Government Takes A Gamble To Keep Labour On Side

[Lite Beer]

EDITORIAL

Government takes a gamble to keep labour on side

The Nation

BANGKOK:-- If the economy hits a bump, effects of Bt300 daily wage will be hard to predict

The anxiety on the part of business owners over the imminent increase in the minimum wage is adding an extra dimension to the problem of rising living costs. The worrying inflation situation, which resulted in a public outcry over rising food prices, prompted Prime Minister Yingluck Shinawatra to call an urgent meeting with her economic big guns on Friday. Virtually no measures were announced after the meeting, and it seems that the controversial plan to increase the daily minimum wage to Bt300 will go ahead as planned.

According to senior officials coming out of the urgent meeting, Thailand's inflation, which has been slightly higher than in the same period last year, was due to oil prices and last year's flood crisis. But the situation had stabilised, and the cost of living should get back to normal soon, they said.

Perhaps the most significant thing from the meeting was that the government would go ahead with the minimum wage plan, which was a big part of its election promises. The logic used to back up the plan remains familiar - when grass-roots people have more money in their pockets, they will spend more, and that can only be good for the economy. The complications caused by the flood disaster, which sent many businesses reeling, cannot overcome the government's determination to implement this contentious election vow.

On Thursday, more than 40 businesses sent representatives to the Administrative Court in a last-ditch effort to block the minimum wage plan. In their petition, which could affect a few million workers, the entrepreneurs said they could not afford the rise, particularly after business losses incurred during and after last year's flood. There were also warnings that investors might relocate their operations out of Thailand to countries where labour is cheaper.

The onus is on the Administrative Court, which has a few days before the minimum wage plan goes into effect in selected parts of the country. The government has the labour movement on its side, although the latter has made it clear that workers will turn hostile toward the Yingluck administration if the wage promise falls through.

The minimum wage is always an issue that gets entangled with national politics. The game has changed, though, as the tripartite Central Wage Committee has been realigned by the government's need to fulfil its election promise. In the past, the government often sided with employers when the labour side made demands to increase wages. Showdowns, which usually featured vociferous labour protests, always ended with a compromise, in which wage figures proposed by labour federations were cut down to levels found acceptable by business operators.

Today, with a Bt300 minimum wage being the platform of Pheu Thai Party's election campaign, the issue is more politicised than ever before. Since Parliament is virtually helpless, business operators, who have lost leverage in the wage committee, are pinning their last hope on the Administrative Court. The judges face an unenviable task of weighing the opportunity to lift the income of poor people and the possible economic consequences of doing so.

Modern-day Thais have had glimpses of what it will be like when inflation bites. Real tests may come after April 1 when various businesses face a considerable rise in production costs. If the government's confidence expressed after the urgent meeting on Friday proves to be based on sound analysis, then Thailand may be able to withstand the initial shocks of the daily wage hike. If the government was wrong, and the current rise in the cost of living is here to stay and is more complicated than flood-induced hiccups, then the Bt300 minimum wage will play a very big role in where the Thai economy will head this year.

-- The Nation 2012-03-18

[Unkomoncents]

"But the situation had stabilised, and the cost of living should get back to normal soon, they said."

According to what data? Minimum wage hikes can actually exacerbate inflation. Thailand better be careful; American labor priced outself right out of global manufacturing a couple of decades ago. With the wage increase, Thailand's wages will be among the highest in Asia. This is without any appreciable increase in the skills and productivity of Thai workers.

[MEL1]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

Edited March 18, 2012 by MEL1

[hellodolly]

My Thai Wife would say you no understand this Thailand not same same.

[rkidlad]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

It's 300 Baht a day. Not 300 Baht an hour.

[hellodolly]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

You are comparing apples to oranges. your British minimum rates are by the hour they work out to over 1,000 baht a day for the cheapest worker as compared to the Thai minimum wage of 300 baht a day.

The only similarity in the two countries is they both have a monarch.

[MEL1]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

You are comparing apples to oranges. your British minimum rates are by the hour they work out to over 1,000 baht a day for the cheapest worker as compared to the Thai minimum wage of 300 baht a day.

The only similarity in the two countries is they both have a monarch.

Ooops....... my error. I need to lern to read. :$

-mel.

[MEL1]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

You are comparing apples to oranges. your British minimum rates are by the hour they work out to over 1,000 baht a day for the cheapest worker as compared to the Thai minimum wage of 300 baht a day.

The only similarity in the two countries is they both have a monarch.

Does this mean I am being creamed by hookers then?

-mel

[hellodolly]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

You are comparing apples to oranges. your British minimum rates are by the hour they work out to over 1,000 baht a day for the cheapest worker as compared to the Thai minimum wage of 300 baht a day.

The only similarity in the two countries is they both have a monarch.

Does this mean I am being creamed by hookers then?

-mel

[473geo]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

You are comparing apples to oranges. your British minimum rates are by the hour they work out to over 1,000 baht a day for the cheapest worker as compared to the Thai minimum wage of 300 baht a day.

The only similarity in the two countries is they both have a monarch.

Obviously in the case Mel your wife has proved correct......smart lady

Edited March 18, 2012 by 473geo

[OzMick]

"The judges face an unenviable task of weighing the opportunity to lift the income of poor people and the possible economic consequences of doing so."

BS - the judges decide if existing law is being applied fairly. The economics of the case is outside their purview

[pastitche]

I thought Thailand was a 3rd world country? That would suggest the infrastructure investment doesn't quite match that of 1st world countries, such as the UK.

That would then suggest, to me anyway, that wages are relative, as are costs, according to relative disposable GNP and GDP per capita etc.

Yet this government wants to introduce a minimum wage of 300Baht / hour? Lor?

Let's look at the minimum wage in the UK currently:

• £6.08 - the main rate for workers aged 21 and over
  
• £4.98 - the 18-20 rate
  
• £3.68 - the 16-17 rate for workers above school leaving age but under 18
  
• £2.60 - the apprentice rate, for apprentices under 19 or 19 or over and in the first year of their apprenticeship
  

So Thailand is going on par with that, and higher on average?

As they say in school, when they have no idea.... "Hum?"

-mel.

Edit: for non-Brits 300 Baht currently equals 6 pounds and 3 pence.

No the 300Baht is per day not per hour and frequently for a 10-hour day. Back to school. Hum?

[rakman]

Whenever any government forces business to pay more for the same employee productivity, either the price to the customer goes up, or the company will do with less employees, or not hire more employees if the business is expanding. And the employees let go or not hired are typically the least educated/experienced, raising the number of unemployed.

Governments and businesses are distinctly different entities. When they attempt undue influence on each other, chaos will be the result.

[rubl]

Perhaps the most significant thing from the meeting was that the government would go ahead with the minimum wage plan, which was a big part of its election promises. The logic used to back up the plan remains familiar - when grass-roots people have more money in their pockets, they will spend more, and that can only be good for the economy.

Translation: When grass-root people have more money they are in a better position to afford the higher prices.