Bt400 minimum daily wage worries SMEs, business chamber says

By THE NATION

 

Kalin

 

Most companies oppose the government’s plan to raise the minimum daily wage nationwide to Bt400 as it will hurt small and medium-sized enterprises (SMEs), according to the Thai Chamber of Commerce.

 

Chamber chairman Kalin Sarasin said that from the chamber’s discussions with many business operators, it was found that most of them worry over the impact of a further wage rise.

 

He said that only the major companies could make the adjustments to accommodate higher wages due to their massive capital holdings. Most of the companies canvassed by the chamber would rather see the government focus on upgrading labour skills.

 

Kalin said the government should promote more border trade, which is a key way to boost exports.

 

After the government's policy announcement, the chamber will talk with Deputy Prime Minister Somkid Jatusripitak to propose its opinions on economic issues.

 

Source: https://www.nationthailand.com/business/30373670

 

-- © Copyright The Nation Thailand 2019-07-26

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Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

2 hours ago, Ron jeremy said:

Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

Great comment, everything will go up if salary rises.

Hard working people in Thailand who need a wage hike are Cambodians working the construction jobs and cleaning rooms,thais control the Hotel/service ,public transp,tourism, retail etc etc and do it poorly at best..yes wages are unfair.

2 hours ago, Ron jeremy said:

Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

One assumes your nephew is single working full time ($874 p.w. gross), gets holiday pay, sick pay and superannuation and is a young adult with a future. The average Thai worker in a restaurant often have to work seven days a week, 10 - 12 hours a day, no sick pay, no holiday pay and no superannuation and few future opportunities. You're comparing apples and oranges.

2 hours ago, Ron jeremy said:

Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

Wages is a small part of the overall operating costs therefore it shouldn't be a factor.

Example, in Denmark the min wage is $20 per hour yet a Big Mac is only 80 cents more expensive than the USA.

Also in theory a business will increase price as a last resort relating to wage increases.

2 minutes ago, simple1 said:

One assumes your nephew is single working full time ($874 p.w. gross), gets holiday pay, sick pay and superannuation and is a young adult with a future. The average Thai worker in a restaurant often have to work seven days a week, 10 - 12 hours a day, no sick pay, no holiday pay and no superannuation and few future opportunities. You're comparing apples and oranges.

The avarice Chinese owners just don't want to pay the peasants anymore cash

4 hours ago, Ron jeremy said:

Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

What?Everybody left Australia and Norway surely this would have made the headlines in the news.Where did they find an affordable country to live in?

One should compare Thailand to neighboring Malaysia, where the average worker's purchasing power is about double of that in Thailand.

If you ask me why, I'd say it is because of sick greed at he top, and poor education at the bottom. Poor education is a means of preventing the country becoming a pressure cooker and the top being blown away.

But mostly a matter of time...

18 minutes ago, KiChakayan said:

If you ask me why, I'd say it is because of sick greed at he top, and poor education at the bottom.

Indeed most of the country is suffering from the sickness of greed and in serious need of the preventative medicine you have so astutely diagnose which is a serious upgrade in the quality of education,but those at the top are ill prepared with intellect to implement an effective increase in the quality of education to raise the earning power of those residing at the lower end of the scale which would enhance the earning power of the whole country including themselves,such is the blindness that greed can cause. 

I pay almost all my Thai staff more than 400 baht an day - if I don't, they will leave for an extra 50 baht per month. I am already paying over the odds, just to retain the people I have invested in.

 

So, the 400 baht doesn't really concern me that much.

 

But employees are only as good as their contributions, and if that 400 baht per day doesn't increase productivity or revenue, then it's just the Government using the private enterprise as an economy stimulus that cost the Government nothing and they benefit from increased tax - it's wonderful for the Government.

 

But that salary increase that is not accompanied by increased production or revenue will be passed to you and me (and the same employees) to increase the prices of goods and services...and in 12 months the Government will be calling for a 500baht per day salary because the 400 baht did nothing much.

 

So employers get the benefit of paying more for staff, and then paying more for the goods and services from other companies that have risen to compensate for that salary increase.

 

Poor logic, and junior thinking. Fail.

6 hours ago, webfact said:

the government’s plan to raise the minimum daily wage nationwide to Bt400 as it will hurt small and medium-sized enterprises (SMEs), according to the Thai Chamber of Commerce.

Not only might it hurt medium to small Thai business it might also be a major disincentive for foreign investors to establish factories and plants in Thailand. Lower wages and higher productivity is available in better educated nearby countries; Vietnam is one of those.

It was the Palang Pracharat Party (aka Junta Party) that proposed this minimum wage policy in order to buy votes. Typically no one thinks through what the consequences might be.

https://www.thaipbsworld.com/palang-pracharat-promises-400-450-baht-minimum-wage-to-woo-voters-2/

3 hours ago, Sticky Wicket said:

Wages is a small part of the overall operating costs therefore it shouldn't be a factor.

Example, in Denmark the min wage is $20 per hour yet a Big Mac is only 80 cents more expensive than the USA.

Also in theory a business will increase price as a last resort relating to wage increases.

Sure a small wage rise of 10 baht might not make a difference but a 100 baht increase will raise all prices no way around that...

 

The business class showing its contempt for the people.  If a business can't pay a living wage, why should it be in business?  And if an economy can't pay living wages, then we need a new economy.  No economist worth his salt would argue the the poor are a burden on the economy.  In fact, it's the concentration of wealth that is problem.

6 hours ago, Ron jeremy said:

Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

In Norway you have sickness benefit from day 1 also pension showing you do not can work and we have also fully paid for 1 year show you get children + many many other benefits.

21 minutes ago, SteveStevens said:

The business class showing its contempt for the people.  If a business can't pay a living wage, why should it be in business?  And if an economy can't pay living wages, then we need a new economy.  No economist worth his salt would argue the the poor are a burden on the economy.  In fact, it's the concentration of wealth that is problem.

Gee I wonder why the homeless population EXPLODED in the western USA states AFTER they started jacking up the minimum wage...

6 hours ago, Ron jeremy said:

Raising minimum wage does nothing for the workers, quite opposite. Rising wages results in prices for everything going up. 

Look what happened in Australia and Norway, minimum wage is good but people simply can't afford to live there anymore.

my nephew works in a restaurant making $23 and hour running the fryer, but can't afford a beer after work, never mind a house in the future. 

Prices in Thailand have rose since the last wage increase, they continue to struggle.

you are jocking , right?

oh no...you are serious...but sorry, your comment is below the level

of inteligence i can accomodate.

i only wish for you to work for a 400 baht daily salary, and than

see how you survive thailand.

58 minutes ago, SteveStevens said:

The business class showing its contempt for the people.  If a business can't pay a living wage, why should it be in business?  And if an economy can't pay living wages, then we need a new economy.  No economist worth his salt would argue the the poor are a burden on the economy.  In fact, it's the concentration of wealth that is problem.

Clearly you took metalwork instead on economics.

 

A wage increase in isolation, with no increase in productivity, sales or revenue does nothing but raise costs for a business and across the board. In other words, it just raises the cost of living for the entire economy. There is no Nett benefit to the household, but a nett loss to country competitiveness and investment costs.

 

If the goal of a wage increase is to raise the household income, a business needs some sort of release valve to maintain their overall costs and profits in the form of tax cuts or other benefits...otherwise the business's only option is to increase prices to make up for the increased fixed costs.

THAI EMPLOYERS ARE notorious for paying very little to emplyees

and abusing their rights as much as they can (like for example, not paying

for over hours, not paying the full minimum wage, and sometimes not paying at

all when firing a worker).

fact is that cost of living in thailand has doubled and tripled in the past years,

but minimum salary has risen only much lower than that

 

many restaurants and shops are charging rich countries prices, like 5 USD ice coffees

in starbuckss, but paying their hard working stuff third world minimum wages,

 

this is turn hurt motivation and performance of thai workers, and of course, reduce

their spending power, which leaves the whole thai economy in bad shape.

1 minute ago, SCOTT FITZGERSLD said:

THAI EMPLOYERS ARE notorious for paying very little to emplyees

and abusing their rights as much as they can (like for example, not paying

for over hours, not paying the full minimum wage, and sometimes not paying at

all when firing a worker).

fact is that cost of living in thailand has doubled and tripled in the past years,

but minimum salary has risen only much lower than that

 

many restaurants and shops are charging rich countries prices, like 5 USD ice coffees

in starbuckss, but paying their hard working stuff third world minimum wages,

 

this is turn hurt motivation and performance of thai workers, and of course, reduce

their spending power, which leaves the whole thai economy in bad shape.

No disagreement.

 

But the Government is asking businesses to fund their populist policies and economic stimulus. I have no problem paying staff more, and any "real" company that wants to retain staff and values staff is probably already above 400.

 

Wage increase cannot happen in a vacuum and everything else stays the same.

 

It's Economics 101.

 

Too many people let emotion get in the way of reality.

 

...and your Latte will go up 10 baht.

7 hours ago, webfact said:

Bt400 minimum daily wage worries SMEs, business chamber says

They should ask the labour unions. Business chamber members are all directors and senior managers with fat pay and will no way want that high salaries jeopardized by poorly paid worker demands.

8 hours ago, webfact said:

Chamber chairman Kalin Sarasin said that from the chamber’s discussions with many business operators, it was found that most of them worry over the impact of a further wage rise.

Tough shit.

 

400 baht a day is better than the current minimum wage, but it still cannot be considered a living wage. 

greedy rich business owners! complaining, bitching and moaning about a mere increase in minimum wage!

and they do this every time.

shame on you!!!

a raise from 300 - 325 thb to 400 thb will not be making your bankrupt!!!

stop exploiting workers and pay them more by earning a bit less!!!

 

authorities just make the minimum wage raise annual based on the inflation rate and that is it!

why cant you do it? bc your rich business owner backers dont want you to do it!

8 hours ago, simple1 said:

One assumes your nephew is single working full time ($874 p.w. gross), gets holiday pay, sick pay and superannuation and is a young adult with a future. The average Thai worker in a restaurant often have to work seven days a week, 10 - 12 hours a day, no sick pay, no holiday pay and no superannuation and few future opportunities. You're comparing apples and oranges.

Why does he compare apples with oranges?

 

The consequenses of a higher wages is that all will get become more expensive. The effect of this is that people are still unable to survive.

 

The main problems is the inflation it causes. Inflation because the minimum wages are a reference to the other wages.

 

Thailand had not so long a go lower wages then today. And if I recall correct if raised and then many companies left like seagate in Korat due to that the Thia production costs where getting to expensive. 

 

And what people do forget that robotisation also makes that when wages raise the prodcution cost become more expensive and for many products is is today cheaper to produce them in the west due to the strong bath and the manual labour costs.

 

57 minutes ago, Galactus said:

greedy rich business owners! complaining, bitching and moaning about a mere increase in minimum wage!

and they do this every time.

shame on you!!!

a raise from 300 - 325 thb to 400 thb will not be making your bankrupt!!!

stop exploiting workers and pay them more by earning a bit less!!!

 

authorities just make the minimum wage raise annual based on the inflation rate and that is it!

why cant you do it? bc your rich business owner backers dont want you to do it!

 

No problem, we will pay whatever they want.

 

But it will be you that ends up paying for it as we raise your prices.

 

Understand now?

3 minutes ago, DLock said:

 

No problem, we will pay whatever they want.

 

But it will be you that ends up paying for it as we raise your prices.

 

Understand now?

Hey genius, have you any idea of the direction that labours share of national income has been trending in Thailand over say, the last 20 years? This basic information is something someone so readily spouting off about the pitfalls of raising minimum wages should surely know - do you?

8 minutes ago, pornprong said:

Hey genius, have you any idea of the direction that labours share of national income has been trending in Thailand over say, the last 20 years? This basic information is something someone so readily spouting off about the pitfalls of raising minimum wages should surely know - do you?

 

Whats your point?

1 minute ago, DLock said:

Whats your point?

Can't answer the question huh?

You've really just confirmed the point - you don't know what you're talking about.

5 hours ago, DLock said:

Clearly you took metalwork instead on economics.

 

A wage increase in isolation, with no increase in productivity, sales or revenue does nothing but raise costs for a business and across the board. In other words, it just raises the cost of living for the entire economy. There is no Nett benefit to the household, but a nett loss to country competitiveness and investment costs.

 

If the goal of a wage increase is to raise the household income, a business needs some sort of release valve to maintain their overall costs and profits in the form of tax cuts or other benefits...otherwise the business's only option is to increase prices to make up for the increased fixed costs.

Yes but what's also true in many cases is that the employer can well afford to reduce their margin but they don't.

Of course the elite do not want wages to go up, people to get educated, nor english spoken well. Keep the population down. It means an extra few thousand baht for them. The well being of the people will never be taken into account. And, is the government even serious about this, or do they simply want to be seen as trying?