Thread: Minimum wage to increase by April 2011

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 AM
• Newspaper 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.

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.

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)

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)

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)

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.

Bangkok Post : Wage hike dubbed 'disruptive'

Wage hike dubbed 'disruptive'

Policy Watch warns of mass layoffs

• Published: 13/09/2011 at 12:00 AM
• Newspaper 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."

Originally Posted by SteveCM

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?

Originally Posted by SteveCM

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.

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"?

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..

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.

Originally Posted by 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"?

You mean like, Dep. PM, Minister of Commerce Kittirat Na Ranong ???

looks like the wage increase thing is proving to be a nice distraction while the current PM focus on the return of her brother

Originally Posted by 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

Coup,coup..........................WANKER

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?
Beats me. That is far below what we would call poverty level in the West.

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 AM
• Newspaper 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.

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.

Originally Posted by StrontiumDog

He said it would take 34 years before all provinces received the Bt300 income per day.

Originally Posted by Gerbil

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"

^ Still too fucking long when the election pledge was "immediately", fuckwit.

Originally Posted by Gerbil

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"