Employers Representatives Still Blocking Wage Hike In Thailand

[webfact]

Employers' representatives still blocking wage hike

By The Nation

Employers' representatives at the Central Wage Committee yesterday objected to the plan of raising the daily minimum wage to Bt300 in seven provinces from January, leading to a resolution to set up a working panel to study the plan first.

"Employers, especially those in the textile, service and security guard businesses, do not make enough to pay each worker Bt300 daily," Attayut Leeyawanich said in his capacity as employers' representative.

The Central Wage Committee is a tripartite unit, comprising representatives from employers, employees and government agencies.

The government has been pushing for this significant hike in the daily minimum wage because this was one of the pledges the Pheu Thai Party made while campaigning for votes.

However, due to an outcry from employers, the government recently floated the idea of raising the minimum wage in seven provinces first. However, the employers are still not happy.

"Political interference should not take place here. We should let the tripartite committee function independently," Attayut said.

He pointed out that the committee was considering several factors in determining how much the minimum daily wage should be. "We are considering factors like the cost of living, employers' ability to pay and the current economic conditions," he said.

According to Attayut, employers will agree to gradually raise the minimum daily wage over four years. However, if the government wants the hike to be put in place immediately, the government must provide subsidies, not offer impractical measures like lowering monthly contributions to the social-security fund.

"Even tax measures are not good enough," he opined.

Suradej Chumanee, who represents employees, said the Labour Ministry's permanent secretary Somkiat Chayasriwong had instructed all parties to find a way of raising the daily minimum wage to Bt300 in Bangkok, Samut Prakan, Samut Sakhon, Nakhon Pathom, Pathum Thani, Nonthaburi and Phuket.

The minimum daily wage in Bangkok and nearby provinces is currently Bt215, and is Bt221 in Phuket.

Suradej said that if employers' representatives continued blocking the wage hike, employees' representatives would demand a 40-per-cent raise across the country.

Labour Ministry's academic adviser Ammorn Chawalit said the Central Wage Committee would convene again early net month.

-- The Nation 2011-09-15

[rich54321]

This WILL divide the country! Not all employers can pay the minimum wage - not even with any help from the govt.

Business will close - more immigrant workers may be used in more rural areas away from looking eyes!

Too many promises without looking at the whole picture - it would be great for everyone to receive 300 bhat a day! Unfortunately with the rise in food products it will remain the same - long hours for those working to make ends meet.

[siampolee]

300 baht a day minimum wage the P.T.P. election policy promise .

[DP25]

Obvious long ago it wouldn't happen. I can remember one interview on one business show with an American exec with factories in Thailand who was asked how he would deal with the new 300 baht nationwide minimum wage, he just kind of smiled and said 'people say a lot of things during an election campaign.' Quite clear that the 'party of the people' talk was just self serving propaganda. Tax cuts, corruption, and pardons for the rich, the shaft for the poor.

Edited September 15, 2011 by DP25

[Pib]

And without a doubt this was the BIGGEST election promise made by the PTP. They will make it happen someway even if it means giving employers tax breaks, subsidies, staggered implementation, etc., to make it happen. Not only will it be expensive for the employers but it will be expensive for the govt also.

When the dust settles, hopefully minimum wage earners will get a raise and benefit from the election promise. And do I foresee some employers very publicly reducing staff to pay the increased wage--yes. I also foresee some employers very quietly reducing staff to pay the increased wages--yes.

[apalink_thailand]

Inflation increases, productivity remains unchanged, country competitiveness weakened against China,jobs lost, business's close. Good plan?

[rubl]

300B/day now, start in seven provinces now, soon, give us six months, uh, uh ....

Edited September 15, 2011 by rubl

[OzMick]

Corporate tax cut was an off-set for minimum wage increase. If the minimum wage is not being increased until January, if at all, why is the tax cut already in effect?

[rubl]

Corporate tax cut was an off-set for minimum wage increase. If the minimum wage is not being increased until January, if at all, why is the tax cut already in effect?

If the Corporate tax cut is in effect (is it?) then surely it's just to allow companies to create a bit of a reserve / buffer for when the 300B/day starts to become effective

[drdoom6996]

And without a doubt this was the BIGGEST election promise made by the PTP. They will make it happen someway even if it means giving employers tax breaks, subsidies, staggered implementation, etc., to make it happen. Not only will it be expensive for the employers but it will be expensive for the govt also.

When the dust settles, hopefully minimum wage earners will get a raise and benefit from the election promise. And do I foresee some employers very publicly reducing staff to pay the increased wage--yes. I also foresee some employers very quietly reducing staff to pay the increased wages--yes.

Causing unemployment and inflation at the same time. As you say, very well thought out plan to get the peoples vote, but no thought about the consequences.

[jdinasia]

The real issue will be .... what incentive will there be for ANY business to stay upcountry? Pay the same in Mukdahan as Rayong/Chantaburi/Ranong? All those places are closer to transportation and supplies. Set your sweatshop up in a slum of PhatumThani and save tons of money in transportation annually with no increase in labor costs.

So yeah, effectively PTP has guaranteed not only inflation but also the increased centralization of jobs into areas that are already more prosperous than the areas that they hold the most sway in.

With the company I am currently with it will only affect 2 Thai Yai maids. However, if they ever try and implement the 15k/month for Uni grads into the private sector, I will certainly fire one person to save the other 2