Labour intensive firms could see their profitability delayed after minimum wage hike, says Kasikorn

[webfact]

 

By Erich Parpart

The government’s decision to raise the minimum wages by 5% could lead the labor intensive industries to see their hopes of turning around to profitability delayed and those in the black could see their profits drop by as much as 5-15% a research report stated.

 

Kasikorn Research Center said that the government’s decision last week to raise the daily minimum wages by an average of 5.02% last week with the new rates, would have a direct impact on the labour intensive industries.

 

The government last week decided to raise the rates in the range of 328 and 354 Baht with a mean of 337 Baht per day. This minimum wage hike will come into effect on October 1st. It was the 1st hike in more than 2 years, since January 2020.

 

Full story: https://www.thaienquirer.com/43464/labour-intensive-firms-could-see-their-profitability-delayed-after-minimum-wage-hike-says-kasikorn/

 

-- © Copyright Thai Enquirer 2022-08-29

 

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[Photoguy21]

A 5% increase in salaries is going to remove profitability from a company? You dont really expect anyone to believe that surely.

[mrfill]

... because keeping millions in poverty is important to allow a few to flounce around in luxury.  Let them eat cake...

[connda]

So sad that the CEOs and upper level executives will only make 7 figure salaries and will have to cut back on the bonuses. 

[RichardColeman]

Seriously, how close to the bread line would your company have to be if you struggled to pay an extra 25 pence a day each to your workforce ? 

[zzaa09]

4 hours ago, Photoguy21 said:

A 5% increase in salaries is going to remove profitability from a company? You dont really expect anyone to believe that surely.

Or even subliminally newsworthy. 

Yet, they continue to repeat the same old superficial line......and most are hooked, missing the bigger picture. 

 

I do have to wonder about what's become of journalistic integrity and intelligence.....and the public's inability to recognize as such. 

[zzaa09]

1 hour ago, RichardColeman said:

Seriously, how close to the bread line would your company have to be if you struggled to pay an extra 25 pence a day each to your workforce ? 

Imagine how the situations might be if the wage/salary infrastructure was of a civilised nature.

[Photoguy21]

42 minutes ago, zzaa09 said:

Or even subliminally newsworthy. 

Yet, they continue to repeat the same old superficial line......and most are hooked, missing the bigger picture. 

 

I do have to wonder about what's become of journalistic integrity and intelligence.....and the public's inability to recognize as such. 

Yet they expect people to believe it. I assume it is so they can keep salaries to sub standard levels

[hotchilli]

18 hours ago, webfact said:

Kasikorn Research Center said that the government’s decision last week to raise the daily minimum wages by an average of 5.02% last week with the new rates, would have a direct impact on the labour intensive industries.

While the bosses take home large salaries very doubtful.

If the company is that close to losing profit the increase will show up eventually on the sales price past on to the customer.