Thai Workers Rally For Hike To Minimum Wages

[webfact]

Workers rally for hike to minimum wages

By Yossawadee Hongthong

The Nation

Chief of the State Enterprise Labour Relations Confederation Sawit Kaewwan led a group of 200 workers to Government House yesterday morning to demand that the minimum wage be hiked to Bt421 daily for an eighthour shift or workers be paid Bt12,000 per month. The rally lasted for about two hours causing traffic congestion.

The group wanted to submit a letter expressing their demands personally to Labour Minister Chalermchai Srion, and became upset upon learning that they could not meet the minister. They also refused to hand the letter over to the Labour Ministry spokesman Sutham Natheethong, who promised to table the request at a Cabinet meeting in a week or two. The demonstrators then marched onto the Parliament, where Chalermchai was said be busy presenting legislation.

The protesters claimed that the request was backed by a nationwide survey on workers' income and living costs in the current economic condition.

Sawit, along with Thai Labour Solidarity Committee president, Wilaiwan Saetia, also urged the government to ratify the International Labour Organisation's C87 Freedom of Association and Protection of the Right to Organise Conventions and C98 Right to Organise and Collective Bargaining Convention as it had promised before. They urged the government to table the two items at the Cabinet and the House meeting urgently because they claimed that worthwhile jobs would not be created unless the government ratified these conventions.

The group also said that on October 7 last year, they had submitted a letter requesting that the government ratify ILO's C87 and C98 conventions via Deputy Prime Minister Sanan Kachornprasart, who promised to push the agenda forward in three months.

Meanwhile, Police Bureau Division 1 chief Pol MajGeneral Wichai Sangprapai said he would look up the emergency decree regulations to see out if the workers' rally violated the law, which prohibits road blockage, property damage and threatening others. He said the protesters had not blocked the road as such, because motorists could still pass through. Bangkok is still under the state of emergency.

-- The Nation 2010-10-08

[hayden5650]

I know heaps of Thais who make less than that.

I hope the government doesn't take notice. It would kill alot of business.

And it wouldn't do anything to help the millions of self employed thais earn a better wage. The Minimum wage doesn't help a man sell more food off the back of his bicycle.

[TAWP]

http://blog.mises.org/13712/minimum-wages-and-employment/

http://www.ehow.com/list_6728193_negative-effects-raising-minimum-wage.html

http://abcdunlimited.com/ideas/economics.html

etc..

Edited October 7, 2010 by TAWP

[Bagwan]

I assume that those making representations are Government and Local Government workers. I think that they should be sent packing and attention focused on those working in factories and sweat shops who do need our support to bring about them being suitably recompensed for their labour. These malcontents should go on strike - not that anybody would notice if they did. Most of the Civil Servants that I encounter are neither civil nor consider themselves public servants. Most are both ignorant and indolent.

That a Police Major General has to look up the rules to see if he can order the suppression of a demonstration speaks volumes. Doesn't he, or his underlings know what the law states? Don't ask how he got the job - most know already.

[Thai at Heart]

Whilst I can't argue with a raise, how about they ban factories legally importing thousands of migrant workers? There isn't much point in having a minimum wage if employers can LEGALLY circumvent it. How much benefit to the country is there is one factory owner can make a business in an impoverished area of the country by employing the vast majority of his workforce from overseas.

I know some companies in Isaan find it hard to attract labour because the wages are lower than Bangkok, so they actively recruit from Burma. Khon Kaen fishing net was in the papers recently for messing around with the registration of some of its thousands of Burmese workers. They will claim that Thai workers don't want to do this type of work. I would argue that the company doesn't want to pay a minimum days wage for the work.

[TAWP]

What do you have against the poor in Burma, don't they have the same rights to support their families as others?

[Thai at Heart]

What do you have against the poor in Burma, don't they have the same rights to support their families as others?

I have nothing against them, and I pity their lot in life.

However, for them to be used by Thai businesses to bargain down the wages of Thai workers isn't a privilege that Thai businesses should have. Seems Thailand is for Thai's until it means business.

I have previously lived and worked in Isaan for many years, and when I have heard the plea "we can't find workers", I reply with "What do you pay?" to which the answer is always "Minimum wage". Mind you, the owners are always driving Mercs, kids in international schools and wife dripping in diamonds.

So to believe that the business couldn't afford to pay above minimum doesn't wash with me, and allowing them to then import migrant labour serves simply to keep wages rock bottom instead of forcing companies to use the local supply of labour and pay above minimum.

This isn't the free market of South East Asian states, until apparently local businesses cry foul.

Edited October 8, 2010 by Thai at Heart

[asiawatcher]

That a Police Major General has to look up the rules to see if he can order the suppression of a demonstration speaks volumes. Doesn't he, or his underlings know what the law states? Don't ask how he got the job - most know already.

You answered this yourself! LOL.

I am sure if the minimum (I think) is about 7,000 monthly at present, then to go up to 12,000 by Farang standards it is not huge money but here, it is. There are many companies including the Housing Commission who pay this amount to employees who have been there more than 10 years and there are no such things as salary reviews or CPI increases adjusted to cost of living. Thailand runs its own game.

I would be more inclined to think a hike of 40% is too much but I would think it ok to pay some increases. I pay above that level to my staff and it keeps them happy to a degree but if someone offered them 5 Baht more I am aware they would walk as there is no loyalty with paid employees in this country (from experience)...

[Buchholz]

Whilst I can't argue with a raise, how about they ban factories legally importing thousands of migrant workers? There isn't much point in having a minimum wage if employers can LEGALLY circumvent it. How much benefit to the country is there is one factory owner can make a business in an impoverished area of the country by employing the vast majority of his workforce from overseas.

I know some companies in Isaan find it hard to attract labour because the wages are lower than Bangkok, so they actively recruit from Burma. Khon Kaen fishing net was in the papers recently for messing around with the registration of some of its thousands of Burmese workers. They will claim that Thai workers don't want to do this type of work. I would argue that the company doesn't want to pay a minimum days wage for the work.

The State Enterprise Labour Relations Confederation of the OP has been involved in efforts to assist migrant Burmese workers:

Sawit Keawan, General Secretary of Thailand’s State Enterprise Workers Relations Confederation (SERC) also filed a complaint with the International Labor Organization (ILO) alleging that the Royal Thai Government is in violation of ILO Convention 19, Equality of Treatment (Accident Compensation), by failing to provide Burmese migrant workers access to the Social Security Office’s Workmen’s Compensation Fund following accidents at work. On 20 October 2009, Nang Noom Mae Seng, a female Burmese migrant worker who was left paralyzed after a work related injury in 2006 and two other Burmese migrants workers, petitioned the Supreme Court of Thailand to overturn a Social Security Office’s regulation they claim discriminates against migrant workers in Thailand by denying migrant workers benefits for work related injuries and illnesses that are provided to Thai workers. The commencement of a nationality verification process for Burmese migrants in Thailand – which would place 2 million Burmese migrants at high risk of exploitation – led the State Enterprise Workers Relations Confederation, the Human Rights and Development Foundation and the Thai Labour Solidarity Committee to petition the United Nations Special Rapporteur on the Human Rights of Migrants.

http://survey.ituc-csi.org/+-Thailand-+.html

[jcbangkok]

I am confused by the math. 421 a day would be 8420 a month for working 5 days a week. The only way to get to 12000 a month is if they work 7 days a week. I know a number of Thais who need to work every day but wasn't aware factories under the law could allow such treatment.

[chainarong]

Hong Kong is about to introduce its first minimum wage and guess why folks, because of the back lash the rich have got from the poor side of the tracks, there is an underlying side of HK that you don't see, hate, hate for the rich , there's been alot of feed over the past two years in HK on this , you will find that when people get more, they tend to spend more , opens up other enterprises and its all very well to denounce minimum wages, but it is at least a safety net for the lower end of the work force. On past experience the price of fuel is not much lower in Thailand than Australia's and also the electricity price is about the same at our place , as in Perth, especially summer , big diff in wages though , Bring it on.

[tomyummer]

I'm all for upping the minimum wage if they lower the 'tea money' amounts.

Makes sense to me to take from the few benefiting from the dirty money to feed thousands more.

[jayjay0]

That kind of wages would lead to a lot less jobs. Can you imagine walking into a seven eleven with only one employee.

I am not saying don't raise the minimum wages but I am saying don't raise them to the point where people lose there job.

[jcbangkok]

That kind of wages would lead to a lot less jobs. Can you imagine walking into a seven eleven with only one employee.

I am not saying don't raise the minimum wages but I am saying don't raise them to the point where people lose there job.

What is the minimum wage now? The article leads one to believe it is different for factory workers. I have heard 200 baht a day is typical of low paying jobs in BKK.

[hoaker]

Wages here is very difficult to get raised. Big corporations can circumvent higer minimum wages becuase the laws bend here. Minsitry of labor will turn their backs to these kind of things. Remember back a couple of years when burmese people were being arrested for illegally working here, but the solution was to register with the state. I wonder how that is going, probably went out the window.

All the probalems occur in Thailand because each of the policies at various ministries conflict one another. The main achievement is to build wealth among the Uber rich not to spread it.

[chantorn]

The people at the bottom are so poor. 12,000 baht / month is still too low.

[Bakeman]

The people at the bottom are so poor. 12,000 baht / month is still too low.

I agree. For the standard teacher allowance is three times this amount.

[evanson]

Whilst I can't argue with a raise, how about they ban factories legally importing thousands of migrant workers? There isn't much point in having a minimum wage if employers can LEGALLY circumvent it. How much benefit to the country is there is one factory owner can make a business in an impoverished area of the country by employing the vast majority of his workforce from overseas.

I know some companies in Isaan find it hard to attract labour because the wages are lower than Bangkok, so they actively recruit from Burma. Khon Kaen fishing net was in the papers recently for messing around with the registration of some of its thousands of Burmese workers. They will claim that Thai workers don't want to do this type of work. I would argue that the company doesn't want to pay a minimum days wage for the work.

And you would win.

[livinthailandos]

the fact that the thai's want to rally for hike in pay its not surprising considering its been happening in china to. I agree that most companies don't want to pay a fair day's wage thats true. but I see lots of burmese coming here more and more and even many hotels and restaurants employee them, one guy's restaurant he only employee's burmese only because it feels it's impossible to work with thai's, so I suppose if thai's want more money and companies won't go for it I guess I won't be surprised to see more and more burmese and cambodians then. on that note though...

Hearing the farang on here talking about the poor thai people, I'm curious to know how many of you are thai and have lived this poor lifestyle, living poor here and poor in a western country have similiar things in common but don't stack up the same, but hearing on here from farangs something just out of place to me I guess. I've employee thai's as well, I pay more than double & triple the minimum wage standards along with service charge, keep in mind minimum wages in bangkok and other provinces are different though. I have no doubt people want to be able to do the basics, buy food, able to afford rent, take care of their children, etc.. just keep in mind majority of business here are pretty much Small - Medium business especially in tourist areas. Labor is a major expense I know all to well. Labor costs alone in a hotel with 90 staff with good salaries + service charge will set you back at least 62,000 US dollars a month thats not including electric, supplies for restaurant & bar plus toiletries, taxes, gas for vehicles, water bill. In a few hotels I know labor takes up 50% of the expenses.

I guess the question will be can businesses do more at higher wages with less people. Possibly so, this is already going on in the U.S.

[geriatrickid]

The Burmese are recruited to circumvent wage and workplace safety laws. If one is a proponent of a fair labour market, then the local Thai laws must be enforced first. The shortage of available skilled labour will oblige the local employers to increase their wages to attract labour. Just as an employer has a right to set working conditions and wages within the wide parameters allowed by the law, workers have a right to withold their labour.

[GarryP]

Increasing minimum wage in some places may have a negative effect. However, in the Thai manufacturing sector, for the mmost part business owners' profit margins are much higher than in the west. The profit margins are enormous. If business owners were prepared to reduce their cut, they could easily afford to increase the wages of factory workers without increasing the price of their goods, and still make a fortune. However, I would not hold my breath waiting for this to happen.