Thai Workers 'Unable To Pay Bills' Despite Pay Rise

[webfact]

COST OF LIVING

Workers 'unable to pay bills' despite pay rise

Petchanet Pratruangkrai

The Nation

BANGKOK: -- Despite the increase in the daily minimum wage to Bt300, blue-collar workers' debts have risen this year due to the effects of last year's floods and the rising cost of living, according to a survey by the University of the Thai Chamber of Commerce (UTCC).

The survey showed the debt burden on Thai working families increased from Bt87.64 billion in 2011 to Bt91.71 billion this year. The debt level this year is the highest since the survey was launched in 2009.

The UTCC said the increase in the daily minimum wage to Bt300 would encourage the country's economy to grow by another 0.5 percentage point, as Bt70-Bt80 billion will be injected into the economy. Spending by Thai people during Labour Day on Tuesday is expected to rise by 10.53 per cent to Bt1.79 billion this year, it said. "Thai labourers still have inadequate income to cover their daily expenses, despite the government's policy to raise the daily minimum wage to Bt300 on April 1. Although some labourers are satisfied with the higher income, most still feel they cannot cover their daily expenses," said Thanavath Phonvichai, director of the UTCC's Economic and Business Forecasting Centre.

Thoug PM Yingluck Shinawatra has expressed concern over the high cost of living, the government has not come up with any concrete plans.

Based on the survey of 1,198 sample workers, labourers' debt burdens have increased this year, most of it owed to banks and loan sharks. Individual workers' average monthly debts have risen from Bt5,263 last year to Bt5,773 this year. The high debts have led to lower savings.

Thanavath pointed out that Thai workers feel their rising incomes do not cover their daily expenses due to skyrocketing prices of goods and fuel, and interest rate hikes. To solve the problem, workers have to borrow more and draw on their savings.

Most of the 5 million workers covered by the new minimum wage want their pay to rise further, in line with their spending, Thanavath said.

A suitable minimum wage for daily workers this year is seen as Bt356.68, the survey showed. Workers also said the minimum wage should be set at Bt435 a day in the first three years after the Asean Economic Community takes effect in 2015, and at Bt546 for the following five years.

However, workers are also concerned about their employers' cost burden, and about job security, Thanavath said. About 25 per cent of respondents want incomes to rise every year and 16 per cent wanted to see rises every two years. About 15 per cent said they didn't want the minimum wage to rise above Bt300, as they were worried employers would hire cheaper foreign workers.

-- The Nation 2012-04-27

[jcw]

Spending by Thai people during Labour Day on Tuesday is expected to rise by 10.53 per cent to Bt1.79 billion this year, it said.

Is there another another bank holiday on Tuesday?

[canardo]

Spending by Thai people during Labour Day on Tuesday is expected to rise by 10.53 per cent to Bt1.79 billion this year, it said.

Is there another another bank holiday on Tuesday?

YES, next Tuesday and the Monday after are, and 2 more holidays to come within the next weeks...

[LuckyLew]

This comes as no surprise

IMO Thai people have for a long time lived beyond their means.

For so many Thais as soon as they get their monthly salary at

the beginning of the month they rush of to go shopping or they

go out for meals. Then when the last 7 - 10 days of they either

have no money left for food / water and they spend the last few

days of the month eating mama noodles.

They have no concept of saving and budgets, yet so many have

IPhones and Bloackberry's. Priorities are so out of whack, they

eat and be happy today and they do not think or worry about

tomorrow

[PattayaPhom]

Should think themselves lucky, is there tax to pay on that? Considering most get free accomodation its not a bad deal...just stop buying the latest mobile etc and will be OK

[Jaivin2011]

The local market needs to be taught how to work harder and also more intelligently and how to manage their finances instead of being lazy and expecting everything free and als constant govenment handouts.

[Lee4Life]

I really don't have an opinion as to what an adequate wage is for the Thai workers, but I don't quite understand how anyone could think that if you force companies to raise employees wages that you are automatically "injecting" those raises into the economy. Wouldn't it be more likely that the companies will adjust the prices of their products to compensate for having to pay higher wages? And if this happens, isn't this going to just raise the cost of living for the very same people who receive the wage increases?

The only way I can see a variant here is if the only companies that had to raise the amounts they paid in wages were export only companies.

[Valentine]

I agree that many Thais live for the day but if you have been regularly shopping in supermarkets over the past few years you should notice how much basic commodities have increased. Rice has virtually doubled in price & many of the other large increases are far & away above the inflation rate.

[ratcatcher]

When Mr. Thaksin comes back all their troubles will be over. He will make them rich, just like he and his philanthropic family.

No worries, life will be good. Trust him.

[heiwa]

Vietnamese workers are getting the upper hand with cheaper rice. Cheap Vietnamese rice. This should be made available to those living in poverty and struggling workers in Thailand where many are finding it hard to pay their bills. Market economics. Perhaps the politicians are already importing this cheap Vietnamese rice?

[Lifer]

When Mr. Thaksin comes back all their troubles will be over. He will make them rich, just like he and his philanthropic family.

No worries, life will be good. Trust him.

Why is it whenever there is a discussion happens unrelated to Taksin, some poster has to throw in some comment about Taksin?

What's happening is basic economics 101 and has nothing to do with Taksin. The only thing it does is up his posting count.

Lame.

[h90]

I really don't have an opinion as to what an adequate wage is for the Thai workers, but I don't quite understand how anyone could think that if you force companies to raise employees wages that you are automatically "injecting" those raises into the economy. Wouldn't it be more likely that the companies will adjust the prices of their products to compensate for having to pay higher wages? And if this happens, isn't this going to just raise the cost of living for the very same people who receive the wage increases?

The only way I can see a variant here is if the only companies that had to raise the amounts they paid in wages were export only companies.

Of course:

1) less sale and export: laying off some worker: That eats already most of the positive thing, unless you devalue the Baht.

2) all prices will go up

If you want to do something to get the people more wealthy than offer free education. Quality education. That will also push the lowest salaries in the long term.

But who is interested in anything longer than till the next election.

[h90]

When Mr. Thaksin comes back all their troubles will be over. He will make them rich, just like he and his philanthropic family.

No worries, life will be good. Trust him.

Of course and he started already.

First he made himself rich

than he made his family rich

than he made his extended family rich

than he made his cronies party comrades rich

on the way he made a couple of police and judges rich

Just need to wait till it reaches everyone.

You saw at the last election he handed out 500 Baht for the poor to help them.....

For sure the poor labor are the next

[heiwa]

I really don't have an opinion as to what an adequate wage is for the Thai workers, but I don't quite understand how anyone could think that if you force companies to raise employees wages that you are automatically "injecting" those raises into the economy. Wouldn't it be more likely that the companies will adjust the prices of their products to compensate for having to pay higher wages? And if this happens, isn't this going to just raise the cost of living for the very same people who receive the wage increases?

The only way I can see a variant here is if the only companies that had to raise the amounts they paid in wages were export only companies.

Of course:

1) less sale and export: laying off some worker: That eats already most of the positive thing, unless you devalue the Baht.

2) all prices will go up

If you want to do something to get the people more wealthy than offer free education. Quality education. That will also push the lowest salaries in the long term.

But who is interested in anything longer than till the next election.

What planet are you on? The strategy has always been to keep them stupid so that they don't wake up to the fact they are living in a caste system. And Vietnam with solidarity and brotherhood is going light years ahead and has already wiped out the Thais prestigeous Homali rice market. One must face the facts - Thailand is in economic decline and this is why we are seeing epidemic criminal violence. And it is going to get a lot worse with the ensuing economic downturn. The Vietnamese grow the rice, The Thais watch the rice grow, and the Laos listen to the rice grown. You will not change this fact. Edited April 27, 2012 by heiwa

[mic6ard]

This comes as no surprise

IMO Thai people have for a long time lived beyond their means.

For so many Thais as soon as they get their monthly salary at

the beginning of the month they rush of to go shopping or they

go out for meals. Then when the last 7 - 10 days of they either

have no money left for food / water and they spend the last few

days of the month eating mama noodles.

They have no concept of saving and budgets, yet so many have

IPhones and Bloackberry's. Priorities are so out of whack, they

eat and be happy today and they do not think or worry about

tomorrow

This is not just thailand, but most developing countries. People will always chase trends/fashions to keep up with others.

[ginjag]

How many more Bank holidays do they want ??? but it's not the worker it's government and admin, they are hardly ever at work, teachers or some the same. Sorry for the honest hard worker-but these are few and far between. Couldn't care less--wasteful--LAZY--most fall into these areas. o.k. food has increased in price, but basics are not that expensive for Thais--rice at Tesco--110 bht for 5 kilo. one example, it is difficult I know but most Thais still buy lottery-gamble-have mobiles and m.cycles, and these are low paid people, and they are still using them. Tighten up your belt time You locals, help yourselves a bit.

[mic6ard]

When Mr. Thaksin comes back all their troubles will be over. He will make them rich, just like he and his philanthropic family.

No worries, life will be good. Trust him.

[trainman34014]

Too many of them taking huge amounts of credit to buy 4x4's every 2 years so that they can show 'big face' to the neighbours etc. They love showing off to all and sundry...especially Mia Noi !

[retarius]

The current policies of the government will cause inflation...they have to...so any gains made by mandated wage increases will be eaten up by higher prices.

[hellodolly]

When Mr. Thaksin comes back all their troubles will be over. He will make them rich, just like he and his philanthropic family.

No worries, life will be good. Trust him.

Why do the Thai's need him they have his clone.

[hellodolly]

Too many of them taking huge amounts of credit to buy 4x4's every 2 years so that they can show 'big face' to the neighbours etc. They love showing off to all and sundry...especially Mia Noi !

I think you are talking about people making quite a bit more money than minimum wage.

[waza]

The more things change the more they stay the same

[ralphlsasser]

This comes as no surprise

IMO Thai people have for a long time lived beyond their means.

For so many Thais as soon as they get their monthly salary at

the beginning of the month they rush of to go shopping or they

go out for meals. Then when the last 7 - 10 days of they either

have no money left for food / water and they spend the last few

days of the month eating mama noodles.

They have no concept of saving and budgets, yet so many have

IPhones and Bloackberry's. Priorities are so out of whack, they

eat and be happy today and they do not think or worry about

tomorrow

They are typical Thai. Only worry about now.

[trainman34014]

Too many of them taking huge amounts of credit to buy 4x4's every 2 years so that they can show 'big face' to the neighbours etc. They love showing off to all and sundry...especially Mia Noi !

I think you are talking about people making quite a bit more money than minimum wage.

Not really; I have a neighbour who is a labourer on building sites and his wife sells vegetables at the front gate. They live in a half rotted away old wooden building surrounded by piles of crap, but they have a shiny new 4x4 (silver of course) and a hefty bank loan. Not satisfied with that they now want another loan to build a new house. They just put up the value of their land against the loans.

As a PS; Wifey is a retired Midwife (anyone who works for the State likes to call themselves 'Government Officials' because it sounds very important), and as such she receives constant letters from her two Banks and another institution offering loans of up to 2 million baht with a decision today based on her past job and current Pension. The value of our home is not even taken into account as the fact that she was a long serving 'Government Official' is good enough for them. We don't want or need the money but she has old pals who were Nurses that have taken huge loans in retirement and cannot afford to pay them, resulting in luxury items being removed from homes and extended loan arrangements that will not be paid off until they are 80 !

Edited April 27, 2012 by trainman34014

[ginjag]

Typical local thinking, get if you can --then cannot pay--no probs ,fetch it back.  applies to M/cycles mostly, get a friend to guarantee, not pay your monthly's then your friend has the problem, but do you care about your friend--NO. So many Thai will steal from their friends, if you disagree --then get out more.   trendy Thais, with their Nivea whitening cream at 110 bht a small bottle---hahaha...I would rather pay the no crash hat fine than ruffle my hair style,  hahaha.

[Bagwan]

On the first day of every month my wife hands me her wage packet. I put the money into my wallet and then transfer the equivalent amount from one of my bank accounts into hers. Every ten working days I give her 1000 baht cash. Her days off are not taken into account as then she is out and about with me and I make with the readies - for everything. She also has another source of spending money by way of her share of the staff tips box which varies from 60 to 150 baht per day. When we set up her bank account we stipulated that we did not require an ATM card so that she would have to invade my 'holy of holies', my desk, to get hold of her passbook, and she is fully aware of the dire consequences of that.

Initially I handed over 100 baht per day but we are now progressing towards her being and acting responsibly with money. Although a devout Buddhist she now accepts that Buddha will not provide and that she is solely responsible for her financial situation. It is rewarding to know that she is spreading that gospel to her family members. They have known from the outset that I will assist them in obtaining the things that they need, and never what they want, or think they want.

When we instituted the measures to bring her spending under control there were a few long faces initially but now she becomes almost orgasmic when sighting her bank credit balance. One of the tenets of my life has been that it doesn't matter how much money that you have, it is what you do with it that matters. The majority of Thai people need to learn this lesson.

[kutjebu]

When Mr. Thaksin comes back all their troubles will be over. He will make them rich, just like he and his philanthropic family.

No worries, life will be good. Trust him.

At least when Thaksin was in power the dollar and euro were a lot stronger and of course the beer cheaper...hehe

[h90]

I really don't have an opinion as to what an adequate wage is for the Thai workers, but I don't quite understand how anyone could think that if you force companies to raise employees wages that you are automatically "injecting" those raises into the economy. Wouldn't it be more likely that the companies will adjust the prices of their products to compensate for having to pay higher wages? And if this happens, isn't this going to just raise the cost of living for the very same people who receive the wage increases?

The only way I can see a variant here is if the only companies that had to raise the amounts they paid in wages were export only companies.

Of course:

1) less sale and export: laying off some worker: That eats already most of the positive thing, unless you devalue the Baht.

2) all prices will go up

If you want to do something to get the people more wealthy than offer free education. Quality education. That will also push the lowest salaries in the long term.

But who is interested in anything longer than till the next election.

What planet are you on? The strategy has always been to keep them stupid so that they don't wake up to the fact they are living in a caste system. And Vietnam with solidarity and brotherhood is going light years ahead and has already wiped out the Thais prestigeous Homali rice market. One must face the facts - Thailand is in economic decline and this is why we are seeing epidemic criminal violence. And it is going to get a lot worse with the ensuing economic downturn. The Vietnamese grow the rice, The Thais watch the rice grow, and the Laos listen to the rice grown. You will not change this fact.

You are right...beside there is no decline.....Look to Europe if you want to know what a decline is......

[ginjag]

Ask tourism, ask Thai Airways, ask at all the resort hotels, ask the locals, no one is getting anything, only the elite, foreigners here are having to tighten their belts,   No decline here ????    It's what you would simply call--GOING DOWN HILL

[h90]

Ask tourism, ask Thai Airways, ask at all the resort hotels, ask the locals, no one is getting anything, only the elite, foreigners here are having to tighten their belts, No decline here ???? It's what you would simply call--GOING DOWN HILL

Tourism is only a small part of the economic.....Exports are recovering well after the floods.

We sell hydraulic seals mostly for repair purposes and we have extreme good orders. That means production is running full speed in this country.