300 Baht A Day

[ThaiPauly]

For the life of me I can't see how the incoming government are gonna be able to imliment this policy.

I have read that petrol/diesel, food, clothes, exports,(palm and rubber oil could become extremely uncompetative) basically EVERYTHING will have to go up in price as even in Bangkok the daily rate is something like an average of 220B and a great deal less than that in the northern provinces, some people will be expecting a 50-60% wage rise...that ain't gonna happen

So what will YOU do? If I still had any business interests here I could only see that survival would be possible by making redundancies, so that is really not helping anyone at all.

I would be interested to hear some of your opinions

Best

TP

[robbiecia]

Right now it is just election promises.

I can't see the minimum wage increasing that much so soon.

Expect a gradual increase over the next few years to the 300baht/day range.

The sad thing is, minimum wage workers aren't noted for their productivity.

Pay 220 baht a day for numbskulls now, and pay 300 baht a day for numbskulls later.

A significant increase in costs but NO increase productivity

[ThaiPauly]

You got that right Rob

Businessmen claim that if they have to pay someone 300 a day who is now only earning 200 because their productivity is low, say that they won't be able to pay the guys already on 300 baht an increase to reflect their increased contribution to the company. This will cause a lot of grief as it will seem very unfair to the hard worker on 300 baht to only get the same money as the guy that was on 200, he will demand a pay rise, and why not?, that or his productivity will drop, and again, why not? Also you could find supervisors on the same daily rate as their staff...how's that gonna pan out?

The whole idea is laughable and unworkable, even though they say its gonna be phased in, it just CANNOT work IMHO

[Atmos]

secondary to this is the 'promised' 15,000 starting salary for graduates which would be a huge increase for many, as as per post above, will have an upwards flow-on effect on the people who eg started on 10k, have been granted pay increase each year to maybe reach that 15k, now they have lost all seniority/parity and will be requiring pay rises too.

We don't employ grads - just seasonal farm labour as/when required for planting, harvesting and occasional maintenance, spraying etc.

My partner's family have a farm contracting business so their charge-out rates will have to increase.

Depending on the work, 15-200b per day plus lunch and water, standard local conditions/rates.

With up to 30 working at times, this will mean an extra 3-4500 per day, but fortunately only for short durations.

Early this year we had workers on output rates for a few days - a minor crisis due to weather/contractor availability and a need to have cassava stems cut, certainly sped things up when they realised bigger earnings on offer, averaged 350-500 each per day, top earner was a woman, the 'Mistress of the Machete' 750 for a day (every daylight hour).

[BlueSmurf]

They can implement it but as my says you have to have your school grades to get it! If you have not obtained the school standard then they can pay what they want...Factory workers will not get it..Rice farmers mostly do not pay labourers anyway they just help each other.So not really a problem for the incoming government

[xen]

I suspect that there will be a big increase in illegal (as in no work permit) Cambodians and Burmese working in Thailand which will have the usual flow on effects in the economy . Some Thais will benifit, some will not .

[Atmos]

link to another thread here - editorial from The Nation - all very vague about when it may be implemented, and where - as in not nationwide, suggestion of only Bangkok and Phuket

[EvilDrSomkid]

By the looks of it, there won't be a Parliament quorum anytime soon, so implementation will take a while.

[ThaiPauly]

The committe that run my Moo Bann came out yesterday and said we can expect a price hike in our mangement fees as none of the staff are earning 300 baht a day.

My wife told them it was ludicrous to start pontificating on this matter now.

There is still no new PM and it will be , according to reports, a long long time before it happens here, but it was quite amazing how many people , (all who had voted for the new regime I'm sure) were complaining , saying they did not want to pay.

Maybe they will be regretting who they voted for later

[jdinasia]

Only 2 of our employees make less than 10k a month, so it won't affect us much; if at all. If they don't drop corporate income tax and do increase the minimum wage it'll lead to disaster for many companies. (again not our companies .. we stand to gain from this ... but ...)

[simon43]

Finally I get a pay rise

Simon

[sparkey]

lol

[raro]

None of my staff would bother to get up in the morning for this kind of money. But we do not employ strawberry pluckers either...

[CWMcMurray]

I agree with Raro... we are a service provider employing professionals rather than a manufacturer and would have very few people affected by this min wage raise.

Off the top of my head... maybe the maids, security guards, a couple of the junior motorcycle messengers and porters.

Edited July 21, 2011 by CWMcMurray

[jdinasia]

I agree with Raro... we are a service provider employing professionals rather than a manufacturer and would have very few people affected by this min wage raise.

Off the top of my head... maybe the maids, security guards, a couple of the junior motorcycle messengers and porters.

Just maids for my company.

The 15k for a BA and no experience would hit a couple of my employees but that promise is less feasible than the 300baht/day promise.

[raro]

right...our maid would benefit from it. She is just under this level.

The lowest I ever paid for office staff (BA, just from university) was actually 15k.

[CWMcMurray]

And even then... from the folks listed above, I don't think anyone would be getting an increase of over 1,000 thb per month... and in fact most that were affected would only be a couple hundred thb per mo more than what they are currently getting.

Considering a 5 and 1/2 day work week... that would only really work out to about 7,200 per mo

300 * 5.5 days per week * 4 weeks + 2 more days (600)

[jdinasia]

right...our maid would benefit from it. She is just under this level.

The lowest I ever paid for office staff (BA, just from university) was actually 15k.

12k/mo in Chiang Mai is pretty standard for new Thai staff out of Uni. (Note--- nobody that is new hired by us has actually had a degree in what they went to school for!)

I don't hire the Thai staff and I do truly count this as a blessing ((I am the one that fires any of the staff .... bad! mean! farang! ) At least, I start the "staffing" and hand out the written warnings along with telling them to be looking for something new because after I write up a staff member they won't be with us long. --- Once it comes to my attention directly they are considered 'beyond salvaging" as employees. I have had to do this twice in 2 years. I start the "staffing" and then leave it to the MD and my Thai peer to deal with the 'being nice' part. It is a system that works quite well for our company, since I am seen as the more permissive/easy company director to deal with. I also am one of the 2 directors that give out and document verbal warnings. We both warn any staff member that is overstepping/breaking the rules/screwing up independently and one day apart. That way we as a company are covered against claims against us by employees that we let go. Strangely it was me that put this system in place to keep the company within MOL guidelines.

[jamescollister]

Don't see it as a problem, you can't get rice planters/ harvesters here in the boonies this year for less than 300 Baht a day. My rubber tappers earn on a good month 20,000 to 30,000 Baht a month and I can't get skilled tappers. Had to bring 2 up from the south this year. There is a labor shortage and the market will set the price. Jim

[raro]

Spoke to a friend of mine today and he raised a point I didn't think about yet, but it si what will happen:

as for the farm helpers, no problem, they will get replaced by illegal Burmese, Laotian or Cambodians.

Now take Somchai, the car park attendant. So far he gets 6,500 a month. Now his salary goes up to 9,000. What about Somchai's supervisor, who enjoys already a 9,000 Baht salary? Bingo...he goes up to 12,000 to keep the hierarchy of salaries intact. Next in line is the Admin Executive who has a bachelor degree but is already working for three years and earns 13,000 right now, Fresh grades get 15,000 - so after three years this should be....well...say 17,000. And up we go.

Overall, this will cost the economy probably more than it can afford and the result will be lay-offs and it will be eventually like in the Western world, one half of society has work and the other half not.

[bifftastic]

Maybe there will be exemptions for small companies. Like there is here in the UK?

There will always be scare stories about how new government policies will 'ruin the country' just have to wait and see

[SolarOhm]

There should be pluses and minuses. If the lowest paid workers have more money they will no doubt spend it. That will experience a multiplier effect and be a positive for the economy and business.

I know many professional Thai workers earning 6,000 to 9,000 monthly who find it hard to get bye. So assuming EVERYONE in Thailand gets a pay rise the increase in economic activity will buoy business.- not depress it.

The proposed offset to knock the company tax rate down to 23% is worth a smile - as any company that does a bit of work planning their taxes can virtually zero their tax legitimately - without breaking the law. Thus there should be little tax benefit for companies. The real benefit should be the increase in demand for products and services created by expanding the economy through increased spending

The looming problem will be the inflationary impact of people having more money to spend - which will push up demand without there being any immediate increase in production; as the pay rise does not help supply, but the opposite due to cost increase.

Obviously some firms will feel negative impacts - and disappear. That will simply be the Darwinian approach to economic reallocation in the economy, which ultimately will make the Thai economy more efficient.

It is far more sensible to let the market allocate resources than it is in Western economies where the Government sector crowds out the Private sector. Therefore the new PM should be applauded for her attempt to stimulate the economy - and let the business sector benefit.

[jamescollister]

as for the farm helpers, no problem, they will get replaced by illegal Burmese, Laotian or Cambodians.

Not that easy in these parts, get caught with illegal Lao workers and you go to jail. The local Thais will be on the phone to the police before they get out of the truck. Plus there are police army check points on the border roads, very hard to move workers around. Not worth the trouble for 50 Baht a day. Jim

[leo12345]

You got that right Rob

Businessmen claim that if they have to pay someone 300 a day who is now only earning 200 because their productivity is low, say that they won't be able to pay the guys already on 300 baht an increase to reflect their increased contribution to the company. This will cause a lot of grief as it will seem very unfair to the hard worker on 300 baht to only get the same money as the guy that was on 200, he will demand a pay rise, and why not?, that or his productivity will drop, and again, why not? Also you could find supervisors on the same daily rate as their staff...how's that gonna pan out?

The whole idea is laughable and unworkable, even though they say its gonna be phased in, it just CANNOT work IMHO

Even worse is that the employee that is on 301 baht per day will not get any increase which will not end up well for the employer.

The whole salary range level will have to increase to keep happy employees all over the board

[leo12345]

I suspect that there will be a big increase in illegal (as in no work permit) Cambodians and Burmese working in Thailand which will have the usual flow on effects in the economy . Some Thais will benifit, some will not .

This year nearly 900,000 Burmese aplied for work permits as the government opened up the doors for them for a 1 month period.

Now they are not working for low salaries as they claim they should be paid same.