Employers Warned On Wage Hike: Thailand

[webfact]

BT300-WAGE RISE

Employers warned on wage hike

The Nation

BANGKOK: -- Employers who have not raised their workers' minimum daily wage to Bt300 after the Sunday deadline will be facing legal action, the Department of Labour Protection and Welfare said yesterday.

Meanwhile, employers who have been including other benefits under the guise of increasing the basic wage have one month to stop doing so, otherwise they will face prosecution, which includes six months in jail and/or a fine of up to Bt100,000, director-general Arthit Issamo said.

Arthit was responding to calls from labour leader Chalee Loysoong, who said a large number of workers had complained about not being given a raise after the Sunday deadline, which covered businesses in seven provinces including Bangkok.

In response to a statement from Bhumindr Harinsuit, deputy chairman of the Thai Chamber of Commerce, who expressed concern that security guards, maids, hotel staff and contractors might lose their jobs because their employers could not shoulder higher costs, Arthit said these positions were far too important to be terminated.

"I don't believe they will be sacked because then who will guard and clean the business premises," he said, though he did not say anything about hotel staff and contractors.

-- The Nation 2012-04-04

[mijan24]

Simple question "How come only 7 Provinces"? Does this indicate that all the businesses in the other ? Provinces have increased the daily wage to ฿?? already!

Edited April 4, 2012 by mijan24

[mic6ard]

I don't think that it'll be just the rank and file positions that'll get the cut. I think that managements will also be facing pressures to perform other duties as well. Personally I think that this is the time where having multiple abilities can come in useful. One person can cover 2-3 different positions. Right now it's coming in to the low season for tourist/service sector here in CM, I can see more people being laid off than usual.

[David48]

My gf works in a reasonable sized company, south of Bangkok and her Boss has paid the increased wage to his workers.

However, with margins tight in his industry (last year, for the first time for a long time they did not turn a profit) he is looking for a productivity boost from his workers to cover the increased labour costs.

While the pay increase is welcomed by the factory floor workers, the expected efficiency dividend, maybe not so.

[edwinchester]

I live in Kanchanaburi where I believe the wage hike is due to be implemented next year.

My Thai wifes aunt has a small restaurant and employs a couple of staff at 150 bht per day.

We saw her yesterday and she said if she was forced to pay 300 bht then one of the staff would be leaving.

However it is unlikely the staff will complain because they are both Burmese.

Posted with Thaivisa App http://apps.thaivisa.com

[Thaddeus]

The only thing they have achieved with all these election promises is to build a massive house of cards.

[CWMcMurray]

Yes there will be cuts, but might that not a be a good thing in some industries in the long run ?

After all how many times have you seen 5 people working in dairy queen running 2 registers? Or 1 person for every 2 or 3 clothes racks I'm a department store?

From my understanding, Unemployment is very low in Thailand, so this may not be a bad thing. Also more money in the pockets of low wage earners (who tend to spend 100% of their wages) may help to stimulate the economy

[hellodolly]

Yes there will be cuts, but might that not a be a good thing in some industries in the long run ?

After all how many times have you seen 5 people working in dairy queen running 2 registers? Or 1 person for every 2 or 3 clothes racks I'm a department store?

From my understanding, Unemployment is very low in Thailand, so this may not be a bad thing. Also more money in the pockets of low wage earners (who tend to spend 100% of their wages) may help to stimulate the economy

So your plan is to convert some of the low wage earners into no earners.

[CWMcMurray]

No I am not saying that the goal is to turn low wage earners in no wage earners... current unemployment in Jan 2012 was 0.43% which is well below statistical "full employment".

http://www.tradingec...employment-rate

If you read a lot of posts you will see that many business owners talk about the difficulty finding and keeping people and the need to hire burmese and other foreign laborers because Thais are just not interested in the jobs. That is because unemployment is so low....

So I presume that those willing to work will still be able to find work in other areas, but at higher wage. This would mean that there would be less foreign laborers hired, as Thais that would be willing to take those jobs at the hirer wage...

So more Thai's earning a higher wage and this could then lead to stimulating the ecomomy, as these people will pretty much spend almost every penny they earn.

Edited April 4, 2012 by CWMcMurray

[tlansford]

Simple question "How come only 7 Provinces"? Does this indicate that all the businesses in the other ? Provinces have increased the daily wage to ฿?? already!

300B minimum wage is in 7 provinces.

The other 70 provinces received a 39.5% increase, which is still below 300B/d and will go to 300B/d Jan 2013.

[chrisinth]

Somchai was earning 180 baht a day and now is being paid 300 baht, and is very happy with it. His supervisor Charoen was being paid 280 baht a day and he has also received his increase to 300 baht, but to maintain the ladder, Charoen's boss has increased this to 400 baht. He is also happy.

Charoen's section chief Somporn was on 360 baht a day..................etc, etc.

Extreme case I know, but this is how I see it happening for the smaller SME's; the effect won't just be on the minimum wage.

I also don't believe we have seen the effects fully until some of the other 70 provences come into it, where the wage increase in some cases will be as high as 80-90% to meet the minimum wage.

[pastitche]

Somchai was earning 180 baht a day and now is being paid 300 baht, and is very happy with it. His supervisor Charoen was being paid 280 baht a day and he has also received his increase to 300 baht, but to maintain the ladder, Charoen's boss has increased this to 400 baht. He is also happy.

Charoen's section chief Somporn was on 360 baht a day..................etc, etc.

Extreme case I know, but this is how I see it happening for the smaller SME's; the effect won't just be on the minimum wage.

I also don't believe we have seen the effects fully until some of the other 70 provences come into it, where the wage increase in some cases will be as high as 80-90% to meet the minimum wage.

And if the increase to 300 Baht is 90%, what does that say about the present wage structure? Surely there is a limit below which subsistence is little more than a daily struggle?

[Thaddeus]

Simple question "How come only 7 Provinces"? Does this indicate that all the businesses in the other ? Provinces have increased the daily wage to ฿?? already!

300B minimum wage is in 7 provinces.

The other 70 provinces received a 39.5% increase, which is still below 300B/d and will go to 300B/d Jan 2013.

Really, that happened did it?

And the rest of it will happen in nine months?

[tlansford]

Simple question "How come only 7 Provinces"? Does this indicate that all the businesses in the other ? Provinces have increased the daily wage to ฿?? already!

300B minimum wage is in 7 provinces.

The other 70 provinces received a 39.5% increase, which is still below 300B/d and will go to 300B/d Jan 2013.

Really, that happened did it?

And the rest of it will happen in nine months?

Read the new Thadeus....

[Thaddeus]

Simple question "How come only 7 Provinces"? Does this indicate that all the businesses in the other ? Provinces have increased the daily wage to ฿?? already!

300B minimum wage is in 7 provinces.

The other 70 provinces received a 39.5% increase, which is still below 300B/d and will go to 300B/d Jan 2013.

Really, that happened did it?

And the rest of it will happen in nine months?

Read the new Thadeus....

Is that the sequel to the old Thadeus?

[tlansford]

- deleted quote -

300B minimum wage is in 7 provinces.

The other 70 provinces received a 39.5% increase, which is still below 300B/d and will go to 300B/d Jan 2013.

Really, that happened did it?

And the rest of it will happen in nine months?

Read the new Thadeus....

Is that the sequel to the old Thadeus?

spoon...

http://thaifinancialpost.com/2012/04/01/minimum-wage-hike-to-increase-purchasing-power-and-improve-economy/

fed...

[Thaddeus]

Read the new Thadeus....

Is that the sequel to the old Thadeus?

spoon...

http://thaifinancial...mprove-economy/

fed...

So when one news source agrees with you it is the whole truth and nothing but the truth, but if you don't like what you are reading the source is being disingenuous.

(I use a fork, you can dig deeper)

[chrisinth]

Somchai was earning 180 baht a day and now is being paid 300 baht, and is very happy with it. His supervisor Charoen was being paid 280 baht a day and he has also received his increase to 300 baht, but to maintain the ladder, Charoen's boss has increased this to 400 baht. He is also happy.

Charoen's section chief Somporn was on 360 baht a day..................etc, etc.

Extreme case I know, but this is how I see it happening for the smaller SME's; the effect won't just be on the minimum wage.

I also don't believe we have seen the effects fully until some of the other 70 provences come into it, where the wage increase in some cases will be as high as 80-90% to meet the minimum wage.

And if the increase to 300 Baht is 90%, what does that say about the present wage structure? Surely there is a limit below which subsistence is little more than a daily struggle?

I believe the average wage for a labourer in Phitsanulok provence at this minute is about 170 Baht; I am basing this on 160 Baht a year ago. But that would need to be verified.

This is "up-country" and things are a lot different here. What it says about the current wage structure is that it sucks, I am not disclaiming that.

My example was to show that it will not only be the people on/under minimum wage that the employers have to worry about.

[tlansford]

Read the new Thadeus....

Is that the sequel to the old Thadeus?

spoon...

http://thaifinancial...mprove-economy/

fed...

So when one news source agrees with you it is the whole truth and nothing but the truth, but if you don't like what you are reading the source is being disingenuous.

(I use a fork, you can dig deeper)

<deleted> are you talking about?

Actually, never mind - you are just baiting - but that is too common here. You've already seen the news reports before the hike, and also after the hike, so I'm not sharing anything with you that you don't already know. IMO, you already knew the facts before you asked me if it was true... that is why it is just baiting.

Adieu

[Thaddeus]

<deleted> are you talking about?

Actually, never mind - you are just baiting - but that is too common here. You've already seen the news reports before the hike, and also after the hike, so I'm not sharing anything with you that you don't already know. IMO, you already knew the facts before you asked me if it was true... that is why it is just baiting.

Adieu

No, it is not baiting, I have read all the news reports, I'm just a teansy weansy less selective and I don't purely base my opinions on what hits the presses.

If you want baiting I can do that, you signed off the last post in French, is your first name Tish, dah dah dah dah, click click.

[tlansford]

<deleted> are you talking about?

Actually, never mind - you are just baiting - but that is too common here. You've already seen the news reports before the hike, and also after the hike, so I'm not sharing anything with you that you don't already know. IMO, you already knew the facts before you asked me if it was true... that is why it is just baiting.

Adieu

No, it is not baiting, I have read all the news reports, I'm just a teansy weansy less selective and I don't purely base my opinions on what hits the presses.

If you want baiting I can do that, you signed off the last post in French, is your first name Tish, dah dah dah dah, click click.

One, you just point out that you have read the reports. Confirms what I pointed out regarding baiting.

Two, If it is not baiting, then that would mean that you disagree with the information I have presented. But you do not actually address that in any way, hence we return to baiting.

There have been before and there are now dozens of sources for information on the new minimum wages. I am open to information. On this subject, I have not found anything that contradicts what I present here. If you would like to dispute the information presented, then please do so. Otherwise, I do not have any desire to continue with, what is otherwise and despite your denials, just baiting.

[GentlemanJim]

Well regardless about what the news says, there have not been ANY hikes in wages in the province where I live, nobody at all has seen a 39,5% wage increase.

[Thaddeus]

On this subject, I have not found anything that contradicts what I present here. If you would like to dispute the information presented, then please do so.

Do you ever go outside? I do, and it prompts a quote like this.

Well regardless about what the news says, there have not been ANY hikes in wages in the province where I live, nobody at all has seen a 39,5% wage increase.

If your only source of news is the news in print form then you are not very well informed.

[brit1984]

Sorry for my newbie ignorance (I am new to Thailand)... but just wondering is there a limitation on the number of hours worked per day in Thailand?... can't you just tell the workers to do longer hours to compensate for the wage hike?

[xthAi76s]

Workers here in Thailand simply need to learn to be more productive and competitive. I've been to no other country where work is performed so slowly, so narrowly (1 person for each smallest task) and so inefficiently.

[EvilDrSomkid]

We have 2 people earning minimum wage.

They get a monthly salary. What is not clear to me is how much do we have to pay them. They work 5 days a week.

Is it 22days x 300 or 30days x 300?

[tlansford]

On this subject, I have not found anything that contradicts what I present here. If you would like to dispute the information presented, then please do so.

Do you ever go outside? I do, and it prompts a quote like this.

Well regardless about what the news says, there have not been ANY hikes in wages in the province where I live, nobody at all has seen a 39,5% wage increase.

If your only source of news is the news in print form then you are not very well informed.

troll

if you have no information, then go away.

[OzMick]

My local bike shop always had a minimum staff of 3, sometimes 4. Today there is 2. Maybe a sickie.......

[Thaddeus]

On this subject, I have not found anything that contradicts what I present here. If you would like to dispute the information presented, then please do so.

Do you ever go outside? I do, and it prompts a quote like this.

Well regardless about what the news says, there have not been ANY hikes in wages in the province where I live, nobody at all has seen a 39,5% wage increase.

If your only source of news is the news in print form then you are not very well informed.

troll

if you have no information, then go away.

I agree, I can be mildly irritating,

The 'news' that you linked to.

http://thaifinancialpost.com/2012/04/01/minimum-wage-hike-to-increase-purchasing-power-and-improve-economy/

Is nothing more than the personal opinion of Permanent Secretary for Labour Dr. Somkiat Chayasriwong and the implementation plan trotted out parrot fashion. That isn't news.

There are however plenty of news stories about companies large and small who are not happy with the situation commenting that they need to lay off staff, relocate to an entirely different country or close down for good. That is news, and it isn't good.

[tlansford]

- deleted for quotation limits -

troll

if you have no information, then go away.

I agree, I can be mildly irritating,

The 'news' that you linked to.

http://thaifinancial...mprove-economy/

Is nothing more than the personal opinion of Permanent Secretary for Labour Dr. Somkiat Chayasriwong and the implementation plan trotted out parrot fashion. That isn't news.

There are however plenty of news stories about companies large and small who are not happy with the situation commenting that they need to lay off staff, relocate to an entirely different country or close down for good. That is news, and it isn't good.

From the article

With the implementation of the minimum wage increase, labour wage in all provinces across the country increases by 39.5% from the usual provincial rate, except 7 provinces, namely Bangkok, Nonthaburi, Pathum Thani, Nakhon Pathom, Samut Prakan, Samut Sakhon and Phuket, where the minimum daily wage will go up to 300 baht. ...

...

With the exception of the seven pilot provinces mentioned above, the 300-baht minimum wage will be applied to the rest of the country starting on 1 January 2013. However, it will depend on the results of implementation in the pilot provinces as well as the economic volatility

If you don't selectively read, then you will see that the article produces facts about the program both before and after the commentary.

That is called "information".

As for the fear-mongering from the business lobby, I have read that too. Any company claiming to go out of business because some percentage of their labor cost will go up by 60B/day/person is either lying or already dead. Let's see how many really relocate to Burma in the next year.

Now please go away.