Thread: Minimum wage to increase by April 2011

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

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.

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 AM
• Newspaper 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.

http://www.bangkokpost.com/breakingn...-wage-too-high

FTI: Daily wage rise ‘too high’

• Published: 10/12/2010 at 02:38 PM
• Online 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.

Originally Posted by Bettyboo

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.

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 AM
• Newspaper 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.

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.

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.

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.

http://www.bangkokpost.com/business/...mand-increases

Manufacturers demand increases

Government mulls extending freeze policy

• Published: 14/12/2010 at 12:00 AM
• Newspaper 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.

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.

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

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.

^ 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.

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.

Originally Posted by 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.

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

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.

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.

http://www.bangkokpost.com/news/loca...ilo-definition

Experts call on govt to use ILO definition

• Published: 22/12/2010 at 12:00 AM
• Newspaper 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.

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

Originally Posted by StrontiumDog

Originally Posted by Bettyboo

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!

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.

Originally Posted by 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.

Econ 101 would teach otherwise.
.