Thailand Approves Minimum Wage Hike: Minister

[webfact]

Thailand approves minimum wage hike: minister

BANGKOK, October 17, 2011 (AFP) - Thailand on Monday gave the go ahead to a hefty minimum wage hike, but delayed the measure in response to pleas from an industrial sector hammered by massive flooding.

A committee of government and business representatives passed the move to increase the base daily wage, effective from April 2012 rather than in January as originally planned, Labour Minister Phadermchai Sasomsab told AFP.

"Due to the severe floods, industry has asked for the move to be delayed for another three months so that businesses can recover," he said.

In Bangkok and six other relatively wealthy areas the minimum wage will rise to 300 baht ($10), from the current rate of 215 baht ($7).

The remainder of the country will see base pay increase by about 40 percent -- although this will still be lower than 300 baht.

Phadermchai said around 400,000 workers have been affected by flooding in the worst inundations to hit the country in decades.

He said half of this number were in the city of Ayutthaya, where major industrial estates housing factories for domestic and international firms, have been swamped.

Another large industrial estate in Pathum Thani province, 45 kilometres (30 miles) from Bangkok, began to flood on Monday.

Finance Minister Thirachai Phuvanatnaranubala said Monday the floods were likely to cut economic growth this year by up to 1.7 percentage points, compared with 0.9 percent previously, citing estimates from the Bank of Thailand and the National Economic and Social Development Board.

Japanese carmakers including Toyota have suspended production in the Southeast Asian kingdom -- a regional automotive hub -- due to facilities suffering water damage or a components shortage.

Electronics firms and chipmakers have also warned that production will be hit by the flooding.

A 300 baht minimum wage was a key pledge by the party of Prime Minister Yingluck Shinawatra in a July election that swept her into power with the backing of her ousted brother Thaksin and his rural and poor support base.

-- (c) Copyright AFP 2011-10-17

[Buchholz]

In Bangkok and six other relatively wealthy areas the minimum wage will rise to 300 baht ($10), from the current rate of 215 baht ($7).

The remainder of the country will see base pay increase by about 40 percent -- although this will still be lower than 300 baht.

The other paper is saying that the 70 other provinces will receive the 300 baht minimum wage..... in 2013.

.

[phiphidon]

curiously enough the Democrats promised to raise the minimum wage 25% (to roughly 270 Baht, regions differ)........................by the year 2013.

Edited October 17, 2011 by phiphidon

[GentlemanJim]

These guys have no idea about when to release information. Industry in Thailand is now crippled, with the prospect of MANY people losing jobs, companies are likely to go bust and the government now tells them they have to put up the basic wage. I wonder how many major industrials will now use this current situation as the excuse to relocate, after all the insurance companies will be paying for most of it.

Edited October 17, 2011 by GentlemanJim

[zydeco]

These guys have no idea about when to release information. Industry in Thailand is now crippled, with the prospect of MANY people losing jobs, companies are likely to go bust and the government now tells them they have to put up the basic wage. I wonder how many major industrials will now use this current situation as the excuse to relocate, after all the insurance companies will be paying for most of it.

With all these companies now underwater and no jobs to fill, there's going to be a lot fewer people to claim that minimum wage.

[scorecard]

These guys have no idea about when to release information. Industry in Thailand is now crippled, with the prospect of MANY people losing jobs, companies are likely to go bust and the government now tells them they have to put up the basic wage. I wonder how many major industrials will now use this current situation as the excuse to relocate, after all the insurance companies will be paying for most of it.

With all these companies now underwater and no jobs to fill, there's going to be a lot fewer people to claim that minimum wage.

I'm surprised they didn't use the floods as an excuse to not implement the 300Baht minimum at all.

[alexakap]

These guys have no idea about when to release information. Industry in Thailand is now crippled, with the prospect of MANY people losing jobs, companies are likely to go bust and the government now tells them they have to put up the basic wage. I wonder how many major industrials will now use this current situation as the excuse to relocate, after all the insurance companies will be paying for most of it.

Will be paying? Why?

It is a force majeure (as tsunamis, earthquakes and so on)...

Edited October 17, 2011 by alexakap

[givenall]

In Bangkok and six other relatively wealthy areas the minimum wage will rise to 300 baht ($10), from the current rate of 215 baht ($7).

The remainder of the country will see base pay increase by about 40 percent -- although this will still be lower than 300 baht.

The other paper is saying that the 70 other provinces will receive the 300 baht minimum wage..... in 2013.

.

Excellent time for the industry to rebuild startoperation elsewhere like Vietnam, Cambodia and even Myanmar

[serenitynow]

curiously enough the Democrats promised to raise the minimum wage 25% (to roughly 270 Baht, regions differ)........................by the year 2013.

I think that's right, and they got punished at the polls for not being willing to lie about what they would or could do.

[serenitynow]

These guys have no idea about when to release information. Industry in Thailand is now crippled, with the prospect of MANY people losing jobs, companies are likely to go bust and the government now tells them they have to put up the basic wage. I wonder how many major industrials will now use this current situation as the excuse to relocate, after all the insurance companies will be paying for most of it.

Will be paying? Why?

It is a force majeure (as tsunamis, earthquakes and so on)...

That's generally true if not specifically spelt out, but many corporations and indivduals opt for Flood Insurance riders on their insurance policies.

[KKvampire]

many of these workers will be lucky to have a job when the hundreds of factories in Rojana Ayutthaya fail to reopen. And 300 bht a day. ? maybe selling fried chicken or other foods for 18 hours a day by the roadside

Edited October 17, 2011 by KKvampire

[phiphidon]

curiously enough the Democrats promised to raise the minimum wage 25% (to roughly 270 Baht, regions differ)........................by the year 2013.

I think that's right, and they got punished at the polls for not being willing to lie about what they would or could do.

That's one way of looking at the Democrats failure to win the right to extend their term of office. I'm sure there are other reasons as well.

[serenitynow]

curiously enough the Democrats promised to raise the minimum wage 25% (to roughly 270 Baht, regions differ)........................by the year 2013.

I think that's right, and they got punished at the polls for not being willing to lie about what they would or could do.

That's one way of looking at the Democrats failure to win the right to extend their term of office. I'm sure there are other reasons as well.

So how's Thaksin's party doing so far to fulfill their election pledges and ensure the safety of the Thai populace? No need to answer as I don't mean to embarass and it's solely a rhetorical question.

[GentlemanJim]

These guys have no idea about when to release information. Industry in Thailand is now crippled, with the prospect of MANY people losing jobs, companies are likely to go bust and the government now tells them they have to put up the basic wage. I wonder how many major industrials will now use this current situation as the excuse to relocate, after all the insurance companies will be paying for most of it.

Will be paying? Why?

It is a force majeure (as tsunamis, earthquakes and so on)...

That's generally true if not specifically spelt out, but many corporations and indivduals opt for Flood Insurance riders on their insurance policies.

Nope, flooding of a river is not considered the same, and as serenitynow rightly states the corporations are suitably insured. You don't build a multi multi million dollar facility without being correctly insured. The se are multi-nationals, not Thai's looking after a workshop or their own house. Flooding is not force majeure. You cannot stop an earthquake, or a tsunami or a hurricane, but you can stop flooding. Thats why you always get new carpets on insurance in England if your house floods

Edited October 17, 2011 by GentlemanJim

[Thaddeus]

And another empty headline is delivered by a complete waste of human flesh, but it has a lot of medals.

[alexakap]

Nope, flooding of a river is not considered the same, and as serenitynow rightly states the corporations are suitably insured. You don't build a multi multi million dollar facility without being correctly insured. The se are multi-nationals, not Thai's looking after a workshop or their own house. Flooding is not force majeure. You cannot stop an earthquake, or a tsunami or a hurricane, but you can stop flooding. Thats why you always get new carpets on insurance in England if your house floods :whistling:

Tomorow morning we'll met at the riverside, and you'll show me HOW would you stop the current flooding. I prefer Auytthaya\Pathumthani section, if you don't mind....

PS: my insurance claims were rejected due to "force majeure". Already.

PPS: here is not England - here is TIT. Have your passport stamped for an entry? Then forget about logic until it is stamped for a departure.

Edited October 17, 2011 by alexakap

[serenitynow]

Nope, flooding of a river is not considered the same, and as serenitynow rightly states the corporations are suitably insured. You don't build a multi multi million dollar facility without being correctly insured. The se are multi-nationals, not Thai's looking after a workshop or their own house. Flooding is not force majeure. You cannot stop an earthquake, or a tsunami or a hurricane, but you can stop flooding. Thats why you always get new carpets on insurance in England if your house floods :whistling:

Tomorow morning we'll met at the riverside, and you'll show me HOW would you stop the current flooding. I prefer Auytthaya\Pathumthani section, if you don't mind....

PS: my insurance claims were rejected due to "force majeure". Already.

PPS: here is not England - here is TIT. Have your passport stamped for an entry? Then forget about logic until it is stamped for a departure.

I suggest you educate youself more on the subject, and if your claim is large, consult a good attorney.

http://en.wikipedia.org/wiki/Force_majeure

[alexakap]

I suggest you educate youself more on the subject, and if your claim is large, consult a good attorney.

http://en.wikipedia....i/Force_majeure

You know what? FORCING a Thai to follow your (logicfull\lawfull) way sometimes much more expencive than not doing that. Im not going to kill the rest of my life in da courts while hearing my case (Already have the experience - and I have WON, a farang has won a lawsuit against Thai company here in LOS.....and just within 6 years!)

I suggest you to check the level of knowledge of your opponent prior suggest him anything, and then check the conditions of THAI insurance agreements (not English ones, nor Wikipedia's).

Attorney? Yeah...They are also Thais, and noone else (as this position is reserved to be filled ONLY by Thai nationals)....blah-blah-blah...I better skip having any insuranses next time. The result is same, but much less headache (and expences).

PS: and finally I got my funds back. No attorneys, forget the insurances....

Once again: TIT. Too long here...too experienced in dealing with locals. F..ck the papers - deal with The Person and let him Feel Bossy....for a while.

Edited October 17, 2011 by alexakap

[serenitynow]

I suggest you educate youself more on the subject, and if your claim is large, consult a good attorney.

http://en.wikipedia....i/Force_majeure

You know what? FORCING a Thai to follow your (logicfull\lawfull) way sometimes much more expencive than not doing that. Im not going to kill the rest of my life in da courts while hearing my case (Already have the experience - and I have WON, a farang has won a lawsuit against Thai company here in LOS.....and just within 6 years!)

I suggest you to check the level of knowledge of your opponent prior suggest him anything, and then check the conditions of THAI insurance agreements (not English ones, nor Wikipedia's).

Attorney? Yeah...They are also Thais, and noone else (as this position is reserved to be filled ONLY by Thai nationals)....blah-blah-blah...I better skip having any insuranses next time. The result is same, but much less headache (and expences).

PS: and finally I got my funds back. No attorneys, forget the insurances....

Once again: TIT. Too long here...too experienced in dealing with locals. F..ck the papers - deal with The Person and let him Feel Bossy....for a while.

That approach can work too, but obviously, not always.

[alexakap]

That approach can work too, but obviously, not always.

Always, and always will (as far as I can predict). Just find the correct Bigga Badda Bossy Boss of The Case. Show me the case where dealing with right people was NOT worked here in LOS?

PS : it is their Game, and we can only play it in correct order - or be completely out of that. It is our way of being here. Those who can't follow - can't survive here for long, and finally heading to the nearest ticketing booth on their way home. I have seen many of them during my XX years here, since the last century...

[DP25]

Not much information in this article about what exactly this means. Does it apply to all workers, public and private, in the 7 provinces? They recently redefined what minimum wage means, will they actually get this in cash each day, or less due to other 'benefits'?

[alexakap]

or less due to other 'benefits'?

...pls don't forget the inflation till the yearof 2013, the taxes reduction, +, +, +++........

Finally, IMO noone going to get anything for free just that easy - but yet to lose something prior to 2013. Hail Red Govt!

[webfact]

LABOURER INCOME

Nod for 40% nationwide wage hike

THANONGSAK MUENNOO

THE NATION

Employers drop opposition to minimum-pay rise but start date delayed to April

The Central Wage Committee yesterday approved a 40-per-cent hike in the daily minimum wage across the country.

The pay rise, however, will take effect not from January 1 but from April 1 because of the flood crisis.

Speaking in his capacity as the chairman of the Central Wage Committee, Labour Ministry permanent secretary Dr Somkiat Chayasriwong disclosed that the committee's members unanimously agreed to the 40-per-cent increase and that a vote was not deemed necessary.

Earlier, many employers were reluctant to embrace the big hike, but Somkiat hinted at the possibility of calling a vote. Given that the tripartite committee comprises representatives from the government and workers, however, it was apparent that the representatives of employers would not have been able to win such a vote if it were called.

In addition, the government has now offered many measures to help employers cope with the significant increase in the daily wage.

With the 40-per-cent increase, the minimum wage in Bangkok, Phuket, Samut Prakan, Samut Sakhon, Pathum Thani, Nakhon Pathom and Nonthaburi is going to soar to Bt300 a day. "As for workers in other provinces, their daily minimum wage will rise by 40 per cent from April 1 next year and rise to Bt300 before the end of 2013," Somkiat said.

The Labour Ministry has been pushing hard for the Bt300 daily minimum wage because it is one of the major election policies pledged by the Pheu Thai Party.

Somkiat said that if the country's economy improved, the government would try to ensure that workers across the country get at least Bt300 a day ahead of the above schedule.

He was speaking after the Central Wage Committee's meeting, which lasted more than an hour.

During the meeting, Fiscal Policy Office director Somchai Sajjapong said the Finance Ministry had approved many measures to cushion the wage-hike impacts on employers. For example, the corporate income tax will be reduced from 30 per cent to just 23 per cent in 2012 and to 20 per cent in 2013.

Moreover, for small and medium-sized enterprises with registered capital of not over Bt5 million and annual income of no more than Bt30 million, their expenditure on the additional wages could be 1.5 times what they actually report on tax forms.

Representatives of employers have also asked that the value-added tax (VAT) be reduced from 7 to 3 per cent.

"The Finance Ministry has agreed to consider it, but we have not yet concluded the issue," Somkiat said.

He added that he planned to ask the Social Security Office (SSO) board to consider a proposal to lower contributions to the Social Security Fund and extend the contribution-collection deadline.

"We will present it to the SSO board on October 25," he said.

Somkiat expects the conclusions on what measures would be taken to assist employers to ease the 40-per-cent wage hike would come out in the next few weeks.

Labour leaders agreed to drop demands for an immediate nationwide rise in the minimum wage to Bt300 because of the floods, Thai Labour Solidarity president Chalee Loysoong said. The group, which has about 280,000 members, may oppose the provision to freeze wages until 2015 if inflation accelerates, he said.

The increase in wages in seven provinces to Bt300 a day first is acceptable, Chalee said, adding that his group understood that employers had suffered from the floods.

-- The Nation 2011-10-18

[Thaddeus]

Given that the tripartite committee comprises representatives from the government and workers, however, it was apparent that the representatives of employers would not have been able to win such a vote if it were called.

-- The Nation 2011-10-18

Two wolves and a sheep voting on what's for lunch.

[virtualtraveller]

Will this make a tangible difference down the line, I doubt it. Business leaders didn't challenge it because those in the formal sector pay above minimum wage, those who aren't will find a work around. Those most in need are the Burmese immigrants who don't get to vote anyway. It's all just a nice news story which no one can argue against because they would sounds mean, it's a way of demonising the rich. Typical Thailand, solve your problem with one sweeping, impractical implementation that ultimately never works because it wasn't thought out carefully.

[OzMick]

It would be nice to think that the B300 minimum wage would be extended to those conscript members of the military now working their butt off to alleviate this disaster. I believe current pay rate is about B4000/m, which has to make it the closest thing to slavery in the modern world.

And the good thing is it could be done now, no need to wait for economic recovery. It would be great for reconciliation and PTP's image, even if a few thousand red-shirts choke on their som tam when they hear about it.

[jayboy]

It would be nice to think that the B300 minimum wage would be extended to those conscript members of the military now working their butt off to alleviate this disaster. I believe current pay rate is about B4000/m, which has to make it the closest thing to slavery in the modern world.

And the good thing is it could be done now, no need to wait for economic recovery. It would be great for reconciliation and PTP's image, even if a few thousand red-shirts choke on their som tam when they hear about it.

It's probably not a realistic move now but in principle it's a good idea.However it could at least be partly achieved by re-organisation within the military including the dismissal of hundreds of superfluous senior staff officers.Thailand is one of the most over generalled armies in the world.The huge level of business interests, some legal some not, controlled by senior officers could also be used for better pay for lower ranks, and possibly equipment (rather than flowing into senior officers bank accounts).Obviously any such reorganisation would have to strip out any of the current businesses covering prostitution,drugs,gambling etc.

As to redshirts coughing into their som tam, I don't know what you are talking about (and I suspect you don't either).The rank and file of the Thai army are almost certainly a red shirt supporters majority.Why do you think there was so much care taken to use "loyal" troops to suppress the Bangkok demonstrators last year and equally to sideline ordinary army detachments? I'm sure most redshirt suporters would be delighted to see their brothers, relatives and friends in the military (which would cover most soldiers) get better wages - as would the country at large.

[bangkockney]

What about the 15k minimum for graduates, that's gone very quiet?

[DP25]

It would be nice to think that the B300 minimum wage would be extended to those conscript members of the military now working their butt off to alleviate this disaster. I believe current pay rate is about B4000/m, which has to make it the closest thing to slavery in the modern world.

And the good thing is it could be done now, no need to wait for economic recovery. It would be great for reconciliation and PTP's image, even if a few thousand red-shirts choke on their som tam when they hear about it.

With the new definition of minimum wage including living allowances and other forms of income, they like many workers will probably find they are already making minimum wage!

[OzMick]

With the new definition of minimum wage including living allowances and other forms of income, they like many workers will probably find they are already making minimum wage!

They get such luxurious accommodation! And the food, to die for (or from)!

Edited October 18, 2011 by metisdead
Repaired quote tags.