Thread: Minimum wage to increase by April 2011

Originally Posted by StrontiumDog

The TDRI study conducted by Dilaka Lathapipat said the minimum wage rise ..... is a good policy

Thats the gist of the article.

Originally Posted by StrontiumDog

Wage policy 'will hurt unskilled workers'

And thats the Headline. The Paste strikes again.

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?

Originally Posted by 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.


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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.

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.

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

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)

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.

Once again you prove yourself to be nothing more than a clueless troll.

Originally Posted by 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.

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.

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,

Originally Posted by StrontiumDog

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.

Once again you prove yourself to be nothing more than a clueless troll.

I don't think you know a thing about Japan.

Originally Posted by 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,

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.

Originally Posted by Butterfly

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.

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.

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.

Originally Posted by Buksida

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.

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.

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.

Migrant workers demand wage rise | Bangkok Post: breakingnews

Migrant workers demand wage rise

• Published: 11/04/2012 at 12:53 PM
• Online 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.

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.

Originally Posted by StrontiumDog

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.

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.

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

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.

Originally Posted by nostromo

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..