Chatuchak Vendors Block Traffic To Protest Rent Hike

[Lite Beer]

Chatuchak vendors block traffic to protest rent hike

The Nation on Sunday

BANGKOK:-- A group of about 300 vendors from Bangkok's Chatuchak Market yesterday afternoon blocked the outbound lane of Phaholyothin Road in protest against the policy of the State Railway of Thailand (SRT) to collect a stall rent of Bt3,562 per month.

As of press time, the protest was ongoing and three policemen were injured after angry demonstrators reportedly threw bottles at them.

Deputy Transport Minister Chatt Kuldiloke insisted the fee was fair and that those who failed to register for the stalls by March 13 would be regarded as having given up their right to rent.

After the SRT governor invited the vendors of the famous weekend market's 27 project areas to sign stall rental contracts of Bt3,562 per month yesterday morning, many vendors, led by Sanguan Damrongthai, president of the Chatuchak Market Co-operative, gathered at the market's clock tower and then moved to the third entrance before blocking the road, causing a severe traffic jam as motorists could use only one lane.

The group called for the SRT to honour its reported promises to them, while urging more vendors to join them and gathering signatures on an appeal to be submitted to the prime minister.

Metropolitan Police Area 2 deputy chief Charoen Srisasalak instructed Bang Sue police officers to accommodate motorists and keep order in the area, while a team of 100 crowd-control police officers were on standby. Bang Sue superintendent Pol Colonel Somsak Wimanrat sent 80 police to the area and negotiated with the protesters until they opened the road to make two lanes available for motorists.

Meanwhile, Chat said the new rent was reasonable and the hike was necessary or the market would not have sufficient funds to keep up maintenance. He said that, if the vendors failed to register to renew their contracts with the SRT by March 13, they would be regarded as having given up their right to rent the stalls. The SRT would then find new vendors to do business.

-- The Nation 2012-03-04

[BookMan]

300 stallholders protetsing out of 15,000 stalls? Another newspaper reported it as 100 stallholder protesters.

Might not have helped having the protest on a Saturday afternoon of course, when the markets are open and the stallholders working.

[airconsult]

I think this was the paid-for protesters on behalf of the very upset groups who leased most of the space from the BMA then illegally (well, against contract with the BMA) sub-let to vendors at 20,000 per month.

Only interesting thing is the low, low turnout - maybe that's because most are happy to see them go?

Edited March 4, 2012 by airconsult

[BookMan]

I think this was the paid-for protesters on behalf of the very upset groups who leased most of the space from the BMA then illegally (well, against contract with the BMA) sub-let to vendors at 20,000 per month.

Only interesting thing is the low, low turnout - maybe that's because most are happy to see them go?

Most likely. Are the SRT's new leases with the original vendors (who sub let) or with the actual current occupiers?

[airconsult]

I think this was the paid-for protesters on behalf of the very upset groups who leased most of the space from the BMA then illegally (well, against contract with the BMA) sub-let to vendors at 20,000 per month.

Only interesting thing is the low, low turnout - maybe that's because most are happy to see them go?

Most likely. Are the SRT's new leases with the original vendors (who sub let) or with the actual current occupiers?

As sub-letting violated the original contracts - SRT went stall-2-stall with their offer, as old leases would be ended. So in many cases the vendor is now paying 3,500thb instead of 20,000. Not a bad deal for them, but SRT has made some enemies cutting out the middle-men.

[Nikki1611]

300 stallholders protetsing out of 15,000 stalls? Another newspaper reported it as 100 stallholder protesters.

Might not have helped having the protest on a Saturday afternoon of course, when the markets are open and the stallholders working.

The news station that I work with reported about this protest yesterday (Saturday). So this was yesterday's news.

[BookMan]

300 stallholders protetsing out of 15,000 stalls? Another newspaper reported it as 100 stallholder protesters.

Might not have helped having the protest on a Saturday afternoon of course, when the markets are open and the stallholders working.

The news station that I work with reported about this protest yesterday (Saturday). So this was yesterday's news.

Saturday, yesterday. yes. Am I missing something?

[BookMan]

I think this was the paid-for protesters on behalf of the very upset groups who leased most of the space from the BMA then illegally (well, against contract with the BMA) sub-let to vendors at 20,000 per month.

Only interesting thing is the low, low turnout - maybe that's because most are happy to see them go?

Most likely. Are the SRT's new leases with the original vendors (who sub let) or with the actual current occupiers?

As sub-letting violated the original contracts - SRT went stall-2-stall with their offer, as old leases would be ended. So in many cases the vendor is now paying 3,500thb instead of 20,000. Not a bad deal for them, but SRT has made some enemies cutting out the middle-men.

I wonder if some of the middle men will still be turning up and expecting a payment?

[moe666]

More than likely they have there own cronies they wish to move in as middlemen.

[Unkomoncents]

300 people and "three policemen were injured after angry protestors threw bottles at them"?! Failed state, anyone? I wonder if any Thai people have ever watched the news and seen the Greek protests (and Greece is certainly no model of how to do things) and riot police. There must be SOME consciousness of the differences between Thailand and the rest of the world. The Greek riot police make the Thai police look down-syndrome babies in skin-tight UPS regalia. The Greeks are REALLY, REALLY angry too. They seem to be able to contain those protestors, though, without too much difficulty. Thailand can really be such an embarrassment sometimes; a fact which is screaming to get out but somehow stays under the rug most of the time.

Edited March 4, 2012 by Unkomoncents

[Lite Beer]

SRT kicked off Chatuchak vendor registration amidst protest

BANGKOK, 4 March 2012 (NNT) - The State Railway of Thailand has kicked off the registration for existing merchants of Chatuchak weekend market, amidst protest from vendors who oppose the plan to raise rental fees.

The State Railway of Thailand (SRT), on Saturday, began its registration process for almost 9,000 Chatuchak market merchants.

SRT Governor Yutthana Thapcharoen said that, under its supervision after the commercial lease by the Bangkok Metropolitan Administration (BMA) came to an end on January 1, the vendors who register themselves with the SRT will receive the annual THB50,000 fee waiver for 5 years.

Moreover, registered vendors will be exempt from paying the advance monthly rent of THB3,157 for 6 months. The registration is open until March 13th, for existing merchants.

Since the first day of the registration, Mr. Yutthana said that more and more vendors have shown up to register themselves.

However, there remains a group of merchants who disagree with the SRT's plan for the new rental fee, which is higher than the previous rates of THB600-700. Some 400 protesters were seen on Saturday in front of the market's gate to oppose the higher rent.

Late last month, the SRT board of directors approved the single rental rate for all retail spaces at Chatuchak Market.

Under the approved plan, all retailers are required to pay the upfront fee of THB50,000, which has later been waived, and then subjected to the monthly rent of THB3,157 for a period of three years.

-- NNT 2012-03-04

[TAWP]

If 3.5k/month is the rent than that isn't much at all...

[soundman]

If 3.5k/month is the rent than that isn't much at all...

Exactly.

A busy market position in a country town (not city), where you have to set up at the start of the day, and pack it up at the end of the day will cost you around 3,000 per month. A lock up 3m x 2m cubicle will cost around 3 - 7 thousand per month depending on the position.

News report hasn't figured other "expenses" & "taxes" that market stall holders in a busy area like Jatujuk would have to pay though. Most likely far in excess of the official rent.

[elshaheen]

What was the orginal rent for each stall?

[Lancashirelad]

What was the orginal rent for each stall?

Reading the thread carefully and from vague memory of other news on this topic, it would seem some lucky stall holders were renting directly from SRT at just 6-700 a month whilst the majority were having to pay the extortionate rate of 20k bht a month to the (mafia?) families that were illegally subletting.

So, for some, UP from 700 to 3150, whilst for many others, DOWN from 20k (if that figure is true) to just 3150.

Edited March 5, 2012 by Lancashirelad

[Baxer]

What was the orginal rent for each stall?

However, there remains a group of merchants who disagree with the SRT's plan for the new rental fee, which is higher than the previous rates of THB600-700. Some 400 protesters were seen on Saturday in front of the market's gate to oppose the higher rent.

[enuff said]

.

Try to remember that this market is only open on weekends when you are doing your big time calculations.

"A busy market position in a country town (not city), where you have to set up at the start of the day, and pack it up at the end of the day will cost you around 3,000 per month."

Right, but they get to sell every day.

This is the Chatuchak Weekend market they are talking about.

'nuff said

~

[airconsult]

What was the orginal rent for each stall?

Reading the thread carefully and from vague memory of other news on this topic, it would seem some lucky stall holders were renting directly from SRT at just 6-700 a month whilst the majority were having to pay the extortionate rate of 20k bht a month to the (mafia?) families that were illegally subletting.

So, for some, UP from 700 to 3150, whilst for many others, DOWN from 20k (if that figure is true) to just 3150.

Actually the market was previously managed by BMA who had leased the land from SRT at a very low rate. Then BMA (for public viewing) had set a quite low lease rate to vendors. But in reality there were only a very few stall operators who had this low rate (again, for public viewing).

What happened in the background was that due to the influence of certain politically-linked families (sorry, libel law, research for yourself) actually 3 major mafia groups held 90% odd of the market space, they then sub-let to vendors at between 15,000 and 30,000 per month. (This has been reported in BP before, but linking not allowed by BP, the Nation did not cover this aspect - and if you are aware of the political leanings of the editorial staff there, you have your first hint)

When SRT raised their lease price to BMA, BMA refused the price rise (as it would have raised the price to aforementioned families) and SRT took over management, ending the cosy little mafia-like subletting going on. In simple form, the lucky few vendors who previously had legitimate leases with BMA are going to pay more, and the ones who had no choice but to operate under the illegal sub-leases will pay much less and hopefully will be better off.

That is.... unless they get an offer they can't refuse.... (Nice little stall you have here...... shame if anything happened to it......)

EDIT: I should also say that under the guidelines set into law, SRT had no choice but to maximise their return on the asset (the land). Failure to do so makes the SRT directors personally liable for lost income - any Thai citizen could have brought a lawsuit against them. (Rock and a hard place, get sued for SRT's lost income, or hire bodyguards against reprisal)

Edited March 5, 2012 by airconsult

[TAWP]

What was the orginal rent for each stall?

News-article today says the number of protesters is up to 600, and that they want the contracts to be locked to 1,000baht/month for 30 years.

I am not joking.

[Soboringtochooseaname]

If everybody is now going to pay 3500 thb it's a very very very good deal for many of them !!! (and no feeling fo the other ones who will never succeed anywhere doing any business if they don't succeed at Chatuchak...)

[airconsult]

What was the orginal rent for each stall?

News-article today says the number of protesters is up to 600, and that they want the contracts to be locked to 1,000baht/month for 30 years.

I am not joking.

Do they also demand that SRT supply a certain number of buyers per month?

Perhaps they should also request that SRT pre-chew their food, and change their nappies?

[Fgis]

Hello,

Do you know how much it cost to rent a shop at Chatuchak now ?

Thanks.

[EyesWideOpen]

Interesting look at how things actually work in Thailand. Obviously they are paid for protesters , since the rent for most of them will be going down from 20,000 a month to 3500 a month. I can just see the scene at the stall. The mafia guy shows up , and says " Som get out there and protest !!!!" while Som is thinking this rent reduction is great!!!!!!! This move by the BMA is a SERIOUS hit on the income of some mafia families . Will be curious to see what they do. Before their skim was built in by contract, a pretty sweet deal. I suspect now they will simply come in with force and extort the merchants to pay up the same amount to them. " Nice little stall you have here Som, shame if anything happened to it. And god forbid if anything happened to your lovely family"......