wages nationwide would cost  the state 30 billion baht per year, Mr Sommat said.

 Concerning the government's policy to lower the corporate income tax  rate to 23% next year from the current 30%, he said the government must  implement the policy in order for the country to stay competitive.


Writer: Nanchanok Wongsamuth
Position: Business Reporter

----------


## StrontiumDog

*Bangkok Post : Labour rally threat over B300 wage
*
*Labour rally threat over B300 wage*
Published:  5/10/2011 at 01:43 PMOnline news:
 Several thousand workers from various networks  will rally in front of Government House on Oct 7 if the Central Wage  Committee fails to meet their demand for a wage increase to 300 baht per  day simulataneously throughout the country, labour leader Wilaiwan sae  Tia said on Wednesday.

 Ms Wilaiwan, deputy chairwoman of the Thai Labour Solidarity  Committee, said this after submitting a letter to Somkiat Chayasriwong,  permanent secretary for labour and chairman of the Central Wage  Committee.

 Mr Somkiat said before attending today's meeting of the wage  committee to consider this matter that the committee would initially  propose a wage increase to 300 baht per day in seven provinces -  Bangkok, Samut Sakhon, Pathum Thani, Nakhon Pathom, Nonthaburi, Samut  Prakan and Phuket.

 The committee would propose a 40 per cent wage increase in the remaining 70 provinces from Jan 1 next year he said.

----------


## StrontiumDog

Thai-ASEAN News Network

Govt to Help SMEs Affected by Wage Hike 

UPDATE : 5 October 2011                      *

The Labor Ministry plans to request ten  billion baht from the Social Security Office to issue loans for SMEs  which are most likely to be severely affected by the daily minimum wage  hike policy.

 Labor Ministry Permanent Secretary Somkiat Chayasriwong said the  government has already prepared several measures to help SMEs which are  most likely to be severely affected by the planned daily minimum wage  hike to 300 baht. 
*

Measures include loans totaling 20 billion baht from the Small Business  Credit Guarantee Corporation under the Finance Ministry. 

Also, the Labor Ministry will introduce a soft loan program, asking the  Social Security Office for ten billion baht as loans for SMEs via  commercial banks. 

Somkiat stated that the ministry will propose reduction of the contribution to the Social Security Fund. 

It proposed that contribution from both employers and employees be  reduced from the current five percent to 3.5 percent of wage. 

The government will continue to pay an unchanged contribution to the fund at 2.75 percent of wage. 

He added the reduction of social security collection will be temporary  and it should not be put into use for more than two years.

----------


## StrontiumDog

*Stalemate in wage panel over Bt300 daily wage
*
*Stalemate in wage panel over Bt300 daily wage*

         THANONGSAK MUENNOO
THE NATION October 6, 2011  1:08 am 

 
*
The Central Wage Tripartite Committee yesterday  failed to reach a decision as to when the flat Bt300 minimum daily wage  should go into effect after employees' representatives refused to accept  employers' demand for a four-year delay.*

              The panel will discuss the issue again on October 17.

      After the four-hour meeting, Labour Ministry permanent secretary  Somkiat Chayasriwong said employers wanted to wait for four years before  increasing the daily wage rate to Bt300 and also wanted concrete  measures and guarantees from the government. 

      The government has been under pressure to deliver on its campaign  promise, with the workforce demanding that the Bt300 rate be implemented  immediately in Bangkok and its vicinity, by January 1 in other large  provinces and the rest of the country in the next two years. 

      Somkiat said he hoped the October 17 meeting would be final, though he  did not want to force the result through voting, because "a  voting-enabled win would not be accepted by all parties concerned".

      Atthayuth Leeyawanich, a panel member representing employers, said that  under the Labour Protection Act wages could not be adjusted freely, but  had to depend on inflation, cost of living and production cost.

      "The 40-per-cent average increase [based on the flat Bt300 rate] does  not go according to law," he said, adding that he doubted if the Bt300  would be constitutional.

      "Although the Act does not stipulate liabilities for violation, I  wonder if the panel's decision would go against the Constitution," he  said.

      Labour leader Wilaiwan sae-Tia had earlier submitted an open letter to  the ministry saying the Bt300 wage should be implemented by January 1 or  the government would face legal action for failing to keep its election  promise. 

      She added that some 3,000 labourers and members of the Thai Labour  Solidarity Committee (TLSC) would gather outside Government House to  submit this request to Prime Minister Yingluck Shinawatra, she added.

      Labour Minister Pol General Phadermchai Sasomsap, who met Wilaiwan and  fellow workers, said the flat Bt300 rate would most probably not be  implemented by January 1 as the process of many related incentives,  including corporate tax reduction, had yet to be completed.

----------


## StrontiumDog

*Bangkok Post : Wage rise gets closer to fruition
*
*Wage rise gets closer to fruition*

*Panel considers gradual increase over four years  * 
Published:  6/10/2011 at 12:00 AMNewspaper section: News
 The Central Wage Committee is expected to finalise the 300 daily minimum wage for workers in all provinces on Oct 17.

 Somkiart Chayasriwong, permanent secretary for labour and chairman of  the Central Wage Committee, said the panel came up with two wage  increase options _ a 40% rise to 300 baht in two years and a gradual  increase to 300 baht over a four-year period _ during its meeting  yesterday.

 The wage committee will consider the options during its next meeting  on Oct 17, said Mr Somkiart, adding the committee's secretariat would  conclude assistance measures for employers. The committee comprises the  government, employers and labour representatives.

 "Over the past 14 years, increases in the daily minimum wages have  been below the cost of living by 10%," the wage committee chairman said.  He wanted the 300 baht minimum wage issue to be settled at the next  meeting.

 Although there were differences between employers and the panel on  the wage increases, a joint resolution on the issue must be reached, he  said.

 He did not favour a vote to decide on the wage rise issue. If the  panel's preference for a 40% rise to 300 baht in two years was approved,  the result may not be accepted.

 Atthayuth Leeyawanich, an employer representative on the wage panel,  said the government's assistance measures for business enterprises  affected by its 300 baht minimum wage policy were unclear and would not  truly benefit them.

 Small firms which would be more adversely affected by higher wages would not benefit from tax cuts, he said.

 He viewed those measures, including low-interest loans, as merely "government tricks to fool children".

 He called for a reduction in the value-added tax from 7% to 4-5% to  cut production costs. This proposed VAT cut would also help increase  workers' purchasing power, he said.

 The employers favoured a gradual rise in the 300 baht daily minimum  wage with the government subsidising the wage increases, Mr Atthayuth  said.

 For example, if the minimum wage is increased from 215 baht to 230  baht a day in the first year, the government should subsidise 70 baht so  workers receive 300 baht a day.

 If the wage was gradually increased to 270 baht, the government's  subsidy would be 30 baht. In 2015, the wage would be raised to 300 baht  and the government's subsidy would no longer be needed, he explained.

 During the election campaign, the Pheu Thai Party promised to  immediately raise the daily minimum wage to 300 baht across the country.

 Mr Atthayuth said the Pheu Thai-led government must be responsible  for its 300 baht minimum wage campaign promise by covering the  difference.

 A source said employers on the tripartite wage panel had argued the  minimum wage policy failed to follow Section 87 of the Labour Protection  Bill which states that wage rates must be determined by the cost of  living, the inflation rate, the ability of employers to shoulder higher  costs and economic growth.

 Wilaiwan sae Tia, deputy chairwoman of the Thai Labour Solidarity  Committee, said workers wanted to see a minimum wage increase to 300  baht across the country on Jan 1, 2012 as earlier promised. If wages are  not raised, workers would ask the Administrative Court to take action  against the government.

----------


## Tom Sawyer

> ^ A lot of what he says I agree with and fully support. However, I think some of it is naive or misguided, such as his views on globalisation. You can not operate in isolation anymore.


He's not saying that. And on the issue of the disfunction of Globalization - it's well documented. The most outspoken authority on this is Joseph Stiglitz, Nobel Prize winner -- AND a former head of the World Bank (of all places).

----------


## StrontiumDog

Thai-ASEAN News Network

3,000 Laborers Gather at Gov't House 

UPDATE : 7 October 2011                     

According to the INN News Agency,  approximately 3,000 laborers are scheduled to gather at the Government  House to demand that the administration follow through with campaign  promises to raise minimum wage to 300 Baht per day. Talks yesterday  between employees, laborers, and the state broke down when they failed  to agree on how to implement the wage increase.

----------


## StrontiumDog

See also..

*Phuket NEWS: Phuket panel pushes for minimum wage hike*

*Phuket panel pushes for minimum wage hike*

----------


## StrontiumDog

*Bangkok Post : Rallies demand promised wage rates
*
*Rallies demand promised wage rates*
Published:  7/10/2011 at 06:10 PMOnline news: Local News
 Workers' and students' representatives rallied  near Government House on Friday, demanding the government raise the  daily minimum wage to 300 baht for workers in all provinces and increase  the starting salary for all graduates to 15,000 baht - as promised.


_More than 1,000 workers' representatives gathered outside Government House._

Confederation  of Thai Labour, chairman Manas Kosol represented the group in handing  over a letter calling on Prime Minister Yingluck Shinawatra to honour  the promises given by the Pheu Thai Party during this year's election  campaign.

Deputy Prime Minister and Commerce Minister Kittiratt Na-Ranong received the letter on the premier's behalf.

Mr Manas said that the government remains unclear about the 300 baht wage policy. 

Previously,  Labour Minister Padermchai Sasomsap proposed testing a 40 per cent  increase in the minimum wage in the seven provinces where wages are  highest - Bangkok and its surrounding provinces, and Phuket.

The increase would bring the minimum wage in those provinces to more than 300 baht a day.

At  the same time, a student network from Thammasat University, Kasetsart  University, Burapha University and Ramkhamhaeng University rallied at  Chamai Maruchet bridge near Government House and demanded the government  implement the 15,000 baht starting salary policy for all, as promised.

 
_Finance Minister Thirachai Phuvanatnaranubala_

 They also called on the government to reform the education system to ensure free and quality education for the people.

Meanwhile,  Finance Minister Thirachai Phuvanatnaranubala criticised the Bank of  Thailand's Monetary Policy Committee members, saying they are not  working with their heads and they should stop relying on statistics when  making decisions.

"The MPC members should focus on the big  picture and anticipate what may happen in the future, and they should  use more of their sixth sense, because the Thai economy is facing more  risks, domestically and abroad.

"At present, they are relying on  statistics, such as GDP and unemployment figures, and they are just  keying in numbers and wait for the calculations to proceed. Anyone can  do that and I can do that because it's a no brainer," Mr Thirachai said.

He  said the financial policy of the government focused on economic risk  abatement by raising agricultural income through the rice mortgage  scheme, boosting domestic consumption through the 300-baht minimum daily  wage policy, and increasing graduates' starting salaries to 15,000 baht  a month.

The first-home and first-car buyers’ tax rebate programmes will also help stimulate the economy, the minister added.

----------


## StrontiumDog

*Workers remind govt of Bt300 pledge
*
*Workers remind govt of Bt300 pledge*

         Samatcha Hoonsara
The Nation October 8, 2011  12:07 pm 
 
*
Labour groups yesterday decried the government's  partial implementation of the Bt300 wage-hike policy, reminding the Pheu  Thai-led administration of the party's campaign pledge to raise the  minimum wage nationwide, and not just in seven provinces.*

To mark Value of Work Day, some 1,000 workers marched to Government  House to submit a petition asking Prime Minister Yingluck Shinawatra to  honour her promise to hike wages.

Labour leader Manas Kosol said Pheu Thai promised to boost the minimum  wage to Bt300 per day nationwide immediately after assuming office. But  the government subsequently modified the policy to cover just seven  provinces starting on January 1, he said.

He called on Yingluck to clarify when workers nationwide would be paid Bt300 a day.

In a related development, a group of university students held a rally  at Government House yesterday calling on the government to guarantee a  Bt15,000 entry-level salary for graduates with a bachelor's degree.

As workers and students congregated, vehicles were restricted to one  lane, causing traffic snarls around Government House in the morning.

----------


## StrontiumDog

*Ministry seeks Bt300 wage for state workers
*
*Ministry seeks Bt300 wage for state workers*

         Piyanart Srivalo
The Nation
 October 11, 2011  11:59 am 

*A Labour Ministry request that state-enterprise  employees be guaranteed a flat Bt300 daily wage is expected to be tabled  at today's Cabinet meeting.*

The Office of the Civil Service Commission (OCSC) is also expected to  submit a request that a Bt15,000 starting salary be approved for newly  recruited government officials.

State enterprises are hoping the Bt300 wage will take immediate effect,  after the Cabinet approved four years ago a blanket 5-per-cent rise in  salaries, allowances and other benefits.

Initial approval was given by the ministry and two powerful networks of  state enterprise unions on October 1, but approval by the Cabinet today  would make the payment mandatory with immediate effect.

The Bt15,000 rise would cost the government Bt18.8 billion a year.

----------


## SteveCM

*http://www.bangkokpost.com/breakingn...e-from-april-1*
Published: 17/10/2011 at 04:25 PMOnline news:
        The Central Wage Committee on Monday made a  resolution to approve a proposal to raise the daily minimum wage by 40  per cent for every province, effective from April 1 next year, labour  permanent secretary Somkiat Chayasriwong said.

 Mr Somkiat, who chairs the Central Wage Committee which comprises  representatives of the governnment, employers and employees, said the  proposal was made by representatives of the government and employees.

 The committee based its decision on information from the provincial  wage committees and a technical subcommittee which scrutinised it, he  said.

 As a result, as of April 1, 2012 the daily minimum wage in Bangkok,  Nakhon Pathom, Nonthaburi, Samut Prakan, Samut Sakhon, Phuket, and  Pathum Thani will go up to 300 baht.

 The minimum wages in other provinces will go up by 39.5-40 per cent  of the present rates.  They will be further increased to 300 baht in the  year 2013.  This means from 2013 the daily minimum wage for every  province nationwide will be 300 baht.

 After that the 300 baht daily minimum wage will continue to be in  force until 2015.  However, this is subject to be changed depending on  the economic condition in the future.

 Today's resolution of the Central Wage Committee will be forwarded to the cabinet for consideration, Mr Somkiat said.

 Mr Somkiat said the Finance Ministry has agreed to allow about  300,000 small and medium enterprises to take the difference from raising  the daily minimum wage from the present rates to 300 baht to claim a  tax reduction by 1.5 times of it from the Labour Ministry.

 The employers sitting on the Central Wage Committee also proposed  that the value-added tax (VAT) be cut to 3 per cent from the current 7  per cent.  No conclusion was reached concerning this matter at the  meeting, but the Finance Ministry accepted it for further consideration.

 They also proposed a reduction of the employers' contribution to the  Social Security Fund.  The matter will be forwarded to a meeting of the  Social Security Committee on Oct 25, Mr Somkiat said.


Writer: Penchan Charoensuthipan
Position: Reporter

----------


## StrontiumDog

See also..which I can't be arsed to post here. 

*http://www.bangkokpost.com/breakingn...lly-called-off

**Wage rally called off*

*http://uk.reuters.com/article/2011/1...79C0W720111017*

*Thai firms seek minimum wage freeze after floods*

http://www.bangkokpost.com/news/loca...-rise-decision

*Bosses want 6-month delay in panel's wage rise decision*

----------


## Mid

*40% nationwide minimum wage hike across country approved*
October 17, 2011

*The Central Wage Committee Monday approved a 40-percent hike in the daily minimum wage across the country.*

          The pay rise, however, will take effect not from January 1 but from April 1 due to the flood crisis. 

Speaking in his capacity as the chair of the Central Wage Committee,  Labour Ministry permanent secretary Dr Somkiat Chayasriwong disclosed  that the committee's members unanimously agreed to the 40-percent  increase and that a vote was not deemed necessary.

nationmultimedia.com

----------


## Tom Sawyer

Good Job.

----------


## StrontiumDog

Thailand to increase wages despite flood costs - FT.com

 Last updated: October 17, 2011 5:53 pm

*Thailand to increase wages despite flood costs*

  By Ben Bland in Hanoi


The  Thai government is pressing ahead with a large minimum wage increase  despite appeals from companies concerned about the financial impact of  the worst floods in 50 years.

 Wages in Bangkok and six other relatively prosperous provinces will  be increased by around 40 percent to 300 baht (£6.20) a day from April  next year, the government announced after a meeting with employers and  trade union representatives on Monday. The wage increase was a key campaign pledge of Yingluck Shinawatra, the recently elected prime minister.  

Rising  wage costs will be an additional headache for the more than 1,000  factories that have been hit by the floods, at a time when there is  growing concern in Thailand and other export-focused nations about the  possible impact of the deteriorating global economic outlook. 

 More than 2.3m people have been affected by the floods, with 300  people killed and four million acres of farmland flooded since late July  when unusually heavy monsoon rains began pounding the region. 

 Flood waters continued to surge in some areas on Monday, with  Navanakorn industrial park, 30 miles from the capital Bangkok, the  latest manufacturing zone to be engulfed despite efforts to protect it.  Bangkok appeared to have been spared serious flooding for now although  some residents had stocked up on water and instant noodles, fearing the  worst.

 Western Digital, the world’s second largest maker of computer hard  drives by sales, warned on Monday it expected the flooding of its  facilities in Thailand, combined with flood damage to its supply chain,  to have a “significant impact on the company’s overall operations and  its ability to meet customer demand for its products in the December  quarter.”

 Its operations have been suspended in Thailand due to the threat of  flooding and, over the weekend, rising water had penetrated the flood  defences of the Bang Pa-in industrial park, inundating its factory there  and submerging some equipment. The flooding at the Navanakorn  industrial park threatened its other Thailand factory, it said in a  statement. The company’s other manufacturing facilities in Malaysia,  Singapore and the US are operating normally.

 Nearby Cambodia and Vietnam have also been hit by the worst floods in  a decade, with damage to crops and factories and around 300 people  killed across both countries.

 Jun Trinidad, an economist at Citibank, predicted that the wage hike  would feed into higher inflation expectations, with food prices already  expected to rise because of the damage to rice and other key crops from  the surging water levels. 

 On Monday, the government vowed to offer financial assistance such as  concessionary loans and tax breaks to individuals affected by the  floods.  

 Pavin Chachavalpongpun, an expert on Thai politics at Singapore’s  Institute of Southeast Asian Studies, said that while these moves to  help families in need would be welcomed, the government must also help  the manufacturers that have been hit.

 “They will need to fine tune the assistance after the water level  decreases,” he said. “They may have to wait to ensure there are no side  effects on the economy.” 

 After discussing the impact of the floods with government officials  and business leaders, Thirachai Phuvanatnaranubala, Thailand’s finance  minister, told reporters that the damage could knock 1 to 1.7 percentage  points of growth this year.

 The finance ministry has already reduced its forecast for GDP growth this year to 3.7 per cent from 4 per cent.

 Frederic Neumann, an economist at HSBC in Hong Kong, argued in a note  to clients that “widespread destruction will weigh on growth in the  short term, but reconstruction should provide a powerful lift in 2012.”

 Many Japanese companies, which have chosen Thailand as their  south-east Asian production base, have had to close factories because of  the floods, at a time when their supply chains have only recently  recovered from the earthquake and tsunami that struck Japan in March. 

 Car makers Honda and Toyota and electronics manufacturers Sony and Nikon are among more than 300 Japanese companies that have been affected, according to Japan’s external trade organisation.

----------


## StrontiumDog

*BusinessDay - Thailand raises minimum wage 40% despite industry pleas
*
*Thailand raises minimum wage 40% despite industry pleas*

     Employers were outvoted by the state  and worker representatives and a minimum daily wage of 300 baht ($9,70)  was set for Bangkok and six other relatively well-off provinces   

                        ORATHAI SRIRING                                             Published:           2011/10/18 08 :23: 49 AM         

THE Thai government is pushing ahead with a big rise in the  minimum wage, despite appeals from industry to shelve the plan to help  companies cope with financial losses after the worst floods in half a  century devastated parts of the country. 

 Flooding has killed at least 307 people since late July,  damaged large areas of farmland and closed half a dozen large industrial  estates this month at a potential cost of 1,7% of gross domestic  product. 

 At a meeting of a tripartite wage committee yesterday ,  employers were outvoted by the state and worker representatives and a  minimum daily wage of 300 baht ($9,70) was set for Bangkok and six other  relatively well-off provinces, an increase of about 40%. 

 "This will be effective on April 1 2012 because of the  flooding," said Labour Ministry permanent secretary Somkiat Chayasriwong  . Thailand’s other 77 provinces will also get a rise of 40%, but that  will leave the minimum below 300 baht. 

 A rise in the minimum wage to a uniform 300 baht around  the country was one of the main policies of the party of Prime Minister  Yingluck Shinawatra in July’s election. It would have meant an increase  of 90% in some poorer areas. 

A 300 baht daily wage is five times higher than the minimum  in Vietnam and 2,5-4,6 times that in Indonesia, according to Kasikorn  Research Centre. A rice-based meal for one person costs about 37 baht  from a Bangkok street vendor. 

 Former Prime Minister Thaksin Shinawatra, brother of Ms  Yingluck and seen by many as the person really running the government  from self-imposed exile in Dubai, had argued for the full increase to go  ahead. "If you think it will cost businesses more, slashing their  profitability, that is the one-dimensional view," he told the Bangkok  Post in an interview published yesterday . "But for me, the policy will  reallocate resources in society and is also a good way to boost  productivity." 

 He saw a rise as part of the government’s aim of  "rebalancing society", after a political crisis that has pitted the  rural and urban poor, who largely back Mr Thaksin, against Thailand’s  traditional elites over the past six years. Ms Yingluck’s Puea Thai  Party broadly represents the rural and urban working class.

 Thailand’s minimum wage has risen by an average of 2,3% a  year over the past 10 years, but annual inflation has averaged 2,8% over  the same period, according to the National Economic and Social  Development Board. 

The wage rise will add to the central bank’s dilemma at its  rate review tomorrow. Core inflation is near 3%, the top of its target  range, but the economy is under threat from both the floods and a  slowdown in western export markets. Following a meeting yesterday , the  central bank said it was ready to be flexible on monetary policy.  Reuters

----------


## Gerbil

If I was running a factory which was now flooded, expensive plant equipment damaged or destroyed, the prospect of months of delay before reconstruction could commence and then on top of that having my operating costs increase dramatically due to the 300 baht minimum - I would seriously think about relocating somewhere cheaper right now.

----------


## Mid

> which I can't be arsed to post here.


WTF ????

jezzus SD get a fokin life  :Sad:

----------


## Gerbil

14,000 factories in 20 cities flooded

A total of 14,172 factories have been inundated by the widespread flooding in 20 provinces, affecting 663,218 workers, Arthit Ismo, director general of the Labour Welfare and Protection Department, said on Tuesday.

In Pathum Thani alone, 3,326 industrial plants were flooded and 218,474 workers affected, he added.

The water that surged into  the Nava Nakorn industrial estate yesterday had flooded 227 factories, affecting more than 175,000 workers, said Mr Arthit.

----------


## Rural Surin

> Originally Posted by StrontiumDog
> 
> which I can't be arsed to post here.
> 
> 
> WTF ????
> 
> jezzus SD get a fokin life


He does, Mid.
Quite an obsessive one.
Around the clock.....

----------


## Calgary

> Originally Posted by StrontiumDog
> 
> which I can't be arsed to post here.
> 
> 
> WTF ????
> 
> jezzus SD get a fokin life


LOL

Why don't you tell us what you really think Mid.

----------


## Calgary

> Thailand raises minimum wage 40% despite industry pleas Thailand raises minimum wage 40% despite industry pleas[/B]


As Sabang pointed out in another Post, Ms. Y and the PTP better quit implementing election promises.

Damn, that will screw up the works for the Democrat Party and all their Amart components next election.

Stop it, please!

----------


## superman

> A rise in the minimum wage to a uniform 300 baht around the country was one of the main policies of the party of Prime Minister Yingluck Shinawatra in July’s election. It would have meant an increase of 90% in some poorer areas.


 Something has to be done. Not only are we talking about the minimum wage here, but hours worked also. I live in an Isaan village. At a local restaurant the workers start at 8am and work until 10pm, sometimes 11pm. For that, they get 150 Baht a day. Criminal in my book.

----------


## Rural Surin

> Originally Posted by StrontiumDog
> 
> A rise in the minimum wage to a uniform 300 baht around the country was one of the main policies of the party of Prime Minister Yingluck Shinawatra in Julys election. It would have meant an increase of 90% in some poorer areas.
> 
> 
>  Something has to be done. Not only are we talking about the minimum wage here, but hours worked also. I live in an Isaan village. At a local restaurant the workers start at 8am and work until 10pm, sometimes 11pm. For that, they get 150 Baht a day. Criminal in my book.


A mandated implementation of a strict hourly wage, less a daily, would suffice - keeping within the boundaries of a lawful _hourly minimum wage._

This celebration [of sorts] of daily minimum is quite misleading and foolworthy.
It's still unworthy.

----------


## StrontiumDog

*Talks coming on more minimumwage rises - The Nation
*
*Talks coming on more minimum wage rises*

          October 31, 2011  12:28 pm 

 
*
Labour Minister Chalermchai Srion 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 Bt8Bt11 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.

----------


## Gerbil

> Labour Minister Chalermchai Srion 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.



Uhmmm.... What?



(I think the nugget ferret will have a heart attack when he reads that  :Smile: ).

----------


## SteveCM

Must remember to get the "off" switch on that time machine fixed.....  :mid:

----------


## StrontiumDog

^ I thought it was rather amusing...  :rofl:

----------


## StrontiumDog

*Bangkok Post : Businesses ask for delay in wage hike
*
*Businesses ask for delay in wage hike*
Published: 31/10/2011 at 12:00 AMNewspaper section: News
 The private employers' association wants the  introduction of the proposed new minimum wage to be postponed until 2013  because of the floods.

 Pannapong Itthannont, an employers' representative on the National  Wage Committee, said the floods have financially crippled many  companies, leaving them unable to afford to pay the new wage of 300 baht  per day.

 The government plans to introduce the new rate in seven provinces and a 40% wage increase in the rest of the country on April 1.

 Mr Pannapong said many companies have complained the protracted  floods in the provinces, mostly in the Central Plains, have severely  hurt their businesses.

 The companies said they have lost considerable income as a result of  the floods and the new wage should be launched in early 2013 instead of  April.

 Mr Pannapong said he will impel the tripartite committee to delay the wage introduction at its next meeting.

 He estimated the flood situation will return to normal by end of the  year. The employers will have roughly three months after that to prepare  for the wage hike, which is not enough, he said.

 Mr Pannapong added the government should put on hold other populist  projects, such as the first-time car buyer scheme and the rice mortgage  policy, because it will have to raise enormous amounts of money for  post-flood rehabilitation instead.

 He also suggested the government set up a centre to assist the  companies and workers in negotiations over flood compensation for  employees. It may not be possible for employers to foot the entire  compensation bill, so the government may have to provide assistance.

 Mr Pannapong said state agencies must have a clear assistance plan laid out or face protests by disgruntled workers.

 Pongsak Assakul, chairman of the Thai Chamber of Commerce, said post-flood rehabilitation will take time and money.

 He agreed the implementation of populist projects should be delayed to allow businesses to fully recover.

 Labour Minister Padermchai Sasomsap said any delay to the projects will be decided by the National Wage Committee.

----------


## Gerbil

^^ Actually. Technically, there is an upcoming election, just a bit far off.  :Smile:  I think we should start talking about that now.  :Smile:

----------


## ralphlsasser

> How can any employer argue against paying 300 baht (£6) for a days work??? Say people are working a 6 day week, still only 1800 baht a week or 7200 baht a month, hardly a liveable wage even for low class Thais with a family.


I lived on less for a year and out of the 7,000 I paid normal house bills. So, it is possible. But living on that small amount, any thing other than eating is just a wish.

----------


## ralphlsasser

> ^Abhisit looks unwell in that photo...


He can't stand the fact that he was run out of office. :kma:

----------


## Aussie Tigger

Politicians promise many things to get elected and then if they win reality sets in and excuses is then the only thing coming out of their mouths.
The floods,incredible costs to both repair, and then prevent as much destruction next time will see higher wages and the other promises mainly falter.
China will continue to flourish and grow while countries like Thailand and the Philippines price themselves out fo the market.
No question life is hard for those on small salaries,but you can only pay what the economy can afford.

----------


## StrontiumDog

No delay to wage hike - The Nation

Minimum wage

*No delay to wage hike*

         The Nation November 2, 2011  8:05 am 

*Deputy Prime Minister and Commerce Minister Kittirat  Na-Ranong today insisted that the government will impose the minimum  wage hike in April as scheduled, despite calls from the private sector  for a delay in light of severe flooding.*

          He said that the increased wage will help stimulate the economy, as higher income would push up purchasing power.

Federation of Thai Industries Chairman Payungsak Chartsuthipol retorted  that if the policy is imposed without any postponement, the  manufacturing sector would revise its plan to set up a fund. Earlier, on  expectation for a delay in higher wages, the FTI considered setting up a  Bt70 billion fund. The fund will be distributed by companies, which  expect to benefit from the government’s policy to cut corporate tax rate  from 30 per cent to 23 per cent next year.

----------


## StrontiumDog

^ For sure, a lot of people are going to really need this raise now...

----------


## Scaramanga

> I thought it was rather amusing...




Well you are rather an odd fellow and a ex-police chiropodists i believe.

----------


## sabang

According to a recent Wall St Journal article, manufacturing wages were significantly lower in China ten years ago, but they are now significantly higher than in Thailand. Some employer lobby groups will always cry poor when a wage hike is mandated- it is like a knee jerk reaction. But there is no question that wages have lagged in Thailand, and a hike above the CPI rate is well overdue. Furthermore, many large employers like CP (Thailands largest I believe) and economists have come out in favor of, it not just due to 'social' factors, but also the consumption stimulus this will have on the economy.

As in the USA with it's Republican opposition, political opposition from the Democrats in Thailand is a given to any government initiative, anything that smells of policy. They would be opposing the wage rise even if Thailand had a drought rather than floods this rainy season. When you've got an Opposition who's sole purpose is to be negative, to oppose and stymie every initiative, it is incumbent on the elected government to pursue it's policy agenda regardless. That's what they were elected to do. Unlike Obama, Yingluck has a safe majority in Parliament so ultimately attempts to stymie her will get nowhere, and neither will they play well with the safe democratic majority that voted her in. Whatever the Democrat's true motives, it appears winning elections by appealing to voters is not a large part of their strategy.

----------


## Moonraker

...................................

----------


## StrontiumDog

*Thailand
*
*Floods Won’t Delay Minimum Wage Plan: Kittiratt*

                                                                                                                   By                     Shamim Adam                  -                                  Nov 14, 2011 12:00 AM GMT+0700                             

                                                                                             Thailand’s government will proceed with a plan to raise the minimum wage to spur domestic spending even as companies face the cost of rebuilding after floods devastated industrial estates and shuttered businesses. 

 The government is considering measures to help companies recover from the disaster, including requests for additional tax incentives and a waiver of import tariffs to replace machinery, Deputy Prime Minister Kittiratt Na-Ranong said in an interview Nov. 12 in Honolulu, where he is attending the Asia-Pacific Economic Cooperation forum. The floods may reduce economic growth by as much as 3 percentage points this year, he said. 

 “I don’t see the wage hike as a suffering” for companies, Kittiratt said. “It would help increase the purchasing power for the domestic market for their businesses in Thailand. For the government, when these people consume more, we get more tax.” 

 Thai workers and employers agreed last month to a government proposal to boost the minimum wage, fulfilling a campaign pledge that helped propel Prime Minister Yingluck Shinawatra to the role of the nation’s first female leader. The agreement will increase wage bills for manufacturers that have seen output tumble as floods swamped about 10,000 factories and stopped production at companies including Honda Motor Co. 

 Wages in Bangkok and six other provinces will rise to 300 baht a day by April 1, Somkiat Chayasriwong, the labor ministry’s permanent secretary, said last month. In the rest of the country, wages will rise an average of 40 percent by April 1 and then to 300 baht ($9.73) per day by 2013, with rates frozen at that level until 2015, he said. 

Interest Rates 

 Thailand’s central bank kept interest rates unchanged at 3.5 percent for the first time this year at its October meeting. It had boosted borrowing costs nine times between July 2010 and August this year, more than any other major Asian economy after India. 

 Thai rates should be lower than the current level, Kittiratt said, citing Bank Indonesia’s decision to cut borrowing costs as an example. The Indonesian central bank reduced its benchmark rate by half a percentage point this month after a quarter-point reduction in October. 

 “I have all the reason to believe that the interest rate in Thailand should be coming down too,” Kittiratt said. “Even before the floods, I didn’t believe that the interest rate in Thailand had to be that high. If the interest rate in Thailand were to come down 1 percent in the following year, I’m not going to go against it.” 

*‘Hold or Cut’* 

 The Bank of Thailand will use monetary policy to help revive the economy from the nation’s worst floods in almost 70 years, which may trim 2011 economic growth to less than 2.6 percent, Deputy Governor Suchada Kirakul said Nov. 8. The central bank’s stance on its key interest rate “should be hold or cut,” Suchada said. 

 Thailand’s inflation rate held above 4 percent for the seventh straight month in October as the floods destroyed crops and stoked food costs, according to government data. 

 Yingluck has proposed spending 130 billion baht to help flood victims and rebuild damaged roads, bridges and buildings. She has also set up committees to develop a long-term water management plan. 

 More than 70 percent of flood victims blame the government for poor preparation and communication, compared with 16 percent who were pleased with the response to the disaster, according to a Suan Dusit poll that surveyed 1,454 people in evacuation centers in Bangkok and its outskirts from Nov. 1 to Nov. 5. The survey had a margin of error of plus or minus 5 percent. 

 Flooding this year has affected 64 of Thailand’s 77 provinces, damaging World Heritage-listed temples in Ayutthaya province, destroying 15 percent of the nation’s rice crop and swamping the homes of almost 15 percent of the country’s 67 million people, according to government data. 

 Although water is receding in northern provinces, floodwaters still threaten areas in Bangkok’s north, west and east, Yingluck said at the weekend. 

 “Thailand was not well prepared but now Thailand will be very well prepared because we can’t afford to see this repeated again in the following years,” Kittiratt said.

----------


## LooseBowels

Its a funny thing about natural disasters, you never know which one will come next.

Plan for one, and another turns up. :Smile:

----------


## sabang

> Thailand’s government will proceed with a plan to raise the minimum wage to spur domestic spending even as companies face the cost of rebuilding after floods devastated industrial estates and shuttered businesses.


And so they should. Minimum wages in Thailand are abysmally low compared to both GDP per head, and the cost of living here. 

Of course there will be relative winners and losers, but the the flood clean up, replacement of destroyed & damaged items, plus the required infrastructural investment should have a positive effect on Thailand's economic activity, perhaps even sparking a mini boom. It is actually a good time to bring in the minimum wage hike.

----------


## StrontiumDog

*'No reason to delay Bt300 wage hike' - The Nation
*
*'No reason to delay Bt300 wage hike'*

         The Nation November 18, 2011  11:01 am 
 
*
The launch of the flat Bt300 minimum daily wage  "should not" be postponed from January 1 due to the flooding, as a  postflood business and economic recovery is anticipated, Labour Ministry  permanent secretary Somkiat Chayasriwong said yesterday.*

"A survey of the labour and business sectors is underway. Those  businesses that are still affected and cannot recover quickly can  request assistance from the government," he said, without elaborating on  the "assistance".

Somkiat said it would take five months to evaluate the postflood labour supply situation. 

While he did not explicitly say that the Bt300 minimum wage would take  effect without conditions on January 1, he said there had not been any  change to the existing agreement mandating that the pay rise take effect  on that date.

The ministry has taken steps to help floodaffected workers, including a  plan to fill 130,000 job vacancies and arranging 10day skillstraining  sessions paying a Bt120 daily allowance. It was expected to see 15,000  applicants but could accommodate another 20,000.

Shortterm, 20day contracts paying Bt150 a day to around 23,000 workers had also been arranged, he added.

The House committee on social welfare yesterday held a joint meeting  with Labour Minister Phadermchai Sasomsap to discuss measures to help  floodaffected workers and minimise the chance of massive layoffs. Phadermchai said a fund will be set up soon to help employers pay  Bt2,000 to workers for three months.

Fewer workers had been laid off than expected - 4,500 - from 15  companies in three provinces including hardhit Ayutthaya, he said.

----------


## SteveCM

*http://www.bangkokpost.com/breakingn...rise-postponed

**Minimum wage rise postponed*


Published: 22/11/2011 at 02:43 PMOnline news:The cabinet has postponed the increase in the  minimum wage to 300 baht per day from Jan 1 to April 1 next year, to  help flood-affected employers.

 Deputy government spokesman Chalitrat Chantharubeksa said the cabinet  resolved on Tuesday to delay the wage hike for three months out of  regard for the problems of flooded businesses.

 "The cabinet has postponed the wage rise to April 1 next year. It  will start in seven provinces, and will be in place nationwide  from  April 1, 2013," the deputy government spokesman said.

The first seven provinces are: Bangkok, Nakhon Pathom, Nonthaburi, Samut Prakan, Samut Sakhon, Phuket and Pathum Thani.

 The minumum wage hike was a campaign policy of the Pheu Thai Party before the July 3 election.

----------


## StrontiumDog

*Firms warn Thai gov't against going ahead with wage hike
*
*Firms warn Thai gov't against going ahead with wage hike*

*Petchanet Pratruangkrai*
*The Nation (Thailand)*
Publication Date : 23-11-2011

Some industrial enterprises in Thailand,  mainly in electronics and garments, have threatened that investment in  their industries will move overseas soon, after their factories were  devastated by floods and they face higher labour costs next year.

At a meeting of 169 trade associations with Thailand's  Commerce Ministry's Department of Export Promotion, Business  Development Department and Intellectual Property Department seeking  measures for flood relief, private enterprises voiced strong concern  that an increase in the daily minimum wage to 300 baht (US$10) would hold back industries already reeling from the flood disaster.

Most called on the Thai government to delay its promised wage-hike  policies to help ease the impact on manufacturers from the floods. They  shared the view that the government's financial assistance and soft  loans would not be enough for their companies' rehabilitation if they  are offset by higher labour costs.

Chiengchuang Kalayanamitr, chairman of the board of directors and owner of Maxon Systems (Thailand), said he would move his factory to Cambodia because the Thai government has failed to protect industries in many estates.

Maxon is one of the world's leading  manufacturers of portable FM radios and data modules. One of the Thai  unit's three factories, in Rojana Industrial Estate in central  Thailland's Ayutthaya, was seriously hit by the flood. This plant  represents an investment of 2 billion baht (US$64 million) to 3 billion  baht (US$96 million).

Chiengchuang added that the government's plan to increase labourers' wages without listening to the private sector's views on this issue would worsen investor confidence in Thailand.

Sukij Kongpiyacharn, president of the Thai Garment Manufacturers Association, said new investment in the garment industry  would move to other countries in Asean that have lower risk from  government policies. The shortage of labour due to the floods will also  cause problems for the garment industry in the future, he said.

*Flat growth*

Because of the flood impact, garment  exports are expected to see flat growth this year. He claimed that many  small and medium-sized enterprises that were hit by floods would suffer  more from higher labour costs.

Jirabul Vitayasingh, secretary-general of  the Lifestyle Products Association, said the government should urgently  provide funds to remedy the impact to enterprises of the flood  disaster, and launch policies to boost investor confidence.

The Thai National Shippers Council has also called on the government to delay the increase in minimum wages for a year or two and exempt the cost of utilities for about three months to help affected enterprises.

The ministry reported that about 350,000  enterprises in 31 provinces, or 70 per cent of the enterprises in the  Kingdom, were affected by this year's floods.

----------


## StrontiumDog

*Bangkok Post : Kittiratt: B300 daily wage plan still on
*
*Kittiratt: B300 daily wage plan still on*
Published: 11/12/2011 at 04:32 PMOnline news:
 The government's plan to increase the labour  minimum wage to 300 baht per day from April 1 next year will still be  carried out despite the flood which has severely affected the economy  and the value-added tax (VAT) will not be increased from the current  rate of 7 per cent, Deputy Prime Minister Kittirat Na Ranong said on  Sunday.

 Mr Kittiratt said this after presiding a ceremony to open the 29th  seminar of representatives of chambers of commerce from throughout the  country in Rayong province.

 He said that despite the flood situation, the increase in the  country's exports during the first eight months was as high as 24 per  cent, and the overall increase in export this year was believed to be 15  per cent.

 Mr Kittiratt said that because of this he believed the private sector  would be able to cope with the government's plan to increase the labour  minimum wage to 300 baht per day from April 1 next year.

 The government also has no plan to increase the VAT from the current rate of 7 per cent, he said.

----------


## Tom Sawyer

^this is not news. It's been the position for about two weeks now - reported earlier (April to begin).

----------


## StrontiumDog

Thai-ASEAN News Network

Industry Council against Minimum Wage Hike 

UPDATE : 19 December 2011                      *

The Federation of Thai Industries is  going to sue the government in the   Administrative Court against its  policy to increase the daily minimum   wage to 300 baht.

  Federation of Thai Industries or FTI Vice Chairman Thaveekij    Chaturacharoenkhun said the FTI board is seeking a temporary injunction    from the Administrative Court to delay the government's planned daily    minimum wage hike to 300 baht. 
*

The FTI said that the government's attempt to raise the minimum wage    would adversely affect investment as well as employment in both the    short and long terms. 

The FTI will file the suit early next year.  

The government's planned wage hike will come into effect in seven    provinces on April 1  next year before being launched nationwide by    April 2013. 

Thaveekij added that the risk factors to investment next year include    fears about floods, the minimum wage hike and a political stalemate. 

He said the private sector has lost confidence in the government due to    the flood mismanagement and lack of precautionary measures against    flooding. 

In addition, an increase in the minimum wage and political conflicts    would drive investors to relocate to neighboring countries, thus    contributing to increasing unemployment in Thailand.

----------


## Mid

> Thai-ASEAN News Network[/URL]"] 
> 
> sue the government in the Administrative Court against its policy


file under only in Thailand ...................

----------


## StrontiumDog

Thai-ASEAN News Network

Govt Urged to Reconsider Minimum Wage Hike Policy 

UPDATE : 20 December 2011                      *

The Democrat Party spokesperson urged  the government to reconsider the minimum wage hike policy, saying it  will severely affect businesses.

 Democrat Party spokesperson Chavanond Intarakomalyasut yesterday gave  an interview concerning the Federation of Thai Industries, or FTI's,  seeking a temporary injunction from the Administrative Court to delay  the government's planned hike in the daily minimum wage to 300 baht. 

The FTI said that the government's attempt to increase the minimum wage  would adversely affect investment as well as employment. 
*

Chavanond added that the conflict reflects a lack of coordination between the state and the business sector. 

The Democrat spokesperson blasted at the government for aiming to  fulfill the promises it made during the election campaign without  considering the negative consequences it will have on businesses once  the policy goes into effect. 

He pointed out that the policy would contribute to increasing  unemployment in the country and urged the government to consider the  benefits to both employers and employees.

----------


## StrontiumDog

^ Oh good lord. 

One of the few things Pheu Thai are doing that *might* actually benefit the normal people of Thailand and the Democrats come out to oppose it. 

Uber fail.

----------


## StrontiumDog

*Bangkok Post : Govt advised, delay wage rise
*
*Govt advised, delay wage rise*
Published: 21/12/2011 at 03:32 PMOnline news:
 The government’s plan to raise the daily minimum  wage of workers in Bangkok and six other provinces to 300 baht in April  2012 should be delayed because manufacturers were severely affected by  the great flood, Somchai Chitsuchon of Thailand Development Research  Institute, said on Wednesday.

 At a seminar on “Reinvent Thailand”, Mr Somchai said the government  must consider implementing the wage hike policy at a more appropriate  time.

 “The increase in the daily minimum wage must be suited to the market  mechanism and the skills of workers  must also be impoved,” he said.

 He suggested that the daily minimum wage should be gradually raised, step-by-step, at an average of 20 per cent each time.

 Pattamawadee Suzuki of Thammasat University’s faculty of economics took the same tone.

 She said the daily minimum wage in Bangkok and nearby provinces  should not be raised at this time because these provinces are in need of  rehabilitation.

----------


## Zampan0

> The wage increase will end up hurting the middle-class businessman and increase the unemployment rate for the lower classes, while not making much of a difference to the upper-class 'elite'.


After reading most posts and knowing what I know about govrnmremts in general, I have come to agree with you.  So what's the answer?  'Cut Backs' must be made and all will suffer.  Except for The Elite of course.

----------


## FailSafe

> Originally Posted by FailSafe
> 
> The wage increase will end up hurting the middle-class businessman and increase the unemployment rate for the lower classes, while not making much of a difference to the upper-class 'elite'.
> 
> 
> After reading most posts and knowing what I know about govrnmremts in general, I have come to agree with you. So what's the answer? 'Cut Backs' must be made and all will suffer. Except for The Elite of course.


Well, you have to realize that I'm a 'middle-class businessman' so my opinion does indeed have a bias...

I don't have an answer- I can only see potential problems, but I can at least use myself as a real-life example.

Do I have workers that deserve more money? Absolutely- I also have some that I would fire before giving them a raise as they're close to worthless- I keep them around as they're occasionally useful when used as manpower for simple tasks, and oftentimes it's useful to have extra bodies to throw around.

Now, if I'm at a point where I have already minimized my expenses and maximized my profits (which is the case), a pay increase could hit me in the wallet to the tune of more than $10,000 per year (300K+ baht) with no way of recouping that loss except by dumping some of my less-valued employees and adding their responsibilities to my more-valued employees (along with their raise in salary, of course)- where I now accept a certain level of work for a low level of pay, I will become more demanding and discriminating with my employees.

This option of more pay and fewer workers has always existed for me and I could have implemented it at any time- I have to say that in my years of experience in Thailand that the way it's always been is actually the way the Thais seem to prefer it- that might be a prejudicial view on my part, of course, but that's the way I see it- the workers whom I feel deserve more money could actually have sought out (and possibly found) more gainful employment than I can offer, but they liked the lower-stress environment that a larger amount of co-workers provided.

My other options are to simply absorb the loss, though I'm not rich to the point where $10,000+ is meaningless for me (especially over several years, where it could mean putting off my retirement date), or have my profits drop to the point where I feel my businesses are no longer viable and close one or more of them (which I don't see happening as I make decent money, but there are others who don't do as well who will indeed close down or move on).

What will happen is that I will fire people, and they will end up in a job market where it will be very difficult for them to find work, and they will either be under-employed (part-time, i.e.) or out of work entirely.

The government is offering tax breaks that won't come close to subsidizing my potential losses- I don't know what else I can do other than to downsize.

----------


## Butterfly

> Do I have workers that deserve more money? Absolutely- I also have some that I would fire before giving them a raise as they're close to worthless- I keep them around as they're occasionally useful when used as manpower for simple tasks, and oftentimes it's useful to have extra bodies to throw around.


if it's not much to ask, what is your business line exactly ? and how many do you employ ? your case is interesting to see that kind of impact in certain industries or line of business,

----------


## FailSafe

> Originally Posted by FailSafe
> 
> Do I have workers that deserve more money? Absolutely- I also have some that I would fire before giving them a raise as they're close to worthless- I keep them around as they're occasionally useful when used as manpower for simple tasks, and oftentimes it's useful to have extra bodies to throw around.
> 
> 
> if it's not much to ask, what is your business line exactly ? and how many do you employ ? your case is interesting to see that kind of impact in certain industries or line of business,


No offense, but I prefer to talk about my business in abstract (using some general personal details) as far as forums are concerned- if we ever meet in person I would be happy to discuss it with you, though.

----------


## StrontiumDog

Thai-ASEAN News Network

2012 Unemployment Expected to Jump 

UPDATE : 30 December 2011                     *

The Labor Ministry predicts that the unemployment rate next year will be on the rise. 

Meanwhile, the government pledges to implement its policy to increase daily minimum wage to 300 baht by April.
*

The Labor Ministry reported that the unemployment rate could possibly  increase by 68 percent by the end of January, based on a recent analysis  using the Composite Signal Indicator.

Labor and Protection Welfare Department Director General Arthit Issamo  said the recent flooding contributed to the lay-offs of 20,000 workers,  while another 300,000 people are waiting to see if their flood-hit  factories will recall them to work after the rehabilitation process.

He added that the unemployment rate is expected to increase in January. 

In response, the Employment Department has prepared additional 140,000 positions to help tackle the problem.

Meanwhile, Labor Minister Padermchai Sasomsap insisted that his ministry  will push forward with the government's attempt to raise the daily  minimum wage to 300 baht in seven provinces, namely Bangkok, Phuket,  Nonthaburi, Pathum Thani , Samut Prakan, Samut Sakhon and Nakhon Pathom  from April 1.

Meanwhile, the minimum wage in other provinces will be hiked by 40 percent before a full raise to 300 baht by 2013.

Moreover, he said the government has announced a Corporate Income Tax  cut from 30 to 23 percent in order to relieve the burden of  entrepreneurs.

----------


## StrontiumDog

*Bangkok Post : Workers press for B300 daily wage
*
*Workers press for B300 daily wage*
Published: 18/01/2012 at 03:38 PMOnline news: Local News
 Labour organisations are mounting pressure on  the government for a daily minimum wage of 300 baht throughout the  country immediately, threatening to file a case with the Administrative  Court if it fails to respond to their demand.

 Chairman of the Thai Labour Reconciliation Committee (TLRC) Chalee  Loysung said on Wednesday that all labour networks want the government  to immediately increase the daily minimum wage throughout the country in  line with an International Labour Organisation convention which says  workers must be given a daily wage which meets the cost of living.

 A survey made by the TLRC showed that the average cost of living was 561.79 baht per day, he said.

 Mr Chalee said the government had increased the living allowances for  government officials and state enterprise workers, but failed to  increase the daily wage for other workers.

 This showed the government applied double standards, causing  disparities in society, and this could lead to an uprising by workers,  he said.

 Following the huge flooding last year, the cabinet passed a  resolution to postpone the promised wage increase to 300 baht per day in  seven provinces from Jan 1 to April 1 this year. 

 The minimum wage in the other provinces would eventually go up to 300  baht by Jan 1, 2013.  After that the minimum wage would be frozen for  two to three years.

 Mr Chalee said the TLRC was opposed to freeze on the minimum wage for  two to three years and wanted the wage to go up on a yearly basis, in  line with the economic situation.  At the same time, the government must  control the prices of consumer goods, especially petrol and gas, to  prevent a deterioration in living standards.

 If the government failed to respond to this demand the TLRC and other  labour organisations  thoughout the country would consult lawyers  about bringing a lawsuit in the Administrative Court, Mr Chalee said.

 Boonsom Thawichit, chairwoman of the group of labour unions in  Saraburi and nearby provinces, said that when when  government's policy  to end subsidies for fuel and gas takes effect prices would certainly go  up.

 Thanaporn Wichan, leader of a women's labour group, said the  government places too much emphasis on the export sector.  If the world  economy as in crisis, factories would certainly be closed and workers  laid off. 

  So, the government should assist purchasing power within the country  by increasing the labour wage, to reduce the risk, she said.

----------


## StrontiumDog

Thai-ASEAN News Network - Oishi Buffet to Increase Price Due to Rising Costs

Oishi Buffet to Increase Price Due to Rising Costs 

UPDATE : 18 January 2012                   
*
Oishi Group is planning to increase the price of its buffet by five baht due to the rising labor and energy costs. 

The company expects the flood-damaged facility to resume production in June. 

Vice President of Oishi Group Paisal Aosathaporn has indicated that the  company has been affected by rising energy cost and the 300 baht daily  minimum wage policy. 
*

The company currently employs more than 6,000 people at its 129 restaurant branches. 

As a result, Oshi may have to raise its buffet price by one to two  percent, or about five baht per person, which is still within consumers'  purchasing power. 

The Oishi executive also expects the manufacturing facility at the  flood-hit Navanakorn Industrial Estate in Pathum Thani Province to  resume production within six months.

At the moment, each branch is responsible for acquiring its own ingredients.  

The Oishi Group has set its revenue goal for this year at 5.2 billion baht, a 27 percent year-on-year growth. 

Last year, the company grew by 25 percent. It has also set aside 300  million baht for a marketing campaign that will utilize various media  outlets. 

Moreover, the company is investing another ten million baht to create  smart phone applications to foster relations with its customers,  particularly younger people.

----------


## Zampan0

> Do I have workers that deserve more money? Absolutely- I also have some that I would fire before giving them a raise as they're close to worthless- I keep them around as they're occasionally useful when used as manpower for simple tasks, and oftentimes it's useful to have extra bodies to throw around.


In my experience of being in the private sector workforce in the U.S. for approx. 12 years, this is exactly how 90% -at least- of employers look at the people they employ, i.e., not people but bodies.  The employers have the expensive homes and cars, luxury vacations, etc., while the employees struggle.  It is the reason that I became self employed thirty years ago this coming February.  Over these past thirty years it has gone from bad to worse with the shipping of jobs overseas, modest increases in the minimum wage that don't cover inflation, many things to bring down the standard of living of the workforce.  Imo, Henry Ford had it right, i.e., pay the workers enough so they can afford to buy the product being produced.  Ford's idea actually worked and was in great part responsible for America's dominance in world trade and the high quality of the standard of living of the workers.  It seems that the ethos of of totalitarianism mixed with facism is what now governs what is left of the work force.  I've had the big house and cars (I no longer do), was I any happier with them?  Not really.  I did it on my own with zero employee's.  I guess that I could have become quite rich if it was in me to use people, it just wasn't in me to do so.  I think it's because my dear departed mother always told me, "If you ever hire people , treat them well".  If there is a heaven, my mother is there, but I am afraid that these 90% or so of employers that use folks to make their money won't get a chance to meet her.  Do you actually think that when Jesus Christ spoke of the "eye of a needle" he was joking?

----------


## FailSafe

^ 

Wow- you really took an out-of-context part of a long post and ran with it.

Sorry I won't get to meet your mom in Heaven- like the line from the song goes, _"I'd rather laugh with the sinners than cry with the saints- the sinners are much more fun."_ :Wink: 

Nice religious/socialist rant, though.

----------


## Carrabow

I blame NAFTA

----------


## philw

> Originally Posted by FailSafe
> 
> Do I have workers that deserve more money? Absolutely- I also have some that I would fire before giving them a raise as they're close to worthless- I keep them around as they're occasionally useful when used as manpower for simple tasks, and oftentimes it's useful to have extra bodies to throw around.
> 
> 
> In my experience of being in the private sector workforce in the U.S. for approx. 12 years, this is exactly how 90% -at least- of employers look at the people they employ, i.e., not people but bodies.  The employers have the expensive homes and cars, luxury vacations, etc., while the employees struggle.  It is the reason that I became self employed thirty years ago this coming February.  Over these past thirty years it has gone from bad to worse with the shipping of jobs overseas, modest increases in the minimum wage that don't cover inflation, many things to bring down the standard of living of the workforce.  Imo, Henry Ford had it right, i.e., pay the workers enough so they can afford to buy the product being produced.  Ford's idea actually worked and was in great part responsible for America's dominance in world trade and the high quality of the standard of living of the workers.  It seems that the ethos of of totalitarianism mixed with facism is what now governs what is left of the work force.  I've had the big house and cars (I no longer do), was I any happier with them?  Not really.  I did it on my own with zero employee's.  I guess that I could have become quite rich if it was in me to use people, it just wasn't in me to do so.  I think it's because my dear departed mother always told me, "If you ever hire people , treat them well".  If there is a heaven, my mother is there, but I am afraid that these 90% or so of employers that use folks to make their money won't get a chance to meet her.  Do you actually think that when Jesus Christ spoke of the "eye of a needle" he was joking?


Agree with you.

----------


## Zampan0

> ^ 
> 
> Wow- you really took an out-of-context part of a long post and ran with it.
> 
> Sorry I won't get to meet your mom in Heaven- like the line from the song goes, _"I'd rather laugh with the sinners than cry with the saints- the sinners are much more fun."_
> 
> Nice religious/socialist rant, though.


Have fun in hell.

----------


## FailSafe

> Have fun in hell.


I'll save you a place in line if I get there first.  If I remember my Dante, there's a special circle for judgmental, assumptive pricks, so I guess that will be your spot- I'll be with the evil bosses and idle rich, I guess. :Smile:

----------


## sabang

> I'll be with the evil bosses and idle rich, I guess.


And if you pay decent wages and meet your bills, you deserve to enjoy the party.  :Smile: 
The only problem I have with the much overdue wage rise is all of this foot dragging in getting it implemented. Minimum wages are way too low here, by any measure.

----------


## FailSafe

^

My point has always been this- I agree that wages are low (too low in many cases)- the fact that they're low, though, means that there are more jobs to go around (using my own anecdotal experience of having redundant employees- hence my reference to 'throwing bodies' at a problem or job, which was not meant to be demeaning to my workers- as finding quality workers is very difficult).

If I have to pay higher wages, I will become much more selective in my screening process (right now I'm lazy) and much more demanding of my workers- I will also employ fewer people and expect more production out of the ones I keep.

If that means I'm going south after I croak, so be it. :Wink:

----------


## sabang

> If I have to pay higher wages, I will become much more selective in my screening process


And training process too, hopefully. If Thailand persists in it's low wage, pay peanuts for monkeys philosophy then the process that is already visibly happening will only continue, and ultimately be set in concrete. Namely being overtaken by it's regional neighbours. From a long term view, this does not only fall on the shoulders of employers though- education reform is much needed.

You should indeed pay more attention to the quality of your hiring and training, if your business outlook is geared to the long term.

----------


## FailSafe

^

Well, I've been in business in LOS more than ten years, and I show no signs of stopping anytime soon.

It's the unskilled positions that are the biggest problem- there is no real 'training'- wages are low, and most businesses are over-staffed at that level- most of these employees are unmotivated (even for more money) so there are a lot of available slots as they're cheap to employ- when wages are mandated to increase, only the best of this bunch will retain their jobs, and the others will be cut loose (and they'll probably have problems finding a new position)- federally-controlled low wages are a form of government welfare, and it's going to come to an end.

----------


## watdog

a permanent underclass of the size thailand has is ultimately unworkable, imo.

----------


## sabang

> federally-controlled low wages are a form of government welfare, and it's going to come to an end.


My view is that it has to, unless Thailand wishes to become the sick man of Asia.
Unfortunately, I also get the feeling that is what many of the sinothai 'business elite' want- a cheap, docile but uneducated workforce, reliant upon an affluent and educated (yet occluded) elite. I know it is not what the people want though- so how surprising that many of this entrenched elite wish the peasants did not have a vote.  :Smile: 
I know what you mean about hiring, firing, motivation etc, and it can fairly be described as frustrating from a western businessmans perspective. It is also, of course, a function of the existing system in Thailand- a system that is woefully past it's sell by date.

----------


## FailSafe

^^

That may be true- there are certainly potential problems on the horizon.

----------


## FailSafe

Of course the rich want to stay rich (and get richer)- at the same time, an SME needs to remain sustainable- it's the middle-class employer that will have the biggest problem.

I make a decent living, but I'm not rich- if you decrease or remove my business viability, I'm not the only one who will be hurt.

----------


## sabang

If the overdue increase in minimum wage makes your business unviable, it is pretty obvious that you are in the wrong business. As a 'middle class businessman' with at least a decade in Thailand, I am sure you have the necessary competence to accomodate it- and if you are 'good', ultimately benefit from it. The real 'sweatshops' will be moving to Burma, incidentally.

----------


## FailSafe

> If the overdue increase in minimum wage makes your business unviable, it is pretty obvious that you are in the wrong business. As a 'middle class businessman' with at least a decade in Thailand, I am sure you have the necessary competence to accomodate it- and if you are 'good', ultimately benefit from it. The real 'sweatshops' will be moving to Burma, incidentally.


You keep singing the same tune, and I keep giving you the same answer.

I will do what is necessary to remain viable- if that means eliminating jobs (and it probably will) then that's what I'll do- as I've said several times, I believe that this minimum-wage increase will lead to greater unemployment, and that's why I think it's not the panacea you think it is.

----------


## watdog

BIG problems, i think.

----------


## sabang

^^ And with the greatest of respect to yourself as an individual small businessman, I listen to the likes of CP (Thailands largest employer), the big multinationals, economists etc considerably more than yourself. As someone who has personally been a director and major/ founding shareholder of a company that employed a few hundred people (including some in Thailand), I can assure you that minimum wages in Asia were never of the least concern to me- in fact, I wished they were higher in Thailand and the Fil's, so I didn't have to pay peanuts for monkeys. In common with many of your colleagues that support the Democrats, I consider your outlook shortsighted and nominally self serving- yet in the long term, the opposite. Nevertheless, I wish you well in your business- as I do all small businessmen, except scoundrels of course.

----------


## FailSafe

CP is not a good example- they measure their yearly profits in the billions of baht- let's talk about companies that measure it in terms of a few million.

With all due respect, I'll take my own personal experience over yours, and I find your attitude completely out-of-touch with the reality of doing business as an SME in Thailand.

The proposed increase is what, about 40%?  Let's say it's 20% over-all as not every employee falls below the minimum, and you've got a payroll of 500K- that's an increase of 100K per month, or 1.2mil per year, which is a big hit for an SME- even if it's only 10%, that's still USD$20,000 per year- that's substantial in my world, and it leads to three choices:

1. Eat the expense
2. Raise prices
3. Cut expenses somehow (most likely through the elimination of jobs if you're carrying redundancies, which many businesses- mine included- are)

----------


## FailSafe

> In common with many of your colleagues that support the Democrats


That took longer than I expected. :Smile:

----------


## Mid

*Minimum wage in Thailand should be US$16*
22-01-2012

Charoen Pokphand Group (CP) chairman and CEO Dhanin Chearavanont has suggested that Thailand's daily minimum wage should be as high as Bt500(US$16).

The Yingluck government is planning to boost the minimum wage to Bt300 per day nationwide to implement the ruling Pheu Thai Party's election pledge.

In the first stage, the Bt300-per-day minimum wage will be enforced in Bangkok and six other provinces from April this year.

In support of the government's policy, Dhanin said he believed the minimum daily wage should be even higher - at Bt500, not Bt300 - because of price rises and higher cost of living.

Judging by the current cost of living, Dhanin said Bt300 was still relatively low as a minimum daily wage.

However, some businessmen have complained that Bt300 is too high as Bangkok's current minimum wage is only about Bt240 per day, while other provinces have lower wages.

They want the government to raise wages gradually so employers have time to adjust.

But Dhanin, who also champions high farm prices, said at a seminar entitled '35 years of Nongwa and sustainable development': "A higher minimum wage policy should be supported because it will help farmers enjoy higher income. Labourers are not slaves.''

The CP boss - a billionaire who is one of the richest men in Thailand - said Thai farmers were poor because bureaucrats and politicians did not understand farmers and their circumstances; they created and implemented policies that did not support them.

"You can see that whenever prices for agricultural goods rise, the Commerce Ministry will issue a policy to push down the price, fearing city people will suffer from the price rise,'' he said.

"Whenever the egg price rises, the government imports eggs to help consumers, but farmers who have little capital aren't able to survive [for this reason],'' he said.

asianewsnet.net

----------


## Tom Sawyer

> ..it leads to three choices:
> 
> 1. Eat the expense
> 2. Raise prices
> 3. Cut expenses somehow (most likely through the elimination of jobs if you're carrying redundancies, which many businesses- mine included- are)


You forgot the fourth - combine the three. Funny such a shrewd businessman as your good self would have missed that one..

----------


## FailSafe

^

I didn't say you had to choose only one... :Smile: 

In fact, some combination of the three is the only way to go. In the end I won't be affected too badly (as far as salary goes- price increases by suppliers might hurt my business further, though), and I've exaggerated the personal effect it will have on me to make the example a bit clearer (I doubt I will eliminate staff- most of my people have been with me for years and make more than the proposed new minimum anyway)- it will hit others way harder, though, and I know that jobs will be eliminated and prices will increase in some sectors (or the increase will be ignored entirely- enforcement will be an interesting issue, especially with many businesses paying people 'off the books').

If the minimum wage went up to 500 baht per day as the chairman of CP recommended above, THAT would be a real problem (lucky for him he made his billions on the low end of the scale).

----------


## Dan

> I believe that this minimum-wage increase will lead to greater unemployment


That claim might have more strength it hadn't been deployed at every point where the power threatened to shift - no matter how slightly - from capital to labour. If you look at the arguments around the factory reform acts in 19th century Britain, you'll see it used over and over and over again. That doesn't mean it's necessarily wrong this time but it's worth bearing in mind that it's been wrong countless times in the past.

----------


## Tom Sawyer

> If the minimum wage went up to 500 baht per day as the chairman of CP recommended above, THAT would be a real problem (lucky for him he made his billions on the low end of the scale).


Ah well, in Thailand it's not what you know - it's the feudal chinamen that you know.
 :Smile:

----------


## FailSafe

^^

I don't think you can take Western examples and compare them to Thailand on this issue (you can't really do that in most situations), especially when you take into account the number of redundant employees most businesses carry here- also, the increase is pretty huge when looked at in terms of a percentage, when it could have been implemented in steps over a few years instead of in one shot.

I really don't think businesses will be hiring as many people at the new proposed minimum- it's fine for the people that will keep their jobs, but I'll be very surprised if the unemployment rate doesn't increase for manual laborers- I think some industries that currently rely on manpower (like farming) might finally bite-the-bullet and automatize their operations as it will be more cost-effective.

----------


## Dan

It's pretty much a standard argument. I'm sure if you could be arsed to do a cross-cultural  research project on recent discourse surrounding labour-capital relations, this would feature as a cultural universal.

----------


## FailSafe

^

Maybe- we'll certainly find out soon enough- I've got an opinion based on what I know of a few different markets here, and I think I'm right- if it turns out I'm wrong, that will be fine with me, but I just can't see it working out well (especially for the first few years after its inception).

----------


## Tom Sawyer

Any country that boasts it's comparative advantage as being a low-wage economy is doomed - and the people who pitch it that way deserve the (figurative) bullet in the head they will eventually receive.

----------


## StrontiumDog

Thai-ASEAN News Network - Laborers Prepare for Natiowide Rally to Demand Wage Hike

Laborers Prepare for Natiowide Rally to Demand Wage Hike 

UPDATE : 26 January 2012                  

Laborers have revealed that they are  planning a nationwide rally to protest against delays in raising minimum  wage to 300 per day. The Yingluck administration had made campaign  promises which have been delayed due to an economic downturn following  widespread floods last year.

However, a date for the rally has not been revealed.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...ike-nationwide
*
*TLSC demands wage hike nationwide*
Published: 26/01/2012 at 04:07 PMOnline news: Local News
 The Thai Labour Solidarity Committee plans mass  gatherings of workers throughout the country to pressure the government  to immediately raise the daily minimum wage to 300 baht nationwide, TLSC  chairman Chalee Loysoong said on Thursday.

 Mr Chalee said his committee disagreed with the government’s plan to  increase the daily minimum wage to 300 baht on only seven provinces on  April 1 this year, and then raise the daily wage to 300 baht nationwide  in 2013.

The government had promised a 300 baht daily wage on Jan 1, 2012, but failed to keep its word, he added.

He  said prices of consumer goods have gone up due to the increase in fuel  prices and the government has failed to control prices of essential  products, while civil servants have been given pay increases.

The  daily living cost of each worker was now about 348 baht. If they have  family, their cost of living rises to 561.79 baht per day.

Therefore,  the government should immediately raise the daily minimum wage to 300  baht for all workers across the country, said Mr Chalee.

 
Labour Minister Padermchai Sasomsap

 Labour Minister Padermchai Sasomsap said he was not happy with  comments by management of the Federation of Thai Industries (FTI) about  the impact of a wage increase.

FTI vice president Thanit Sorat  said that lifting the minimum wage to 300 baht  would result in a  substantial increase in labour costs and manufacturers would not be able  to shoulder it.

Mr Thanit said manufacturers might have  no option but to move their production bases to other countries where  the daily wage was one fourth the rate in Thailand.

Mr Padermchai  said increasing the daily minimum wage of workers to 300 baht would  raise production costs of manufacturers by only one per cent. This was  minimal.

The government plans to compensate  by offering a corporate tax reduction of 10 per cent for manufacturers, he added.

He said Mr Thanit should not make comments that could cause damage to the country.

The minister said he will soon meet with the FTI executive to discuss the real impact of the daily minimum wage increase.

----------


## Tom Sawyer

Alterior motives? Only in Thailand would the trade unions side with the yellow fascists. Black is white here.

----------


## sabang

> move their production bases to other countries where the daily wage was one fourth the rate in Thailand.


75 baht a day? Where is this capitalist nirvana.

----------


## Thaihome

> Alterior motives? Only in Thailand would the trade unions side with the yellow fascists. Black is white here.


 
Perhaps you should read the article again.

This would be the union:




> The Thai Labour Solidarity Committee plans mass gatherings of workers throughout the country to pressure the government to immediately raise the daily minimum wage to 300 baht nationwide, TLSC chairman Chalee Loysoong said on Thursday.


 
This would be the industry group of owners:




> Federation of Thai Industries (FTI) vice president Thanit Sorat said that lifting the minimum wage to 300 baht would result in a substantial increase in labour costs and manufacturers would not be able to shoulder it.


Appear the union is fully supporting the wage increase , but maybe there is a conspiracy in there somewhere I missed.

 ::chitown:: 
TH

----------


## Thaihome

> Originally Posted by StrontiumDog
> 
> move their production bases to other countries where the daily wage was one fourth the rate in Thailand.
> 
> 
> 75 baht a day? Where is this capitalist nirvana.


 
That would be Cambodia.

Cambodia Daily Minimum Wages = $1.67 (6,831.80 Riel)
In Thailand = $6.82 (206 THB)

http://www.nwpc.dole.gov.ph/pages/st...ges%202010.pdf
one quarter of $6.82 is $1.70. 
TH

----------


## watdog

creates and perpetuates a permanent under class. dumb.

----------


## sabang

^^ Cheers for that TH, and it is an interesting PDF file- It would be nice to have a more recent one, as in YE 2011 not 2010, but anyway.

It rather tells you why Thailand will not benefit from a 'race to the bottom' on wage policy. Compete with Indonesia, Cambodia, and soon Burma? that's laughable. Role models should be Malaysia (with a minimum wage 250% of Thailand's), and China- where workers wages are inflating at a high rate, due to it's success in attracting investment. They are now getting close to par with Thailand, and I would wager the difference has decreased further since the end of 2010. If you compare minimum wages ten years ago in China to Thailand, there was a vast difference- and it pretty much tells you which country is doing better in attracting investment and employment, and doing a better job for it's citizens to boot.

Some Thai employers can, and predictably will, groan about the wage rise being "too high", but they conveniently neglect to mention the fact that they received a free ride under the Abhisit government- when wage rises were minimal, yet domestic price inflation was high. Compared to GDP per head, cost of living, and overall company cash flow, minimum wages (and wages overall) are abysmally low here, more reminiscent of a third world nation than an 'advanced developing country' as Thailand is now classified. This is absolutely no model for the future.

----------


## StrontiumDog

Thai-ASEAN News Network - Bt300 Minimum Wage Nationwide Affirmed for April 1

Bt300 Minimum Wage Nationwide Affirmed for April 1 

UPDATE : 7 February 2012 

*The labor minister affirms minimum wage hike will become effective across the country on April 1. 

By the year end, all provinces of Thailand will see a minimum daily wage raised to 300 baht per day. 

Labor Minister Padermchai Sasomsap pointed out that provinces across  Thailand will see a maximum of 40 percent daily wage increase on April  1.  
*

The wage increase will be applied to the current minimum wage rate in each province.  

The 7 provinces with the second highest minimum wage of 215 baht a day will see a hike of 80 baht or 39.5 percent.  

Phayao, with the lowest per day wage, will see a hike of 40 percent or around 60 baht. 

In Phuket, a province with the highest daily wage, the minimum daily  wage will be raised by just 36 percent from the current 221 baht per  day. 

By the year end, the minimum daily wage will be increased to 300 baht a day across the country.  

Padermchai added that he is not worried about businesses trying to file a  petition with the Administrative Court to postpone the wage hike.  

He explained the issue has been thoroughly discussed and endorsed by the  tripartite committee comprising representatives from the government and  workers. 

The Federation of Thai Industries or FTI met with the labor minister  yesterday, discussing the details of the planned wage hike. 

Pardermchai said businesses will be given assistance to help them cope  with the increase in cost in the form of corporate tax privileges. 

Social security contribution by businesses will be slashed from 5 to 3 percent during the first 6 months.  

The labor minister denies as many as 170,000 Thais are without jobs.  In fact, the minister said there's a shortage in labor. 

He said there are as many as 150,000 vacancies waiting to be filled. 

Padermchai added that companies that were closed down admitted that they were forced to lay off 20,000-30,000 workers.  

The minister said he's ready to help them find new employment.

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...bosses-workers
*
*Entry wages backed by bosses, workers*
Published:  9/02/2012 at 12:00 AMNewspaper section: News

 Employer and employee representatives want the minimum wage to be scrapped and replaced with an entry-wage system.

 The representatives made their call during a seminar which looked at  how to develop workers' potential and boost productivity in the  industrial sector to accommodate the rise in the minimum daily wage, to  at least 300 baht a day.

 Increases in the minimum wage will take effect on April 1.

 In seven pilot provinces _ Bangkok, Nonthaburi, Samut Prakan, Samut  Sakhon, Nakhon Pathom, Pathum Thani and Phuket _ they will rise to more  than 300 baht a day.

 In other provinces, minimum wages will be raised by about 40%.

 Thaworn Chalatsathian, the deputy secretary-general of the Federation  of Thai Industries, said Thailand should scrap the minimum wage and  replace it with a wage system for entry-level workers.

 A labour source said the minimum wage is suitable for unskilled  workers, both Thai and alien. The minimum wage has been raised every  year, giving workers the chance to enjoy a pay rise annually.

 If the government did not boost the minimum wage, workers' salaries  paid by employers would not increase either. This is because most  employers do not have wage structures in place for unskilled workers.

 Following every minimum-wage hike, commodity prices always jump significantly.

 Employers say the increase in salaries leads to higher labour costs, undermining their competitiveness.

 Mr Thaworn suggested if the minimum wage system were to be scrapped,  new workers' wages could be increased according to their productivity,  the consumer price index and length of time in employment.

 Pay rises at each business should increase in percentage terms rather than in absolute amounts of money, Mr Thaworn said.

 Meanwhile, Manas Kosol, chairman of the Confederation of Thai Labour,  said wage problems in Thailand derived from the fact there was no wage  structure for unskilled workers.

 Mr Manas said the Confederation of Thai Labour has resolved to push  for the revocation of the minimum wage system and replace it with an  entry-wage structure.

 Wages could be increased in the second year of employment according to workers' salary structures and their potential.

 Mr Manas added that most unskilled workers who have worked for  several years were earning only slightly more than the minimum wage.

 Many have to work more than one shift to earn enough money to support their families.

----------


## Tom Sawyer

Well if there is going to be a coup, wanna bet it's before April 1st to avoid the change to a minimum wage? Embarrasing for the new Generals to roll back that one. So just run the coup before the law kicks in - presto!

----------


## Buksida

> Role models should be Malayasia (with a minimum wage 250% higher that of Thailand's)......  an 'advanced developing country' as Thailand is now classified. This is absolutely no model for the future.


According to Wikipedia, Malayasia's min wage is around B7,000. They also have a much more skilled and educated workforce.

It would be interesting to know what makes Thailand 'an advanced developing country'. The place still seems feudal to me.

----------


## StrontiumDog

*Pay policy driving local bodies to wall | Bangkok Post: news
*
*Pay policy driving local bodies to wall*
Published: 10/02/2012 at 12:00 AMNewspaper section: News
 The government's policy of raising the salaries  of bachelor's degree holders is driving some local administration  organisations to bankruptcy, the Municipality Assembly of Thailand said.

 Sombat Chanasit, an executive member of the assembly, said about 80%  of local administration staff nationwide will not be paid this month, if  the government does not inject more money to cover their pay.

 Some organisations' coffers were running dry because government subsidy makes up 10% of their budget.

 Up to 10 billion baht, which should have been allocated to the local  organisations, has been diverted as a development fund overseen by MPs.

 The government policy of increasing the minimum salary for bachelor  degree holders to 15,000 baht a month was also placing a heavy burden on  the organisations.

 Mr Sombat said each small local administration organisation is  spending about 200,000 baht a month on salaries. For larger  organisations, salaries account for up to 3 million baht a month in  spending.

 "Some of the organisations are going bankrupt," said Mr Sombat, also  chairman of the tambon Mae Kree municipality in Phatthalung.

 Meanwhile, Prime Minister Yingluck Shinawatra yesterday awarded local  administrations with outstanding work and management for last year. The  ceremony was held at Government House.

 Ms Yingluck said local administrations played a key role in conveying government policy to local people.

 Mae Hong Son Provincial Administrative Organisation (PAO) received the first place award for PAO.

 The first place municipal administration was awarded to Phra Ngam Tambon Municipality in Lop Buri province.

 The first place Tambon Administrative Organisation (TAO) was awarded  jointly to Ban Moh TAO in Phetchaburi, Kud Chompu TAO in Ubon  Ratchathani, Don Kaeo TAO in Chiang Mai, Chong TAO in Trang and Laem  Klad TAO in Trat.

----------


## StrontiumDog

*Minister Padermchai rows with disgruntled workers | Bangkok Post: news
*
*Minister Padermchai rows  with disgruntled workers*
Published: 28/02/2012 at 02:02 AMNewspaper section: News
 Labour leaders have threatened to stage a move  to oust Labour Minister Padermchai Sasomsap following a heated quarrel  over the 300 baht wage hike.

 
About 500 members of the Thonburi Automotive Assembly labour union  and workers from Silver Ice Co rallied in front of the Labour Ministry  yesterday, asking Labour Minister Padermchai Sasomsap to help them  obtain the 300 baht minimum wage. SURAPOL PROMSAKA NA SAKOLNAKORN

 The move came after about 500 workers from Thonburi Automotive  Assembly Co and Silver Ice Co, a jewellery maker, gathered in front of  the ministry yesterday to call for help after their employers cut their  welfare benefits as a result of the government's 300 baht wage hike  policy.

 They also claimed their employers were willing to give the new wage  hike to new staff only, while old workers would not be entitled to the  new rate.

 Mr Padermchai met the workers.

 However, during the talks he berated labour leaders and the workers  for staging the rally, which he said had cast the country's image in a  negative light and eroded investor confidence. He defended the  government's 300 baht policy and told workers whose wages had not been  increased to talk to their employers.

 After receiving the petition from the workers' representative, Mr  Padermchai engaged in a heated quarrel with Manas Kosol, chairman of the  National Congress of Thai Labour and other labour leaders.

 Din Daeng police went to the scene but there were no reports of violence.

 Mr Manus said Mr Padermchai had belittled the plight of workers  affected by the government's decision to increase the minimum wage to  300 baht. Employers had cut welfare benefits of workers after they were  forced to comply with the wage hike policy, he said.

 Increases in the minimum wage will take effect on April 1 in seven  pilot provinces _ Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon,  Nakhon Pathom, Pathum Thani and Phuket.

 More than 10 million workers nationwide have been affected by the wage policy, said Mr Manus.

 Many workers had lost their faith in Mr Padermchai and they would  soon stage a move in front of Government House to call for the  replacement of the minister, he said.

----------


## StrontiumDog

*http://www.bangkokpost.com/breakingn...age-nationwide
*
*Rally demands B300 wage nationwide*
Published: 28/02/2012 at 03:24 PMOnline news:
 About one thousand members of the Labourers  Network for a Fair Wage on Tuesday rallied in front of Government House  calling for a 300 baht daily minimum wage across the country, reports  said.

 The workers said the cabinet meeting’s resolution on Nov 22, 2011, to  raise daily minimum wage of workers in only seven provinces in April 1,  2012 was unfair. They demanded the government to review its wage hike  policy.

 They called on Prime Minister Yingluck Shinawatra to come out herself  to receive their open letter at the Phitsanulok road rally site,  otherwise, the rally would be prolonged.

 The workers closed two lanes of Phitsanulok road, leaving only two  lanes open for traffic. This had caused  heavy traffic congestion on the  main road.

 Police were deployed inside Government House grounds and nearby areas to maintain law and order.

----------


## StrontiumDog

Photo from AP Photo

 
                  AP Photo                            15 hours ago                       _
Thai laborers listen to speech by their leader during a rally Tuesday, Feb. 28, 2012 in Bangkok, Thailand.  About 1,000 factory workers staged the rally to demand for the raise of  their daily wages to 300 baht ($10) promised by the ruling Pheu Thai  Party during a political campaign last July._

_Photo from AP Photo_

 
                  AP Photo                            15 hours ago                       _
Thai laborers carry a cutout of Prime Minister  Yingluck Shinawatra during a march to the government house Tuesday, Feb.  28, 2012 in Bangkok, Thailand._

----------


## StrontiumDog

*22 jobs to be paid above minimum wage rates - The Nation
*
*22 jobs to be paid above minimum wage rates*

         THE NATION March 2, 2012  1:00 am 

*The Wage Tripartite Committee yesterday issued a  list of 22 vocational jobs which qualify for rates higher than the Bt300  daily minimum wage, which will come into effect across the country on  April 1.*

The Bt300 daily minimum wage will be implemented in seven provinces,  including Bangkok on the same day, said Labour Ministry permanent  secretary Somkiart Chayasriwong, who also chairs the committee. The  committee did not discuss a demand by labourers calling for a blanket  minimum daily wage of Bt300 in all provinces, not just in the seven  provinces initially, he added.

The highest raise is for Thai-food cooks, going up 40 per cent from  Bt280 to Bt400, while the lowest rate of increase is 11.7 per cent, for  carpentry work Class 1, from Bt300 to Bt335, he said. Somkiart did not  give details of the criteria used by the committee to determine the  raises in both categories.

The jobs are divided into six groups, then subclasses, depending on  skill levels in the same groups: auto repairs; service sector;  electronic and computer technicians and repairmen; handyman and helpers  in computer-assisted designs; construction workers, and industrial  workers.

In the list, auto paint repairmen Class 1 will get Bt400 a day from  Bt315 at present, while Classes 2 and 3 will get Bt465 and Bt530,  respectively, up Bt380 and Bt445, respectively at present.

In the service sector: Thai-food cook position Class 2 will get Bt510  from the current Bt360; traditional masseurs Classes 1, 2 and 3 will get  Bt440, Bt580 and Bt720, respectively from the current Bt310, Bt410 and  Bt510; while spa service people in Class 1 and 2 will get Bt490 and  Bt650 respectively, up from the current Bt350 and Bt460.

The Labour Ministry will soon grant a special fund to help small- and  medium Japanese enterprises affected by the flooding who have not  received a 10 per cent tax deduction like large-scale firms, he said.  The flood-hit Japanese SMEs are being affected the Bt300 daily wage.

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## StrontiumDog

*Firms go to court against govt Bt300-wage order - The Nation
*
*Firms go to court against govt Bt300-wage order*

         Petchanet Pratruangkrai,
Thanongsak muennoo
The Nation March 16, 2012  1:00 am 
 

*About 42 companies from various industries  have lodged a complaint with the Central Administrative Court over an  official order requiring employers to raise their daily minimum wages.*

The move is a lastditch attempt by 42 Thai and Japanese firms to block  the big pay hike, which they believe the government has pushed for  without any appropriate reason.

Their petition may affect more than 5.4 million workers who are hoping  to get the higher pay from next month, according to Labour Ministry  permanent secretary Somkiat Chayasriwong.

"They have claimed the order issued by the Central Wage Committee [CWC]  is illegal," Somkiat said, in his capacity as the CWC chairman. "But I  have already explained to the court that we have taken all relevant  factors into account."

According to him, the CWC is a tripartite panel. Excluding its  chairman, the panel has five representatives from employers, five  representatives from employees, and four from government agencies.

"The 14 CWC members voted unanimously to raise the daily minimum wage across the country by 40 per cent," Somkiat said.

Many employers suspect that the decision came under government pressure  as the ruling Pheu Thai Party made it an election policy to raise the  daily minimum wage to Bt300.

With the 40percent pay hike scheduled to take effect from April 1,  workers in Bangkok, Phuket, Samut Prakan, Samut Sakhon, Pathum Thani,  Nakhon Pathom and Nonthaburi will earn at least Bt300 a day.

Kamol Trevibul, deputy secretarygeneral of the Electrical, Electronics  and Allied Industries club under the Federation of Thai Industries, said  that the industries needed a clarification from the government on the  need for increasing the daily wage to Bt300 per day, as this policy was  not based on fair reasoning.

"The unreasonable increase in minimum wage will prompt both foreign  investors and local enterprises to relocate to other countries.  Investors will have low confidence to do businesses in the country as  the government has full authority to raise the wage without discussing  with involved parties," Kamol said.

The petitioners against the wage hike come from various industries.  Most are electronics and electricalappliances makers, who employ more  than 700,000 workers in seven provinces.

Among them are Murata Electronics (Thailand), Star Polymer Corporation,  L&E Manufacturing Co, Kulthorn Kirby, Kulthorn Metal Products,  Kulthorn Steel, Nippon Super Precision, Racha Chu Rot and Vanda  Preserved Food.

Enterprises are worried that they would face huge losses since labours  efficiency have not been developed in accordance with the payment.

If the government increases the daily minimum wage in keeping with its  electioncampaign pledge, Thai labour costs would soon soar, Kamol said.

"The daily minimum wage may increase to Bt500 because political parties  will compete with each other to promise higher wages during election  campaigns," he commented.

Somkiat yesterday told the Central Administrative Court that the  government policy was just a factor in the decision to order a  significant pay hike.

"The CWC has also considered cost of living, economic conditions, prices of consumer goods and the rate of inflation," he said.

Thai Labour Solidarity Committee chairman Chalee Loysoong said he  disagreed with the employers' petition to the Central Administrative  Court.

"Workers are now struggling hard with the rising cost of living," he said.

He said if the Central Administrative Court issued an injunction  putting the wage hike on hold, workers would appeal against the  injunction.

If necessary, workers would also stage rallies to pressure the  government to keep its promise on the Bt300 minimum daily wage, Chalee  said.

----------


## sabang

Time for Thailand to get some proper labor unions organised. Start with the knowledge that all you have to do to bring anything associated with Capital down, is nothing whatsoever. Wages have been stagnant here for some years- but inflation hasn't. It is pretty obvious who is being shafted.

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## StrontiumDog

Wage hike policy causes garment factory relocation : National News Bureau of Thailand

*Wage hike policy causes garment factory relocation* 

BANGKOK, 17 March 2012  (NNT) – The Thai Garment Manufacturers Association (TGMA) has voiced  disagreement to the government’s wage hike policy, which it views as a  threat to the garment industry. 

TGMA President Sukij Kongpiyacharn disclosed that the THB300 minimum  wage policy coupled with the labor shortage had forced the country’s 15  largest garment companies to halt their business expansion in Thailand  and turn instead to new investment bases in Myanmar, Laos, Cambodia and  Vietnam.       

In Mr. Sukij’s opinion, the wage rise policy is only one of the  government’s political campaigns and will not really help spur skill  development.  

Mr. Wallop Witanakorn, TGMA secretary-general said the 15 manufacturers,  which had decided to relocate their businesses to neighboring  countries, had combined investment value of US$200 million. 

The TGMA President cautioned that the wage rise policy would push up  production cost by three to six percent which would lead to price hikes.  The Thai garment industry may lose its competitive edge in the long run  if foreign customers find the price adjustment unacceptable.       

The association warned that about 30 percent of small garment factories  may have to close down due to their inability to bear higher costs.                                   

-----
PM clarifies need for wage hike : National News Bureau of Thailand

*PM clarifies need for wage hike      *  

BANGKOK, 17 March 2012 (NNT) – Prime Minister Yingluck Shinawatra has  stressed the importance of the minimum wage rise policy in her Saturday  talk show which mainly focused on the high cost of living. 

Ms. Yingluck explained that the THB300 minimum wage would enable  low-income earners to cope with higher living cost by giving them better  access to necessary consumer products, which were becoming more  expensive. 

She insisted that skill development must be promoted after the wage  hike. The Labor Ministry has been assigned to work in tandem with  operators on this matter.   

As part of the plan to help ease people’s financial difficulties, the  free bus and train project will continue. The public will also be urged  to adjust to an energy-saving lifestyle.     

In addtion, the public sector will need to map out energy efficiency  strategies and look for new alternative energy sources at the same time.

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## StrontiumDog

*Bt300 wage rise only slightly impacts goods prices: Commerce Minister
*
*Bt300 wage rise only slightly impacts goods prices: Commerce Minister*

  วันพฤหัสบดี ที่ 22 มี.ค. 2555

 

  BANGKOK, March 22 - Commerce Minister Boonsong Teriyapirom  insisted on Thursday the government policy's minimum wage rise to Bt300,  which starts on April 1, will only slightly impact goods prices.

  The impact of the wage raise will be on some items for which labour  is needed during the manufacturing process, such as school uniforms,  paper, and plywood, as studied by the Internal Trade Department (ITD),  its director-general Watcharee Vimuktayon said.

   She added that material costs account for about 70-90 per cent,  while labour costs for only 1-5 per cent of the overall, according to  the structure of costs and prices of goods.

  Mrs Watcharee noted that the higher minimum wage will allow workers  to have greater purchasing power, so they will spend more, which will  result in a higher sales volume of goods and a lower production cost per  unit. In addition, the government's policy to reduce corporate income  tax will also help entrepreneurs on production costs.

  Only some industries felt the pinch by higher oil prices affecting  production costs, while the costs are indirectly impacted by the oil  prices on goods distribution/transportation.

  According to the Internal Trade Department, transportation fees  account for 15 per cent of consumer goods prices. The higher prices of  compressed natural gas at 12 per cent and diesel at 8 per cent currently  impact transportation costs by only 0.44 per cent.

  Higher energy prices are thus not the main reason that producers will use to ask to adjust goods prices.

  The Commerce Ministry anticipates the consumer price index this year to expand by 3.30-3.80. (MCOT online news)

----------


## StrontiumDog

*Firms told to pay or leave | Bangkok Post: news
*
*Firms told to pay or leave*
Published: 28/03/2012 at 02:01 AMNewspaper section: News
 Businesses that cannot afford to comply with the  government's 300 baht daily minimum wage policy should relocate to  neighbouring countries, says Virabongsa Ramangura, chairman of the  Strategic Committee for Reconstruction and Future Development.

 
Virabongsa: Offers stark choice

 The government would happily provide promotional assistance to those wanting to relocate their manufacturing bases, he said.

 Mr Virabongsa said he explained these views to Naoyuki Shinohara,  deputy managing director of the International Monetary Fund (IMF), who  met him yesterday.

 He said Thailand is now facing a labour shortage and the country has  been relying on at least 10 million illegal foreign workers.

 "We should understand that we can't keep all these industries in this  country any more, particularly those that are labour intensive such as  textiles, leather goods, and small and medium enterprises," he said.  These businesses should relocate to countries with lower labour costs  while industries that stay here must improve their competitiveness. The  minimum wage takes effect on April 1.

 He said the IMF believes Thailand will benefit after Myanmar opens its doors and embarks on economic reform.

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## StrontiumDog

*http://www.mcot.net/cfcustom/cache_page/347583.html
*
*Bt300 wage hike projected to slightly spur growth: Academic*

  วันพฤหัสบดี ที่ 29 มี.ค. 2555 

 

BANGKOK, MARCH 29 -- Implementation of the government's Bt300  (US$10) national daily minimum wage policy, which will take effect  Sunday (April 1) in the first seven provinces, is projected to help  boost the country's gross domestic product (GDP) by 0.5-0.6 per cent  annually, according to the University of Thai Chamber of Commerce  (UTCC).

 Following activation of the new minimum wage, approximately 3.5-5  million labourers will earn more income--about Bt60 per day each, UTCC  Economic and Business Forecasting Center director Thanawat Polwichai,  told a news briefing on Thursday.

 Some Bt7-9 billion (US$230-300 million), was expected to be circulated  monthly, which will help spur the country’s economic growth by 0.5-0.6  per cent.

 However, the higher capital cost due to the wage hike was likely to  force entrepreneurs to increase goods prices by 5-10 per cent in the  second half of the year, Mr Thanawat explained.

 Dr Tanawat predicted that numbers of new jobs will be only slightly  generated as entrepreneurs use more machines in order to offset the more  highly paid labour force. Some industrial companies might relocate  their production base in Thailand to low-wage neighbouring countries.

 An impact of the minimum wage increase on overall employment could be  realised in the next three years. Currently, around three million  workers are still needed in various sectors, the academic said.

 Dr Thanawat cited a recent survey by the centre among 1,237 respondents  showing most of those surveyed had more debt owing to the higher cost of  living and rising goods prices rather than last year's flood crisis.  About 61 per cent said the current cost of living was much higher than  their increasing incomes and that ate into their savings.

 He also raised concerns that workers earning less than Bt10,000 a month  have had  problems in repaying debt in the past year. With an average  debt of nearly 170,000 baht per household and being obliged to pay  monthly installments averaging nearly 11,000 baht—considerably more than  their overall incomes.

 The higher cost of living will negatively impact consumer confidence and  the country’s overall economy thanks to less consumer spending.

 Consumer worries about the growing cost of living, if they persist,  means that economic recovery will not be possible in the third quarter  as earlier expected, the UTCC academic warned. (MCOT online news)

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## StrontiumDog

New wage rise to be enforced from April onwards : National News Bureau of Thailand

*New wage rise to be enforced from April onwards*  

BANGKOK, 29 March 2012  (NNT)-Labor Minister Phadermchai Sasomsab has reiterated that the new  300 baht minimum wage will be enforced on April 1st onwards while there  will be an organization to assess the impact from the wage rise. 

The Labor Minister said a 40% rise will be applied to the minimum wage  across the country beginning April onwards. He said the new adjustment  shall not include social benefits and overtime pays.  

He warned that government officials overseeing the wage scheme may have  to work harder to listen to public comments which the Ministry will use  as basis for developing a solution. 

Touching on reports that hotel businesses are planning to lay off  workers due to the wage rise, the minister said his office is keeping an  eye on the situation. New jobs would be sought for laid off workers if  necessary. Skill training will also be provided to match them with new  jobs.

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## StrontiumDog

Thai-ASEAN News Network - Wage Hike Feared to Hurt Employment

Wage Hike Feared to Hurt Employment 

UPDATE : 29 March 2012 

*An economist warns the minimum wage hike to 300 baht a day, effective on April 1, could depress the employment situation. 
*
Director of the University of Thai Chamber of Commerce's Economic  Forecast and Business Research Center Thanawat Polwichai suggested the  government assist operators in terms of liquidity given there are signs  of an employment downturn, production base relocation and replacement of  manpower with machines. 

Thanawat stated his center's survey showed most people agree with the  increase in the minimum wage to 300 baht a day, but they are worried it  will push up goods' prices. 

He remarked the government must rapidly seek to ease the impact from the energy price hike on the people's cost of living. 

The academic pointed out the wage increase to 300 baht, which is a 40  percent rise, will not result in operators' income to grow at the same  level. 

He said the move will increase the income of 3.5 million workers by  1,800 baht a month, contributing to a seven to nine billion baht growth  or an increase of GDP by 0.05 percent.

Thanawat stated the pay rise will result in an employment base adjustment and the enhancement of labor efficiency. 

The center, meanwhile, disclosed its survey suggesting the average  household debt is now at around 168,000 baht per family, or a 5.7  percent increase year-on-year. 

It discovered 46.4 percent of respondents borrowed money from informal  creditors while the rest took out loans from financial institutions. 

However, nearly 80 of respondents who are indebted, particularly those  who earn below 10,000 baht a month, said they have problems with the  repayment of their loans because their spending is higher than their  income.

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## StrontiumDog

*Thailand's cheap labour gets more costly | News | Business Spectator
*
*Thailand's cheap labour gets more costly*

 Published 1:08 PM, 29 Mar 2012  

AAP 

Come April 1, Thailand will join the ranks of  South-East Asia's increasingly costly labour markets, with a hike in the  minimum wage that not everyone is convinced will be in the workers'  best interests. 

The ruling Pheu Thai party is to keep a  campaign promise and raise the minimum wage in Bangkok and five  surrounding provinces, plus Phuket island, to a flat 300 baht (about  $A9.33) - about $A280.83 a month. 

The new rate, which represents an increase of around 40 per cent, will be applied nationwide next year.

Wages are on the rise in China and South-East  Asia, historically the favourite investment destinations for industries  reliant on cheap labour, and where the minimum wage is earnt by the  majority of workers. 

In China during the first three months of this  year alone, workers' wages rose more than 10 per cent, reaching $US230  ($A218.95) a month in Shanghai, $US240 ($A228.47) in Shenzhen and $US200  ($A190.39) in Beijing. 

In Manila, the minimum wage is about $US10  ($A9.52) per day, and in Jakarta, it is about $US169 ($A160.88) per  month, after recent increases. 

The Vietnamese government in October raised  the minimum wage from $US66 ($A62.83) a month to $US94 ($A89.49), a 42  per cent jump. In Cambodia and Myanmar, average monthly wages are still  low at $US66 ($A62.83) and $US50 ($A47.60), respectively. 

Malaysia has no minimum wage yet, but Prime  Minister Najib Razak was expected to announce one soon, perhaps on May  1. It is likely to be set at between $US266 to $US300 ($A253.22 to  $A285.59) a month. 

Boosting minimum wages has become a means of  winning votes in Asia's emerging democracies, and keeping a lid on  dissent in the not-so-democratic countries. 

Wage hikes of 13 per cent per annum are part  of the five-year plan in China, as the world's most populous nation  strives to bolster domestic spending, keep people satisfied and join the  ranks of the rich countries. 

"Rich countries pay rich wages," said John  Ritchotte, International Labour Organisation's specialist on labour  relations in South-East Asia. 

"That's a lesson that seems to be lost on  other policy makers in the region, like Thailand, where the only model  they have is a low-wage one." 

Bangkok may be raising wages, he said, but it is going about it the wrong way. 

"The 300-baht decision is a political one, not an economic one," Mr Ritchotte said. 

Better would be to allow workers some organised representation to negotiate themselves a share of improving profits, he said. 

That said, he added, a wage increase was overdue. 

"It's clear that average wages in Thailand,  adjusted for inflation, have been declining over the past 10 years so  they clearly need to increase them." 

The Democrat party, now in opposition, is also  critical of the move. The party promised to boost minimum wage by 25  per cent nationwide as part of their unsuccessful bid for re-election in  July. 

But it was one-upped by the Pheu Thai Party,  which promised a flat 300 baht wage nationwide, ignoring the previous  system of different rates for different provinces. 

The flat rate proved a winning campaign strategy, acknowledged Democrat deputy leader Korn Chatikavanij. 

"But frankly, the 300-baht rate is a big  adjustment for manufacturers to adapt to, especially right after the  floods," Mr Korn said. 

Floods across Thailand's central plains in  October and November killed nearly 700 people, wrecked millions of homes  and hectares of crops, and forced hundreds of factories to shut down,  disrupting the global supply chains in the electronics and automotive  sectors. 

Now, just as some are re-opening, the  factories are facing a hike in minimum wage which will affect most of  their employees, along with the majority of the country's workers. 

The administration, however, has defended the initiative. 

"It's probably too much for the very small  businesses, but I think the medium-sized and big business will be able  to handle it," Industry Minister Pongsvas Svasti said. 

To ease the burden, the government has cut the corporate tax from 25 per cent of profits to 23 per cent. 

Few expect a surge in unemployment, which is  now below two per cent, because of a shortage of skilled and unskilled  labourers in Thailand. 

But to really increase individual wealth,  economists argue that the government needs to do more than just raise  the minimum wage. 

These measures just reduce competitiveness or  the costs are passed on to the consumers in the shape of higher prices,  driving inflation, experts say. 

"The main issue for Thailand is to restructure  the industrial sector by increasing productivity and providing tax  incentives for companies to invest in research and development," said  Nipon Paopongsakorn, president of the Thailand Development Research  Institute, a think tank. 

These measures are necessary "so the country can go up the value-added ladder," he said.

----------


## Butterfly

will that affect English teachers in those TEFLERs schools ?

----------


## StrontiumDog

*Firms ignore new graduates to save money | Bangkok Post: news
*
*Firms ignore new graduates to save money*

*B15,000 starting salary blamed for joblessness * 
Published: 30/03/2012 at 08:21 AMNewspaper section: News
 Many entrepreneurs have refused to employ  bachelor's degree graduates to avoid paying a starting salary of 15,000  baht, a seminar on youth employment was told yesterday.

 Worachon Dulwit, secretary-general of the International Student  Centre of Thailand, said many employers were reluctant to take on new  graduates with a bachelor's degree because they did not want to pay the  15,000 baht starting salary promised by the Pheu Thai-led government  during its election campaign last year.

 Instead, employers have opted to hire diploma holders to cut costs, Mr Worachon said.

 The seminar was jointly organised by the International Labour  Organisation (ILO) and Chulalongkorn University's faculty of economics.

 Mr Worachon said many university graduates also study in fields such  as social sciences that do not serve the needs of the labour market.

 These graduates have a hard time finding jobs or end up being  underemployed. Some resort to doing part-time jobs such as distributing  leaflets, which is a waste of talent and a loss to the economy, he said.

 Secretary-general of the Employers Confederation of Thailand Siriwan  Romchatthong said graduates in certain fields such as engineering,  accountancy or medical sciences were certain to be employed in  accordance with their fields of studies.

 For these professional graduates, employers are willing to pay the 15,000 baht starting salary.

 But when it comes to graduates from other fields, employers prefer to  hire those with educational qualifications lower than a bachelor's  degree, Ms Siriwan said.

 She said many employers are now trying to circumvent the government's  300 baht daily minimum wage, which takes effect on Sunday, by  outsourcing jobs or hiring workers in the non-formal sector.

 Matthieu Cognac, a youth employment specialist with the ILO's Asia  and Pacific office, called on Asia-Pacific countries to promote youth  employment as unemployment rates in the region were high.

 It is necessary for each country to work out strategies to provide  young people with various practical skills to enter the job market and  ensure they receive decent wages and enjoy physical well-being, Mr  Cognac said.

 John Ritchotte, labour relations specialist with the ILO's Southeast  Asia office, lambasted the government's 300 baht minimum wage policy,  saying it was misguided and it would not do anything to raise the living  standards of the public and workers.

 The policy was only aimed at seeking political gain, he said. The  government should let labour organisations and employers hold direct  talks on wage adjustments to find a better solution, Mr Ritchotte said.

 Meanwhile, Labour Minister Padermchai Sasomsap said yesterday the  ministry would set up a complaints centre on its ground floor to receive  information on any problems arising from the minimum wage hike so that  the ministry would be able to find ways to sort them out.

 Arthit Issamo, chief of the Labour Protection and Welfare Department,  said labour inspectors would be sent out to various areas next month to  enforce compliance with the new wage hike policy.

 Employers who fail to comply will be issued with a warning and they will have to rectify the situation within 30 days.

 After that, if they still do not comply, they will face a fine of up  to 100,000 baht and/or a jail term of up to six months, Mr Arthit said.

----------


## StrontiumDog

UTCC: THB300 minimum wage to boost GDP by 0.5-0.6% : National News Bureau of Thailand

*UTCC: THB300 minimum wage to boost GDP by 0.5-0.6% *  

BANGKOK, 30 March 2012  (NNT) - A leading researcher has predicted that the new daily minimum  wage will help boost the economic growth by at least 0.5%. 

  The University of the Thai Chamber of Commerce (UTCC)'s Center for  Economic and Business Forecasting Director Thanavath Pholvichai said  that the new 300-baht minimum wage, which will come into effect on April  1st, will benefit 3.5-5 million wage earners nationwide. 

He said that the higher rate is translated into an average revenue rise  of 60 baht per day or 1,800 baht per month.  Accordingly, there should  be an addition of 7-9 billion baht of cash circulating in the economy  each month, or around 70 billion baht each year. 

Under such circumstances, Mr. Thanavath forecasted that Thai GDP will consequently grow by 0.5-0.6 percent. 

However, he conceded that the higher labor cost will drive production  costs of goods and, eventually, retail prices up by 5-10 percent during  the second half of this year.  Moreover, he predicted that new  employment will also be limited while some businesses may decide to move  their production bases to neighboring countries, where wages are lower. 

In any case, as Thailand is still in demand for another 3 million  workers, Mr. Thanavath believes that more significant impact of the  minimum wage rise will be more substantial in 3 years' time.                               

-----
Thai Hotel Association adamant minimum wage rise poses no serious impact on employment : National News Bureau of Thailand

*Thai Hotel Association adamant minimum wage rise poses no serious impact on employment*  

BANGKOK, 30 March 2012  (NNT) – A Thai labor agency has cited an affirmation from hotel  operators in assuring that the country’s new minimum wage will not cause  widespread lay-off as some have feared. 

Department of Labor Protection and Welfare Director-General Athit Issamo  said on Thursday that he has recently held a meeting with the House  Committee on tourism and sports and the chairman of the Thai Hotel  Association regarding the looming increase in the country’s daily  minimum wage to 300 baht. 

Mr. Athit said that the Thai Hotel Association is confident that the  higher wage will not force large hotels to consider laying off their  employees, although smaller hotel businesses may have to feel the pinch  of the wage rise. 

Citing opinions from the Association, Mr. Athit said that it is  speculated that affected hotel operators will decide to merge their  businesses with those large rivals, which may be planning to expand  their presence in the country. 

In any case, the Department of Labor Protection and Welfare chief  conceded that some businesses may let go of some of their employees, who  they believe possess lower qualifications than required. 

Moreover, he has opined that a number of SME businesses may close down  if they believe that the higher wage will make them less competitive or  cost them market share.

----------


## StrontiumDog

*Workers greet 300 baht wage with caution | Bangkok Post: news
*
*Workers greet 300 baht wage  with caution*

*Govt urged to rein in rising costs of goods* 
Published:  2/04/2012 at 04:00 AMNewspaper section: News
 Blue-collar workers cautiously welcomed the 300  baht daily minimum wage which took effect Sunday, although many small  business operators said they stand to suffer.

 Mr Khwan, 38, a security guard at a private firm, said his wage will increase from 350 baht a day to 450 baht a day.

 He is very happy with the pay rise, the biggest he has received.  However, he is worried it will be gobbled up by the steep cost of  living.

 "The daily minimum wage may have gone up but so have the prices of  basic goods. The government should take steps to control prices of  consumer goods, otherwise the wage hike will be meaningless," Mr Khwan  said.

 The government's 300 baht daily minimum wage policy took effect in  seven provinces -Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon, Nakhon  Pathom, Pathum Thani and Phuket.

 In other provinces, wages rose by 40% but were still lower than 300 baht a day.

 Banchong Boonchuen, leader of Hitachi Compressor (Thailand) Co's  labour union and chairman of the National Congress of Thai Labour's  Ayutthaya branch, said the minimum wage in Ayutthaya has gone from 190  baht a day to 265 baht.

 Large businesses have cooperated in the wage rise, and some even gave additional money to long-serving workers.

 However, workers with smaller firms or factories might not be so lucky as many are not unionised.

 Mr Banchong said any wage increase must be fair or it will demoralise workers.

 Most workers in Ayutthaya do not want to move to other provinces  which pay higher wages as they have families, he added. Manus Kosol,  chairman of the National Congress of Thai Labour, said he has asked  unions to submit a proposal seeking fair wage increases for long-serving  workers.

 The pay rise for this group of workers should be based on their skills and their years in service, he said.

 He is concerned that some employers might try to avoid the 40% rise  by incorporating all allowances and other welfare benefits into the new  wage.

 Suwit Sumala, director of the Labour Protection and Welfare  Department's labour relations bureau, said provincial labour offices  will meet employers to explain the wage hike and persuade them to give  additional wages to long-serving workers.

 Wisit Limprana, vice-chairman of the Federation of Thai Industries  (FTI), said the 300 baht minimum wage policy would force businesses to  increase the price of their products.

 "We are not opposed to the wage hike, but the government should have a  mechanism to control prices of consumer goods. Increasing the minimum  wage by 40% in one go is too much," he said.

 Sommart Khunset, secretary-general of the FTI , said small- and  medium-sized enterprises will suffer financially from the wage hike.

 Some labour-intensive factories in several provinces have already closed as they could not afford the 40% rise, he added.

 Permanent secretary for labour Somkiat Chayasriwong said the minimum  wage hike policy will increase the public's purchasing power and improve  the country's economy in the long run.

 He said the cost of living is currently on the rise, but if the  minimum wage remained unchanged, there would be less money in the  system.

 Mr Somkiat insisted the policy will produce more positive results than negative ones.

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## StrontiumDog

*Manufacturers, SMEs seek to raise productivity - The Nation
*
*Manufacturers, SMEs seek to raise productivity*

         BUSINESS REPORTERS
THE NATION April 2, 2012  1:00 am 

 

*Manufacturers are closely monitoring the  impact of the rise in the minimum wage that took effect in seven  provinces, including Bangkok yesterday, anticipating the need for  further mechanisation to increase productivity.*

Moreover, they will focus further on training to give their workers multiple skills.

The government's policy to raise the daily minimum wage to Bt300 has  been implemented as planned in Bangkok, Phuket, Nakhon Pathom, Samut  Prakan, Samut Sakhon, Pathum Thani, and Nonthaburi. The wage will be  increased in the remaining provinces next year.

According to the Labour Ministry, there are roughly 38.7 million  labourers in the Thai economy, of whom 14.6 million are in the labour  system, and 24.1 million are outside the system.

Previously, the Thailand Development Research Institute (TDRI) said  manufacturers must increase productivity of their workers by 8 per cent  if they |want to survive after the implementation of the daily minimum  wage. Without government support, the manufacturers must |initiate  in-house training programmes.

"Companies that cannot adjust their costs and improve labour  productivity by 8 per cent are |likely to face difficulty in operat-ing  their businesses," said Yongyuth Chalamwong, the TDRI's labour  development research director.

Yongyuth said small and medium-sized enterprises would inevitably be  affected by the wage hike. These workers are the target group for whom  the government must have training programmes to improve their skills.

A Bank of Thailand study suggests that the wage increase will slow  growth of gross domestic product by 1.7 percentage points, while  employment (based on the 14.6-million figure above) will decrease by  about 4.5 per cent, accounting for about 600,000-700,000 workers. (Based  on the higher 38.7-million figure, the reduction is closer to 1.5 per  cent.) The inflation rate is likely to increase by 1 percentage point,  while consumption demand from the private sector will drop by 1.7 per  cent.

However, the Fiscal Policy Office says the wage hike will not affect goods prices much.

Boonchai Charassangsomboon, executive director of the FPO's  macroeconomic policy bureau, said the rise in the minimum wage to Bt300  per day for labourers and Bt15,000 per month for state officials would  boost the inflation rate by a manageable level of about 0.7 percentage  point. Meanwhile the wage policies will result in a 12-per-cent rise in  overall income for the whole country, according to the office's  calculation.

Of greater inflationary concern is the rise of crude-oil prices. The  FPO projects headline inflation this year at 3.6 per cent, slightly down  from 3.7 per cent last year. It said the rise in oil prices should  decelerate this year because of the fragile global recovery.

Sompop Manarungsan, pre-sident of the Panyapiwat Institute of  Technology, said a lot of sup-|pliers to CP All's 7-Eleven con-venience  stores had contacted |the institution asking for ideas |on how to  improve labour productivity to offset their rising labour costs.

He said Panyapiwat provided training for workers and management courses such as logistics and marketing strategy.

Small firms may choose to cut some jobs and retain staff who are able  to improve productivity, he said. Machinery will be introduced to  replace some workers. Some manufacturers may pass their additional costs  on to consumers, but that is not easy because of high competition.

Sompop said the situation for manufacturers was complicated by the  government policy of controlling prices carried out by the Commerce  Ministry. Price controls do not give manufacturers incentives to produce  more goods. Some may opt to exit businesses, creating a market  condition conducive to monopoly. Thus the good intention of the  government to protect consumers in fact leads to price rises, he  lamented.

ELECTRICAL AND ELECTRONICS

Apichart Leeissaranukul, executive vice president of Thai Stanley  Electric, said the company was increasing its productivity and  efficiency by implementing what it calls the Stanley New Approach for  High Productivity (SNAP), a measure it has adopted for years. The  principle of SNAP is that the company reduces time wastage in the  production process by making work flow as efficiently as possible. It  has a training course for all staff to learn how to work with the  highest efficiency.

He said Thai Stanley had three companies under its umbrella with a  total of 7,000 workers. The wage increase that took effect on April 1  will increase the company's labour cost by 25 per cent, while total  operating costs will rise by 3 per cent. As a result of the wage policy,  each worker's monthly income will rise by Bt2,500.

"We have to increase our |productivity to cover the in-creased wage cost. We do not |know yet whether or not we can make it.

"It is not only Thai Stanley's own business that is our concern, but  also our suppliers, which are second- and third-tier manufacturers. We  have to visit them more and ask them if there is anything that we can  help them with so we can survive together," he said.

Kobkarn Wattanavrangkul, chairwoman of Toshiba Thailand, said the  company planned to monitor the impact of rising wages closely every six  months, as it would affect the whole supply chain.

The company is also struggling to maintain suppliers in Thailand as the  cost of production will rise along with the higher cost of labour.  Kobkarn said many Thai SMEs would find it more difficult to stay in  business in this country as many companies are shifting to source their  raw materials from China to reduce their production costs.

To offset the higher cost of labour, Toshiba plans to import machinery  and focus more on automation in view of the higher cost of labour and  shortage of manpower in Thailand, she |added.

GARMENTS

Sukij Kongpiyajarn, president of the Thai Garment Manufacturing  Association, said manufacturers in this industry were trying to increase  productivity by at least 10 per cent and reduce working hours by  rough-|ly the same percentage as ways |to relieve the impact from the  |wage increase. The industry so far has no idea whether these measures  will be fruitful for all manufacturers and keep them in business.

"We expect to have a clear picture by early next year. It is possible  that about 20 per cent of the SMEs [in the traditionally low-wage and  labour-intensive garment industry] will not survive after being forced  by raise wages," he said.

Sukij believes that the top 15 companies in this industry will not make  any new investments in Thailand. Besides the increased wage, the labour  shortage is another factor that encourages them to move out of this  country. Those companies now prefer to pour their money into less  developed neighbouring countries such |as Vietnam and Cambodia to |avoid  the impact of higher wage costs.

According to Sukij, there |about a million labourers in the garment and textile industries in Thailand.

"We cannot stop the government hiking the minimum wage. If the policy  finally has a big impact on labour in the garment industry, we plan to  ask the government to set up a coaching centre aimed at improving  production technology and to help manufacturers improve their  productivity. So we may save some of them that are strong enough to  continue their production," he said.

FOOD AND BEVERAGE

Thai Union Frozen Products, the country's leading exporter of canned  and frozen seafood, plans to increase production capacity by installing  more machinery to replace labourers, while also marking up retail prices  to offset higher production costs.

Wai Yat Paco Lee, TUF's financial controller, said the firm had reduced  the number of labourers over the past two years by investing Bt3  billion annually to increase production efficiency and using more  machinery and high-technology equipment.

However, he said the company would also need to raise prices and push  some of the burden on to consumers. Currently, about 10 per cent of  production costs are labour wages. The firm may need to increase retail  prices by about 1-2 per cent, while seeking other measures to make up  for higher production costs, Lee said.

Thapana Sirivadhanabhakdi, president and chief executive officer of  Thai Beverage, said the company agreed with the government policy to  increase wages as it would raise the living standards of grass-roots  Thais.

"In the private sector, we all know the way to deal with the new wage  hike. Staff training and development will be in focus to make them able  to do many jobs and with higher productivity," Thapana said.

ENTERTAINMENT

Leading entertainment and event firms plan to slash overtime and some  operational costs to offset the increase in the minimum wage.

Pornpan Techarungchaikul, chief operating officer for RS, a leading  music and entertainment company, said overtime payments would  automatically be lowered. The company will then consider cutting  accommodation and |transport costs as well as food expenses for on-site  productions if needed.

Meanwhile, the company is focusing on human-resource development with  knowledge- and skill-based training to improve employees' performance  and productivity. These projects include competency-based training, and  both public and in-house training in line with knowledge, attitude and  skill development.

Pornpan added that RS was expanding into broadcasting businesses such  as satellite television and pay-TV channels, so it needs more television  programmes to complete such services. The broadcasting rights to  Spain's La Liga soccer tournaments for the 2013-2015 seasons, which were  recently acquired by the company, are among the examples for pay-TV  service. So the company will need more employees for the expansion.

Kreingkrai Kanjanapokin, co-CEO of Index Creative Village, a leading  event agency, said the company wanted to make sure the impact of the  wage hike is substantial before making any major moves in response.

However, his firm has to conduct cost management with suppliers. Under  this policy, the company is likely to increase client service fees in  the near future, he added.

SMES

The new minimum wage is a serious concern for small and medium-sized  enterprises, |which face not only high staff turnover but also  competition for labour.

Kritsada Sarakoon, marketing director of Sushi Boy Co, said he had to  adjust salaries for all staff since the implementation of the increased  daily minimum wage. In addition, the Japanese-cuisine company is looking  into employ-ing daily workers rather than |permanent staff. Stringent  conditions will also be implemented for new recruitment to ensure that  new hires will stay with the company.

"SMEs like my company are at risk as we have higher costs but can't  adjust retail prices or reduce quality and quantity. Instead, we have to  reduce our margin and boost sales to survive," Kritsada said.

Moreover, labour-intensive businesses face fierce headhunt-ing  competition as some companies offer higher wages than the government's  minimum. For instance, some of Kritsada's |outlets in shopping malls  have |to offer Bt310-Bt320 per day |for new recruits to outbid  competitors.

Chanida Hathaipantalux, a director of VR Union Co, said the company  would mechanise more under its long-term plan to reduce labour costs in  the future. It addition, in-house training will be set up to develop its  labourers' skills and productivity.

An auto dealer who asked for anonymity said increases in car prices and  improvement of labour productivity were the main strategies she was  employing to deal with higher salary costs.

"We have also set an increased target for revenue for each profit unit,  let's say 20 per cent more. Overtime is cut and no more workforce is  recruited," she said.

HOTELS

Chanin Donavanik, chief executive of Dusit International, announced  last week that the company would not recruit new staff even to replace  those who resign. Normally, the company recruits an average of 200-300  new staff per year.

The policy will allow the company to control costs after the  implementation of the new wage policy. Before April 1, salaries  accounted for 16-20 per cent of the group's total costs. The  minimum-wage hike comes after room rates have dropped over the past five  years.

"It is unavoidable to accept the government policy but it will have a serious effect on the industry," Chanin said.

Sampan Panpat, an honorary adviser to the Thai Hotels Association, said  hoteliers, especially small and medium-sized ones, would find it even  harder to run their business. Some will have to go out of business or  end up being acquired by bigger players in the long run if they cannot  handle this financial challenge. To survive, some will choose to combine  service charges into their workers' monthly salaries.

He said the wage hike would |hit operating costs hard. It is |difficult  for hotel operators to increase their room rates as competition is  getting fiercer, driven by the large supply of rooms in the market.

Currently, there are about 6,700 legal hotels nationwide, and 7,000  illegal ones. About 3,000 are SMEs, especially hotels with about 50  rooms. There are 500,000 people working in this industry, with a 50:50  ratio in legal and illegal hotels. For small hotels, labour makes up  about 22 per cent of the total operating cost.

Supamit Kitjapipat, managing director of Theeppipat Development Co,  operator of Siripanna Villa Resort and Spa in Chiang Mai, said it would  cut down on unnecessary expenditure. Existing employees will be trained  to be more productive. They will also be asked to work more after other  employees resign. At the same time, the firm will look for ways to  increase sales.

DIRECT SELLING

Danai Deerojanawong, managing director of Better Way (Thailand), a  local direct-selling company and owner of the Mistine cosmetics brand,  said the increase in the minimum wage would result in a 6-per-cent  increase in overall operation costs and higher labour costs by 12-13 per  cent.

"What we have been doing to tackle the wage hike is to manage our  costs, focusing on minimum and maximum purchasing volumes for more  efficient bargaining with suppliers. We will be looking for product  sourcing, packaging and labelling, and to develop product formulas by  concentrating on cost-effectiveness," Danai said.

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## StrontiumDog

Thai-ASEAN News Network - Wage Hike Pressures Small and Medium Hotel Operators



Wage Hike Pressures Small and Medium Hotel Operators 

UPDATE : 2 April 2012

*The Thai Hotels Association said the new  wage policy has a serious effect on the hotel industry since some Small  and Medium entrepreneurs will be forced to close down their business. 
*
 Honorary adviser to the Thai Hotels Association, Sampan Paenpat, said  the Labor Ministry provided a brief policy for hoteliers regarding the  minimum wage increase by setting out two main measures of which hotel  businesses could manage their labor costs. 

First of all, some hotel operators will choose to separate service charges from their workers' monthly salaries. 

Consequently, workers' taxation will not take service charges into account.

On the other hand, some said service charges collected and distributed to workers should be considered wages. 

Therefore, employees' income tax payment must base on monthly income combined with service charges.

Meanwhile, the Thai Hotels Association or THA pointed out that the  government's wage hike policy has a drastic effect on the hotel  industry, especially small and medium sized hotels in provinces.

Sampan said that SMEs ran by Thais account for 25 percent in the tourism  market while the remaining 75 percent are dominated by large  corporations. 

He voiced concern that some SME hoteliers will face bankruptcy or end up  being acquired by bigger players in the long run due to their financial  burden. 

Labor Ministry permanent secretary Somkiat Chayasriwong said the advantages of the wage hike policy outweigh the disadvantages. 

He stated that the policy helps workers cope with the rising costs of  living and also increases their purchasing power, which will eventually  make the entrepreneurs recoup their losses.

In the meantime, he insisted the new daily minimum wage will increase burden on entrepreneurs only in short term. 

He said the ministry will assess the policy's effectiveness again.

Moreover, Somkiat urged entrepreneurs who are facing financial problems  to consult with the Transparency Center or provincial labor offices  nationwide.

----------


## StrontiumDog

*Govt plans help for firms hit by wage rise | Bangkok Post: news
*
*Govt plans help for firms hit by wage rise*
Published:  3/04/2012 at 01:45 AMNewspaper section: News
 The minimum daily wage rise to 300 baht will affect 99% of businesses in the country, Labour Minister Somkiat Chayasriwong says.

 The government will introduce measures to ease the transition, he said yesterday.

 The country has 2.9 million small-and medium-sized enterprises that  account for 99% of businesses and employ 10.5 million workers  nationwide, Mr Somkiat told a Bangkok seminar on the impacts of the  minimum wage rise.

 The 40% minimum wage rise will increase production costs by 16.2% on  average and will hit labour-intensive service businesses, especially  those in the hospitality sector, the hardest.

 However, the government will introduce relief measures for SMEs such  as tax cuts and a loan service worth about 20 billion baht, he said.

 Mr Somkiat said producers who relocate their factories to  neighbouring countries to escape the wage rise would not cause  unemployment as Thailand still had a labour shortage.

 But he warned that operators thinking of relocating would also face  rising wage pressures in neighbouring countries over the next three to  five years.

 Suwanchai Lohawatanakul, secretary-general of the Association for the  Promotion of Thai Small and Medium Entrepreneurs, said the government  was introducing a wage rise without studying the potential negative  impacts.

 He urged the government to delay the wage increase in other provinces.

 The 300-baht minimum daily wage took effect on Sunday in the seven  pilot provinces of Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon,  Nakhon Pathom, Pathum Thani and Phuket.

 It will be introduced in the rest of the country next year.


-----
Thai-ASEAN News Network - The Outcome of 300 Baht Daily Minimum Wage

The Outcome of 300 Baht Daily Minimum Wage 

UPDATE : 3 April 2012

 All businesses are about to go through a big  change as the 300 baht daily minimum wage came into effect on April 1.  It has been expected that small and medium enterprises will be severely  affected by this wage hike. On the day, Sahapat, a major Thai  conglomerate, announced its plan to build a new factory in Myanmar,  where the daily minimum wage is less than 100 baht. The firm is also  mulling relocating its production bases to Cambodia and Laos. 

Prior to this, many businesses banded together in requesting the  Administrative Court to suspend the implementation of the new wage  policy before it was approved by the tripartite wage committee  consisting of the representatives from the government, employees and  employers. However, the court rejected the request and allowed that the  new wage rate was to be carried out as the original plan. 

Thailand has been trying to base its minimum wage on the inflation rate.  However, given the already very low pay rate, it is doubtful that the  workers' quality of life would actually improve even if their wages are  adjusted according to inflation. The wage rate has been formulated so  that the workers would be merely able to subsist themselves. Their  families were not factored into the wage rate formulation. Consequently,  many can no longer support themselves in the current high cost of  living. 

This is precisely why the Pheu Thai Party's 300 baht daily minimum wage  has been overwhelmingly endorsed by the day labors. On the other hand,  this has became a source of great concern for labor experts and  businesses who are worried about their own survival. Some firms are  still reeling from the last year's flood disaster and it must be closely  watched whether they will be able to endure the cost increase. Big  companies with sound financial strength could choose to pass on the  additional cost to the consumers or simply cut expenses. 

Even though it remains to be seen how severe of the impacts from the 300  baht daily minimum wage will be, it is likely to exacerbate the rising  cost of living and worsen the country's unemployment rate. While some  believe that these may only be short-term effects, the wage hike may  also indirectly deteriorate other chronic social problems such as crimes  and narcotics. This is something that the government needs to seriously  think about. 

*Taken from Editorial Section, Kom Chad Leuk Newspaper, Page 4, April 3, 2012*

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## StrontiumDog

*Pay hike could force out Japan firms - The Nation
*
*Pay hike could force out Japan firms*

         Nalin Viboonchart
The Nation April 4, 2012  1:00 am 

*Thailand's minimum wage hike may force  Japanese companies to relocate to neighbouring countries if they operate  at a loss, while labour disputes in the country are expected to  increase, Japanese investors said yesterday.*

The impact on SMEs remains a concern even for foreign investors. The  Finance Ministry yesterday raised the possibility of granting a tax  deduction to SMEs for the increase in wages to help the largest group of  manufacturers. 

Kazushige Nagura, executive adviser to Vuteq Thai, a parts supplier for  Toyota and Isuzu, said the wage hike has also affected Japanese  companies. Investors have to wait and see whether they can survive from  higher labour costs. It might take three to six months to learn the  result. 

"The government should have discussed this policy with the private  sector first. In fact, it announced this as a policy. When the policy is  implemented, the private sector has to abide by the law," he said. 

If manufacturers cannot continue because of red ink, they might move to Burma, Laos or Cambodia, he said. 

Vuteq has three companies under its wing with some 500 workers. It is trying to reduce other costs to stay afloat. 

Supachai Manusphaibool, managing director of MR & TS, a labour law  consulting company, agreed that wages in Thailand should be lifted, but  warned that a sudden 40-per-cent jolt will shock the market. SMEs will  be hurt the most, resulting in supporting industries getting hit. 

Manufacturers would adopt various measures to lessen the impact from  the wage hike. Transferring to another country is one of the solutions.  Some will lay off workers, while some will trim bonuses. 

"Migrant workers from Thailand's neighbouring countries will increase.  And the serious problem is that labour disputes and protests will  increase markedly," he said. 

The rise in wages would fuel domestic consumption, so those industries  that can manage will benefit from the increased demand in the domestic  market, he added.


-----
Thai-ASEAN News Network - New Minimum Wage Affecting Export

New Minimum Wage Affecting Export 

UPDATE : 4 April 2012                 

*The Thai Lifestyle Products Federation  voices concern that the new minimum wage hike to 300 baht is affecting  export. More than ten percent of small and medium entrepreneurs have  been forced to closed their business due to last year's heavy flood.
*

 Thai Lifestyle Products Federation Secretary-General Jiraboon  Wittayasingha said the export volume of the federation's members saw a  decline since last year's devastating floods.

The export volume to Indonesia and the Philippines dropped by seven  percent from the yearly growth sales expectation of 40 to 50 percent.  The secretary-general believes that export revenue will increase in the  second quarter barring any unexpected unrest in the country.

Unfortunately, the daily minimum wage hike to 300 baht, which went into  effect on Sunday, will affect business operators, particularly small and  medium-sized entrepreneurs or SMEs. More than ten percent of business  operators have already closed down their business.

The federation asks the government to seek solutions to help businesses.  Furthermore, it also voiced support for the Federation of Thai  Industries' proposal to set up a ten billion baht fund to support  liquidity for SME business operators.

Jiraboon is optimistic that Thai industries can adapt to changes but  said the government needs to support industrial development to prepare  for the launch of the ASEAN Economic Community or AEC. 

He said there are advantages to the AEC such as greater access to funds to expand and develop businesses.

The National Innovation Agency and the federation organized the  “Lifestyle Product Innovation Seminar” to provide training and knowledge  to business operators. 

Thai Lifestyle Products Federation President Supat Srithammawit said he  is confident in Thai manufacturers' ability to design and produce  innovative products effectively to compete in the AEC market.

----------


## StrontiumDog

Thai-ASEAN News Network - More Problems Caused Than Solved

More Problems Caused Than Solved 

UPDATE : 4 April 2012

 The government's policy to increase daily  minimum wage to 300 baht has been piloted in seven provinces since April  1st amid continuous opposition from the private sector over its  drawbacks. A survey conducted by the Thai Chamber of Commerce indicated  that the wage hike could shut down 200,000 SMEs, or ten percent of the  total, because these companies are unable to handle the rising costs.

The policy was a campaign promise of the Pheu Thai Party that helped  garner support from workers across the country. However, many scholars  did warn of problems that might ensue from implementing the policy.

Today, those warnings hold true as the cost of living has already become  so high that the additional money workers are going to get means almost  nothing.

Many basic items, such as food, are usually sold at farms to  manufacturers and distributors for very low prices from which farmers  can barely make a living, but they become unreasonably expensive when  sold to consumers. Yet, the Commerce Ministry insisted that the wage  increase would push up goods prices by only 0.01 percent.

There will not be any problems if goods are highly priced and workers  have the money to buy them. But if many SMEs are forced to shut down  because of rising costs, then the wage increase policy will be useless.  Moreover, there will be lay-offs in labor-dependent businesses like  construction and cleaning services.

To address the impact of rising costs on SMEs, the government has  approved 20 billion in loans to be issued by the SME Bank to help boost  their cash flow and competitiveness.

SMEs will also be exempted from taxes on sales of old equipment in order  to buy new ones. In addition, SMEs with less than five million baht of  registered capital and earning less than 30 million baht in revenue a  year may use the difference between payroll expenses before and after  the wage hike to get an extra tax credit.

The question is whether these measures will be enough to ensure that  SMEs remain viable because additional privileges given by the government  are unlikely to equally compensate for increased costs they have to  face. The government must solve the problems it created before they  become greater and harder to deal with.

*Editorial, Post Today, Page 2 of Analysis Section, April 4th, 2012*

----------


## sabang

> Good universities, good cities, annual cost per kid inclusive


The big league uni's in Australia are probably- Melbourne, Sydney, ANU, RMIT & UNSW. Adelaide & Queensland U are august institutions too. If you want the 'best' or close, it depends on what you are studying really.
Good cities is subjective- big city, small city, sub tropical nth, temperate sth etc. Adelaide has a very good quality of life & urban environment + a cost advantage compared to the east coast cities- so unsurprisingly the city centre is crawling with students of all nationalities. Returning after some time gone, it quite surprised me actually. Otoh, a bit chilly in winter (but not that bad really). Boiling hot in summer.



> quality of education in Oz as opposed to the US


Pretty good, although we don't have an iconic Ivy league or Oxbridge as such.



> question of racism


Very little. Australia is very multicultural, especially urban Australia. You'd look more out of place in inner city Oz dressed like an ocker than you would being Asian.

----------


## Lostandfound

Closer to home my maid is starting to bitch with her Mooban maids "union" for more money!

She's paid 8500 b a month and only has two of us to look after. I've said no to more money, pointing out that her salary includes her accomodation in an unusually nice maid's house, all her utility bills and food.

I wonder how many illiterate workers in the UK or US have $300US left over at the end of the month, numerous holidays and work at their own pace less than six hours a day?

She's sat in the garden now with the maid from next door eating somtam in the gazebo next to the pool.

----------


## StrontiumDog

*Wage policy 'will hurt unskilled workers' | Bangkok Post: news
*
*Wage policy 'will hurt unskilled workers'*
Published:  7/04/2012 at 02:15 AMNewspaper section: News
 The government's 300-baht minimum wage policy  can narrow the income gap but many unskilled workers will lose their  jobs, a Thailand Development Research Institute study says.



 The TDRI study conducted by Dilaka Lathapipat said the minimum wage  rise, which came into effect on April 1 in seven provinces, is a good  policy but an immediate increase in wages without efficient cushions  might bring about an "unexpected severe impact", particularly on  unskilled workers.

 Dr Dilaka said real minimum wages (inflation adjusted) in Thailand had fallen continuously after the economic crisis in 1997.

 According to the study, the minimum wage hike would reduce income  inequality significantly, particularly for low-income and unskilled  workers in formal producing sectors. The study said the 300-baht minimum  wage has no major effect on employment rates in the overview but it has  significantly affected employment reduction in small and medium  manufacturing enterprises (SMEs) with no more than 100 workers.

 Many workers in these SMEs have moved into the agricultural sector  and do not receive salary payments as they are working for their  families. Some were forced to work in poorer conditions in informal  private enterprises with less than 10 employees and are overlooked by  government inspection.

 The study said employment in SMEs would drop significantly to 70%  from 81% as a result of the government's 40% minimum wage increase  policy.

 Dr Dilaka said the minimum wage hike is fairer for workers but its  implementation without efficient measures to deal with its impact would  see many workers laid off or forced to work in worse conditions in  informal sectors without labour law protection.

 He suggests the government implement urgent measures to help business  operators increase production efficiency and capability so that they  would not cut workers to control costs.

----------


## sabang

> The TDRI study conducted by Dilaka Lathapipat said the minimum wage rise ..... is a good policy


Thats the gist of the article.



> Wage policy 'will hurt unskilled workers'


And thats the Headline. The Paste strikes again.  :Roll Eyes (Sarcastic):

----------


## nostromo

Poor SD, this is your and TAN network propaganda. Losing it are you. Japanese companies already pay more than minimum. Then - a "parts supplier - will buy in burma" well good luck with that :Smile: . Is this some Japan hate thing then?









> *Pay hike could force out Japan firms - The Nation
> *
> *Pay hike could force out Japan firms*
> 
>          Nalin Viboonchart
> The Nation April 4, 2012  1:00 am 
> 
> *Thailand's minimum wage hike may force  Japanese companies to relocate to neighbouring countries if they operate  at a loss, while labour disputes in the country are expected to  increase, Japanese investors said yesterday.*
> 
> ...

----------


## Tom Sawyer

As mentioned before, you need to put this into a real context. If a business with 50 - 100 employees can't afford 50-100 USD more per day in outgoing salaries, then it probably shouldnt be in business at all.

----------


## nostromo

Higher pay - the 300 baht - which "some" yellow bastard says is killing Thai economy,   is, for the business sector, very much met by lowering the tax rate for businesses. Only losing businesses lose money here, and we do need them. Subsidies were never a way  anyways... in the new world

----------


## StrontiumDog

*Small firms will struggle with wage hike: TDRI - The Nation
*
*Small firms will struggle with wage hike: TDRI*

         The Nation on Sunday April 8, 2012  1:00 am 

*While the rise in the minimum daily wage to  Bt300 is good news for low-income labourers, sudden implementation of  this could leave small and medium-sized enterprises unable to pay their  workers, the Thailand Development Research Institute (TDRI) warned  yesterday.*

          TDRI researcher Dilaka Lathapipat said the wage hike could help cut  income inequality, and boost workers’ quality of life. But the measure  threatened to have a serious negative impact on SMEs that weren’t ready  to pay their workers more, he said.

      The minimum wage policy took effect in 7 provinces on April 1.

      In his statement, Dilaka said that SMEs, or those which employ 10-99  workers, would be hit severely. Some could shut down buisness.

TDRI supported the wage hike. It research covering average wages during  1996-2010 shows that the inflation-adjusted wage had declined  substantially after the financial crisis in 1997.

  "Raising the minimum wage is a good policy. However, a sudden increase  without supporting measures could send worse-than-expected impacts  particularly to young workers (aged below 25) who possess low skills.  They could lose jobs or being pushed to unofficial sectors, which pay  the below-minimum wage and offer no welfare benefits," he said.

      TDRI’s wage model shows that every 1 per cent increase in wage would  raise the actual wage of workers in non-agricultural sectors by 0.87 per  cent.
      However, Dilaka noted that the benefits would fall only to those who  are able to hold their jobs. It is necessary to take into account the  unemployment as well as job mobility.

      His research focused on low-skill workers, with high school or  below-high school education level. It shows that SMEs, which employ few  workers, then to lay off the workers and they could be forced to serve  household business without any pay or serve small agricultural business  of which pay structure is unclear.

      The research shows that as the minimum wage is raised by 40 per cent,  the ratio of workers aged 15-24 would drop from 81 per cent of total  workforce to 70 per cent. Half of the affected would be unemployed and  the rest would be forced out of the labour market.

      "This populist policy seems to be fair to workers, but a sudden  increase could backfire particularly to weak SMEs. There must be  measures to help them enhance productivity, to avoid lay-offs. All  issues must be taken into account or this may turn to an honest blow to  workers," Dilaka said.

----------


## StrontiumDog

*Thai wage hike hitting firms / Large increase has manufacturers considering relocation : Business : DAILY YOMIURI ONLINE (The Daily Yomiuri)
*
*Thai wage hike hitting firms / Large increase has manufacturers considering relocation*

   Takeshi Nagata / Yomiuri Shimbun Correspondent

     BANGKOK--A drastic hike in thailand's minimum wage, implemented April 1 to correct income gaps, is causing difficulties for companies operating in the country.

  As many Japanese companies, mainly automakers, have production bases in Thailand, they may be forced to reconsider their production lines.

  The minimum wage in thailand  is determined independently in each of the 77 provinces in the country.  In the latest hike,  the minimum wage in Bangkok went up about 40  percent, from 215 baht (about 580 yen) per day to 300 baht (about 810  yen).

  The Thai government plans to set the  national minimum wage at 300  baht by April next year. If implemented, it would be a 90 percent hike  for Phayao Province in northern Thailand, which has the current lowest minimum wage in the country at 159 baht per day.

  On March 31, the day before the increase, Thai Prime Minister  Yingluck Shinawatra explained the need for the change in a radio  broadcast.

  "As living expenses are rising, it's necessary to try to improve people's standard of living," she said.

  But many companies are strongly opposed to the move. The Saha  Pathanapibul group, a leading domestic household goods and food maker,  announced it is considering relocating one of its instant noodle plants  to Myanmar. Labor costs in Yangon are about one-sixth of those in  Bangkok.

  Some Japanese companies in Thailand are very concerned over the change.

  Economists said the move would have limited impact on large  companies, such as Toyota Motor Corp. and Honda Motor Co., because they  already offer relatively high wages.

  But many midsize and small companies with business ties to major  firms, such as auto parts makers, employ workers at minimum wages.

  The move also will deal a serious blow to other Japanese  manufacturers--including textile makers--that employ large numbers of  workers.

  An official of an electronic parts maker complained, saying, "We decided to put our export base in thailand because of low labor costs."

  According to a survey by the Japan External Trade Organization, the labor costs of Japanese manufacturers in Thailand will rise by an average of about 26 percent due to the wage hike.

  To deal with the hike, about 9 percent of the companies surveyed  said they are considering relocating parts of their production lines to  nearby countries.

  An increasing number of officials from Japanese companies are reportedly visiting  Cambodia to ascertain conditions there.

  Similar wage hikes have been implemented in other parts of Asia, including China's coastal regions, Vietnam and Indonesia.

  Once a company establishes an overseas plant or office, it is  difficult to relocate due to the potential impact on distribution  channels. Japanese companies may face difficult decisions if wages  continue to rise where they have production bases.

  (Apr. 8, 2012)

----------


## StrontiumDog

> Poor SD, this is your and TAN network propaganda. Losing it are you. Japanese companies already pay more than minimum. Then - a "parts supplier - will buy in burma" well good luck with that. Is this some Japan hate thing then?


Poor Nostromo....

Look at the post above from a Japanese online news source. It appears they don't agree with you.

Once again you prove yourself to be nothing more than a clueless troll.

----------


## StrontiumDog

> As mentioned before, you need to put this into a real context. If a business with 50 - 100 employees can't afford 50-100 USD more per day in outgoing salaries, then it probably shouldnt be in business at all.


You are soooooooooooo right Tom. Business people, well know for their generosity and benevolence to all mankind, shouldn't complain about their losses in profit. They should feel happy that they are giving their profit margin to the lowly paid workers. All the CEO's can feel good about themselves. A warm feeling in their hearts. So what if they wont be able to afford to splash out on a new car this year, or a fancy holiday, it's worth it just to see the happiness in the faces of their workers....ah utopia. I'm sure they wont lay-off any workers either, or make cuts or raise prices to maintain their profit margin as well. No, such lovely people are business owners....salt of the earth mate. 

Just where do you come from Tom? Because it sure isn't this planet.

----------


## Butterfly

I think the issue of minimum wage has more to do how it was done than the actual amount,

That government, like most right wing populist government, need "shock and awe" politics to justify themselves, and therefore they are desperate enough to promise anything, including the moon

the minimum wage should have been done "smoothly" instead of brutally like it is done now, increase 10% every year for the next 3 years for example

instead companies already under pressure are being "shoved" the electoral bills with a "fuck you" attitude

the economic situation might indeed get worse very soon,

----------


## nostromo

> Originally Posted by nostromo
> 
> 
> Poor SD, this is your and TAN network propaganda. Losing it are you. Japanese companies already pay more than minimum. Then - a "parts supplier - will buy in burma" well good luck with that. Is this some Japan hate thing then?
> 
> 
> Poor Nostromo....
> 
> Look at the post above from a Japanese online news source. It appears they don't agree with you.
> ...


I don't think you know a thing about Japan.

----------


## nostromo

> I think the issue of minimum wage has more to do how it was done than the actual amount,
> 
> That government, like most right wing populist government, need "shock and awe" politics to justify themselves, and therefore they are desperate enough to promise anything, including the moon
> 
> the minimum wage should have been done "smoothly" instead of brutally like it is done now, increase 10% every year for the next 3 years for example
> 
> instead companies already under pressure are being "shoved" the electoral bills with a "fuck you" attitude
> 
> the economic situation might indeed get worse very soon,



You say "this right wing govt" - business friendly, is then anti-business? A bit confused...

Let's make a bet. You say because of this economic situation in Thailand gets "worse very soon". I say not. I pay your barfine with LB if I lose. If I win, you just declare I was right.

----------


## Buksida

> instead companies already under pressure are being "shoved" the electoral bills with a "fuck you" attitude


This is it exactly. Companies are simply told to become more efficient,  but this is obviously something they would already be doing to maximise  profits.

There is no change in attitude from govt depts who are never welcoming, especially when someone walks in with an Isaan accent. 

SME's are being told 'tough luck, who cares if you go under'. Many ppl running SME's have  min education and started on min wages themselves,. Thaksin offered a  lot of moral support for poor Thais who showed entrepreneurial spirit,  but this govt is just punishing them.

----------


## Lostandfound

From my own observations and experience, Thai SMEs are annoyingly opportunistic, delivering poor service and value, for whom an extra buck today is more important than a hundred a year.

Those that do provide a decent level of service and customer care are able to charge a very substantial premium, simply because customers have few other choices. 

The effect of minimum wages legislation will therefore be most beneficial to the latter who are probably paying workers at least that already.

----------


## ozthai

Cars are still made in Japan Germany USA Australia etc. I am not in the car industry in OZ but am sure the wage is above 3,600 baht per day. Having experience in working for a construction business in Thailand in the past, investment in better infrastructure and lesser red tape and restrictions on foreign  companies and skilled workers together with a genuine attempt to lessen corruption will do more to encourage investment in thailand than 300 baht per day will do to discourage it.

----------


## Butterfly

> SME's are being told 'tough luck, who cares if you go under'. Many ppl running SME's have min education and started on min wages themselves,. Thaksin offered a lot of moral support for poor Thais who showed entrepreneurial spirit, but this govt is just punishing them.


they are not actually punishing businesses since they have announced a tax cut for corporation, to "finance" the salary increase

it's nothing more than a populist idea, and actually it will benefit firms as they will lay off people and keep the best and make them work harder. The problem is the timing, and this is where companies are not happy.

----------


## StrontiumDog

Thai-ASEAN News Network - CP Group Welcomes Wage Hike



CP Group Welcomes Wage Hike 

UPDATE : 11 April 2012                  

*The Charoen Pokphand Group reiterated that the wage hike policy would benefit the economy as a whole in the long run.

 Vice President of the Charoen Pokphand Group, or CP, Arch Taolanont  conceded that the wage hike and the rising fuel price are challenging  Thailand's business sector.
*
However, he stated the daily minimum wage increase would adversely  affect enterprises merely on a short term, saying that prospects  concerning wage across ASEAN group is on the rise. 

Wage adjustment is unavoidable and depends on each country's readiness.

He suggested entrepreneurs to adjust themselves by increasing production  efficiency as well as turning to machinery to replace human workers. 

In addition, he suggested manufacturers from ASEAN countries to gather  under the“ASEAN product brand” to raise the group's competitiveness in  the global market. 

Moreover, Arch reaffirmed that the state and the private sector must  prepare for the fast approaching ASEAN Economic Community or AEC in  2015.

He pointed out that other economic blocks, such as the EURO zone, set up trade barriers against agricultural and food exports. 

Therefore, he said the AEC must foster cooperation among its members rather compete with one another.

Arch forecasts that global food prices are expected to increase in the  long term due to a rising demand and food supply shortage is expected  due to global warming. 

He added that this can be a great opportunity for ASEAN countries since they specialize food manufacturing and exportation.

----------


## StrontiumDog

Thai-ASEAN News Network - Civil Servants' 15,000 baht Monthly Salary Hike Postponed to 2014



Civil Servants' 15,000 baht Monthly Salary Hike Postponed to 2014 

UPDATE : 11 April 2012                 

*The Cabinet has decided to postpone the 15,000 baht month salary raise for civil servants to 2014. 

Instead, the government will spend 6.6 billion baht in the 2013 fiscal  year to help state employees affected by the high cost of living.
*
 Secretary General of Civil Service Commission Nontigorn Karnjanajitra  has announced that the Cabinet has approved the monthly salary raise for  the government employees as proposed by the commission.

The pay hike will be implemented in two steps during the next two years.  Under the new pay rate, bachelor degree holders will receive a 13,300  baht monthly salary in 2013, which will increase to 15,000 baht from  2014. 

Those who have been receiving less than 15,000 baht per month since 2004  will be given special compensation to make up the differences between  their current pay grades and 15,000 baht. 

All agencies are directed to submit their salary budget requests to the Cabinet for consideration for the 2013 fiscal year. 

To ensure fairness among all government employees, the pay hike will be carried out during the next two years. 

Moreover, the Cabinet has also green-lighted 6.6 billion baht for the  next fiscal year to fund additional compensation packages to help the  civil servants who have suffered from the rising cost of living.

----------


## StrontiumDog

*Migrant workers demand wage rise | Bangkok Post: breakingnews
*
*Migrant workers demand wage rise*
Published: 11/04/2012 at 12:53 PMOnline news:

 More than 3,000 workers, mostly foreign labour,  on Wednesday staged a protest at a pineapple factory in Kanchanaburi  province, demanding the government's promised 300 baht daily minimum  wage.

Reports said most of the workers are from neighbouring Myanmar.

 The government's 300 baht daily minimum wage policy took effect in  April 1. The raise is 40 per cent from current levels. Increases in  other provinces will follow later.

----------


## StrontiumDog

Hoteliers eye non-degree staff for lower wages : National News Bureau of Thailand

*Hoteliers eye non-degree staff for lower wages*  

BANGKOK, 14 April 2012  (NNT) – Hotel operators have responded to the 15,000 baht pay rise  policy by lowering education requirements of staff as a way to reduce  operation costs. 

According to Thai Hotels Association, more and more 2-and 3-star hotels  have decided to recruit vocational graduates instead of degree holders  who must be paid THB15,000 a month under the new employment policy.  Non-degree workers therefore have become an interesting option for they  are paid THB300 per day.    

The hotel industry and the Vocational Education Commission are working  together to improve existing curricula in order to produce highly  efficient workers for the service sector.       

The Association disclosed that there would be fewer staff with a  bachelor’s degree in the hotel industry. Yet, those holding a master’s  are still needed in the management.  

In the near future, some hoteliers may stop recruiting employees and  turn to outsourcing for some departments in order to save costs in  reaction to the pay rise policy.  

The Bank of Thailand, meanwhile, said only 10 percent of workers  nationwide receive a THB300 minimum wage at present. Implementation of  the pay rise scheme should not heavily affect operation cost but might  lead to a slight increase in inflation which is still under the control  of the central bank.

----------


## nostromo

> The Cabinet has decided to postpone the 15,000 baht month salary raise for civil servants to 2014.


Can see why you are so upset.

----------


## Tom Sawyer

> According to Thai Hotels Association, more and more 2-and 3-star hotels  have decided to recruit vocational graduates instead of degree holders  who must be paid THB15,000 a month under the new employment policy.  Non-degree workers therefore have become an interesting option for they  are paid THB300 per day.


The government should stick the f'ing knife in even further. ALL Chula under-grads MUST be paid 3,000 THB per day if they are employed in the private sector and 300 THB in employed in the public (government) sector. All Thammasat and Mahidol under-grads MUST be paid 2,000 THB per day in private sctor and 300THB in government work. What a laugh.. and what a way to get back at the cnuts' parents - as the average middle class thai kids finally get a level playing field for jobs - and all those jek kids with their family connections get left out in the cold.

 :smiley laughing:

----------


## Lostandfound

I just spend a couple of days cleaning some of my condos here as all the workers have buggered off upcountry. Six hours of my time with a vacuum cleaner and bucket etc accomplished more than five workers normally do in a day. 

The Thai cleaners work out more expensive than Uk cleaners. They aren't worth 300 baht a day. Cheaper to fly a Pole in for a month.

----------


## LooseBowels

> I just spend a couple of days cleaning some of my condos here as all the workers have buggered off upcountry. Six hours of my time with a vacuum cleaner and bucket etc accomplished more than five workers normally do in a day. 
> 
> The Thai cleaners work out more expensive than Uk cleaners. They aren't worth 300 baht a day. Cheaper to fly a Pole in for a month.


Well , carry on doing it then, and let us know how long you last :Smile:

----------


## nostromo

> I just spend a couple of days cleaning some of my condos here as all the workers have buggered off upcountry. Six hours of my time with a vacuum cleaner and bucket etc accomplished more than five workers normally do in a day. 
> 
> The Thai cleaners work out more expensive than Uk cleaners. They aren't worth 300 baht a day. Cheaper to fly a Pole in for a month.


Perhaps you should go into cleaning business, you seem to have a natural gift. And then you will appreciate being paid 300 baht.

----------


## Tom Sawyer

> Originally Posted by Lostandfound
> 
> 
> I just spend a couple of days cleaning some of my condos here as all the workers have buggered off upcountry. Six hours of my time with a vacuum cleaner and bucket etc accomplished more than five workers normally do in a day. 
> 
> The Thai cleaners work out more expensive than Uk cleaners. They aren't worth 300 baht a day. Cheaper to fly a Pole in for a month.
> 
> 
> Perhaps you should go into cleaning business, you seem to have a natural gift. And then you will appreciate being paid 300 baht.


let's start a new business - with a new business plan/model: It's called "hot water" and it works magic when combined with soap!!

Howzabout - "Thai Hot Water Cleaners" - I reckon we run it for 6 months and Central Group will buy us out at a tidy profit. Then they'll re-employ all those cleaners with the new invention "hot water" and some smug jek will walk around like his fat family figured it all out - justifying his Harvard Business School degree - or he could just open another string of coffee joints. "Sabaii Coffee" or whatever..

----------


## nostromo

> Originally Posted by nostromo
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by Lostandfound
> ...


What about better profit margin - this is right nasty, children go sleep - Central Group PLC can arrange someone to burn it all down again citing it was all those reds and democracy bastards and insurance companies will pay.

----------


## Lostandfound

> Originally Posted by Lostandfound
> 
> 
> I just spend a couple of days cleaning some of my condos here as all the workers have buggered off upcountry. Six hours of my time with a vacuum cleaner and bucket etc accomplished more than five workers normally do in a day. 
> 
> The Thai cleaners work out more expensive than Uk cleaners. They aren't worth 300 baht a day. Cheaper to fly a Pole in for a month.
> 
> 
> Well , carry on doing it then, and let us know how long you last


Had a very pleasant day polishing floors today. I had an old fashioned upbringing working every weekend as a kid on dad's fishing boat in Ramsgate. I was taught that a job was worth doing for the satisfaction of seeing it done well. The financial and other rewards follow from there.

Sure it's hard work. But that's what UK cleaners do everyday and why they're mostly worth 6 quid and up an hour. The Thai cleaners work at about 20-25% of the efficiency of the cleaners I used to employ in the UK at 7 quid an hour, running a business letting and managing around 1800 properties in west/central London. With general Thai cost of living it's why they aren't worth 300 b a day - unless employed by a company that knows how to efficiently recruit, accomodate and full time manage them, which means big overhead, thus eating into their value.

Part of it is sheer bloody laziness on the part of the Thai. If they got wanted to they could be worth more, but most of them are just happy to go with the flow and look for the easy way every time. 

Go to HomePro and you'll see eight clueless sales people, with no product knowledge beyond which line has the greatest commission, unable to speak a word of a foreign language despite 40%+ of their sales being to foreigners. They could be worth so much more than 300 b, either they have no idea or they just don't see any point in trying to be worth it. My guess is a bit of both.

Just an observation based on what I see here every day.

----------


## Lostandfound

> Originally Posted by Lostandfound
> 
> 
> I just spend a couple of days cleaning some of my condos here as all the workers have buggered off upcountry. Six hours of my time with a vacuum cleaner and bucket etc accomplished more than five workers normally do in a day. 
> 
> The Thai cleaners work out more expensive than Uk cleaners. They aren't worth 300 baht a day. Cheaper to fly a Pole in for a month.
> 
> 
> Perhaps you should go into cleaning business, you seem to have a natural gift. And then you will appreciate being paid 300 baht.


Did that in London in the 1980s already. Evenings spent delivering leaflets around west London, daytimes taking calls and hiring jobcenter lads to help on the bigger jobs. Alot of the carpet and upholstery cleaning work was for flats being let / between tenants so I started a lettings business. Sold it three years ago with eight sales and lettings offices in west/central London for enough to make bloody well sure I don't have to worry about getting up at 6am to clean some other bugger's flat again.

Seemed a lot more sensible way of living than doing the bare minimum at a snail's pace so I could piss off early if noone was watching to eat som tam and drink lao kao. Each to his own.

----------


## StrontiumDog

*FTI seeks delay of B300 daily wage | Bangkok Post: breakingnews
*
*FTI seeks delay of B300 daily wage*
Published: 19/04/2012 at 05:23 PMOnline news:
 The Federation of Thai Industries (FTI) will ask  that the implementation of the new daily minimum wage of 300 baht  throughout the country, set for Jan 1 next year, be delayed for two  years until Jan 1, 2015.

 The proposal will be made at a meeting tomorrow between the FTI and  Labour Minister Padermchai Sasomsap and Somkiat Chayasriwong, the  permanent secretary for labour and ex-officio chairman of the Central  Wage Committee, said FTI president Payungsak Chartsuthipol.

 Mr Payungsak said the adverse effects of the increase of the minimum  wage to 300 baht from April 1 in seven provinces - Bangkok, Nonthaburi,  Pathum Thani, Nakhon Pathom, Samut Songkhram, Samut Prakan and Phuket -  would also be reported to the meeting.

 The FTI wanted the wage increase to 300 baht per day throughout the  country from Jan 1 next year to be delayed until the year 2015, he said.

 Mr Payungsak said the corporate tax on small and medium enterprises  (SMEs) should also be reduced by 7 per cent - the same rate of reduction  from 30 per cent to 23 per cent enjoyed by large businesses.

 Corporate tax on SMEs earning 100,000 - 1 million baht per year  should be reduced to 8 per cent from 15 per cent, and the tax on SMEs  earning 1 - 3 million baht per year should be reduced to 18 per cent  from 25 per cent, he said.

 The FTI president said there should also be soft loans of between 10  to 20 billion baht for SMEs to purchase machinery, with the interest of  only 3 per cent per year for a period of five to six years.

 Sommat Khunseth, secretary-general of the FTI, said since the  government has now delayed until 2014 the increase in the minimum salary  for state empoyees with bachelor's degree to 15,000 baht per month, it  should also defer the miminum wage increase to 300 baht per day  throughout the country until the year 2015.

----------


## StrontiumDog

Thai-ASEAN News Network - Industry Council to Conclude Wage Hike Impact by End of Month

Industry Council to Conclude Wage Hike Impact by End of Month 

UPDATE : 19 April 2012                 

*The Federation of Thai Industries will  conclude the impact from the hike of the minimum daily wage on the  private sector by the end of this month. 

It proposes the government set up a ten billion-baht fund to help SMEs.*

 Federation of Thai Industries, or FTI, acting chairman Payungsak  Chartsuthipol said the FTI is gathering information and conducting a  survey to assess the impact on businesses from the increase in the daily  minimum wage to 300 baht that took effect on April 1. 

Payungsak further said that the survey is expected to be completed by  the end of this month. Then, the FTI will propose that related agencies  devise measures to minimize the effects of the pay rise in the next few  years.

He noted that it will propose the government set up a ten billion-baht fund to assist SMEs affected by the wage hike. 

The FTI acting chairman spoke of natural disasters, both floods and  earthquakes which recently took place in Thailand, assuring that  relevant agencies have stepped up measures to deal with the problems and  assistance has already been provided for affected residents and  tourists. 

Payungsak added he is confident that the incidents will not affect business operators' confidence.

----------


## Mid

and yet in another thread they claim to have trouble finding labour ..........

----------


## Lostandfound

> and yet in another thread they claim to have trouble finding labour ..........


From what I see here a Thai with half a brain and a strong work ethic can earn far more that 300b a day. I'd gladly pay double that for a labourer who actually put in a decent full day's work, but they are almost impossible to find.

The trouble is the living is too easy for them. They have more than enough to get by - it literally falls off the trees for them - but they aspire to nothing more and many even less.

----------


## Tom Sawyer

^
Because they've been conditioned to 'know' they are only manual labourers. It's a class system - not unlike the UK's. Sure some Sombat from Issan might be able to work hard, use his wits and do better than his brothers and sisters - and many do. But the reality is that the earning band here - even working for yourself - is going to be 6,000 - 15,000 per month, with most falling into the lower end. So even an undergrad from a 'middle class' Thai-Chinese family can't earn much more than that. Kind of zaps any initiative in'it? Wealth in Thailand is gained through only one avenue - a semi-feudal and corrupt patronage system. The chinkier and more connected you are the better. And everyone in that extended family system knows which side their bread is buttered.

----------


## StrontiumDog

*Minimum wage 'will go national' | Bangkok Post: news
*
*Minimum wage 'will go national'*

*Govt vows to honour B300 pledge next year*
Published: 21/04/2012 at 07:18 PMNewspaper section: News
 The government insists it will press ahead and raise minimum daily wages nationwide to 300 baht next year.

 But the pay rises will be the last minimum wage adjustment until 2015  when the Asean Economic Community (AEC) is launched, Labour Minister  Padermchai Sasomsap said Friday.

 
Padermchai: Last raise before 2015

 Mr Padermchai, who met with industry groups Friday to discuss the  government's wage policies, said policymakers were trying to accommodate  the needs of both employers and employees.

"Some business  leaders have actually proposed raising the minimum wage to 500 to 700  baht a day. But we're not doing that, since it's clear that some  businesses simply couldn't adjust," he said.

"So we're asking to  raise rates to 300 baht per day, and after that, we won't have any new  adjustments until the launch of the AEC."

Mr Padermchai said  authorities will meet next month to discuss possible mitigation measures  for small businesses affected by the wage hike.

Earlier this month, minimum wages in Bangkok and six other provinces were lifted to 300 baht a day.

Wages  in all other provinces, which currently range from 222 baht in Phayao  to 273 baht in Chon Buri, are to be raised to 300 baht a day from the  beginning of next year, representing increases of 10 per cent to 35 per  cent.

The wage rises represent a key plank of the Yingluck  Shinawatra economic policy platform. Authorities expect that higher  minimum wages will help increase spending power among low-income  workers, while encouraging companies to invest more in skills training,  machinery and productivity improvements to help spur overall economic  growth.

But industry groups have lobbied heavily against the  plan, arguing that the wage boost will result in bankruptcies, layoffs  and capital flight to lower-cost neighbouring countries.

Federation  of Thai Industries (FTI) secretary-general Sommart Khunset warned that  many businesses may have to close due to higher labour costs.

Larger  companies, particularly those in labour-intensive industries, will  likely shift their manufacturing bases to lower-cost countries in the  region, he added.

The FTI has drafted a nine-point plan in  response to the government's wage policy, including that the increase be  delayed by two years to 2015, a call to establish a low-interest loan  fund of 10-20 billion baht to help small businesses upgrade their  technology and the easing of restrictions on the use of foreign labour.

Other  proposals include a call to lower corporate income taxes for small  businesses to 15 per cent to 18 per cent, reduce current payments to a  state-run workers' disability fund and bring down taxes for commercial  properties.

Tanit Sorat, an FTI vice-chairman, said the federation also wants the government to separate wage policies from politics.

"We  want a law or ministerial announcement that will stipulate that  politics should not use wage policies as part of campaigning and to  pressure the private sector," he said.

"If we change governments  again within the next two or three years, and we see another wage policy  enacted, the private sector will find it very hard indeed to adjust."

Small  businesses, who represent the overwhelming majority of Thailand's  companies, are expected to be among the hardest hit by the wage  increases.

Phumin Harinsut, another FTI vice-chairman, estimated  that the wage hikes and subsequent boost in consumer spending could help  push economic growth higher by 1.3 to 1.4 percentage points next year.

Higher  growth in turn will help raise tax revenues by an additional 35 to 40  billion baht, which could be used to help finance assistance funds for  small businesses.

Mr Phumin noted that 60 per cent of small- and  medium-sized businesses were outside of the corporate tax system and  therefore received no benefits from the government's existing tax rate  cut.

The government slashed the corporate tax rate to 23 per cent  from 30 per cent this year and will reduce the rate to 20 per cent  beginning in 2013.

----------


## StrontiumDog

*FTI'S 9-Point growth plan to be put under review | Bangkok Post: news
*
*FTI'S 9-Point growth plan to be put under review*
Published: 22/04/2012 at 02:17 AMNewspaper section: News
 The government will take into consideration the  Federation of Thai Industries' nine-point plan formed as a response to  the 300 baht minimum wage policy, acting government spokesman Anusorn  Eiamsa-ard said.

 Mr Anusorn said the government had thanked FTI president Phayungsak  Chatsutthipol for closely working with the administration and taking  part in drafting the plan.

 ''The government is willing to listen to the FTI's opinions because  the industrial sector has a great role in pushing the economic growth of  the country,'' he said.

 One of the FTI's proposals is for the government to delay increasing the minimum wage in 70 provices until 2015.

 It also wants the government to set up a low-interest loan fund of  10-20 billion baht to help small businesses upgrade their technology and  ease their difficulties in finding foreign labour.

 Other proposals include a call to lower corporate income taxes for  small businesses from 25% to 18 % in the first year, reduce current  payments to a state-run workers' disability fund and bring down taxes  for commercial properties.

 Mr Anusorn insisted the government would stick to its election  campaign pledge to increase the daily wage to 300 baht as it would help  increase the country's potential to compete in foreign markets and  support workers.

 Mr Anusorn said that apart from the 300 baht wage increase, the  government plans to develop the vocational skills of Thai labourers so  they can have the chance to work overseas when the Asean Economic  Community (AEC) begins in 2015.

 Mr Anusorn also called on domestic businesses to upgrade their  operations so that they can be competitive in the AEC, which focuses on  the free flow of investment and labour across the region.

----------


## StrontiumDog

*Workers 'unable to pay bills' despite pay rise - The Nation
*
*Workers 'unable to pay bills' despite pay rise*

         Petchanet Pratruangkrai
The Nation April 27, 2012  1:00 am 

*Despite the increase in the daily minimum  wage to Bt300, blue-collar workers' debts have risen this year due to  the effects of last year's floods and the rising cost of living,  according to a survey by the University of the Thai Chamber of Commerce  (UTCC).*

The survey showed the debt burden on Thai working families increased  from Bt87.64 billion in 2011 to Bt91.71 billion this year. The debt  level this year is the highest since the survey was launched in 2009.

The UTCC said the increase in the daily minimum wage to Bt300 would  encourage the country's economy to grow by another 0.5 percentage point,  as Bt70-Bt80 billion will be injected into the economy. Spending by  Thai people during Labour Day on Tuesday is expected to rise by 10.53  per cent to Bt1.79 billion this year, it said. "Thai labourers still  have inadequate income to cover their daily expenses, despite the  government's policy to raise the daily minimum wage to Bt300 on April 1.  Although some labourers are satisfied with the higher income, most  still feel they cannot cover their daily expenses," said Thanavath  Phonvichai, director of the UTCC's Economic and Business Forecasting  Centre.

Thoug PM Yingluck Shinawatra has expressed concern over the high cost  of living, the government has not come up with any concrete plans. 

Based on the survey of 1,198 sample workers, labourers' debt burdens  have increased this year, most of it owed to banks and loan sharks.  Individual workers' average monthly debts have risen from Bt5,263 last  year to Bt5,773 this year. The high debts have led to lower savings.

Thanavath pointed out that Thai workers feel their rising incomes do  not cover their daily expenses due to skyrocketing prices of goods and  fuel, and interest rate hikes. To solve the problem, workers have to  borrow more and draw on their savings. 

Most of the 5 million workers covered by the new minimum wage want  their pay to rise further, in line with their spending, Thanavath said. 

A suitable minimum wage for daily workers this year is seen as  Bt356.68, the survey showed. Workers also said the minimum wage should  be set at Bt435 a day in the first three years after the Asean Economic  Community takes effect in 2015, and at Bt546 for the following five  years.

However, workers are also concerned about their employers' cost burden,  and about job security, Thanavath said. About 25 per cent of  respondents want incomes to rise every year and 16 per cent wanted to  see rises every two years. About 15 per cent said they didn't want the  minimum wage to rise above Bt300, as they were worried employers would  hire cheaper foreign workers.

----------


## StrontiumDog

*http://www.bangkokpost.com/breakingn...es-life-better
*
*Poll: Wage hike makes life better*
Published: 27/04/2012 at 11:23 AMOnline news:
 More than 60 per cent of workers polled recently  believed the government’s 300 baht minimum wage policy would make their  life better, Bangkok Poll at Bangkok University said on Friday.

 The pollster conducted a survey on “the life of labourers after  getting paid a 300 baht daily minimum wage” from April 23 to 26, seeking  opinions from 1,180 workers in Bangkok and nearby provinces.

 Bangkok Poll reported that 60.7 per cent of the polled workers said  their living standards had improved, 36.5 per cent of them believed  there was impovement and 2.8 per cent said it was worsening.

 A total of 79.1 per cent of the respondents said they have received  the new wage rate, but 20.9 per cent of them have not got it  because their employers have not yet approved the rate.

 Asked whether their working life changed or would change after the  higher wage was implemented, 82.4 per cent said no change, 15.4 per cent  said they had to work harder and 1.3 per cent said they worked less  than before.

 Half, 49.9 per cent of the respondents, did not believe the wage  increase would cause problems for manufacturers or force them to close  down, 26.9 per cent of them believed employers’ profits would drop, 23.0  per cent said businessed would extra gain more profits, 1.4 per cent  said their employer could face a loss and 0.8 per cent said the factory  could close down.

 Questioned whether the wage rise would help ease the problem of  social inequality, 54.9 per cent of the labourers said yes but 45.1 per  cent of them disagreed.

 A total of 93.2 per cent of the respondents backed the 300 baht minimum wage hike nationwide but 6.8 per cent of them opposed.

 The polled workers wanted the government to oversee and improve  welfare of labouers, ensure that the employers would abide by the law  and improve their quality of life.

----------


## 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.

----------


## StrontiumDog

Factory staff, families still struggling | Bangkok Post: news

*Factory staff, families still struggling*
Published: 30/04/2012 at 02:17 AMNewspaper 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

> His income covers the rest of the family expenses including the monthly instalment for the family's pickup.


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

> Each day, she gives her children 100 baht each for bus fares and meals.


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 AMNewspaper 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 AMNewspaper 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

> Thailand Development Research Institute


Enuff said.  :Roll Eyes (Sarcastic):

----------


## 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

> 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.


 
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 PMOnline 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.

----------


## StrontiumDog

*Employers side-step pay hike | Bangkok Post: news
*
*Employers side-step pay hike*
Published: 14/05/2012 at 01:53 AMNewspaper section: News
 Labour groups say workers are being ripped off  by employers after the 300-baht minimum wage policy was introduced and  have called on the Pheu Thai Party to rectify the situation.

 Employers were resorting to "dirty tricks" to avoid paying employees  the new minimum wage, Thai Labour Reconciliation Committee head Chalee  Loysung said. Since the new wage was introduced on April 1, the  committee has received 73 complaints from workers who said their  employers refused to comply with the wage policy.

 The companies calculate the amounts of welfare given to the workers  and combine them with their old wage to create a new wage that exceeds  the 300 baht rate, Mr Chalee told a recent forum attended by labour  leaders to discuss the issue in Bangkok.

 He said the problem was particularly common among garment, furniture and restaurant businesses.

 At some companies, workers who received more than 300 baht a day  before April 1 had their wages cut after the policy was launched. The  firms used the money saved from the cut to pay other lesser-paid workers  to meet the wage policy.

 The new minimum wage is in effect in Phuket, Bangkok and surrounding  provinces which have high costs of living and large industries. The new  minimum wage will be implemented in the rest of the country on Jan 1  next year.

 Mr Chalee said some businesses, including those in electronics  manufacturing, laid off workers before April 1 so they would not have to  meet severance payments based on the new wage.

 He said even union leaders were sacked or were not given overtime.

 Mr Chalee insisted the Pheu Thai Party must take responsibility for  its flagship policy, which has been sidestepped by some employers.

 "The party must address the problems and straighten them out for the affected workers," he said.

 Yongyuth Mentaphao, chairman of the Thai Autoworkers Federation, said  he expects the Jan 1 wage hike for the rest of the country to unleash  more problems for workers.

 He said the government must prepare for the consequences that might  arise. He said the new wage will help reduce economic disparities.

 "The workers should not be left to fend for themselves under pressure from the employers," Mr Yongyuth said.

 He said the Pheu Thai Party had touted its wage hike platform during  the previous election and "now the politicians must take care of the  workers".

 Wisut Ruengrit, of the Federation of Thailand Automotive Workers  Unions, said wage hikes in the automotive industry varied. Some  introduced a new pay scale only for the lesser-paid workers. Others gave  a larger percentage of the increment to entry-level workers than that  given to senior workers.

 Chaloey Chombulan, of the Garment Workers' Federation, said some companies cut back on welfare as early as April 1.

----------


## StrontiumDog

*Unionists 'laid off in wake of wage increase' - The Nation
*
*Unionists 'laid off in wake of wage increase'*

         The Nation May 15, 2012  1:00 am 
*
Since the Bt300 daily minimum wage was  launched on April 1, many businesses have been trying to lay off union  activists or limit their roles to prevent them from fighting for  workers' rights, a labour leader said yesterday.*

          "Labour union members have been deemed as hostile [by employers] and  some of them have been laid off in many cases, or assigned to non-paying  duties or no longer given overtime work, which earns them extra  income," said Chalee Loysung, chairman of the Thai Labour Solidarity  Committee (TLSC).

Grumbling by workers about not being paid the full Bt300 is  commonplace, but only 73 written complains have been received by the  TLSC since April 1.

Among the popular ploys used by employers is including welfare benefits  in the mandatory Bt300 figure to avoid breaking the law while saving  huge extra costs.

Many workers in companies where salaries rise according to seniority  and work experience, especially those in electronics plants, were laid  off even before April 1, he said.

TLSC counsellors had visited many workplaces reporting such problems to  hear directly from aggrieved workers as well as those without labour  unions to give advice on how to work on the partial payment problem.

The Pheu Thai-led government should be held accountable for resolving  the issues, which stemmed from the Bt300 policy that they promised, he  added.

Yongyuth Mentaphao, chairman of the Automobile Labour Congress Of  Thailand, said he sees more havoc coming after January 1, when the new  wage is due to be extended across the country from the first seven  provinces. 

Authorities and the Labour Ministry should get fully involved in  problem solving, as workers were fighting for their rights alone, he  said.

Sattawat Wachirawit, a member of the Thailand Electronic and Appliance  Workers Federation, said firms with facilities in many locations would  face an internal migration of workers. This would disrupt their  operations, defeat cost controls and cause disciplinary concerns.

The labour-intensive garment industry was the worst in terms of  unwillingness to pay Bt300 or employing devices to keep the cost down,  said Chaloey Chombulan, a member of the Textile Garment and Leather  Workers Federation of Thailand.

"Many workers agreed to sign revised contracts that would end up not  fully paying Bt300 to them but keep their employers safe from legal  action," he said.

The chairman of a local hotel and service industry confederation in  Phuket said small to medium-sized hotels were making their staff accept a  welfare-padded Bt300 rate without breaking the law. Some of them laid  off highly paid staff, claiming a temporary freeze of business to  minimise severance payments, and then hired a new set of workers at  lower salaries, he said.

----------


## Gerbil

Gosh, how unexpected.  :Roll Eyes (Sarcastic):

----------


## nevets

So how long is a working day , 8 hours , 37.5 bhat an hour is that what they get an hour then.
I will need to know so as to pay my workers on the land , They get 30 bhart an hour now + water and some food. 
Some Thai dont even give water and 25b an hour.

And my wife has just said that it is hard to find workers everyone has work , they are looking for migrant workers to fill in .
And she said people are know been payed 35b for working the land.

----------


## Gerbil

Here's a tip.....
put them on a 5 day week @ 9.6 hours per day instead of 6 day week @ 8 hours a day.

5 days @ 300 baht = 1,500.00
6 days @ 300 baht = 1,800.00

It's a no brainer - if they complain, point out they are getting an extra day off a week.

----------


## kmart

> And my wife has just said that it is hard to find workers everyone has work , they are looking for migrant workers to fill in .
> And she said people are know been payed 35b for working the land.


Yup, was at Rayong Labour Bureau recently to renew the work permit. The place was mobbed out with Loatian and Cambodian immigrant workers.

----------


## Thaihome

> Here's a tip.....
> put them on a 5 day week @ 9.6 hours per day instead of 6 day week @ 8 hours a day.
> 
> 5 days @ 300 baht = 1,500.00
> 6 days @ 300 baht = 1,800.00
> 
> It's a no brainer - if they complain, point out they are getting an extra day off a week.


Thai labor law would require you pay 1.5 premium for the extra hour and half each day.  The labor law only recognizes a 5x8 40 hour or 6x8 48 hour work week.  Any hours over 8 per normal working day (which includes the Sat for the 6 day week) you have to pay time and half.

TH

----------


## Gerbil

^ 300 / 9.5 = 31.58
31.58 * 40 = 1263.2
5 * 1.5 * 31.58 * 1.5 = 355.28

1263.2 + 355.28 = 1618.48

Still cheaper  :Smile:

----------


## Butterfly

you are assuming that Thai could make those complex calculations

----------


## Gerbil

^ I'm assuming most cant.  :Smile:  Those that can will get shown them and shown the door if they whinge.

----------


## Fondles

> Here's a tip.....
> put them on a 5 day week @ 9.6 hours per day instead of 6 day week @ 8 hours a day.
> 
> 5 days @ 300 baht = 1,500.00
> 6 days @ 300 baht = 1,800.00
> 
> It's a no brainer - if they complain, point out they are getting an extra day off a week.


As already pointed out thats actually illegal.

Thai labour law states a standard working week to be 48hr @ 8 hrs maximum per day which equals 6 days per week at 8 hrs and anything over 8hrs is to be paid at overtime rates (for those not on a salary)

When we went from 6days x 8hrs to 5days x 9.6hrs we got smashed for it once found out.

----------


## StrontiumDog

*Kittiratt: SMEs sanguine about wages | Bangkok Post: business
*
*Kittiratt: SMEs sanguine about wages*
Published: 23/05/2012 at 02:15 AMNewspaper section: Business
 Small and medium-sized enterprises have yet to  be affected by the minimum wage hike to 300 baht a day, insists  Kittiratt Na-Ranong, deputy prime minister and finance minister.

 He cited the latest Labour Ministry report that local SME activity  remained normal, with some closing down and many opening new factories.

 The government raised daily minimum wages in seven provinces by 40% on April 1.

 Mr Kittiratt said access to capital remains the key problem for SMEs,  so the Finance Ministry is relaxing its collateral requirements for  SMEs.

 Currently, only one-third of 3 million SMEs can borrow from banks.

 The previous government initiated a new collateral law that would  allow businesses greater flexibility in managing liquidity and assets,  and the cabinet is reviewing the draft. The new law aims to allow SMEs  to use unconventional assets as collateral, comprising stockpiled goods,  raw materials, copyrights or franchise contracts.

 The 3 million SMEs account for 99.6% of total entrepreneurs in  Thailand and 78% of the workforce and contribute 37% to the gross  domestic product.

 The government's SME development plan calls for SMEs to contribute  50% of GDP over the next five years. It also assigned related ministries  to pass measures to ease the impact on SMEs of the planned Asean  Economic Community slated for 2015, in the hopes of increasing their  competitiveness once Southeast Asian economies integrate.

 The measures are scheduled to be completed over the next two weeks.

----------


## StrontiumDog

*New wage means fall in income, workers complain - The Nation
*
*New wage means fall in income, workers complain*

         The Nation June 12, 2012  1:00 am 

*A number of workers at Molnlycke Health Care  (Thailand) found their monthly income falling after the government's  policy to raise the daily minimum wage to Bt300 took effect in April 1,  because their employer had stopped paying performance-based incentives.*

"We used to earn more than Bt17,000 a month, but now our monthly income  stands at around only Bt13,000," Natnapas Kaewthong said yesterday in  her capacity as chair of the company's labour union.

Molnlycke Health Care (Thailand) has hired more than 1,000 people at  its two factories, one in Samut Prakan and the other in Chon Buri. It is  a manufacturer of surgical gowns.

Natnapas said the company had pressured 96 per cent of its workers to  sign their consent for the cut in performance-based incentives.

"Those who refused have been transferred to other divisions or a new  work shift. Those who've given their consent get a one-month bonus,"  Natnapas said when she showed up at the Labour Protection and Welfare  Department to ask for help yesterday. She was accompanied by 21 other  workers.

According to Natnapas, the Labour Protection Act requires the company  must have discussions with its labour union when it wants or needs to  change employment conditions or reduce workers' welfare.

"But the company's management has not followed the law. It has summoned  the workers one by one to demand they sign the consent form," Natnapas  said.

She said 22 executives and members of the labour union were suspended  from work after they spoke up against the company's move they said was  unfair."

The company must stop harassing the workers who have refused to give  their consent to the change in their welfare conditions," Natnapas said.  "The company must abide by laws".

She also demanded the employer allow the suspended workers to go back to work and stop using pressure tactics.

The executives of the Labour Protection and Welfare Department have  promised to talk to the management of the Molnlycke Health Care  (Thailand) to settle the dispute.

----------


## nostromo

Only you and the labour unions could make this up. If you look closely to what you posted you will see some cracks. But I think you know that. You people do really hang on to anything to not give other people a chance. And the good economy and people to go forward.






> *New wage means fall in income, workers complain - The Nation
> *
> *New wage means fall in income, workers complain*
> 
>          The Nation June 12, 2012  1:00 am 
> 
> *A number of workers at Molnlycke Health Care  (Thailand) found their monthly income falling after the government's  policy to raise the daily minimum wage to Bt300 took effect in April 1,  because their employer had stopped paying performance-based incentives.*
> 
> "We used to earn more than Bt17,000 a month, but now our monthly income  stands at around only Bt13,000," Natnapas Kaewthong said yesterday in  her capacity as chair of the company's labour union.
> ...

----------


## StrontiumDog

300 baht minimum wage doesn’t trigger economy : National News Bureau of Thailand

*300 baht minimum wage doesn’t trigger economy*  

BANGKOK, 14 June 2012  (NNT) – The Thai Chamber of Commerce has declared that the 300 baht  minimum wage policy isn’t helping Thailand’s economy as the government  has expected. 

Mr. Phumin Harinsut, Executive Vice President of the TCC said that the  300 baht minimum wage adjustment already enforced in seven provinces is  not triggering the economy as has been predicted. The policy aims to  encourage more spending. However, people have not much confidence in the  stability of the companies they are working in. So they choose to save  for the future. Mr. Phumin believed that  the new wage policy would  continue to hurt both small and large businesses next year. He thus  called for government measures to cushion the impact.   

Furthermore, a TCC survey found that 92 percent of the business  operators in the 7 pilot provinces have already adjusted themselves to  the new minimum wage, while the rest  of 7.8% could not.

----------


## StrontiumDog

*Bt300 minimum wage a failure, survey says - The Nation
*
*Bt300 minimum wage a failure, survey says*

         The Nation July 20, 2012  1:00 am 
 

*The Bt300 minimumwage policy has failed to elevate  workers' quality of life, according to the results of a survey released  yesterday by the Thai Labour Reconciliation Committee (TLRC), which  urged the Labour Ministry to review its role and do more to protect  workers' rights.*

              The minimumwage policy, in effect in seven provinces since April 1,  hasn't forced many establishments to raise their minimum wages and most  companies are including their welfare allowance with the wage in order  to meet the policy requirement, TLRC chairman Chalee Loysung said.

    The situation has been especially hard on workers who've been on the  job for more than 10 years, Chalee said. Requests for raises were  rejected and met with threats of termination, and the older workers felt  they had no choice but to accept the condition because they feared they  wouldn't find another job at their age, he said.

    Subcontract companies that employ such workers as security guards and  maids told their employees that the wage hike was out of the question  because the contract was already fixed, Chalee said.

    The Labour Ministry has seemingly ignored its duty and has largely left  the matter for employers and the workers to argument among themselves,  Chalee said.

    The policy of Prime Minister Yingluck Shinawatra's administration calls  for a daily minimum wage of Bt300 and a salary of Bt15,000 for workers  with bachelor's degrees, but the private sector is not complying because  of a lack of clear guidelines, Chalee said. The TLRC will gather the  workers' complaints and submit them to Labour Minister Phadermchai  Sasomsap.

    According to the survey, collected from eight TLRC complaintgathering  centres, there were 5,134 complaints: 2,380 from workers, mostly in the  hotel, transport, auto parts and jewellery sectors, who didn't receive  the wage hike; 2,168 from workers, mostly in the textile industry, who  faced changes in employment condition, lower welfare, position transfer  or factory move; and 586 workers, mostly in the electronics, service,  transport, food and furniture sectors, who saw their welfare allowances  included with the Bt300 minimum wage.

    TLRC deputy chair Wilaiwan Saetia said employers were using the  minimumwage policy to reduce taxes, which mainly benefits big companies  while small businesses simply threatened their workers with layoffs to  force them to take the lowerthanlegal wages.

    Wilaiwan urged the government to implement the Bt300 minimum wage  nationwide by the end of this year as it had promised before the  election, and resist the push by employers to postpone the wage hike.

    Thailand Autoworkers Federation (TAW) president Yongyuth Mentapao  echoed the TLRC's assertion that the Bt300 minimum wage has been a  failure. He urged the Labour Ministry to do more to protect workers'  rights, including foreign migrant labourers.

----------


## StrontiumDog

*Firms 'ignore wage hike law' | Bangkok Post: news
*
*Firms 'ignore wage hike law'*

*Many aren't paying out new rates, activists say * 
Published: 20/07/2012 at 01:48 AMNewspaper section: News

 The Yingluck Shinawatra government has come  under fire for its failure to order employers to adopt the 300-baht  minimum daily wage policy.

 The criticism was made yesterday by labour rights advocates at a news  conference announcing the number of unfair employment complaints  resulting from the daily wage policy.

 It was held at the Thai Labour Museum Foundation on Nikom Rotfai Makkasan Road in Bangkok.

 In the first month after the new wage policy took effect on April 1,  the Thai Labour Solidarity Committee, a labour rights and welfare  non-governmental organisation, received 73 complaints about employers  failing to increase pay.

 Since then, the number of complaints has mushroomed to 5,134, according to tallies from the committee's eight complaint centres.

 While the complaints keep piling up, the government, especially the  Labour Ministry, has done nothing to look into the problem, treating it  only as a conflict between employers and workers, committee head Chalee  Loysung said.

 The Labour Ministry, which could intervene, is only "floating above  the problem" rather than providing help, said Yongyuth Mentaphao,  chairman of the Thai Autoworkers Federation.

 Workers in the auto parts production, hotel, transport and jewellery industries accounted for 2,380 complaints.

 They claimed their wages have not been raised to the 300-baht notch,  though their employers are required by law to increase their wages.

 Other groups of workers also face similar problems, or worse  conditions. The committee reported that 586 workers in the electronics,  food, furniture and service sectors accused their employers of combining  their welfare payments with daily wages to meet the minimum wage  requirement.

 Meanwhile, up to 2,168 workers, mostly in garment and clothing  factories, have complained they encountered unpleasant changes in  employment, including job transfers and a cut in fringe benefits.

 Though the 300-baht wage policy aims to improve their finances, a  number of workers now "don't know whether they should be happy or sad  about the policy", said Mr Chalee.

 The Labour Ministry found in a survey conducted last month that most  small and medium-sized business owners were unhappy with the policy.

 However, deputy chairwoman of the Thai Labour Solidarity Committee  Wilaiwan sae Tia said employers "do not shoulder big burdens". They can  apply for tax rebates on the money used to pay the higher wages, she  said.

----------


## baldrick

colour me unsurprised

the PT puppet govt has been too busy trying to ensure a triumphant return of the squareheaded one .

they have forgotten completely about the suckers who put them in power

----------


## BobR

The real joke is the 15000 minimum monthly salary for anyone with a 4 year college degree, I know of 2 sisters with such degrees and both had to lie (say they did not have them) to get any job at all.

When you major in logistics and cannot speak virtually any English or Chinese your chances of success are about zero.  Which of course leads to the question why any college would let someone study a subject like that for 4 years without mandatory classes in the languages of commerce?

----------


## jamescollister

Well can't tell about down south in the bright lights of BKK or Pattaya, but out here in the back blocks of Issan try and find someone to work for 500 Baht a day is near on impossible. They won't get out of the hammock to scratch themselves for 300 Baht. Jim

----------


## Zampan0

> Here's a tip..... put them on a 5 day week @ 9.6 hours per day instead of 6 day week @ 8 hours a day. 5 days @ 300 baht = 1,500.00 6 days @ 300 baht = 1,800.00 It's a no brainer - if they complain, point out they are getting an extra day off a week.


And people wonder why Thai guy's on the whole dislike farang's.  Heaven forbid they make an extra $2.50 a day.

----------


## BobR

^  Thai males are mostly overgrown children, but in so much as we spend more money in an evening than many of them make in a month and enjoy the company of Thai women, their resentment is understandable. 

When you eat at KFC, McDonalds or similar restaurants here it's sad to ponder that a Thai could work an 8 hour shift at one of those places and still not make enough money to buy a meal there for himself and a companion.

----------


## nostromo

> Bt300 minimum wage a failure, survey says - The Nation


Fine political headline. But if you read between the lines, this survey 




> According to the survey, collected from eight TLRC complaintgathering centres


is about opinions of those who filed a complaint. Not exactly impartial, and does not quite equate with a "failure" of a policy. 

Opponents of minimum wage claim that increase in minimum wage is both ignored by businesses and driving them out of business. At the same time? I suppose you can see it through Democrat/PAD/yellow/ammat black/white vision glasses. Companies that are still in business are ignoring minimum wage. Companies that have gone (and will go) under failed because of increase in minimum wage. Right. 

But seriously, there are two issues here.

As for the latter, starting with the more important "problem" - increase of minimum wage making companies go under, lay off people, close factories etc. - let's not forget that increase in minimum wage to 300 baht/day (previously from about 150 to 200 baht depending on province) was in a package including a very substantial reduction in corporate income tax, from 30% to 23% and to 20% later. Even less for SME's (from 0%, 15%, 23/20% depending on profit - 23/20% only for part of profit over 1 million). That makes Thailand's corporate tax rate amongst the lowest in this part of the world. Amongst other incentives, this is to offset rise in cost of workforce. Naturally depends on a company what the individual effect is, but generally, profitable company will, eh, profit of this. And so will the economy (which on the other hand, benefits from increasing disposable income leading to consumption, especially in times like this).

As the companies ignoring minimum wage etc, certainly there must be many companies ignoring it (and ignoring many other things too). Hopefully they will get on with the program when they see their profit increase after (reduced) tax. Labour unions may have some valid points here with specific companies. 

But examples like (if there is any truth in this Nation/Post piece):




> At some companies, workers who received more than 300 baht a day before April 1 had their wages cut after the policy was launched. The firms used the money saved from the cut to pay other lesser-paid workers to meet the wage policy.


speak of a very badly managed and exceptional businesses. You just can not manage HR in that way. Some companies are on the brink and might go under in any case. 

And,




> New wage means fall in income, workers complain - The Nation


is another isolated example. Perhaps company had some difficulties and needed to reduce operating costs and now found a scapegoat. They could legally have paid less than they paid, before and after increase of minimum wage, why would they cut salaries now because of increase in minimum wage? Companies compete for workers with wages, above minimum wage it is a business decision what kind salaries they offer. If a company wishes to reduce salaries, complying with the law and agreements, they are free to do so and risk people leaving the company for better offers. Nothing to do with minimum wage.

Minimum wage increase a failure? No. All in all with pro-business changes, it helps towards stronger, faster growing economy. Anyways, Thailand must move on from being a cheap labour country ahead of competition... eh, well that is another issue. I would never dream of saying anything off-topic on any thread :Smile:

----------


## StrontiumDog

*http://www.bangkokpost.com/news/loca...ift-in-january
*
*Wages to get national lift in January*

*Govt rules out further boosts in 2014, 2015 * 
Published:  6/09/2012 at 08:32 AMNewspaper section: News
 The Central Wage Committee will implement the 300-baht minimum daily wage across the country from January.

 It said studies have shown there has been no adverse impact on economic growth from wages increases so far.

 Somkiart Chayasriwong, permanent secretary for labour and chairman of  the tripartite Central Wage Committee, yesterday said the wage panel  decided to uphold its resolution on Nov 2 last year to raise the daily  minimum wage to 300 baht across the country.

 The 300-baht wage hike was earlier implemented from April 1 this year  in seven provinces _ Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon,  Nakhon Pathom, Pathum Thani and Phuket.

 Mr Somkiart said the minimum wage would go up to 300 baht across the  country from January but there would be no further increases in 2014 and  2015.

 He said the panel has closely monitored the economic situation  following the increase in April, and found that the economy kept  expanding and that the inflation and unemployment rates remained under  control.

 The panel plans to forward the countrywide wage hike for cabinet  approval soon as it wants the new rate to be put in place in January  after it is published in the Royal Gazette.

 The 300-baht daily minimum wage policy was a major part of the ruling  Pheu Thai Party's campaign platform during last year's elections.

 Mr Somkiart said second-quarter gross domestic product grew by 4.2%,  higher than that in the first quarter, as a result of increased  purchasing power.

 In the past few months, inflation has been recorded at 2.92%, lower than the estimated 3.3-3.5%, he said.

 The unemployment rate between January and June was 0.8%, which was not high, the wage panel chairman said.

 He added that about 80% of small-and medium-sized enterprises (SMEs) had been affected by the wage boost.

 However, 99% of them were able to adjust to the situation, he said,  citing a survey jointly conducted by the Labour Ministry, the Thai  Chamber of Commerce and the Federation of Thai Industries.

 A study has also shown that the wage increase has helped boost labour efficiency by 8.7% over the past seven months, he said.

 The government has put in place measures to cushion the impact of the wage increase on business operators.

 These include a temporary reduction in employers' monthly  contributions to the Social Security Fund and the offer of low-interest  loans to SMEs.

 Attayuth Leeyavanich, secretary-general to the Consumer Products and  Services Employers Council, criticised the committee's decision to raise  the minimum wage throughout the country, saying it would have a greater  impact on the economy than the April hike.

 The panel should have put the issue on its agenda to allow all sides to debate it, he said.

 He rejected Mr Somkiart's claims about economic growth, saying there was only economic uncertainty.

 Wilaiwan sae Tia, vice-chair of the Thai Labour Solidarity Committee,  agreed with a nationwide wage increase, but strongly opposed the  panel's decision not to lift it again until after 2015.

 Most workers would suffer in that time period as inflation and consumer goods prices would keep rising, she said.

 Rojjanin Phatchararuangkij, managing director of Smile Heart Foods in  Samut Sakhon, said the wage rise in January will have only a limited  impact on his firm, which produces frozen seafood mainly for export.

 The company has brought in machinery and has trained workers to be  more productive, the managing director said, adding that the hike will  motivate the workers to work harder.

 Federation of Thai Industries secretary-general Sommat Khunset said  the National Wage Committee should postpone the launch of nationwide  wage boost until at least 2014.

 Mr Sommat said the best time to implement a nationwide hike is between 2014-2016 to allow SMEs time to adjust.

 Many SMEs are still reeling from the effect of the earlier increase,  which has also pushed up inflation, he said. These problems have not  been effectively tackled so far, and the January rise would only  compound their troubles.


-----
Nationwide extension spark concerns - The Nation

*Nationwide extension spark concerns*

         PETCHANET PRATRUANGKRAI,
PRANEE MEUNPANGWAREE
THE NATION September 6, 2012  1:00 am 
 

*Private-sector organisations have called on the  government to review its plan to extend the Bt300 minimum daily wage  nationwide early next year amid uncertainty over global economic growth,  which would result in the double whammy of reduced sales for exporters  amid higher production costs.*

              They also urged the government to set up a standard for increasing  wages systematically, saying ambiguous policy would encourage more Thai  and foreign investors to shift their investment to other countries,  especially less developed neighbouring nations.

    Thai Chamber of Commerce (TCC) vice chairman Bhumindr Harinsult said  the government should not rush to increase wages next year while the  global economy is fluctuating because of the euro-zone financial crisis,  which will affect Thai export growth and employment.

    "More labour layoffs will be seen next year if the government carries  on with its policy to raise the [minimum] wage nationwide. Many  enterprises, particularly small and medium-sized firms, will need to  close down or lay off employees as they cannot shoulder higher operating  costs amid sluggishness trading," he said.

    According to the TCC, about 7 per cent of SMEs have closed down this  year because of higher labour costs. The unemployment rate has risen  from 0.7 per cent before April to 1.1 per cent now. A consistent  opponent of higher wages for labourers, the chamber claims unemployment  will rise even further if the government persists with its policy.

    Sukij Kongpiyacharn, president of the Thai Garment Manufacturers  Association, said Thai exports next year would be severely hit by double  trouble from the euro crisis and higher wages.

    "Small firms upcountry will be greatly affected by the higher wage.  Thai enterprises will be unable to increase prices easily amid lower  purchasing power. If Thai traders increase prices, we may lose buyers to  rivals. However, if we do not increase prices, we must shoulder higher  production costs and face business losses because of higher wages,"  Sukij said.

    He also called on the government to set clearer standards on  wage-increase policy; doing otherwise would affect investor confidence,  he claimed. He pointed out that higher labour costs would force  enterprises to adjust their operations for the whole supply chain.

    Somsak Srisuponvanit, chairman of the National Federation of Thai  Textile Industries, said a nationwide Bt300 minimum wage would  accelerate the relocation of Thai enterprises to poorer Asean countries,  mainly to Myanmar because of lower labour costs and a high supply of  workers.

    He also called on the government to seek measures to help reduce costs  of production and reduce value-added tax for importing machinery to  offset higher labour costs.

    Somsak claimed it was inevitable that some enterprises would close down  next year, unless they turn to employing foreign labourers.

    Prokchon Promgungwahn, managing director of Promgungwahn, a Chiang Mai  producer and exporter of organic longan, said the higher wage had caused  difficulties for his company since early this year. He said he had to  increase the daily wage from Bt200-Bt250 to Bt300 in April, even though  the higher minimum came into force in only seven provinces that month,  because labourers insisted on enjoying the same increase immediately  without having to wait for the nationwide policy.

    He said the company would need to increase wages again next year after  the expanded policy goes into effect. Yet at the same time, the firm  cannot easily increase its prices for trading partners amid the slowing  global economy.

    Prokchon called on the government to implement measures to relieve the  financial burden on SMEs to prevent more of them closing down next year.

    Thai Autoparts Manufacturers Association spokesman Tawon Chalatsatien  said the nationwide rise in the minimum wage would not seriously affect  the auto-parts industry given that it is a high-value business.  Businesses in this sector already pay daily wages of at least Bt300.

    He added that raw materials, not wages, were the key cost in this sector, especially the cost of steel.

----------


## StrontiumDog

*Wage hike will stimulate economy: expert - The Nation
*
*Wage hike will stimulate economy: expert*

         The Nation September 7, 2012  1:00 am 
*
The increase in the daily minimum wage to Bt300 in  another 70 provinces, which was approved on Tuesday and will go into  effect on January 1 next year, will help stimulate consumption of  domestic products and be beneficial to the economy in the long run, a  Chulalongkorn University economics lecturer commented yesterday.*

The hike would not affect employers or result in much higher costs, said Assoc Prof Narong Phetprasert. 

"There  is a wide misunderstanding that the hike will result in a 40-per-cent  rise in production costs, but the figure is more likely to be 15 per  cent on average," he said.

Businesses  expected to be most affected by the hike are those in labour-intensive  sectors such as textiles and furniture. Some of these, however, should  be able to take advantage of government help to negotiate with  neighbouring countries for incentives and assistance in relocating out  of Thailand, said Narong.

"Those  [Thai-owned] factories should be operated in Myanmar, Cambodia and  Laos, hiring local workers under tax incentives and other  investment-relevant benefits given by host countries," he added.

A  Thailand Development Research Fund senior official, Yongyuth  Chalaemwong, approved a minimum-wage hike in principle, but said it  should be implemented step by step over a three-year period. 

"Paying  Bt300 to workers in 70 provinces [in addition to the seven already  covered] at one time will abruptly and greatly burden employers, who as a  result may have no choice but to opt for lay-offs or to give up their  businesses. 

"Increasing  work efficiency through skills training will be an effective way to  cope with unemployment in the long term, because it will help unskilled  labourers extend their contracts, while those laid off will be able to  get training and be re-hired quickly - there is still a lack of skilled  labour," he added.

----------


## gaysexbyproxy

> When you major in logistics and cannot speak virtually any English or Chinese your chances of success are about zero.  Which of course leads to the question why any college would let someone study a subject like that for 4 years without mandatory classes in the languages of commerce?


^spot on.

Maybe they should just put it in the new constitution... Oh, wait....

----------


## Jools

Oh my!!! What a surprise!!!  :Smile:  Minimum wage???? In Thailand???? This is a country ruled by wealthy aristocrats, totally for their benefit. The idea that the working class have any sort of rights, never took root here. How could any Thai lawmaker keep a straight face whilst voting for such a law?

----------


## StrontiumDog

*It's real: B300 wage from Jan 1 | Bangkok Post: news
*
*It's real: B300 wage from Jan 1*
Published: 20/11/2012 at 04:37 PMOnline news: Local News
 The cabinet on Tuesday approved a proposal to  impose the minimum wage of 300 baht per day all over the country from  Jan 1, Budget Bureau director Voravidh Champeerat said.

 He said Deputy Prime Minister and Finance Minister Kittiratt  Na-Ranong was appointed chairman of a committee to plan measures to help  business entrepreneurs affected by the wage increase.

 From April 1 this year, the 300-baht wage was implemented in seven  provinces - Bangkok, Nonthaburi, Samut Prakan, Samut Sakhon, Nakhon  Pathom, Pathum Thani and Phuket.

 Federation of Thai Industries (FTI) chairman Payungsak Chartsutipol  will propose the government measures to reduce the impact on the private  sector after the government approved the pay rise.

 The FTI will seek the establishment of a fund to compensate for some  labour costs to the private sector. It also wants a reduction in the  cash burden, particularly on cutting the contribution to the Social  Security Fund to 2.5%, down from the normal rate of 5%, for three years.  However, the Social Security Office announced earlier that for 2012,  the average contribution from both employees and employers to the fund  is 3.5%.

 
Photo by Somchai Poomlard

  Rising costs from this policy should be deducted as expenses for  value added tax calculation at two times of the actual cost for three  years. The government should also reduce building and land taxes as well  as local development tax by 50% for three years.

 The federation members also want to see the creation of a matching  fund that will help the private sector increase their production  efficiency through machinery modernisation.

 Wallop Witanakorn, an FTI vice president, said the government's  decision to carry through with the 300-baht wage next year will force  textile and garment manufacturers to adjust, particularly through  improvement in production efficiency, while large manufacturers will  need to transfer technology to small companies. It is possible that more  companies will move to other countries or relocate to provinces in the  central region in order to reduce logistic costs. 

 Hassanai Kaewkul, chairman of Phayao Chamber of Commerce, said the  government's 300-baht policy is likely to produce no positive outcome as  workers are unlikely to improve their skills. 

 He said a survey in the province showed that employers' costs will  increase between 10-15% as the rate increase must be applied to all  workers, though many of them already earn higher than the new rate.

----------


## OhOh

> He said a survey in the province showed that employers' costs will increase between 10-15% as the rate increase must be applied to all workers, though many of them already earn higher than the new rate.
> __________________





> a proposal to impose the minimum wage of 300 baht per day


I would assume any "increase" for the above 300baht per day wage is at the discretion of the employer.

----------


## piwanoi

> colour me unsurprised
> 
> the PT puppet govt has been too busy trying to ensure a triumphant return of the squareheaded one .
> 
> they have forgotten completely about the suckers who put them in power


  Hmm ,a shrewd observation ,and of course 100% correct!. :Smile:

----------


## petercallen

How many posters on this forum have worked or would work for 300  baht a day
None in my opinion, thats why all western businesses have or are shifting to Asia :mid:

----------


## OhOh

I would suspect it is illegal, for a westerner, to work at a 300 bhat per day job in Thailand.

----------


## StrontiumDog

*FTI warns wage rise will hit SMEs | Bangkok Post: business
*
*FTI warns wage rise will hit SMEs*

*B300 minimum 'may cause factory closures' * 
Published: 21/11/2012 at 12:00 AMNewspaper section: Business
 The cabinet approved a plan yesterday to impose a  daily minimum wage of 300 baht nationwide on Jan 1 even as companies  warned the government it must take full responsibility for damage to  small and medium-sized enterprises.

 "SMEs will definitely suffer from more unpaid loans, which eventually  will hurt the whole labour force if they stop hiring and the government  does nothing to help them cope with the wage hike next year," said  Vallop Vitanakorn, vice-chairman of the Federation of Thai Industries  (FTI).

 He said the industrial sector will wait 6-12 months to reassess the  situation and decide whether it will have to close down their offices in  provinces.

 "We might have to lease the closed factories to the government for rice storage," quipped Mr Vallop.

 Petcharat Eksaengkul, vice-chairman of the FTI's industrial  department, said even though it is difficult to change government  policy, it should look at the FTI's 27 proposed measures.

 The measures include lending money to help improve production,  seeking new marketing channels, lowering corporate income tax and  expanding the time frame for loan repayment.

 Thailand has 2.9 million SMEs generating 3.7 trillion baht or 37% of the country's 10-trillion-baht gross domestic product.

 The figure rises 1.9% a year on average.

 "In reality [such measures] will not provide much help at all," said Ms Petcharat.

 Marc Spiegel, vice-chairman of the Joint Foreign Chambers of Commerce  in Thailand (JFCCT), said foreign enterprises will also feel the impact  of the wage increase, and some may be forced out of Thailand.

 Foreign SMEs rarely receive any support and many find it difficult to access funding, he said.

 "We support the wage increase on a conceptual level, but it has to  come with an improvement of education, productivity and training," said  Mr Spiegel.

 With Myanmar opening up, Thailand will be less attractive to manufacturers in the coming years, he added.

 Pornsil Patcharintanakul, vice-chairman of the Thai Chamber of  Commerce, suggested the government set up a special fund to compensate  Thai SMEs with low-interest loans to help ease financial liquidity after  the wage hike.

 JFCCT chairman Nandor von der Luehe said he is more worried about the domino effect of a wage increase.

 "The [increase to] 300 baht is minimal, but others who are now  getting 500 baht will also ask for more, and everything will become more  expensive," he said, adding that the wage increase should come from  higher productivity.

 Mr von der Luehe said the government's tax rebate will not really benefit SMEs that will be affected the most by the wage hike.

 The cabinet also agreed yesterday to set up a committee to be chaired  by Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong to  create measures aimed at helping business entrepreneurs affected by the  minimum wage increase.


-----
Kittiratt insistent hike is necessary | Bangkok Post: business

*Kittiratt insistent hike is necessary*
Published: 21/11/2012 at 12:00 AMNewspaper section: Business
 The government shrugged off "whines" from  companies about its minimum wage hikes, saying they are a part of its  plan to get labourers out of the cheap labour trap that has dragged down  the country's economic development in the past, says Finance Minister  Kittiratt Na-Ranong.

 Speaking at a seminar on strategies for Thai businesses to survive  the global slowdown yesterday, he said this government intends to alter  the concept of economic policy.

 "Those people who have said productivity is not improved with the  wage hike need to consider when the wage was lower, productivity was  also low as they had no incentive to improve. I think this is sort of  the chicken or the egg," said Mr Kittiratt.

 Also, increasing low-wage workers' income helps stimulate domestic  purchasing power, he added, which is the right way to cope with the  global economic crisis.

 "Actually we didn't expect the impact of the euro crisis would occur  so quickly, but fortunately our policy has helped maintain domestic  consumption," said Mr Kittiratt.

 He added that good policy should not directly affect economic expansion but rather affect stability and income distribution.

 "For example, in the past we enjoyed export growth of 15-20% that  pushed our GDP to rise by 4-5%, but the fact is we only had cheap  labour. We were trapped in a cheap wage economy, and that's why we  needed subsidies to ease living costs such as transportation and  utilities, which may have distorted the market," said Mr Kittiratt.

 "We should use subsidies in the short term, not keep them for a long time as past governments did."

 He added the 2 trillion baht borrowing decree for investment in  infrastructure, which is separate from the normal fiscal budget, helps  shorten the time and approval process needed for public investment  projects.

 "We don't need to follow the disbursement procedure, which really slowed down government investment in the past," he said.

 He added there was no need for concern about appropriate budget usage, as the details of each project have progressed.

 "There is no need to worry, this borrowing decree is not a blank  cheque, as we have really good projects that require capital," said Mr  Kittiratt.

 The government policy to push state agencies to work faster in  parallel with the cabinet's budget considerations means once a bill  gains approval, projects will be ready to construct immediately, he  added.

----------


## StrontiumDog

*Few will be laid off due to wage increase: govt - The Nation
*
*Few will be laid off due to wage increase: govt*

           THE NATION November 22, 2012  1:00 am 
 

*The authorities believe that the imminent hike  in the minimum daily wage will likely cost some people their jobs but  the number will be relatively low.*

                "Many industries are facing a shortage of labour," Labour Minister  Phadermchai Sasomsap said yesterday, adding that there were more than  300,000 vacancies across the country.

    The minister was speaking after Chalee Loysoong, president of the Thai  Labour Solidarity Committee, voiced concern that some employers might  lay off their workers before January 1 in a bid to avoid paying higher  severance pay. The Bt300 minimum daily wage goes into effect in 70  provinces from January 1.

    However, Labour Welfare and Protection Department director-general  Pakorn Amorncheewin said that as of Tuesday, only 1,072 workers at five  factories had been laid off due to the initial wage increase in seven  provinces in April.

    "This number is relatively low," Pakorn said, adding that the upcoming  wage hike would go into effect in a much wider area, but explained that  the employers had about a year to adapt.

    "Some entrepreneurs are already paying up to Bt320 per day," he said,  adding that people should also work harder to justify their higher pay.

    Though relevant authorities expect a relatively low number of workers  to lose their jobs, Pakorn said they were monitoring the situation  closely.

    "We have planned several measures such as suspending employers'  contributions to the social security fund and finding new jobs for those  who have been laid off," he added.

    He went on to say that several industries, such as the automotive  sector, were facing labour shortage, though he added some workers might  need to migrate to new areas to find jobs.

    "If huge job losses take place in certain provinces, we will have to  prepare for migration, because apart from jobs, workers will also need a  place to stay," he said.

    According to Phadermchai, 29 provinces, particularly in the North and  Northeast, will see a huge jump in wages, such as Phayao, where minimum  wages will increase from just Bt159 to Bt300.

----------


## socal

> 300 baht minimum wage doesnt trigger economy : National News Bureau of Thailand
> 
> *300 baht minimum wage doesnt trigger economy*  
> 
> BANGKOK, 14 June 2012  (NNT)  The Thai Chamber of Commerce has declared that the 300 baht  minimum wage policy isnt helping Thailands economy as the government  has expected. 
> 
> Mr. Phumin Harinsut, Executive Vice President of the TCC said that the  300 baht minimum wage adjustment already enforced in seven provinces is  not triggering the economy as has been predicted. The policy aims to  encourage more spending. However, people have not much confidence in the  stability of the companies they are working in. So they choose to save  for the future. Mr. Phumin believed that  the new wage policy would  continue to hurt both small and large businesses next year. He thus  called for government measures to cushion the impact.   
> 
> Furthermore, a TCC survey found that 92 percent of the business  operators in the 7 pilot provinces have already adjusted themselves to  the new minimum wage, while the rest  of 7.8% could not.


Norway, Germany and Singapore have no minimum wage laws. :mid:

----------


## socal

> The real joke is the 15000 minimum monthly salary for anyone with a 4 year college degree, I know of 2 sisters with such degrees and both had to lie (say they did not have them) to get any job at all.
> 
> When you major in logistics and cannot speak virtually any English or Chinese your chances of success are about zero.  Which of course leads to the question why any college would let someone study a subject like that for 4 years without mandatory classes in the languages of commerce?


Thats what happens when government gets involved in the free market.

Norway, Germany and Singapore have no minimum wage laws. :mid:

----------


## socal

> Oh my!!! What a surprise!!!  Minimum wage???? In Thailand???? This is a country ruled by wealthy aristocrats, totally for their benefit. The idea that the working class have any sort of rights, never took root here. How could any Thai lawmaker keep a straight face whilst voting for such a law?


Norway, Germany and Singapore have no minimum wage laws. :mid: 

Norway, Germany and Singapore have no minimum wage laws. :mid: 

Norway, Germany and Singapore have no minimum wage laws. :mid:

----------


## socal

> How many posters on this forum have worked or would work for 300  baht a day
> None in my opinion, thats why all western businesses have or are shifting to Asia


I worked for $3 an hour when I was a kid for my cheap fucking prick of an uncle.

----------


## ChrisM

> Well can't tell about down south in the bright lights of BKK or Pattaya, but out here in the back blocks of Issan try and find someone to work for 500 Baht a day is near on impossible. They won't get out of the hammock to scratch themselves for 300 Baht. Jim


But in Issan they will get into the hammock for 1,500 baht short time.

----------


## Spin

> Originally Posted by Gerbil Here's a tip..... put them on a 5 day week @ 9.6 hours per day instead of 6 day week @ 8 hours a day. 5 days @ 300 baht = 1,500.00 6 days @ 300 baht = 1,800.00 It's a no brainer - if they complain, point out they are getting an extra day off a week.


The labour law here says that anything after 8 hours per day must be paid at t1.5 so the above won't work.






> I would suspect it is illegal, for a westerner, to work at a 300 bhat per day job in Thailand.


It would probably only be the type of work that is illegal and not the amount.

I know of 2 foreigners in Khon Kaen who work for 6500 baht a month, one is an asshole from France who works at a noodle stand. Karma really is beautiful when it seems to work out the way you'd like it  :Smile: 

The other guy is saving to go home, his wife stole and squandered away everything he ever had.




> I worked for $3 an hour when I was a kid for my cheap fucking prick of an uncle.


I'd say he priced you about right.

----------


## gaysexbyproxy

My, aren't they exemplary Buddhists here in LoS.  :finger:

----------


## OhOh

> Norway, Germany and Singapore have no minimum wage laws.


Bollocks, Germany has union controlled minimum wages, the unions run the place. Sweden is an oil/gas rich socialists dream subsidised this, subsidised that, get real.

Singapore, a facist state with millions of sheep, kept quiet with draconian laws.

----------


## OhOh

> I worked for $3 an hour when I was a kid for my cheap fucking prick of an uncle.


When you wake up, :Smile:  grooming may come to mind

----------


## socal

> Originally Posted by socal
> 
> Norway, Germany and Singapore have no minimum wage laws.
> 
> 
> Bollocks, Germany has union controlled minimum wages, the unions run the place. Sweden is an oil/gas rich socialists dream subsidised this, subsidised that, get real.
> 
> Singapore, a facist state with millions of sheep, kept quiet with draconian laws.


Show me the law that states that Germany has a minimum wage.

show me evidence that Singapore has "quit draconian laws"

It seems to me that you don't believe the free market can properly price labor

----------


## OhOh

> the free market


Which "free" market to you allude to?




> Show me the law that states that Germany has a minimum wage.


Google eu minimum wage and read.

----------


## Rural Surin

> Oh my!!! What a surprise!!!  Minimum wage???? In Thailand???? This is a country ruled by wealthy aristocrats, totally for their benefit. The idea that the working class have any sort of rights, never took root here. How could any Thai lawmaker keep a straight face whilst voting for such a law?


Don't be confusing folks with truth and reality, Jools.
Doesn't go over well with the _warm & fuzzy save the world want to mirror "us"_ crowd.

----------


## piwanoi

> Originally Posted by OhOh
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by socal
> ...


 Socal I suggest you go on to You tube were there is video's of men being caned in Singapore that are quite brutal and very graphic which personally I would say are quite draconian .

----------


## socal

> Originally Posted by socal
> 
> the free market
> 
> 
> Which "free" market to you allude to?
> 
> 
> 
> ...


  Do you think it is necessary for the government to price fix wages ? 


Wikipedia


 Germany No statutory minimum wage.

----------


## socal

> Originally Posted by socal
> 
> 
> 
> 
> 
> 
> 
>  Originally Posted by OhOh
> ...


Yeah yeah... Youtube videos now...

Wikipedia 

 Singapore No laws or regulations[11]

----------


## Gerbil

> Do you think it is necessary for the government to price fix wages ? 
> 
> 
> Wikipedia
> 
> 
>  Germany No statutory minimum wage.


Nice bit of selective quoting there. The actual entry is:

 Germany - No statutory minimum wage, except for construction workers, electrical workers, janitors, roofers, painters, and letter carriers. Minimum wage is often set by collective bargaining agreements in other sectors of the economy and enforceable by law

----------


## Necron99

> *Wage hike will stimulate economy: expert - The Nation
> *
> *Wage hike will stimulate economy: expert*
> 
>          The Nation September 7, 2012  1:00 am 
> *
> The increase in the daily minimum wage to Bt300 in  another 70 provinces, which was approved on Tuesday and will go into  effect on January 1 next year, will help stimulate consumption of  domestic products and be beneficial to the economy in the long run, a  Chulalongkorn University economics lecturer commented yesterday.*
> 
> The hike would not affect employers or result in much higher costs, said Assoc Prof Narong Phetprasert. 
> ...




This one is just boggling. Help you relocate your business (jobs) to other countries because our wage law reduces your profits...

----------


## socal

> Originally Posted by socal
> 
> Do you think it is necessary for the government to price fix wages ? 
> 
> 
> Wikipedia
> 
> 
>  Germany No statutory minimum wage.
> ...


 :mid:

----------


## OhOh

> Wikipedia
> 
> 
>  Germany No statutory minimum wage.


Read the footnotes, as suggested, idiot.

You do really need to look at the real world of who fixes things. In Germany you may find, if you can be bothered to investigate, that the Unions call the shots when setting wages.

You have yet to reply on the question of what you consider to be a "free" market.

----------


## socal

> Originally Posted by socal
> 
> Wikipedia
> 
> 
>  Germany No statutory minimum wage.
> 
> 
> Read the footnotes, as suggested, idiot.
> ...


The unions negotiate a wage in some industries in Germany. That is a far cry from a strictly government fixed minimum wage. 

Free market means that negotiations between parties determine wages. Governments don't price fix minimum wages.

You have yet to answer this question. Do you think free individuals and companies can negotiate wages fairly or do you think the government must price fix labor ?

----------


## OhOh

> Governments don't price fix minimum wages


I suspect most government set minimum wages. I suspect most of the EU governments set minimum wages. 




> Do you think free individuals and companies can negotiate wages fairly or do you think the government must price fix labor ?


There is no must here. Anyone, an individual or grouping, may ask whatever price they think they can achieve for their labour, they may not get it, but they can ask. This thread is about the minimum wage, not governments fixing all wages.

----------


## socal

> Originally Posted by socal
> 
> Governments don't price fix minimum wages
> 
> 
> I suspect most government set minimum wages. I suspect most of the EU governments set minimum wages. 
> 
> 
> 
> ...


I proved that not all governments or EU govts set minumum wages. There is no argument to be made.

A minimum wage LAW is government fixed wages. Plain and simple. No diffrent then price fixing anything. Like the Russian govt price fixing vodka.

*In July, Vodka prices will increase by almost 30%*
_Starting in July 2012, the minimum price of vodka could go up to  125 rubles  ($3.90) for a half liter from the current level of 98  rubles  ($3.06). This increase is stipulated in a draft order by  Rosalkagolregulirovania (RAR) which the department is planning to  publish later this week a source from within RAR told Vedomosti. 
_

----------


## StrontiumDog

Operators seek Bt140 billion to offset new minimum wage losses | MCOT.net

 

*Operators seek Bt140 billion to offset new minimum wage losses* 

      By Digital Media | 24 ธ.ค. 2555 15:14    

BANGKOK, Dec 24 - Almost one million private enterprises in Thailand  are unready to cope with the Bt300 daily minimum wage, effective January  1 nationwide, and risk having to close down, a university survey  disclosed today.

      At least 640,000 workers will be laid off – many of whom may turn to  the agricultural sector while some will be forced to work outside the  legal employment system.

      The survey was conducted by Dhurakij Pundit University (DPU) with a  sample size of 1,344 people and in-depth interviews with 50 operators of  small- and medium- enterprises (SMEs) in 21 provinces.

      Kiat-anan Luankaew, DPU Research Centre director, said a comparison in  September 2011 and this year found 640,000 more workers leaving their  jobs for the agricultural sector despite the National Statistical  Office’s earlier report of over 300,000 persons newly employed in the  country this year.

      In September this year, 510,000 workers in the hospitality/food service  and 400,000 others in the automotive/motorcycle maintenance sector lost  their jobs, some were re-employed in other industrial sectors and the  remainder turned to agriculture.

      According to the survey, nearly 87 per cent of operators deferred  making new employments, nearly 75 per cent slashed expenditures on  long-term investment, 62 per cent improved their employee efficiency and  57 per cent increased the prices of their products and services.

      Establishing a fund to offset the increased amount of the daily wage is  seen by 62 per cent of the operators as the best solution.

      The operators proposed a staggered system with a payment ratio between  the government and the private sector at 75:25 next year, 50:50 in 2014  and 25:75 in 2015. If implemented, the government’s total subsidy for  the three-year scheme will be Bt140 billion.

      They said the government, running out of time, should enforce the best  solution by setting up the fund which will help SME operators cope with  the changes and strengthen the country’s economic system.

      “This is not a populist policy. If the measure fails to materialise, it  will accelerate the demise of SMEs while newly-emerged SMEs will turn  to technology, not labour force, in their production,” operators were  quoted as saying.

      “Rural factories will be moved to suburban Bangkok, a shift that will  contribute to urban and rural disparities and worsen upcountry  employment in the next five years.”

      Mr Kiat-anan said Thailand’s economic growth will be 3.9-4.2 per cent  next year thanks to the government’s consumption stimulation measures  but the global economic slowdown which will continue to have an impact  on Thailand’s exports remains a concern. (MCOT online news)

----------


## TLansford

one million... risk closing down.

wow, there will certainly be hell to pay on Jan 2nd. Wonder if Thailand will ever be the same after 1 million companies close their doors. 

I guess we'll see what that looks like in a week.

These poor, anonymous SMEs that keep getting in the news are not ready after a 40% increase already and 1 1/2 years to prepare.

This is just alarmist propaganda. I fully expect a series of reports before the new year and a few after to explain how the world has just ended because companies now need to pay 300B/day for labor.

----------


## StrontiumDog

BERNAMA - Equal Wage Prompts Thai Workers To Return To Hometowns

*Equal Wage Prompts Thai Workers To Return To Hometowns*

    BANGKOK, Jan 3 (Bernama) -- Thailand's new daily minimum wage hike to  300 baht (about RM30) equally across the country, effective Jan 1, 2013,  has prompted several workers in metropolitan areas to return to their  hometowns to work to save their expenses on house rent and food, Thai  News Agency (TNA) reported.

 Onthep Intarasut, chief of provincial labour office in Thailand's  eastern Rayong Province, said on Thursday that recent surveys have found  over 500 offices in Rayong are affected by the new wage hike and about  20 per cent of labourers have decided to return to work in their native  provinces.

 Onthep asked the Thai government to come up with either financial  assistance or deducted taxes to assist the affected businesses.

 In another related development, police and immigration officials in Mae  Sai District of Thailand's northern Chiang Rai Province, bordering  Myanmar, have tightened measures to prevent illegal entry of Myanmar  people, especially youngsters, to work in the Kingdom due to the  increased wage.

 -- BERNAMA 


-----
Workers rally against abrupt factory closure | Bangkok Post: news

*Workers rally against abrupt factory closure*

*Company accused of avoiding wage hike* 
Published:  3/01/2013 at 12:00 AMNewspaper section: News
     Over 200 workers of an underwear-making company  in Saraburi came out to protest yesterday against the company's abrupt  closure of its factory.

     The workers say the company is trying to avoid paying the new daily minimum wage rate of 300 baht.

 The workers, all women, submitted a letter to Saraburi governor  Thaworn Phrommeechai with the help of Boonsom Thawijit, who is chairman  of a labour group in the province.

 The workers complained that Vena Garments Co, located in Wihan Daeng  district, shut down abruptly on Dec 30 without notifying its employees  in advance.

 "No one expected the factory would close down that day since we were  working up until Dec 29," said one worker, who asked not to be named.

 "A worker found the shutdown announcement late at night the day before the factory closed," she said.

 Prior to the closure, the company's management held two meetings with  employees, on Dec 25 and Dec 27, where the company agreed to pay all  benefits requested by workers, she said.

 Mr Boonsom said he had heard the company could not afford to start  paying the 300 baht daily wage rate which came into effect on Tuesday,  as required by the government.

 The company could not support the wage hike on top of an increase in  production costs caused by a rise in the prices of raw materials, he  said.

 Protesters dispersed after submitting the letter to the deputy governor.

 The factory's executives could not be reached for comment.

 Kittipong Laoniphon, Saraburi Labour Office chief, said the  executives said a big drop in orders from foreign customers, not the 300  baht minimum wage, had prompted the decision to close the factory.

 The Labour Ministry, meanwhile, warned employers against attempting  to flout the rise in the minimum daily wage, which took effect in all  provinces from Tuesday.

 Pakorn Amorncheewin, director-general of the Department of Labour  Protection and Welfare, said employers who do not abide by the wage hike  law will face both imprisonment and fines.

 He said there are some cases where employers have managed to get  their workers to agree to postpone the rise in the minimum wage. But he  said these employers would still have to comply with the law, or they  could be forced to retroactively pay workers the new rate, even if they  are proved guilty two years from now.

 Previously, some employers who ran a garment factory in Tak province  had announced they would not be able to pay the 300 baht wage as  required, Mr Pakorn said.

 "A significant rise in incidents of companies shutting down to avoid  paying the new minimum wage rate is expected to come by mid-year," said  Suwit Sumala, director of the Labour Ministry's Labour Relations Bureau.

 Labour Minister Padermchai Sasomsap said he believes employers know  about the implications of the nationwide wage hike and should have  prepared themselves for the increase in labour costs.

 He said the government had put in place 11 measures to help cushion  the impact of the wage hike, including reducing the corporate tax rate  by 10%.


-----
Cabinet to consider wage-related measures next week - The Nation

*Cabinet to consider wage-related measures next week*

           The Nation January 3, 2013  7:04 pm 
*
The Cabinet will next week consider 10 measures,  designed to ease negative impacts from wage hike on businesses, said  Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong.*

            He expects the Cabinet to approve the measures, without elaborating the detail. 

     The Federation of Thai Industries earlier pressed for the Bt50 billion  fund, to help small and medium-sized enterprises t in the first 3 years  after the hike took effect on January 1. 

     According to the Labour Welfare and Protection Department, after the  minimum wage was raised to Bt300 in April 2012, five businesses in seven  provinces shut down their shops, leaving 1,700 workers out of job. The  provinces include Bangkok, Phuket and Samut Prakan.

     Padermchai Labour Minister Padermchai Sasomsap said that the figure  remains unchanged for now after the Bt300 minimum wage was imposed  nationwide on Jan 1, 2013. The impact should be clearer in March, he  said, adding that the department is instructed to take a close look at  businesses in 29 provinces in particular. The provinces include Phayao,  Nan and Si Sa Ket.

----------


## StrontiumDog

*Companies get lean and mean - The Nation
*
*Companies get lean and mean*

           Watchara Pussayanawin,

Pranee Muenphangwaree

The Nation
 January 4, 2013  1:00 am 
*
Many labour-intensive sectors have tried to  adjust their operations to deal with the nationwide imposition of a  Bt300 minimum daily wage. These efforts range from trying to trim  logistics costs, to improving production efficiency, to hiring only  skilled workers.*

Tawee  Piyapattana, president of Pacific Fish Processing Co, which specialises  in the production of frozen seafood, said the company, which employs  3,000 staff, would not lay off people to cut costs but would focus more  on trimming logistics expenses. It will also boost efficiencies in  production and human-resource management.

It  will not raise prices in the short term, which would risk loss of  market share during a time of intense competition in the export market.  Total export of processed seafood last year dropped 15 per cent amid  tough competition from exporters in neighbouring countries.

The  chairman of the Textile Industry Club of the Federation of Thai  Industries (FTI), Somsak Srisupornwanit, said the shutdown of one  textile company in Saraburi province was the result of declining  purchase orders from foreign markets as Europe's economy slows. But he  added that the minimum-wage increase had aggravated the company's  situation: While its revenue fell, its labour costs rose.

The  wage increase will also pressure manufacturers in remote areas to  relocate their plants to urban areas to save logistics costs, or they  could migrate to low-paying neighbouring countries. Therefore, it is  possible that in the future the concentration of factories in Greater  Bangkok and major cities will be denser.

However,  Somsak does not expect to see a great number of factories closing down,  as their owners will try all means to survive. The textile business is  not limited to garment production but can supply products to different  sectors, such as the fast-growing auto industry. He added at that in one  car model, at least 40 spots in the body used textile material. 

Car production in Thailand is expected to reach 2.6 million units this year.

If  the textile makers begin to work more closely with other high-growth  sectors or supply products to the fashion sector, they will have a  chance to survive. Small textile companies can also seek subcontracts  from bigger peers, he added.

FTI  vice chairman Vallop Vitanakorn said textile plants would not abruptly  shut down in reaction to rising labour costs but would first slow  production and stop recruiting new workers. If they have to recruit,  they will select only skilled labour. The plants that cannot afford the  wage adjustment could move to less developed neighbouring countries such  as Cambodia and Myanmar. 

Sukit  Kongpiyajarn, president of the Thai Garment Manufacturers Association,  said after a meeting with members on the impact of minimum-wage increase  that they would have to improve their production efficiency and control  costs. If they pay overtime for 25 days, they will experience an  additional cost of Bt1,600 per worker per month.

He  expects it to become clear in the second quarter if the sector can  survive. However, he noted that Thailand is not the only country trying  to improve the incomes of its lowest-paid citizens. Vietnam has also  raised labour wages by 18 per cent. If the garment firms can hold on for  three years, the competition between Thailand and Vietnam will be on  par.

-----
http://www.bangkokpost.com/news/local/329104/wage-hike-won-t-cripple-businesses

*Wage hike 'won't cripple businesses'*

*Kittiratt vows steps to ease firms' burden*
Published:  4/01/2013 at 12:00 AMNewspaper section: NewsThe government's blanket enforcement of the  300-baht daily minimum wage will bolster businesses rather than cripple  them, Finance Minister Kittiratt Na-Ranong says.

He said, however, measures to ease impacts from the policy will be tabled before the cabinet next week.

 Mr Kittiratt, who is also deputy prime minister, made the remarks  after meeting representatives from nine economic ministries and agencies  to assess the world and local economic situation at Government House  Thursday.

 He conceded the government was concerned by the possible impacts of  the minimum wage policy, which has been in force across the nation since  Tuesday and would closely monitor its consequences.

 The government is confident the wage hike will not cause private  firms to shut down since it has received the support of both the  Federation of Thai Industries and the Chamber of Commerce, he said.

 
Kittiratt Na-Ranong (Photo by Kosol Nakachol)

  The 300-baht minimum wage was introduced in seven pilot provinces  including Bangkok in April last year. Mr Kittiratt said it had not  caused any significant impact in terms of business operations or  employment.

 Instead, several companies have enjoyed more benefits from the policy  because it has helped boost the public's purchasing power, Mr Kittiratt  said.

 Labour Minister Padermchai Sasomsap said only five major business  operators have closed since the wage hike went into effect in the pilot  provinces, causing about 1,700 workers to lose their jobs.

 He said he will meet Mr Kittiratt tomorrow to discuss additional  measures to help businesses, particularly small- and medium-sized ones  (SMEs), which have been affected by the minimum wage hike before seeking  cabinet approval next week.

 Mr Kittiratt said the Finance Ministry will seek the cabinet's  approval on measures to ease the impact of the wage hike on Tuesday.

 Initially, the ministry agreed on at least 15 measures. Of them, 11  are those which were previously approved for businesses in the seven  pilot provinces. These measures will be extended for another year and  will be offered to business operators in the 70 other provinces.

 The measures include a reduction in employers' contribution to the  Social Security Fund from 5% to 4%, as well as tax deductions equal to  one and a half times the added labour expenses resulting from the wage  hike plus two times the cost of skills training expenses.

 The government will also allow companies access to low-interest loans from a 20-billion-baht fund.

 The four other measures include reductions in various official fees  collected from businesses; provision of intensive workers' skill  training; reductions in rent on state land and properties for business  activities; and stabilisation of goods prices.

 Other proposed measures which have yet to be finalised include financial assistance to firms with more than 200 workers.

 The wage hike has drawn mixed reactions. Major businesses have  welcomed the policy since they have enjoyed corporate tax cuts from 30%  to 23% last year and a further cut to 20% this year while SMEs which  have been affected by the extra wage burden have opposed the policy.

 On Wednesday, more than 200 workers of an underwear-making company in  Saraburi held a protest against the company's abrupt closure of its  factory. The workers say the company is trying to avoid paying the new  wage rate.

 Kittipong Laoniphon, Saraburi Labour Office chief, said the  executives cited a big drop in orders from foreign customers, not the  300 baht minimum wage, as being behind the decision to close the  factory.

 Nattaya Saengsakul, a senior official at Buri Ram Provincial Labour  Office, said yesterday that two garment factories in the province have  also laid off 120 workers since the wage hike.

 The Democrat Party yesterday urged the government to devise a plan to cushion impacts caused by the wage increase.

 The party's deputy spokesman Malika Boonmeetrakul said the wage hike  will hurt workers, and accused Prime Minister Yingluck Shinawatra and  Labour Minister Padermchai Sasomsap of doing little to ease their  hardship. She said the wage increase policy is likely to cause 100,000  people to lose their jobs.


-----
Wage hike pushes up veggie prices | Bangkok Post: breakingnews

*Wage hike pushes up veggie prices*
Published:  4/01/2013 at 12:00 PMOnline news:Prices of fresh vegetables in Si Sa Ket  province have increased sharply since the government’s 300 baht daily  minimum wage policy took effect nationwide on Jan 1, the _Post Today_ website reported on Friday.

     The price of fresh chilli was up from 40 baht per kilogramme to 90  baht, Chinese kale was up from 30 baht a kilogramme to 60 baht,  cucumbers from 15 baht to 30 baht, Chinese cabbage from 40 baht to 60  baht, and ordinary cabbage and from 30 baht to 60 baht a kilogramme.

 Bang-on Banchuen, owner of a food shop in Sirichoke real estate in  the northeastern province's capital city, said her daily budget for  buying vegetables and other food ingredients had doubled since the daily  wage was raised.

 Mrs Bang-on admitted she would have to increase food prices from the  current 35 baht per dish to 40 baht, otherwise she would have to shut  down her food shop.

----------


## jamescollister

Think the whole thing is just smoke and mirrors, who in reality works for less now. I live in the back end of no where in Issan, can't get workers. 7 rubber tapper down and a good tapper can earn over 30,000 Baht a month. Same with builders, they have so much work around here it's a bidding war to get them. 
No one could get rice harvesters this year unless they paid over 300 day and supplied food.
If Issan is the poorest place in Thailand and get higher wages than in the south why would they go their for work. 
Just doesn't add up to me. Jim

----------


## StrontiumDog

*Wage hike not hurting IT retailers | Bangkok Post: breakingnews
*
*Wage hike not hurting IT retailers*
Published:  4/01/2013 at 01:49 PMOnline news:The increase in the daily minimum wage to 300  baht nationwide from Jan 1 will have little effect on the IT retail  sector, business operators say.

     Yongyuth Chaichana, managing director of IT trading centre at  Thaippatana Arcade Ltd, said the wage hike pushed up costs for his firm  by only 5%, which is not much.

 All industries would be affected by the rise in labour costs, but the effect was minimal for IT businesses, Mr Yongyuth said.

 He expected IT market would continue to expand this year on the back of the government’s stimulus measures.

 Somyos Chavalit, managing director of J.I.B Computer Group, took the  same tone, saying the wage hike only slightly increased his company’s  operating costs.

 His firm would look for way to increase profits to set off the  increased labour cost, probably by marketing IT products that yield a  higher profit.

 He expected the IT market to grow by around 10% this year,  but competition would be more intense. He predicted small IT retailers  would not survive and that the market would in the near future be  dominated by a few giant retailers.

 Ekachai Sirijirapattana, managing director of IT City Plc, said his  firm had no problem with the wage rise because most of its employees  have bachelor degrees and are already being paid more than 300 baht per  day.

 Mr Ekachai expected the IT market would further expand as new products gradually enter the market in 2013.

 Nath Nathnitikaratch, managing director of the System Ltd, said the  wage hike had no impact on his firm as most employees were  already getting more than 300 baht a day.

 As a result of the increase, many people would have more money to spend  which would in turn help boost IT sales, he said.

 Adisak Sukhumwittaya, executive chairman of Jay Mart Plc, his company  would not face any impact of the wage hike as his employees were paid  more than 300 baht a day.

 Nakhon Chanthila, manager for market development at Zeer Rangsit  Shopping Centre, said his company already pays 10% above the new minimum  of 300 baht a day, so there is no problem.

 Mr Nakhon projected the IT market would continue to expand this year  on the back of new products, particularly  the introduction of Windows  8.

----------


## Mid

*Wage hike forces Thai firms hire Cambodians*
Sunday January 6, 2013

*Thai factories have opted to hire Cambodian  workers under a memorandum of understanding between Cambodia and  Thailand after the Bt300 minimum wage policy came into effect for Thai  workers across the country.*

            A total of 154 Cambodians - 118 men and 36 women - with work permit  documents crossed the border in Sa Kaew's Aranyaprathet district on  Monday.

 Four companies brought buses and vans to pick up the Cambodian workers,  Lt-Colonel Benchapol Rawdsawat, deputy superintendent of Sa Kaew  Provincial Immigration Division, said.

 Although legal migrant workers are entitled to the Bt300 minimum wage,  Thai factory owners can pay them less by making deductions from their  salaries for electricity, water and accommodation expenses. Besides,  they said Thai workers were too demanding.

 He said Cambodian factories had complained that they were facing a  labour shortage because locals have chosen to migrate to Thailand as  they can enjoy three times higher wages. Cambodian factory owners also  face protests from workers demanding a rise in monthly wages from  Bt1,500-Bt2,500 to Bt4,500-Bt6,000.

 Ranong Provincial Federation of Thai Industries chairman Krissana  Iamwongnathee said the rise in the minimum wage adversely affected  industries in the province where 32 factories are preparing to import  machinery to replace labour. He said although machinery requires huge  capital outlay, it is worth the investment in the long term. Others are  planning to shift their manufacturing base to neighbouring countries  after formation of the Asean Economic Community in 2015.

 Ranong has more than 300 companies, which operate sea-food processing factories and hire more than 80,000 migrant workers.

 He said the Federation of Thai Industries for 14 southern provinces all  agreed they needed time to adjust and have called on the government to  help business operators absorb the financial burden from the wage  increase by financially supporting factories through grace periods. For  instance, the government could support the wage rise at a ratio of 75:25  this year and 50:50 in 2014 and 25:75 in 2015 and in 2016 business  operators wholly pay for the wage hike.

 Trang Provincial Federation of Thai Industries chairman Withi Supitak  said the wage rise would hurt small firms in the long term. Many factory  owners in the province had adjusted by cancelling special welfare that  they normally provide to staff in order to save costs, or by laying off  workers who are not productive and hiring only high-quality workers. He  believed companies would not close down immediately but try cutting  costs first and determine within six months if they can survive.

 As of now, eight factories in Tak closed down following the first round  of the minimum daily wage increase of 40 per cent in April last year,  putting 1,343 workers out of work.

 Tak Provincial Federation of Thai Industries chairman Chaiwat  Withit-thammawong claimed since the Bt300 wage had come into effect,  factories would have to shoulder an 80 per cent increase in wage costs  and thus would struggle to survive. They may have to take steps like  slashing contributions to the social security fund from five to four per  cent. Supportive measures by the government would not help them sustain  their operations. It was likely that in three months, many factories,  most of which are SMEs, would start to shut down one by one.

 But Deputy Premier Kittiratt Na-Ranong has insisted that while the  private sector faces higher costs, they would benefit in the long run  because workers would have more purchasing power to buy their products.

 He said it was time Thailand shifted from being a production base for  labour-intensive industries to higher-quality products. He said factory  closures were normal and he did not believe the wage hike was the main  factor behind some companies closing down.

 The government could not provide direct financial support to business  operators by absorbing the wage rise but would help SMEs with liquidity  and boosting business potential.

nationmultimedia.com

----------


## StrontiumDog

*Wage hike draws foreign workers | Bangkok Post: business
*
*Wage hike draws foreign workers*
Published:  7/01/2013 at 06:22 PMOnline news: NewsMany provinces from the Northeast to the South  are feeling the pinch of the government's new wage policy which has  begun to attract workers from neighbouring countries seeking jobs in  Thailand.

 
A construction-material store in Phitsanulok province is in need of  workers with 300-baht-daily wage.  (Photo by Chinnawat Singha)

  Police in Buri Ram province have arrested 208 illegal immigrants, 80%  of them Cambodians, over the past four days starting Jan 1 after the  300-baht daily wage took effect across the country, said Pol Maj Gen  Rattapong Yimyai, the provincial police chief. The rest were from Laos  and Myanmar, he added.

 The figure indicated a sharp rise in illegal immigration as the  northeastern province arrested a total of 1,047 illegal workers last  year, most of them Cambodians.

 He suspected they were crossing the border into Buri Ram and then  going on to other provinces to seek jobs. But they are being intercepted  and pushed back to their own countries.

 Pol Maj Gen Rattapong on Monday ordered all police stations along the  border to work closely with Border Patrol Police to step up measures to  block people from neighbouring countries illegally entering Thailand to  take advantage of the new wage rise.

 Buri Ram borders Cambodia with 15 passes linking the two countries.

 
EPA photo

  In Pattani province, many factories cried foul about the wage hike,  saying it added another burden on them in addition to the violence in  the deep South which has dampened the confidence of business operators.

 Pitak Korkiatpitak, advisor to the Federation of Provincial  Industries, said factory owners in the border province were waiting for  government measures to ease their burden and offset their production  costs.

 Factories in Pattani have not laid off workers or turned off their  machines, but Mr Pitak stopped short of saying whether this last resort  will be used in the future.

 Nakhon Ratchasima is in a better position than those two provinces as  factory owners could live with the new daily wage rise, according to  Assadaluck Intarakamhaeng, chief of the Labour Protection and Welfare  Office in the province.

 But the province had another problem as more than 800 workers were  laid off before year's end because of sluggish orders from overseas  clients.

 Factories producing garments, sportswear and electronic parts in  Nakhon Ratchasima have been hard hit by the global economic slump. Most  are located in Phimai, Dan Khun Thot, Pak Thong Chai and Muang  districts.

 The office had held talks with the affected factories and Mrs Assadaluck insisted they were not laid off by the wage increase.

 One of the measures to tackle the wage hike policy, finance permanent  secretary Areepong Bhoocha-oom said on Monday, was a Finance Ministry  proposal to raise the income tax exemption limit from 150,000 baht to  300,000 baht for small and medium-sized enterprises which have an annual  revenue below 50 million baht. It will be put to the cabinet meeting on  Tuesday.

 Mr Areepong said annual profit between 300,000 baht and one million  baht will be subjected to 15% tax and annual profit exceeding one  million to 20% tax under the proposal.

 The exemption limit adjustment was proposed to the ministry by the Federation of Thai Industries, he said.


-----
Over 3,400 have lost jobs in 6 months - The Nation

*Over 3,400 have lost jobs in 6 months*

           The Nation January 8, 2013  1:00 am 
 

*The Bt300 wage policy has cost at least 3,434 workers their jobs during the past six months, according to official statistics.*

                The minimum daily wage was first hiked in April in seven industrialised  provinces including Bangkok. The country's 70 other provinces also saw  the minimum wage rise by about 40 per cent under the government policy.

    On January 1, the Bt300 wage was made official throughout the country,  raising concerns that the resulting boost to production costs would lead  to mass layoffs and increased job insecurity.

    Labour Minister Phadermchai Sasomsap said yesterday that only 275 have lost their jobs during the first four days of this year.

    Many more workers had been given pink slips for reasons other than the  wage hike, he said. During the past six months, 3,159 people became  jobless because of the financial crisis in Europe while 5,378 people  were let go for various other reasons.

    The Labour Protection and Welfare Department was closely monitoring the situation and would rush to help laid-off workers.

    "We will assist with negotiations with employers to ensure that  affected workers get severance pay as soon as possible," he said.

    The ministry found 39 businesses that appeared to be on the verge of  releasing their workers because of Europe's debt crisis and the wage  hike.

    "These enterprises have now hired 33,655 people," he said.

    The ministry would look into complaints that some employers had forced workers to do overtime without extra pay.

    "If they work overtime, they must get the daily minimum pay plus OT," he said.

    Employers could not count welfare such as food and housing allowances as part of the Bt300 wage.

    "If they do that, they're violating the labour protection laws and will face legal punishment," he said.

    The Cabinet is expected to consider more measures to cushion the blow  from the wage policy on employers today. The private sector's proposal  for a government fund to be set up to subsidise the increase in wages  will not be one of them as the finance minister has found it infeasible.

    The ministry would focus on shoring up employers by providing free skills training for their workers, he added.

----------


## StrontiumDog

Thailand rejects business fears on pay - FT.com

 January 8, 2013 2:34 pm

*Thailand rejects business fears on pay*

  By Gwen Robinson in Bangkok

       Thailand is considering measures to help  companies cope with the country’s rise in the minimum wage, but has  rejected business warnings of job losses, factory closures and a shift  by some manufacturers to neighbouring countries.

 A wage increase that came into effect on January 1 brings Thailand’s  daily minimum wage to Bt300 (US$9.86), about 35 per cent higher than a  year ago and far higher than neighbouring nations. In the country’s poor  northeast, the rise means wages have nearly doubled on last year.

Businesses  have criticised the policy as a populist move by the government, but  analysts say the rise in wages makes economic sense. Thailand’s labour  productivity has risen substantially in recent years, and unemployment  is at a record low of 0.6 per cent.

 Thai business groups have warned of redundancies or increased prices  as companies pass the rise on to consumers. However, economists say, an  accompanying boost in consumer spending, plus a cut in the corporate tax  rate, will help offset companies’ wage-related losses.

 Some also argue that a shakeout, which might see some smaller companies close or move from Thailand, is long overdue.

 “Of course it will hurt, particularly in the outer provinces where  the quantum of increase was high,” said Sriyan Pietersz of JPMorgan in  Bangkok. “That said, it was intended that those companies relying  exclusively on labour cost advantages be incentivised to move to cheaper  areas in Indochina.

 “Wage growth has undershot productivity for the better part of the  last decade, hence given the net productivity gains, a substantial wage  increase is not unreasonable.”  

 While it is too soon to assess the overall impact, Thai media have  featured reports of small workshops and factories that plan to cut their  workforces. One newspaper this week ran a large photograph of five  workers sitting amid a sea of vacant stools at workbenches in a ceramics  workshop in northern Lampang.

 Veerapong Lourvanij, of fish sauce maker Thai Preeda, said his  company had no plans to shed workers but warned that the wage rise would  increase his production costs by 15 to 20 per cent, as he was paying  workers about Bt260 a day.

 The wage increase is among a series of populist policies introduced by prime minister Yingluck Shinawatra.

 It follows popular subsidy schemes for first-time car buyers and home  buyers, and a more controversial programme to assist rice farmers by  paying above-market rates for their produce.

 Seven of Thailand’s more industrialised provinces saw their minimum  wages increase last April, and the January 1 increase extended the  policy to the country’s remaining 70 provinces.

 While government figures show nearly 3,500 job losses at factories in  the past six months, officials say slowdowns in export markets such as  Europe, not wage raises, were the cause.

 Thai finance minister Kittirat Na-Ranong has argued that the initial  rise did not harm business operations or cause job losses. But critics  say that wages in these areas were already the highest in Thailand.

 Nevertheless, Mr Kittirat has insisted the wage increase “will  bolster businesses rather than cripple them”. He admitted companies  might need help to cope with higher costs.

 Among 15 proposed measures presented to the Thai cabinet on Tuesday  were access to low-interest government loans, reductions in regulatory  fees for businesses, and rent reductions on state land for business  activities. Most are likely to be implemented, say officials.

 In another measure to mitigate the impact on employers, the  government cut corporate tax rates to 20 per cent this year from 30 per  cent in 2011. Employers will also be able to claim deductions of up to  150 per cent of the increased cost of wages against taxable income, as  well as costs of worker training.

 Economists are mixed on the impact of the wage rise on inflation. The  normally conservative central bank has indicated that core inflation,  now at 1.8 per cent, is not a pressing concern.

 The Bank of Thailand’s Monetary Policy Committee is expected to leave interest rates unchanged at 2.75 per cent at its regular meeting on Wednesday.

----------


## StrontiumDog

*Government under fire as businesses close, saying they cannot pay the new minimum daily wage | Bangkok Post: news
*
*Abhisit slams 300 baht wage hike policy*
Published:  9/01/2013 at 05:45 PMOnline news: Local NewsThe government needs to accept the truth about  the negative impact of its policy to suddenly raise the daily minimum  wage to 300 baht nationwide, Democrat Party leader Abhisit Vejjajiva  said on Wednesday.

       "The opposition and critics warned the government about the effects  of its wage policy last year but it chose to ignore them," said the  opposition leader.

 He said the government should not have refused a suggestion by the  private sector to set up a temporary compensation fund to help small-  and medium enterprises (SMEs) hit by the wage hike. The money needed to  set up the fund would be far less than the budget for the rice price  scheme.

 Thailand had lost its three-decades-old title as the world's top rice  exporter last year, falling behind India and Vietnam, as a consequence  of to the government's paddy pledging price scheme. 

 The former premier warned that an influx of workers would be drawn to  places where they think businesses can afford to pay the new wage rate,   such as Bangkok.

 "I don't want to see the government repeat the same mistake they made  with the rice pledging scheme, which has created problems for the Thai  rice industry and farmers," Mr Abhisit said.

 
Abhisit Vejjajiva, left, and Nattawut Saikuar (Post photos)

  Deputy Commerce Minister Nattawut Saikuar argued that the rising  number of businesses that shut down last month had nothing to do with  the 300 baht daily minimum wage.

 Mr Nattawut said 3,838 companies went out of business in December, up  3% year-on-year and up 118% from November. A total of 16,936 companies  had closed down last year, up 20% from 2011.

 He said 58% of the companies that closed down lacked accumulated  capital, while 37% shut down so that they can receive concessions from  the state sector, and some that did not get a concession just ended  their business. The other 5% closed down because of internal management  issues

 Fewer than 100 of the businesses that shut down were textile and clothing companies, he added.

 "The government began implementing the wage hike policy in seven  provinces in April last year and no businesses had liquidity problems at  the time.

 "The policy has been in effect [nationwide] for just nine days and  therefore the closing down of SMEs recently is not related to this  policy," Mr Nattawut insisted.

 The government will find out why the factories closed and will explain to the public, he said.

 Meanwhile, the Surin Chamber of Commerce reported that two factories  had already closed in the northeastern province since Jan 1, with more  likely to follow suit due to the 300-baht daily minimum wage.

 Chamber chairman Kriangsak Palikupt said many businesses were still  confused about reports that the government plans to cover 60% of the  labour cost hike. The daily minimum pay rate has been raised from 226 to  300 baht in the province, an increase of 74 baht or 32.7%

 The government needs to impose price controls on consumer products  for the workers to fully benefit from the higher wages, Mr Kriangsak  added. He expressed concern that if consumer costs are allowed to  increase, most people would be affected.

 He said the new wage is causing problems for small and medium  businesses, which are mostly located provincial areas. He said that at  least two garment factories had already shut their doors in Surin with  two more at risk of going out of business because they can no longer  shoulder the rise in labour costs. 

 He said a large number Cambodian labourers have also been entering  Thailand to get work at local restaurants, rice mills and other areas as  they were willing to accept less than the minimum wage. He feared that  this could bring social problems, including crime.

----------


## sabang

> Think the whole thing is just smoke and mirrors,


Yep. Then again, what else do you expect from the Bk 'press'. All the economic indicators show Thailand is doing fine. The wage hike was long overdue, wages were effectively frozen for some years while rich sinoThai & their minions fought out with the rest of the country their 'right' to stage a military coup. We all know which side the Bk english media was on. Reality is, the effects of the wage hike have been shrugged off- just as unbiased economists were saying all along. Thailands wage bill as a percentage of business revenue remains very low by international standards.

----------


## StrontiumDog

*Thailand Introduces Nationwide Minimum Wage*

*By James Parker*

 January 11, 2013




While the world gave a sigh of short term relief after  Washington’s fiscal cliff deal January 1st, Thailand introduced a  controversial nationwide minimum wage.  The policy is popular amongst  Thailand’s workers, yet corporations and some government level  departments have expressed concern about the policy’s potential impact  on employment and Thailand’s economy in general.

 Minimum wages are unpopular among “free market” thinkers because they  are thought to interfere with the efficient allocation of labor. They  argue that businesses will suffer as their wage costs are made  unnaturally high (“unnatural” meaning anything not set by market  forces), and businesses will pass on these higher input costs to  consumers through higher prices, resulting in inflation.  Some also  argue that minimum wages hamper businesses by forcing them to pay more  to their least skilled workers at the expense of those who are more  valuable, productive or capable.  As with several of Thai Prime Minister Yingluck’s policies, critics have labeled the minimum wage increase as a “populist” measure.

 These worries have been frequently voiced as the debate in Thailand  has intensified over recent months.  Since last April, when minimum wage  policies were rolled out in seven provinces, there have been several  warnings from business leaders about the potential negative impact on  Thailand’s economic performance. Taweekit Chaturacharoenkhun, the vice  chairman of the Federation of Thai Industries (FTI) last week warned  that between 5% and 10% of Thailand’s labor intensive industries would be forced to close down  over the next three months. Already the Chairman of the FTI had been  forced out over his failure to convince the government to abandon the  policy.

 It is not just private businesses and their lobby groups who are  concerned. Prasan Trairatborakul, governor of the Bank of Thailand  (BOT), expressed concerns  late last year on the impact that the minimum wage could have on  various companies. He also predicted that some companies would have to  shut down their operations in face of the higher labor costs. 

 Of course, there are strong counter arguments to those worrying about  the impact of Thailand’s minimum wage.  Minimum wages exist in many  economies, notably in the so-called bastions of free market capitalism:  the U.S., the UK and Hong Kong. Better paid workers will have more money  to buy goods and assets and to invest in their families’ education and  life quality.  In this sense, the minimum wage could boost Thailand’s  domestic demand and real estate sales.

 Thai companies can easily move to neighboring countries to take  advantage of even-cheaper labor costs – particularly in Cambodia, where  areas bordering Thailand have already seen a localized boom in factory  activity.  The Thai minimum wage is still only 300 Baht (roughly  $9.86USD) per day, which still compares favorably to many countries –  most importantly, China.

 Meanwhile, Thai inflation rates, and in particular core inflation,  which is currently just 1.8%, remain relatively low. There seems to be  adequate room for any inflation related hit that the economy may take as  higher labor input costs are fed through supply chains to consumers.   Interest rates are currently 2.75%, suggesting also that there is room  for increases in that area if inflation becomes a worry.

 Despite dismissing the fears of Thai businesses, the government has  proposed several measures to mitigate the impact of the minimum wage.  These include a cut in the corporate tax rate from 30% in 2011, to 20%  in 2013; access to low-interest government loans; rent reductions on  state land being used for business purposes; and other reductions in  fees.

 The Thai government has been determined to push ahead with the  minimum wage policy, so the following months will once again allow  economists to study the impact of minimum wage introduction.  Looking  more broadly, it is clear that wage increases across ASEAN nations are  popular, and that they are more realistic now given the breathing space  provided by large increases in China’s wage levels over the last couple  of years. As China’s working population peaks (some predict as early as 2015),  cheap Chinese labor will no longer be smothering prospects of wage  increases across ASEAN, even if the dragon’s superior infrastructure and  economies of scale still provide challenges.

----------


## StrontiumDog

*Businesses, Economists Debate Merits of Higher Minimum Wage in Thailand
*
*Businesses, Economists Debate Merits of Higher Minimum Wage in Thailand        * 


Laborers  carry large bags of goods while working at a market in Bangkok, January  4, 2013. Thailand's new daily minimum wage hike to 300 baht ($9.8 USD)  went into effect throughout the country January 1, 2013.

Ron  Corben
                                      January 10, 2013                 

              BANGKOK — Thailand has enacted a national  minimum wage that mandates a daily rate of nearly $10. Although workers  across the country welcomed the boost in income, some businesses have  been laying off employees, complaining that they cannot afford to pay  them.

A policy to raise Thailand’s national minimum wage was a key platform of  the governing Pheu Thai Party of Prime Minister Yingluck Shinawatra in  the lead up to general elections in 2011.

The national minimum wage marks a sharp departure from past wage  policies that set lower daily rates in provincial regions against higher  rates in more industrialized regions closer to the capital,  Bangkok.

Since it took effect January First, Thailand’s Labor Ministry says up to 2,500 people have been laid off.

Chiwat Withit-Thammawong, chairman of Tak Provinces’ Federation of Thai  Industries in northwest Thailand, near the border with Burma, says the  pay hikes have resulted in some factory closures.

Chiwat says provincial industries had to absorb an initial increase from  $5.40 a day to $7.44, last year, and now to the higher rate of $9.87.  

Business in Tak province largely focus on textiles and ceramics  industries, with up to 80 percent of those employed women workers.

Supavud Saicheua, managing director of trading house, Patra Securities,  says many women in industries such as textiles are vulnerable to  unemployment - especially because of growing competition from lower-cost  producers such as Cambodia. Such industries are known as “sunsets”  because of their dimming job prospects.

“The sad thing is that these people know they are sunset and probably  trying to restructure and trying to relocate - this [wage increase]  maybe hastens their demise. But then, you have to ask yourself what if  these companies are employing middle aged women who really don’t have  other skills are being laid off.”

Supavud says the wage increases come as companies are still recovering from the 2011 flood and a sluggish global economy.

But political economist at Chulalongkorn University, Pasuk Phongpaichit,  says wages in Thailand have long been stagnant despite gains in  economic growth.  Pasuk says, in the absence of a strong trade union  movement, the move to raise the minimum wage is timely.

“Thailand has reached a stage where it is no longer a developing country  that needs to rely on cheap labor. It needs to move itself to another  level to raise the standard of living of the people. At the same time,  the economy is doing quite well. So, this is a good time for the wages  to rise.”

Pasuk says Thai employers have long relied on cheap labor, including  drawing on immigrant labor - especially from Burma. But economic  progress in Burma could lead to fewer migrant workers in the future.

A United Nations International Labor Organization report in December  said Asia wages almost doubled in the decade to 2011, well ahead of the  global average, largely because of higher pay rates in China.

ILO Senior Regional Wage Specialist Malte Leubker says the wage increase will lead to a restructuring of Thai industry.

“You will definitely see a structured transformation in Thailand toward  more skill-intensive, higher-end manufacturers and away from tee-shirts  to electronics," he added. "I would say that’s actually a sign of  economic success. You are moving into those industries where more value  is created."

The Thai government has staunchly defended its wage increase policy with  a package of economic assistance announced by the cabinet to almost  300,000 small and medium-sized enterprises. Benefits include tax breaks  and staff retraining programs. The government also hopes that higher  wages could boost domestic consumption and help offset the sluggish  global economy.

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## StrontiumDog

*Buri Ram factories raided in hunt for illegal workers | Bangkok Post: news
*
*Buri Ram factories raided in hunt for illegal workers*
Published: 11/01/2013 at 12:00 AMNewspaper section: NewsBusinesses in Buri Ram province were raided yesterday by labour authorities searching for illegal migrant workers.

     Authorities aimed to find whether employers have been recruiting  illegal aliens in response to the mandated minimum daily wage increase  to 300 baht.

 The wage hike took effect nationwide on Jan 1.

 Staff from the employment office, the labour protection and welfare  office and the skills development office of Buri Ram conducted the  search at factories and workplaces in Muang district.

 The checks began earlier this month and so far officials have found two illegal workers. Both were from Cambodia.

 Last year, officials in the province arrested 52 illegal workers from  Cambodia, Myanmar and Laos. All of them were employed in paddy fields  or sugarcane plantations.

 At present there are 514 employers with 1,000 legal migrant workers employed in the province, officials said.

 Jimmy Saw, the managing director of Siri Resort in Buri Ram, said the  minimum wage hike has increased his labour costs from 100,000 baht per  month to 150,000 baht per month. He said his food costs are also rising.

 To cope with his mounting costs he plans to increase the amount he charges for his rooms.

 The government should be offering soft loans to business operators  affected by the minimum wage hike to keep them from laying off workers  or shutting down, Mr Saw said.

 Bangkok MP Jermmas Juenglertsiri said the wage hike has hurt small- and medium-sized enterprises (SMEs).

 Finance Minister Kittiratt Na-Ranong erred in rejecting the private  sector's request for the government to subsidise the wage hike for three  years, she told the House.

 Deputy Finance Minister Tanusak Lek-uthai said the higher wage will  benefit tens of millions of people and the government is taking action  to support SMEs.

 The number of total businesses remains about the same since the wage hike took effect in some provinces last year, he added.

 Labour Minister Padermchai Sasomsap said businesses knew the wage  hike was coming more than a year in advance. He said the government and  the private sector worked out measures together to cope with the strain  of higher wages.

 He said that his ministry has set a target of creating 120,000 jobs to absorb newly laid-off workers.

 The government is also working with other countries _ mainly in the  Middle East _ about importing Thais in search of work, he said.

 Some businesses have seized on the wage hike to replace workers with new machinery, he added.


-----
Consumer confidence up but worries about higher daily wage remain - The Nation

*Consumer confidence up but worries about higher daily wage remain*

            January 11, 2013  12:36 pm 
*
The country's consumer confidence index (CCI) in  December rose to its highest level in the last 15 months, according to  the Thai Chamber of Commerce University.*

            Consumers have become more comfortable following an easing in the  domestic and global economic situation, which has contributed to  improved consumption, investment, exports and tourism, said Thanawat  Polwichai, director of the university's Economic and Business Forecast  Centre.

     The December CCI was reported at 80.2, an increase from 79.1 while the  confidence index on the overall economy was at 70.6, on job  opportunities at 71.7 and on future income at 98.3.

     However, the fact that the index remained below 100 reflected  consumers' lack of confidence in the country's economic situation due to  the unstable global economy, the European debt crisis and domestic  political tension.

     The Bt300 minimum wage increase was ranked top among people's anxieties  due to concerns over possible unemployment, which will be more clearly  seen in the middle of this year.

     Thanawat said the government and private sector needed to urgently  solve the problems resulting from the higher minimum wage nationwide.

     The US injection of money into the market under the Quantitative Easing  measure will stimulate the global economy while contributing to an  increase of the fuel price to US$100 per barrel, the academic said,  adding that the phenomenon will push Thailand's retail fuel price up by  Bt23 per litre.

     He predicted Thailand's economic growth at 5 per cent this year thanks  to expanded exports but only on the condition that internal political  conflicts do not heat up and the US economy does not worsen.

     A move by the Bank of Thailand's Monetary Policy Committee to set the  inflation framework at 3.33.8 per cent is appropriate and in line with  the country's economic situation, Thanawat said.

----------


## StrontiumDog

*Labour Ministry investigates businesses shut after pay hike | Bangkok Post: news
*
*Labour Ministry investigates businesses shut after pay hike*
Published: 14 Jan 2013 at 00.00Newspaper section: News
     The Labour Ministry is investigating recent  business closures to determine whether they were linked to the  nationwide minimum wage hike.

     Narumol Tarndamrong, an adviser to Labour Minister Padermchai  Sasomsap, confirmed yesterday several business operators had closed  their doors and laid off workers since the 300-baht daily minimum wage  increase took effect on Jan 1.

 "We will find out the true cause of their closures. They might have  been affected [by the wage hike] or maybe they were having other  unrelated problems," she said.

 According to Labour Ministry figures, 421 workers were laid off  between Jan 1 and Thursday as five manufacturers closed their doors.

 Ms Narumol said the ministry would provide assistance, such as  financial aid and welfare for workers, if operators were affected by the  wage rise.

 Prakuad Tansophon, a member of the Ranong Industry Council, said many  local operators were planning to shift their base of operations to  neighbouring Myanmar where wage levels are much lower.

 "We are suffering from various problems, such as shortages of raw  materials and human resources as well as high labour costs," he said.

 Meanwhile, the Thailand Development Research Institute (TDRI) has  urged the government to sponsor technological investment for small- and  medium-sized enterprises (SMEs) to ensure their long-term survival as  labour costs rise.

 Somchai Jitsuchon, a research director at the TDRI, said  manufacturers should pay more attention to research and development to  remain competitive in global markets, as they no longer have the  advantage of cheap labour costs now that the minimum wage has gone up.

 Investing in new technologies would help businesses in the long run, he said.

 However, Mr Somchai said SMEs were struggling to raise enough capital  to acquire advanced technology, so the government should step in and  help.

 Technological development would help maintain the competitiveness of Thai exports, he said.

 "The government should not simply deny the lay-offs are related to  the 300-baht daily minimum wage policy. They must prove it," he said.

 "If the impact of the wage hike is proving critical for businesses, the government must find ways to help."

 Yongyuth Chalamwong, director of labour development research at the  TDRI, predicted the wage hike would bring greater purchasing power for  consumers. However, he said inflation could also be a concern as higher  labour costs are passed on to consumers.

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## StrontiumDog

BERNAMA - Thai Firms In Ranong Plan To Move To Myanmar

*Thai Firms In Ranong Plan To Move To Myanmar*

    BANGKOK, Jan 14 (Bernama) -- Many industrial firms in  Ranong Province  are planning to move their factories to Myanmar because of the 300 baht  (RM29.88) minimum wage, which has been officially introduced in Thailand  since Jan 1, 2013, Thai News Agency (TNA) reported.

 That was confirmed in a press statement by the Ranong Industries  Federation on Sunday, which also indicated that the current high labour  costs and shortage of raw material in Thailand were key factors hurting  its overall business competitiveness.

 Meanwhile, the Ranong Chamber of Commerce came out to add that several  of its local business associations were now looking at establishing a  free market zone at the border between Ranong and Myanmar's Koh Song,  where cross border tourism and trade had reached up to 15 billion baht  (RM1.5 billion) annually.

 -- BERNAMA

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## StrontiumDog

*House panel backs FTI's subsidy call | Bangkok Post: news
*
*House panel backs FTI's subsidy call*
Published: 17 Jan 2013 at 00.00Newspaper section: News
     The House committee on economic development  says it is backing a Federation of Thai Industries (FTI) call for the  government to pay for some of the minimum wage hike itself.

     The committee says a government subsidy is necessary to help small  and medium-sized enterprises (SMEs) cope with the nationwide minimum  wage hike, which took effect on Jan 1.

 Chanin Rungsaeng, chairman of the House panel, said several relief  measures rolled out by the government including a corporate tax  reduction were ineffective.

 He said the committee will push for the government to accept the FTI proposal.

 The government has yet to respond to the federation's call, he said.  The FTI proposal calls for a government subsidy spread over three years  starting this year.

 It wants the government to subsidise 75% of the wage hike margin this  year, 50% next year and 25% in 2015. It would cost the government 143  billion baht.

 "The government is sitting on the proposal despite it being the right  approach to address the problem. The wage increase will result in  massive lay-offs and deal a serious blow to the country's  competitiveness," Mr Chanin said.

 Labour permanent secretary Somkiat Chayasriwong downplayed recent  reports that between 5,000-8,000 workers have been laid off as a result  of the wage increase.

 Mr Somkiat said the number of lay-offs was not "irregular".

 He said one report put the number of laid-off workers at 1,000 as of Jan 15. Of this, 435 were affected by the wage increase.

 "Based on the figure, there's nothing unusual. But the estimate may be a bit lower than the actual figure," he admitted.

 Mr Somkiat said production efficiency increased after minimum wages  were raised to 300 baht on a trial basis last April in seven provinces  with large industries.

----------


## baldrick

> It would cost the government 143 billion baht.


time to borrow some more money

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## StrontiumDog

*Siriraj feels pinch, plans charge hike | Bangkok Post: news
*
*Siriraj feels pinch, plans charge hike*
Published: 24 Jan 2013 at 00.00Newspaper section: NewsFeeling the pinch of the government's 300-baht  minimum wage policy, Siriraj Hospital plans to charge more for its  medical services.

     Udom Kachinthorn, dean of Siriraj Hospital's faculty of medicine,  said the wage policy which took effect on Jan 1 is taking its toll on  the hospital's finances.

 The hospital has to fork out 700-800 million baht to cover rising  costs due to the policy, he said. Charges for beds and medical care are  likely to increase to help the hospital cope. Dr Udom said the hospital  has about 5,000 workers but has no plans to lay off staff.

 "We will follow the government's 300-baht wage policy and we assure  everyone we will not lay off any staff despite a steep rise in costs,"  he said.

 He added that the government's policy aimed at reducing imported  medicines would result in a loss of about 1 billion baht to the  hospital.

 He said the hospital is studying the Public Health Ministry's service  fee rates to decide how much more it can charge. Fees had not been  increased to keep up with inflation for years.

 Dr Udom said Siriraj Hospital would also try to boost income through research work conducted with the private sector.

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## sabang

^ Rather curious on this- who in a hospital works on minimum wage? In terms of a hospitals total wage bill, I would expect the gross emoluments paid to minimum wagers (cleaners, canteen ladies, bedpan scrubbers, who else?) to be a mere fraction that paid to higher earners- doctors, nurses, administrators etc. So a business of this nature (hardly a sweatshop) passing off a rise in their fees as being down to a rise in their minimum wage costs sounds nonsensical. _"700-800 million baht to cover rising costs due to the policy"_- pull the other one, it's got bells on. The rise is, what, 50 or 60 bht per minimum wage earner per day. How many million minimum wage earners do you employ there at the Siriraj?

Oh, but then this is thrown in as an afterthought :Roll Eyes (Sarcastic): -



> Fees had not been increased to keep up with inflation for years.


The infamous bangkok paste strikes again.  :Roll Eyes (Sarcastic):

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## pseudolus

Yesterday there was an announcement in the morning on the dreaded PA in the village saying something about the security guards. I didn't understand totally but picked up something about a fight and a factory. When the missus got back they shouted it out again around 8.30pm. All of the security had an argument with the HiSo people who run this shit house about wages demanding minimum wage, and they were told to fuck off, which they did, and went to work in a factory. I called the landlady and complained like fuck and she said this morning that they are now going to be replaced with burmese and they will arrive in a few days. It's a shame because 3 of them were good looking birds, although one did have a really bizarre squint.

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## StrontiumDog

*PM says help on way for private firms | Bangkok Post: news
*
*PM says help on way for private firms*
Published: 25 Jan 2013 at 00.00Newspaper section: News
     Efforts are under way to help the private  sector cope with the government's 300-baht wage hike policy, Prime  Minister Yingluck Shinawatra says.

     The National Economic and Social Development Board, the Finance  Ministry and the Commerce Ministry have been told to get in on the act,  Ms Yingluck said yesterday.

 The agencies are expected to hold a meeting with the private sector  to discuss possible measures to be taken to cushion the impacts, she  said. Some employers have complained the policy risks undermining their  competitiveness.

 "We are closely monitoring the situation and considering steps to  reduce risks. But there is no reason to get overly worried. We can work  it out," the prime minister said.

 On Wednesday Ms Yingluck met top government officials to discuss the  strengthening baht and gave assurances there was nothing to worry about.

 Ms Yingluck also yesterday called on critics not to see the government's populist schemes as cash hand-outs.

 She said the projects, which have been slammed for raising household  debt, were designed to spur spending power and strengthen the economy as  a whole.

 Meanwhile, the latest survey by the Economic and Business Forecast  Centre of the Thai Chamber of Commerce University indicated that many  small and medium enterprises (SMEs) would go under this year following  the 300-baht wage increase policy unless they receive help from the  government.

 The study, conducted among 600 SMEs during Jan 15-17, showed they  were likely to survive no longer than seven months if the government did  not help them cope with rising costs.


-----
Survey reveals small businesses risk closure due to wage hike | MCOT.net

 

*Survey reveals small businesses risk closure due to wage hike*

            By Digital Media | 25 ม.ค. 2556 09:15         

BANGKOK, Jan 25 – This month's enforcement of Thailand's 300 baht  minimum wage will force more than half the country's small businesses to  close in the next six months if the government fails to take concrete  action to remedy the situation, according to a university survey.

      The Economic and Business Forecast Centre of the University of the Thai  Chamber of Commerce conducted the survey Jan 15-17 by randomly  interviewing 600 respondents. Two-thirds, some 68.5 per cent, said small  businesses will have to close down or lay off workers in the next six  months due to the excessive cost, and 68.7 per cent said they would have  no choice but to increase prices of their products.

      Almost 40 per cent of manufacturers said their businesses have been  negatively affected by the Bt300 daily wage since early this month.

      Criticising the government’s 16-point measures to relieve the  manufacturers’ burden as failing to directly address the issue, 46.8 per  cent said they could bear the surging cost at medium level for seven  months at the most.

      On the government’s additional assistance, 27.5 per cent wanted subsidy  for their expenses from the increased wage while 26.5 per cent asked  the government to offer more reduction to corporate income tax.

      A survey of employees who have received the new Bt300 minimum wage  indicated that 41.5 per cent were satisfied with the adjustment but  wished the wage would be increased to an average Bt464.3 per day.

      Fifty-two per cent of the workers said the wage increase could not keep up with higher commodity prices in the next six months.

      Asked what they would do with the additional wage they received, 53.5  per cent said they would save some money. For those who spend money on  shopping, 29.4 per cent said they would buy mobile phones, 26.6 per cent  preferred clothing and 21.8 per cent opted for motorcycles.

      Eighty per cent of the workers said the minimum wage should be  increased every year while 72.5 per cent said labour skills have not  improved and 51 per cent did not believe the wage hike would compel  businessmen to hire migrant workers.

      Sixty per cent said the Bt300 daily wage would lead to more joblessness  among Thai workers and the majority wanted the government to provide  better welfare for workers. (MCOT online news)

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## StrontiumDog

*Ceramic factories break under added wage, LPG costs | Bangkok Post: news
*
*Lampang ceramic plants close doors*
Published: 25 Jan 2013 at 16.25Online news: Local News
     Three ceramics plants in Lampang province,  renowned for its pottery, have closed and others are for sale because  the owners can't afford expensive fuel and higher wages, says the  Federation of Thai Industries (FTI).

 
A ceramics factory in Lampang appears nearly empty after its  workforce was cut by more than half, from 100 to 45, after the 300-baht  daily minimum wage took effect on Jan 1. (Photo by Aswin Wongnorkaew)

  More plants will close or be sold, says the FTI, as the operators  struggle with liquefied petroleum gas prices that are more than 60%  higher than they were two years ago, as well as the new 300-baht daily  minimum wage.

 Successive governments have subsidised LPG for years but prices began  to rise in stages last year. The fuel now costs 30.13 baht a kilogramme  for industrial users, compared with the capped price of 18.13 baht less  than two years ago.

 Fuel is a major input in ceramics production, and when coupled with  higher wages, the cost made it hard for many producers to shoulder, said  Atiphum Kamthornworarin, chairman of the provincial FTI chapter.

 Three plants in the northern province had already closed and posted "for sale" notices, he said.

 Other ceramics manufacturers who were still operating were also  offering to sell their factories to anyone who wants to buy them, said  Mr Atiphum.

 Manufacturers who had taken out loans to finance the running of their  business would end up deeply in debt if they stayed in operation, he  said. The best way to minimise losses and still have some money left for  debt repayment or starting a new life was to  sell their land and  factory premises, he added.

 The only ceramic plants that could survive were large-scale  manufacturers using new technology that substantially lessened the  demand for workers, he said. Some plants had turned to replacing  employees with their relatives, reducing labour and social security fund  contribution costs.

 Mr Atiphum predicted that one in five ceramic plants in the northern  province would be closed over the next three or four months. The only  alternative would be for more than 2,000 workers to be gradually laid  off over the period.

 
Deputy Commerce Minister and red-shirt United Front for Democracy  against Dictatorship (UDD) co-leader Nattawut Saikuar (Photo by Surapol  Promsaka na Sakolnakorn)

  Deputy Commerce Minister Nattawut Saikuar said he was aware of the  situation but added that higher wages had nothing to do with two of the  plants that closed.

 The Department of Business Development also found out that one of the  plants had been up for sale since June 2002 but there was no  transaction yet, Mr Nattawut said.

 Another operator, the minister said, was not selling the business but was only selling a plot of land next to the factory.

 In a related development, FTI chairman Payungsak Chartsuthipol said  the Thai Industries Sentiment Index (TISI) rose to 98.8 in December from  95.2 in November. However, any reading below 100 shows below-average  confidence, he added.

Mr Payungsak said negative factors that  could erode manufacturers' confidence included the 300-baht daily  minimum wage and the persistent labour shortages.

 TMB Analytics said small and medium enterprises in the northern and  northeastern regions were most affected by the wage increases that took  effect on Jan 1, which were 20-40% above the old rates.

 The TMB Bank unit has calculated the average cost per business for  2012-13 from 70 provinces that recently adopted the new minimum wage. In  the North and Northeast, business operating costs are now 3% higher  than in other regions of the country, and average profits are about 2%  lower.

 The industries that have been hardest hit by the wage hike are  construction, food retailing, consumer products, auto repairs, paper,  printing, farming, building materials, garments and hotels.

 TMB Analytics pointed out that the government's tax incentives were  insufficient as most SMEs already paid low taxes compared to the labour  cost including employment benefits and housing. As a result, they have  to shoulder higher costs while struggling to cut other expenses.

 It says businesses must continue to improve quality and efficiency,  while the government must introduce short-term programmes to help  businesses that may not benefit from tax incentives.

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## StrontiumDog

*Nattawut: SMEs will get wage help | Bangkok Post: breakingnews
*
*Nattawut pledges SME wage aid*
Published:  2 Feb 2013 at 11.24Online news:
     The government is ready to help small- and  medium-sized enterprise (SMEs) affected by the increase in the daily  minimum wage to 300 baht, Deputy Commerce Minister Nattawut Saikuar said  on Saturday.

     Speaking on the weekly "Yingluck Government Meets the People"  programme on NBT, Mr Nattawut said SMEs would be eligible for  low-interest loans and the government would help them seek new export  markets.

 The minister insisted that since the beginning of the year, no SMEs  have been closed specifically because of the impact of the wage  increase. He said most of the manufacturers that closed in December did  so because of operating losses caused by other factors.

 However, the government will survey SMEs to assess the impact of  higher labour costs in light of the increases that took effect on Jan 1.  The information will be used to identify sectors and businesses that  need assistance, said Mr Nattawut.

 On the same talk show, Prime Minister's Office Minister Niwatthamrong  Bunsongphaisan said affected manufacturers could make requests via the  special 1111 hotline (press 22), at Government House, or at provincial  city halls across the country.

 Industry Minister Prasert Boonchaisuk said the wage increase would  push up production costs by 5.75% for small manufacturers, 5.63% for  medium-sized ones and 4.83% for large factories.

 Production costs have risen by 5.38% on average which is not too high, he added.

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## StrontiumDog

Ailing smaller entrepreneurs allocated Bt200 million aid | MCOT.net

 *

Ailing smaller entrepreneurs allocated Bt200 million aid * 

            By English News | 12 ก.พ. 2556 08:26         

BANGKOK, Feb 12 – Bt200 million will be earmarked from the Small and  Medium Enterprises (SMEs) Fund to assist smaller businesses which have  been affected by the enforcement of the Bt300 daily minimum wage,  according to Thailand's minister of finance.

      Deputy Prime Minister/Finance Minister Kittiratt Na-Ranong said the  allocation can be made without having to seek cabinet approval.

      The financial aid will be made in parallel to existing assistance  provided by a committee headed by Minister of the Prime Minister’s  Office Niwattumrong Boonsongpaisan.

      Industry Minister Prasert Boonchaisuk said the SME Committee, which met  Monday, agreed to allocate Bt310 million to help small and medium  enterprises.

      He said Bt200 million will be set aside for the interest payments of  6,300 SME operators whose manufacturing costs have surged after the  minimum wage hike, while Bt25 million will be spent for development of  SMEs manufacturing quality, Bt10 million to create opportunities for new  operators, Bt6 million for the SME clinical scheme and Bt1.8 million  for SME Fund service.

      Representatives of the Federation of Thai Industries, however, warned  that the allocation is insufficient to relieve the plight of SME  operators, but noted that the Industry Ministry will provide additional  budget for the aid. (MCOT online news)

-----
52,000 Thai workers lose jobs from minimum wage hike | MCOT.net

 *

52,000 Thai workers lose jobs from minimum wage hike* 

            By English News | 12 ก.พ. 2556 08:30         

BANGKOK, Feb 12 – More than 52,000 employees under Thailand's social  security scheme have applied for unemployment benefits due to losing  their jobs in the wake of the country's minimum wage hike, Labour  Minister Phadermchai Sasomsub said.

      He said the figure of 52,426 jobless former employees was compiled from  Jan 1 to Feb 4. The daily minimum wage of Bt300 was implemented  nationwide Jan 1.

      He said the Social Security Fund had paid about Bt1.13 billion to the unemployed workers.

      Among the workers affected, 3,735 were laid off, 10,989 resigned, 484  were not entitled to  social security fund assistance, and 34,408 had  yet to be formally notified of their employment termination by their  employers. (MCOT online news)

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## StrontiumDog

*Thai Bankruptcies Rise as Minimum Wage Rolls Out: Southeast Asia - Bloomberg
*
*Thai Bankruptcies Rise as Minimum Wage Rolls Out: Southeast Asia*

                                                                                                                                                  By Suttinee Yuvejwattana & Sharon Chen -                   Feb 27, 2013 12:00 AM GMT+0700                           

                                            Confederate International Co., a Thai family-owned maker of nightwear, lost a German customer of 22 years after last month’s minimum-wage increase in the Southeast Asian nation raised costs. 

 “They stopped talking to us, even though we have done business together for a long time,” said Veerayuth Sookhattako, 57, owner of the Chiang Mai-based company that ships about 80 million baht ($2.7 million) of apparel to Germany and France each year. “I established this company 28 years ago. I don’t want to let it go, but I may need to close down our business by the end of the year if we can’t get new orders.” 

   
                     Yingluck Shinawatra, Thailand's prime minister. Photographer: Dario Pignatelli/Bloomberg 

Veerayuth isn’t alone. Last quarter, 7,221 Thai companies closed down, 27 percent higher than in the same period a year earlier, when the worst floods in 70 years swamped most of the country. The figure is also more than double the average of 3,000 in the previous nine years, according to data from the National Economic & Social Development Board. 

Prime Minister Yingluck Shinawatra’s government raised the daily minimum wage to 300 baht throughout the country last month, after a similar increase in April in seven provinces including Bangkok. Before the increase, minimum wages ranged from 159 baht in northern Phayao province to 221 baht in Phuket, according to the Labour Protection and Welfare Department. 

Government stimulus measures, including the wage rise and increased payments to farmers, come as the country’s manufacturers struggle with a stronger baht and slowing export demand amid a global slowdown. 

*Baht Strength* 

“The problem with the Thai minimum-wage hike is there might be competitiveness issues because this will lead to high costs for firms and if there’s no way to offset these costs, it translates into higher inflation for consumers,” said Eugene Leow, a Singapore-based economist at DBS Group Holdings Ltd. “There’s also some concern about how strong the Thai baht is.” 

The baht is the biggest gainer this year among 11 widely- traded Asian currencies tracked by Bloomberg. The Bank of Thailand held the benchmark rate for a third straight meeting this month even after Finance Minister Kittiratt Na-Ranong renewed calls for lower borrowing costs to discourage inflows that boosted the baht to a 17-month high in January. 

Wages in Asia almost doubled between 2000 and 2011, according to the International Labor Organization, and workers from China to Indonesia have pushed for more pay in recent years to counter rising living expenses. The increases will permanently increase business costs, forcing companies to boost prices, according to a report from HSBC Holdings Plc. 

*‘Fundamental Change’* 

“Lately, far more persistent and permanent costs have shot up -- wage pressures are now ubiquitous across Asia’s factories,” HSBC economists Frederic Neumann and Julia Wang wrote in a report last month. “A rise in wages is permanent and should thus prompt a fundamental change in pricing.” 

Thailand’s small and medium-sized enterprises will suffer the most from higher wages because they’re labor intensive and don’t earn enough to benefit from reduced corporate income tax rates, according to the government and the central bank. 

Costs for Thai companies will rise 6.39 percent on average because of the wage increase, according to state planning agency NESB. Costs will climb 0.57 percent for large companies, and as much as 17.8 percent for small companies, it said. 

There are more than 2.9 million small and medium enterprises across Thailand, according to 2011 government data. They account for 99.8 percent of all businesses in the country and generate employment for 9.7 million people, or almost 80 percent of all jobs. These businesses earn 3.5 trillion baht annually, or more than a third of GDP. 

*Beneficial Effects* 

Even with factories closing down, Thailand’s unemployment rate is still among the lowest in the world, standing at 0.48 percent in the fourth quarter, down from 0.63 percent in the same period in 2011. 

While higher wages will increase costs for businesses and boost inflation, they will also improve the purchasing power of consumers and help bolster economic growth, said Fred Gibson, a Sydney-based economist at Moody’s Analytics. 

“By raising the minimum wage, you’re also allowing lower- income households to consume and this will help lift consumer spending,” he said. “It’s a trend we’re seeing across the region, as governments try and spread the beneficial effects of growth. Having a higher minimum wage also is one of the steps that helps you transition into higher value-added manufacturing because there’s more incentives.” 

The salary increase boosted labor income by 16.5 percent in the fourth quarter last year, while product prices rose 3.2 percent, according to NESDB. Labor productivity rose an average of 2.3 percent in the last 10 years. 

*Cheap Products* 

“Productivity rose much slower than wages,” Suwannee Khamman, deputy secretary general at NESDB, said yesterday at a briefing in Bangkok. “This is not good. It means that we will continue to produce cheap products, while our costs are higher.” 

Southeast Asia’s second-largest economy grew a faster-than- expected 6.4 percent last year. Gross domestic product is forecast by the government to rise 4.5 percent to 5.5 percent this year, with export growth predicted to be 11 percent. 

For Veerayuth, whose business in Chiang Mai employs 140 workers, the benefits aren’t yet apparent. “My clients said they can’t understand why our country raised wages drastically like this,” he said. “It should be done step by step.”

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## Thormaturge

The ThB 300 minimum wage has been held accountable for many price hikes recently, ranging from the proposed BTS far increase to additional charges for housekeeping where staff are traditionally poorly paid.

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## Rocksteady

Same old same old.  Rising wages is but one major reason why the jobs migrated from the West to Asia in the first place.  Now the workers are becoming less competative (in terms of price for their labour) its time for Burma and Lao to become the recipients as Thailand watches itself fall behind.  Another Toxin nail in Thailand's coffin

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## chingching

BANGKOK, April 13 

 Thailands small and medium enterprises (SMEs) are in deep trouble, with 80 percent reporting losses in this years first quarter and 10 per cent on the verge of shutdown, an industrial organisation said on Friday.

Thanit Sorat, secretary general of the Federation of Thai Industries (FTI), said the nationwide increase of daily minimum wage to Bt300 since January 1 has struck a heavy blow on SMEs  almost one third of which admitted to suffering from financial constraint.

In a survey by FTI with SMEs operators on the impact of the minimum wage hike, 42.02 per cent said they would hire less workers, 20.28 per cent would scale down production and 15.94 per cent were considering layoffs. Among those contemplating layoffs, 13.04 per cent said they would possibly relocate their production bases elsewhere.

Mr Thanit said the survey was aimed at assessing feedback on the plight of SMEs in order to seek government assistance if necessary.

He said it will take some time to obtain a clearer picture on the employment situation and SMEs financial and operational status, as some unemployed workers may find new jobs at larger industrial enterprises or non-Thai businesses which receive promotional privileges from the Board of Investment (BoI).

Mr Thanit added that 58 per cent of SMEs affected by the higher labour cost have adjusted through various measures such as reduction of work force, working hours and welfare while enhancing labour and production productivity.

Sixty per cent of manufacturers said they would maintain their bases in Thailand while 26 per cent were considering relocating to neighbouring countries with cheaper labour costs, including Cambodia, Myanmar and Laos PDR.

Regarding government assistance, 50 per cent said they have never received any contributions from the state, while 28 per cent said government-issued measures did help, but on a small scale.

They called on the government to subsidise part of their labour costs and offer low-interest loans.

On the impact of the new minimum wage, 54 per cent of the entrepreneurs said their overall manufacturing costs increased by 15 per cent, 24 per cent saw an increase by 7-10 per cent, and 18 per cent found the impact minor at 3-5 per cent. Only 4 per cent of the manufacturers said they did not feel the pinch from the wage hike.

During Q1, 52.94 per cent of the enterprises surveyed said they could increase their product prices but only slightly, while 47 per cent had to maintain the same prices. (MCOT online news)


-- TNA 2013-04-13

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## Mid

*Thailand in turmoil over increase in minimum wage*
RYOSUKE ONO
October 03, 2013                         

*BANGKOK--*Tens of thousands of small factories across  Thailand are battling for survival after the government raised the  minimum daily wage.

         Instead of making life better for ordinary laborers, as intended, the policy has had the opposite effect.

         Small and midsize factories, especially in outlying areas,  are reeling from the decision to enforce a minimum wage of 300 baht (930  yen, or $9). Many have had to close.

         Thailand's northern province of Lampang is famous for making  ceramics. Yet, factories and workshops there are often empty of workers.

         According to Wongchai Srithai, vice president of the Lampang  Ceramic Association, the group's membership has fallen by one-third,  from 300 to 200 ceramics makers, in the past year or so.

         "The number of workers has halved from 12,000. Small and  midsize businesses and micro-enterprises are no exception," he said.  "They are grappling with whether to shut down their factories."

         The policy was a centerpiece of Prime Minister Yingluck  Shinawatra's campaign platform. Her administration took office after her  party's victory in the 2011 general election.

         In the first phase of the minimum wage increase in April  2012, the rate was raised to 300 baht in seven provinces, including  Bangkok, where it was already relatively high. It went up by 40 percent  in the remaining provinces.

         Then in January of this year, the increase to 300 baht was  fully implemented in all provinces. Japanese companies operating in  Thailand are also affected as they are having difficulty securing labor.

*DECLINING COMPETITIVENESS* 

         In Tak Province, in Thailand's northwest, the situation is  the same for garment factories. A 31-year-old man who started a sewing  plant for children's apparel five years ago closed his factory in May.

         "This region depends on laborers from Myanmar, but as soon as  the government decided to raise the minimum wage, workers started  heading for the cities," the man said. "We lost the advantage of low  wages, orders decreased, and when we got rid of overtime to hold down  personnel costs, we couldn't process the remaining orders efficiently."

         Each province in Thailand used to set its own minimum wage,  with more remote regions being cheaper. This was the source of rural  industry's competitiveness. The new system introduced by the Yingluck  Shinawatra administration, however, is unusual in that it raised the  minimum wage nationwide, regardless of each area's stage of economic  development or price levels.

         The minimum wage in Lampang Province went up 81 percent from  165 baht between April 2012 and this past January. In Tak Province, it  rose 85 percent from 162 baht.

         Before April 2012, when the first stage of wage increases was  implemented, the Dhurakij Pundit University Research Center surveyed  685 owners of small and midsize factories across Thailand.

         It found that the smaller the company, the less room it had  to absorb the effects of the wage increase, and 12.5 percent of  respondents replied that they had been forced to close.

         Roughly 300,000 companies run small, medium and micro  factories in Thailand, and the survey results indicate the possibility  that between 50,000 and 70,000 of them will be forced to suspend  operations.

*GOING UNDERGROUND* 

         Some managers are trying to deal with the issue by shifting  from labor intensive business models and introducing automated machinery  and streamlined production lines.

         Others, however, are apparently operating outside the law.

         One example is the "underground concealment model." In such  cases, a company will lay off most of its employees at a factory but  continue operating it.

         The company then create a separate production facility that  is not registered as a company and transfers the laid-off workers there,  where they are forced to work for less than 300 baht per day.

         The laborers, now officially unemployed, turn up because at  least they have the offer of work, albeit for less than the minimum  wage.

         Another is the "outsourcing model," by which a company will  get its laborers, such as those who sew clothes, to take their sewing  machines home, then terminate their employment contract and conclude an  outsourcing contract for the work.

         This way the worker is not covered by the minimum wage.

         The policy is causing higher wages throughout supply chains, and prices for goods and services are beginning to rise as well.

         According to Ministry of Commerce statistics, prices for food  essentials such as vegetables, fruits and meats rose by 6 to 10 percent  this past June compared with a year ago, striking a serious blow to  low-income earners.

         Kiatanan Luankaew, director of the Dhurakij Pundit University  Research Center, said: "The policy weakens the small and midsize  business enterprises that support the Thai economy. It's reckless to  raise the minimum wage nationwide in so short a time frame.

         "Populist politics might attract votes, but the results are  transient. Wages are not going up for a while, but inflation continues.  Poor laborers may be the victims of this policy," he added.

ajw.asahi.com

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## metisdead

Add a very high increase in the cost of living. Who would have guessed.  :Roll Eyes (Sarcastic):

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## Keef

> *Thai Bankruptcies Rise as Minimum Wage Rolls Out: Southeast Asia - Bloomberg
> *
> *Thai Bankruptcies Rise as Minimum Wage Rolls Out: Southeast Asia*
> 
>                                                                                                                                                   By Suttinee Yuvejwattana & Sharon Chen -                   Feb 27, 2013 12:00 AM GMT+0700                           
> 
>                                             Confederate International Co., a Thai family-owned maker of nightwear, lost a German customer of 22 years after last months minimum-wage increase in the Southeast Asian nation raised costs. 
> 
>  They stopped talking to us, even though we have done business together for a long time, said Veerayuth Sookhattako, 57, owner of the Chiang Mai-based company that ships about 80 million baht ($2.7 million) of apparel to Germany and France each year. I established this company 28 years ago. I dont want to let it go, but I may need to close down our business by the end of the year if we cant get new orders. 
> ...


I don't suppose that Veerayuth had factored in how the low rate of pay in the previous 27 years of his companies earnings had brought about his profits? Now it's time for payback, literally. 

I can't help thinking that that customer of 22 years standing didn't just go walkabout because of the minimum earnings being raised as alleged - Veerayuth more than likely just pinned the rise on top "because he didn't have any choice" i.e there's no way I'm taking a loss on this - capitalist karma.

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## jamescollister

Said this before in a much earlier post, try ad find workers [Thai] on minimum wage.
Just too many jobs out there, Thais will work in happy places, but 300 Baht is a lazy caretaker, not a good worker. Jim

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## metisdead

> Said this before in a much earlier post, try ad find workers [Thai] on minimum wage.
> Just too many jobs out there, Thais will work in happy places, but 300 Baht is a lazy caretaker, not a good worker. Jim


Strange old country. I know a few degree holders in their 30's in BKK working for 10k a month.

And when I say working I mean from morning 'til night with pressure added on for fun. 

I would put it on Thai culture. From the provinces, hired years ago by a very well to do big name in bangkok. Get a trip away once or twice a year, get told how great they are, get a sponsored smart-phone after 10 years of service etc.

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## Tom Sawyer

Why would a rise in minimum wage result in Japanese companies having a problem "securing workers"? Were they paying even shittier wages than the small Thai-Chinese family-run companies?

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## jamescollister

> Why would a rise in minimum wage result in Japanese companies having a problem "securing workers"? Were they paying even shittier wages than the small Thai-Chinese family-run companies?


Think most of the out cry is not about the 300 Baht, more about the word wage.
Wage earners pay tax, employers have to pay into the social security fund and provide some private health care, plus worker injury insurance.
Paper trail for the tax man, better to pay cash in hand, small factory, 3 employees, but 20 workers not on the books.
Just the western ways coming. Jim

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## Tom Sawyer

^
Good points

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## callsign7o4

There is a problem with minimum wage, it always hurts the entry level workers without many skills. They will not get employed if it costs too much. Plenty of studies about this in US.

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