Recruiters Warn On Bt300 Pay Hike

[webfact]

JOBS

Recruiters warn on Bt300 pay hike

By WATCHIRANONT THONGTEP

THE NATION

Leading recruiters in Thailand are questioning the new government's policy to raise the daily minimum wage to Bt300, saying it could cause higher unemployment.

Tanaporn Satitpunwaycha, country manager of Jobstreet (Thailand), said the company had conducted a survey of 1,700 office workers aged 18-50 on the minimum wage rise, as well as the policy to raise the monthly salary to Bt15,000 for new university graduates.

The company found that 44.9 per cent of respondents believed raising minimum wages could be implemented, while 38.7 per cent believed it was impossible.

The policy is expected to cause a 23-per-cent increase in production costs, given the current average daily minimum wage of Bt220 nationwide, she said.

Although the government will probably support private companies through a reduction in the corporate tax rate, this will not offset rising costs. Companies might have to cut overtime hours for employees or close down, she said.

The policy could result in higher unemployment and inflation rates.

Tanaporn said Thailand's recruitment market, which is worth about Bt3 billion, would face slower growth due to this policy, since companies would take time to revise their recruitment policies and make sure rising labour costs were under control.

The policy might result in companies needing to be more scrupulous in choosing new employees, while focusing on retention of their existing employees as company assets and investments.

However, Phakin Chaikaew, assistant marketing manager for the classified department of Nation Multimedia Group or Nationejobs.com, said new graduates could not work effectively and some lacked knowledge and experience.

New graduates also had to be well equipped with extra skills such as computers and the English language, Phakin said.

Satinee Mokaves, managing director of JobsDB Recruitment (Thailand), said the policy might push the labour market into a "hire less pay more" situation, since employers would try to manage manpower costs by using automated systems, rather than recruiting new staff.

She said her company had upgraded its software and filtering system to find the best candidates to meet employer demands. The company is also speeding up matchmaking between employers and high-potential candidates in a bid to reduce costs.

-- The Nation 2011-08-02

[webfact]

Steep Wage Hike Feared to Spur Mass Layoff

The furniture business association warns that the push for the daily minimum wage to 300 baht could result in a layoff of some 300,000 workers in the sector.

Vice president of the Thai Furniture Industry Association, Arak Suksawad, said the planned daily minimum wage hike to 300 baht by the new government will cause severe and immediate impact on 50 percent of operators in the sector and related businesses, such as home decoration.

Arak said the wage hike policy will move labor cost up by 40 percent and total cost by 16 percent, so product prices may need to be adjusted.

Arak stated this could result in cancellation of purchase orders as the prices of products from other countries remained unchanged.

This could lead to roughly 100 billion baht in damage for the furniture and garment businesses.

He said 12 industrial associations do not agree with implementing the wage hike policy straight away while noting that consideration on the matter should rely on the tripartite panel made up of representatives from the government, employers and employees.

Arak said the panel's decision must not be interfered with by politicians while the hike should be made in steps as proposed by business operators.

He suggested the new government improve workers' welfare via existing means, such as the the social security fund

He said if the government enforces the 300-baht wage policy, more than 1,000 furniture manufacturers will have to close down and roughly 300,000 workers will be laid off.

-- Tan Network 2011-08-02

[whybother]

Have any business associations or economists come out in favour of the promised minimum wage increases?

[wackysleet]

Have any business associations or economists come out in favour of the promised minimum wage increases?

Irrespective of ones political leanings, do you really believe that any Thai employer is going to pay a higher wage than he can get away with, certainly not on a moral issue.

Certainly there are companies that could and will fall by the wayside but there are most certainly others that could and should pay a living wage, perhaps a look into their books would decide who could pay, lol.

[kanderson]

Have any business associations or economists come out in favour of the promised minimum wage increases?

Irrespective of ones political leanings, do you really believe that any Thai employer is going to pay a higher wage than he can get away with, certainly not on a moral issue.

Certainly there are companies that could and will fall by the wayside but there are most certainly others that could and should pay a living wage, perhaps a look into their books would decide who could pay, lol.

I guess every economics 101 class covers the minimum wage issue. In theory it's not a good idea (depending) but maybe it's not such a bad thing.

A move to $10.00 (US) a day ?

I'm not sure - but that might mean another 40 Baht a day for factory workers in ChonBury for example.

That means the US , German, Japanese etc. costs go up for car parts or ? - I think it's fair.

Thailand might still retain competitive advantage. It's kinda weird paying so little too.

I don't hear economists in the US complaining about minimum wage laws.

[scorecard]

Computerised matching of employee and employer.

For the fees this outfit charges I expect a lot more.

[cdnvic]

Anyone who has gone into a shop in Thailand and counted how many staff are on duty knows that there's fat that can be trimmed.

[kanderson]

Have any business associations or economists come out in favour of the promised minimum wage increases?

I was kinda - programmed in economics - that minimum wage laws were / are counter - productive.

I'm not so sure now.

[Dag]

With neighbouring countries cheaper....guess businesses will move.

[wackysleet]

Anyone who has gone into a shop in Thailand and counted how many staff are on duty knows that there's fat that can be trimmed.

Go into Big Cs electrical dept, there are more red coats than they have in Butlins and even less customers.

[Thai at Heart]

Have any business associations or economists come out in favour of the promised minimum wage increases?

I was kinda - programmed in economics - that minimum wage laws were / are counter - productive.

I'm not so sure now.

The intention can only work, until there is large freedom of movement of labour. The moment that companies have access to external sources of labour, the companies start saying, but we can't find locals to do the job for the wages, and they import in US case, Mexican, or for example Britains case, from new EU countries.

Then an underclass of domestic workers is created who don't want to work on minimum because you can't effectively live on it, and all the very low paid jobs are taken up by immigrants. This problem has been caused in Thailand by allowing Burmese and Cambodian labour into the market here, who are often paid less than legal minimum anyway, and the company owners and management simply increase their margin by reducing their labour cost.

[kanderson]

Anyone who has gone into a shop in Thailand and counted how many staff are on duty knows that there's fat that can be trimmed.

I love that expression "fat that can be trimmed".

That is a great english lesson (expression).

I'm not kidding.

Me thinks it's too harsh though - a bit.

Imagine teaching "fat that can be trimmed" to ESL students.

Who knows - Thais may have a similar expression.

Anyway - I'm still getting into language appreciation.

On Netflix.com I've been studying history.

It is so cool to have so many history lessons at your finger tips.

In America I really didn't learn anything but american history until college.

Wow - netflix.com has months (literally) of educational progamming.

At last I can review and learn about Britianias history, the Roman stuff.

I love to whatch the history shows and full blown 4 CD stuff.

Now I'm on repeat mode.

Many of my ansestors came from England UK area.

I wonder - were my fore fathers - fat to be trimmed or handy on a boat.

Anyway - a nice expression to try and understand 'fat that can be trimmed".

To me it's not a bad bit of English.

I love that !

[Thaddeus]

I don't hear economists in the US complaining about minimum wage laws.

Has any minimum wage hike of between 50 to 90% ever been suggested in the US?

[Suradit]

I don't hear economists in the US complaining about minimum wage laws.

Actually there are quite a few politicians and economists who argue against its benefits.

Michele Bachmann is not an economist and is arguably nuts, but:

As if life were not hard enough for millions of Americans struggling to make ends meet in a soft economy, GOP presidential candidate Michele BachmannMichele Bachmann appears ready to make things worse. Bachman supports getting rid of minimum wage.

In the Minnesota State Senate in 2005, Bachmann said, "Literally, if we took away the minimum wage - if conceivably it was gone - we could potentially virtually wipe out unemployment completely because we would be able to offer jobs at whatever level," according to Bloomberg.

http://www.allvoices...ease-us-poverty

and economic policy advocates who say such things as:

Don't Raise the Minimum Wage - The Bar Is Already Too High

With phrases such as "Giving America a Raise" and "Making Work Pay," the forces behind recent proposals to increase the federal minimum wage beyond its current level of $5.15 an hour suggest that they are looking out for today's poor working men and women. Truth be told, however, increasing the minimum wage is a misguided and wrong-headed policy that will do far more to hurt the poor than to help them.

http://www.ncpa.org/pub/ba270

[kanderson]

Have any business associations or economists come out in favour of the promised minimum wage increases?

I was kinda - programmed in economics - that minimum wage laws were / are counter - productive.

I'm not so sure now.

The intention can only work, until there is large freedom of movement of labour. The moment that companies have access to external sources of labour, the companies start saying, but we can't find locals to do the job for the wages, and they import in US case, Mexican, or for example Britains case, from new EU countries.

Then an underclass of domestic workers is created who don't want to work on minimum because you can't effectively live on it, and all the very low paid jobs are taken up by immigrants. This problem has been caused in Thailand by allowing Burmese and Cambodian labour into the market here, who are often paid less than legal minimum anyway, and the company owners and management simply increase their margin by reducing their labour cost.

I agree, and something simalar with the down fall of empires (immigration good to bad thing).

More education for every child.

Dude - you are an economic professor. Very intellegent text.

I had to read it 6 times.

[SICHONSTEVE]

Have any business associations or economists come out in favour of the promised minimum wage increases?

Irrespective of ones political leanings, do you really believe that any Thai employer is going to pay a higher wage than he can get away with, certainly not on a moral issue.

Certainly there are companies that could and will fall by the wayside but there are most certainly others that could and should pay a living wage, perhaps a look into their books would decide who could pay, lol.

I guess every economics 101 class covers the minimum wage issue. In theory it's not a good idea (depending) but maybe it's not such a bad thing.

A move to $10.00 (US) a day ?

I'm not sure - but that might mean another 40 Baht a day for factory workers in ChonBury for example.

That means the US , German, Japanese etc. costs go up for car parts or ? - I think it's fair.

Thailand might still retain competitive advantage. It's kinda weird paying so little too.

I don't hear economists in the US complaining about minimum wage laws.

"I don't hear economists in the US complaining about minimum wage laws".

Quite surprising really as the US is the largest debtor country in the world and is technically bankrupt (save they have the world's reserve currency and don't need a license to print money)!!! I wonder what is going to happen when China, Japan and other solvent Nations that have massive currency reserves (notably in US dollars) start to have successes in persuading other countries to trade in their currencies.

It must be humiliating for America to be partially owned by these previous underdeveloped nations!!! Most powerful nation on the earth??? not anymore!!!

[SICHONSTEVE]

Have any business associations or economists come out in favour of the promised minimum wage increases?

I was kinda - programmed in economics - that minimum wage laws were / are counter - productive.

I'm not so sure now.

The intention can only work, until there is large freedom of movement of labour. The moment that companies have access to external sources of labour, the companies start saying, but we can't find locals to do the job for the wages, and they import in US case, Mexican, or for example Britains case, from new EU countries.

Then an underclass of domestic workers is created who don't want to work on minimum because you can't effectively live on it, and all the very low paid jobs are taken up by immigrants. This problem has been caused in Thailand by allowing Burmese and Cambodian labour into the market here, who are often paid less than legal minimum anyway, and the company owners and management simply increase their margin by reducing their labour cost.

I agree, and something simalar with the down fall of empires (immigration good to bad thing).

More education for every child.

Dude - you are an economic professor. Very intellegent text.

I had to read it 6 times.

Professor!! my foot!! NB: I'm not sure whether there is a hint of sarcasm involved here or whether you actually believe this!!!

The only things that the minimum wage will do is to push up unemployment to levels not seen in a generation on account of immigrants from Cambodia (primarily) taking advantage of Yingluck's foolish promises in order to get elected. I have seen 1 million quoted as being the number of Cambodians applying to work in the Kingdom within days of the election outcome. Allied to this, the inflation rate, interest rates, strength of the baht and cost of living will all rise inexorably and the employment rate amongst Thai's, business competitiveness, exports, living standards and the nation's prosperity will all fall, depressingly.

I wonder just how many of those Thai's who voted Pheu Thai understood this. I think you could take that they voted for it on face value and didn't appreciate the consequences!!!

Gullible Thailand!!!!

[exbelg]

I doubt that small SME uses expensive services as interim businesses or educated people so all a lot of fuzz about nothing

[kanderson]

I don't hear economists in the US complaining about minimum wage laws.

Has any minimum wage hike of between 50 to 90% ever been suggested in the US?

I never heard an economics teacher champion minimum wage laws.

We learn it's not a good thing - in pure economic terms.

Something more is afoot. Government is there to help with redistibution of income.

That is governments job - I guess.

I'm not sure myself, I know very little about such stuff.

It seems to me that minimum wage laws turned out OK in the US - even after my short

education in economics where the anser was don't do it.

I'd go ahead with the minimum wage law.

It's a redistribution of income thing - that is one of governments jobs.

I don't know about 50 to 90% increase - to me it might be 40 baht a day - I say just do it.

[dutchweller]

Anyone who has gone into a shop in Thailand and counted how many staff are on duty knows that there's fat that can be trimmed.

I couldent Agree More

I posted about this last night on a similar Thread

"I decided I would post some snaps I took over the last few days. Both Instances gave me a jolly good chuckle. and thinking to myself.. As an employer would you want to be paying each of these workers 300 THB for this type of productivity? I think Thai workers will get a serious shock if this 300 THB is implemented as any Sane employer will be cutting staff levels to counter the increase in wages (Just as my Employer has already started to do 100 jobs Axed ) and each worker will be expected to be more productive to fill the void. More money per work = less workers on the Job + same work output expected. I wonder what the crime rate will be like when all the unemployed turn to less legal means to put food on the tables? Oh well I guess the BIB will be happy think of all the kick backs for the "blind Eyes" they will be getting.. Note: The Ladies doing the painting were in a government office they took approximately 4 hours to collectedly paint 2 x 3 Meter wall. Resized to 55% (was 640 x 480) - Click image to enlarge Uploaded with ImageShack.us The 8 men took 8 hours to screw recycled corrugated "ASPESTOS!" to a pre erected fence. It mostly fell down 4 days later after a rain storm I was told they were a Building company building a 10 floor apartment next door.... So I believe they were probably all Immigrant workers but hey they are going to want a bit of this 300 THB action too. Resized to 55% (was 640 x 480) - Click image to enlarge Uploaded with ImageShack.us "

[hungryhippo]

Any pay rise sounds good in the short term but I have a few worries with this idea.

After a few months wouldn't the only thing that happens be that employers fire some of their staff and that inflation makes the 300 baht of today the 200 baht of tomorrow. What I mean here is that in six months the workers would have gained nothing and some would have lost their jobs. I'm not an economist however, but it seems relevant to me that if you're going to raise wages throughout the country you should factor in inflation and how that is going to effect the pay increase. It might make the whole exercise pointless apart from the PR gained of course.

[whybother]

Have any business associations or economists come out in favour of the promised minimum wage increases?

Irrespective of ones political leanings, do you really believe that any Thai employer is going to pay a higher wage than he can get away with, certainly not on a moral issue.

Certainly there are companies that could and will fall by the wayside but there are most certainly others that could and should pay a living wage, perhaps a look into their books would decide who could pay, lol.

So there will not only be more unemployment by companies "trimming the fat", but if "a few companies fall by the wayside", won't that lead to even more unemployment?

[kanderson]

I doubt that small SME uses expensive services as interim businesses or educated people so all a lot of fuzz about nothing

I'm trying to pick up British stuff - would that be a storm in a tea cup ?

[Thaddeus]

I doubt that small SME uses expensive services as interim businesses or educated people so all a lot of fuzz about nothing

I'm trying to pick up British stuff - would that be a storm in a tea cup ?

Yes, or a mountain out of a molehill.

[kanderson]

Anyone who has gone into a shop in Thailand and counted how many staff are on duty knows that there's fat that can be trimmed.

I couldent Agree More

I posted about this last night on a similar Thread

"I decided I would post some snaps I took over the last few days. Both Instances gave me a jolly good chuckle. and thinking to myself.. As an employer would you want to be paying each of these workers 300 THB for this type of productivity? I think Thai workers will get a serious shock if this 300 THB is implemented as any Sane employer will be cutting staff levels to counter the increase in wages (Just as my Employer has already started to do 100 jobs Axed ) and each worker will be expected to be more productive to fill the void. More money per work = less workers on the Job + same work output expected. I wonder what the crime rate will be like when all the unemployed turn to less legal means to put food on the tables? Oh well I guess the BIB will be happy think of all the kick backs for the "blind Eyes" they will be getting.. Note: The Ladies doing the painting were in a government office they took approximately 4 hours to collectedly paint 2 x 3 Meter wall. Resized to 55% (was 640 x 480) - Click image to enlarge Uploaded with ImageShack.us The 8 men took 8 hours to screw recycled corrugated "ASPESTOS!" to a pre erected fence. It mostly fell down 4 days later after a rain storm I was told they were a Building company building a 10 floor apartment next door.... So I believe they were probably all Immigrant workers but hey they are going to want a bit of this 300 THB action too. Resized to 55% (was 640 x 480) - Click image to enlarge Uploaded with ImageShack.us "

I was just saying - 'trimming the fat" expresion makes me grin from ear to ear.

I doubt I have a way to teach this expression to my kids. Hopefully they can learn English like this from the neighbors - hehe.

I'm sure the Buddist way is quite different.

I recommend studiying Budda ways .

I'm pretty sure that in Budda ways - it's not eve about trimming the fat.

Budidists are trying to be more Budda like.

[SICHONSTEVE]

I doubt that small SME uses expensive services as interim businesses or educated people so all a lot of fuzz about nothing

A high proportion of SME's outlay goes on paying it's workers salaries. If they have to increase this to 300 baht a day then it is generally recognised that an appreciable number of them will go out of business as they will be unable to compete with neighbouring countries on selling their export goods (where the labour is far cheaper to employ) and they can lower their prices if need be without impacting too much on the business.

Hardly a "fuzz about nothing".

Edited August 2, 2011 by SICHONSTEVE

[kanderson]

I doubt that small SME uses expensive services as interim businesses or educated people so all a lot of fuzz about nothing

I'm trying to pick up British stuff - would that be a storm in a tea cup ?

Yes, or a mountain out of a molehill.

Thanks for the excellent spelling - I got that too = a mountain out of a molehill.

Isn't molehill a perfectly strange word.

[SICHONSTEVE]

Any pay rise sounds good in the short term but I have a few worries with this idea.

After a few months wouldn't the only thing that happens be that employers fire some of their staff and that inflation makes the 300 baht of today the 200 baht of tomorrow. What I mean here is that in six months the workers would have gained nothing and some would have lost their jobs. I'm not an economist however, but it seems relevant to me that if you're going to raise wages throughout the country you should factor in inflation and how that is going to effect the pay increase. It might make the whole exercise pointless apart from the PR gained of course.

You don't factor in relevant things into "A SOUND-BITE" designed to get you elected, do you!! This was intended to make the poor think that their wealth was going to increase when in fact the reverse will happen. The government will pay for it's reckless promises in the long run however as if they implement this nationwide in one go they will create inflation, reduce their cost of living in having to pay more for food and fuel and many of them will lose their jobs!!!

I bet that this is not what they bargained for when they voted for Pheu Thai (at face value) but they had better be ready for it as it will hit them like a bombshell when it descends upon them!!

[SICHONSTEVE]

I doubt that small SME uses expensive services as interim businesses or educated people so all a lot of fuzz about nothing

I'm trying to pick up British stuff - would that be a storm in a tea cup ?

Yes, or a mountain out of a molehill.

Thanks for the excellent spelling - I got that too = a mountain out of a molehill.

Isn't molehill a perfectly strange word.

Not to moles it isn't!! They probably think that house is a peculiar word!!

[kanderson]

Have any business associations or economists come out in favour of the promised minimum wage increases?

Irrespective of ones political leanings, do you really believe that any Thai employer is going to pay a higher wage than he can get away with, certainly not on a moral issue.

Certainly there are companies that could and will fall by the wayside but there are most certainly others that could and should pay a living wage, perhaps a look into their books would decide who could pay, lol.

I guess every economics 101 class covers the minimum wage issue. In theory it's not a good idea (depending) but maybe it's not such a bad thing.

A move to $10.00 (US) a day ?

I'm not sure - but that might mean another 40 Baht a day for factory workers in ChonBury for example.

That means the US , German, Japanese etc. costs go up for car parts or ? - I think it's fair.

Thailand might still retain competitive advantage. It's kinda weird paying so little too.

I don't hear economists in the US complaining about minimum wage laws.

"I don't hear economists in the US complaining about minimum wage laws".

Quite surprising really as the US is the largest debtor country in the world and is technically bankrupt (save they have the world's reserve currency and don't need a license to print money)!!! I wonder what is going to happen when China, Japan and other solvent Nations that have massive currency reserves (notably in US dollars) start to have successes in persuading other countries to trade in their currencies.

It must be humiliating for America to be partially owned by these previous underdeveloped nations!!! Most powerful nation on the earth??? not anymore!!!

Yes "humiliating" . What a great word. right on - keep them coming.

Maybe fiscal policy - stuff.

Humiliating is such an obscure word - mostly.

I love that !