Poll: 1/3 Of Employers May Lay Off Workers Due To Thai Govt's Minimum Wage Hike

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DPU Poll: 1/3 of employers may lay off workers due to minimum wage hike

BANGKOK, 1 May 2012 (NNT) – Durakij Pundit University's Research Center (DPU Poll) has revealed that the government's minimum wage increase in 7 pilot provinces could prompt around 1/3 of employers to dismiss workers in the next 12-18 months.

DPU Poll Director Kiat-anan Luankaew said that a recent survey on the effects of the implementation of the wage hike in the 7 pilot provinces revealed that production cost has shot up by 16.2%. The study also found that in the next 8 months, 39% of the existing 900,000 SME entrepreneurs in these provinces might stop hiring minimum wage workers, aged less than 20 years old. Meanwhile, over 76.6% of the employers have chosen to adapt to the wage hike by enhancing workers’ skills to match with the higher pay, 61.3% are attempting to reduce other initial costs, and 45% are planning to replace manual labor with machinery and equipment during the next 12-18 months.

Once fully implemented, the 300-baht minimum wage policy will raise Thailand’s minimum wage rate to be on par with that of the Philippines while setting it higher than other ASEAN countries. Thailand’s rate will be 14% higher than that of Malaysia, 92% higher than Indonesia, 220% higher than Laos, 284% higher than Vietnam and 380% higher than Cambodia. The wage hike will impact the competitiveness of Thai entrepreneurs in the long run, especially those whose businesses rely mainly on the labor workforce.

Meanwhile, the assistance provided by the government to SMEs has yet to meet the demands of entrepreneurs. Despite its loan issuance for the acquisition of new machinery, the government has not adopted any measure to buy back old machinery at an appropriate price, which has caused the production cost of new machinery to soar. Additionally, only one out of three SMEs are benefiting from the existing assistance measures. The government, thus, needs to monitor production cost, promote production efficiency and improve SME operation process, as well as find new markets and develop workers' skills to correspond to the changing business structure.

-- NNT 2012-05-01

[DonHo]

e wage hike will impact the competitiveness of Thai entrepreneurs in the long run, especially those whose businesses rely mainly on the labor workforce.

BS.

[hansnl]

I seem to remember that one of the ministers of this government stated that if a business cannot pay the minimum wage, it should close, or go to another country?

Might it possible that people elegilble for the hike will find out that the cost of living has gone up enormously, and that they will loose their job because the government thinks that the business not able to pay for the hike should close?

Nice!

[TAWP]

39% of the existing 900,000 SME entrepreneurs in these provinces might stop hiring minimum wage workers, aged less than 20 years old

Which is exactly the pattern as seen in other nations, when the minimum wage goes up lower skilled workers or those that would fall into trainee' positions of young workers are suffering due to exclusion from the job market.

[Fgis]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

[MEL1]

I've heard of media hype...... but this one is just OTT!

-mel

[culicine]

Will the minimum wage rise also apply to foreign workers, such as those from Burma /Laos etc?

[slapout]

Many of the employors are probably looking at the excess/extra employees they have kept on in the past as a quick fix to salary increase. The little family owned shops may be ok but many of the larger stores seem to hire enough to have 2 sales people per customer and 1 picking pimples at their counter.

The forthought on the proposed wage increase may not have included several parts of a reliable/profitable business equation. Until there are real numbers on gross income, expenses, net profit, etc and the people making proposals for change of any of the contributing factors, a lot of ignorance is being displayed. The ignorance factor is probably the only thing that can be reliably approached.

[Soutpeel]

Will the minimum wage rise also apply to foreign workers, such as those from Burma /Laos etc?

I would say yes if working here legally....

Rice pledge scheme failing, 1/3 of employees dismissed because of minimum wage, schools children not getting their free I-pads....superb goverment in control i must say...suppose the only thing they will get right is bringing Brother #1 back into the fold

[h90]

Many of the employors are probably looking at the excess/extra employees they have kept on in the past as a quick fix to salary increase. The little family owned shops may be ok but many of the larger stores seem to hire enough to have 2 sales people per customer and 1 picking pimples at their counter.

The forthought on the proposed wage increase may not have included several parts of a reliable/profitable business equation. Until there are real numbers on gross income, expenses, net profit, etc and the people making proposals for change of any of the contributing factors, a lot of ignorance is being displayed. The ignorance factor is probably the only thing that can be reliably approached.

Right, we have good 20 % more staff than we need. Spare for staff fluctation, the usual Thai style (mother sick, brother in jail, grandpa dead etc etc) and to have muscle for emergencies.

Surely we reduce that to 10 % and kick the other to be more efficient.

[pimay11]

Will the minimum wage rise also apply to foreign workers, such as those from Burma /Laos etc?

I would say yes if working here legally....

Rice pledge scheme failing, 1/3 of employees dismissed because of minimum wage, schools children not getting their free I-pads....superb goverment in control i must say...suppose the only thing they will get right is bringing Brother #1 back into the fold

Plus the Commerce Ministry has reported that almost 2,800 companies closed down in the first quarter of 2012, a 96% increase from the first quarter of 2011's figure. Meanwhile, the number of new business registration in the first quarter of this year is 5% fewer than last year’s.

[Unkomoncents]

"Once fully implemented, the 300-baht minimum wage policy will raise Thailand’s minimum wage rate to be on par with that of the Philippines while setting it higher than other ASEAN countries."

This is a classic The Nation quote. Even if you accept that the English isn't perfect, you can't help but admit that this is pure obscurantism. This sentence doesn't make sense. Thailand doesn't like to be honest in assessments of itself when compared with neighbors, or ever.

[Soutpeel]

"Once fully implemented, the 300-baht minimum wage policy will raise Thailand’s minimum wage rate to be on par with that of the Philippines while setting it higher than other ASEAN countries."

This is a classic The Nation quote. Even if you accept that the English isn't perfect, you can't help but admit that this is pure obscurantism. This sentence doesn't make sense. Thailand doesn't like to be honest in assessments of itself when compared with neighbors, or ever.

Is there a minimum wage in Singapore ?.....if there is suspect that would be the highest in ASEAN

[Unkomoncents]

"Once fully implemented, the 300-baht minimum wage policy will raise Thailand’s minimum wage rate to be on par with that of the Philippines while setting it higher than other ASEAN countries."

This is a classic The Nation quote. Even if you accept that the English isn't perfect, you can't help but admit that this is pure obscurantism. This sentence doesn't make sense. Thailand doesn't like to be honest in assessments of itself when compared with neighbors, or ever.

Is there a minimum wage in Singapore ?.....if there is suspect that would be the highest in ASEAN

To be honest, I don't think there is. That's one of the gaping holes in Singapore's image...I was recently watching ChannelNewsAsia's coverage and they seemed super-focused on how many days off your "staff" deserve per week. They were agreeing that one is fair (ha!). I don't think the wages for domestic help in Singapore are regulated.

[pimay11]

"Once fully implemented, the 300-baht minimum wage policy will raise Thailand’s minimum wage rate to be on par with that of the Philippines while setting it higher than other ASEAN countries."

This is a classic The Nation quote. Even if you accept that the English isn't perfect, you can't help but admit that this is pure obscurantism. This sentence doesn't make sense. Thailand doesn't like to be honest in assessments of itself when compared with neighbors, or ever.

Is there a minimum wage in Singapore ?.....if there is suspect that would be the highest in ASEAN

There is no minimum wage in Singapore.

[tragickingdom]

May or may note lay off workers.... It could be both ways. Anyhow the threat that an angry employer who drives three BMW's and a Benz will lay off workers is far less important than a worker doing three jobs to keep his family going. The prices went up for a decade the minimum wage went up with pennies (Satangs)

[BrianCR]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

Have you considered how you would feel working for 150/200 baht a day? I'm surprised that Thai people on minimum wage bother to do anything and I'm not surprised that they try and do the least possible! Perhaps a hike in salary might make for a person to work harder? Of course some decent training wouldn't go amiss either!

[Moruya]

e wage hike will impact the competitiveness of Thai entrepreneurs in the long run, especially those whose businesses rely mainly on the labor workforce.

BS.

I'm afraid it's very true. In some sectors, clothing for example, business can move country extremely quickly - and does.

[BrianCR]

Will the minimum wage rise also apply to foreign workers, such as those from Burma /Laos etc?

I would say yes if working here legally....

Rice pledge scheme failing, 1/3 of employees dismissed because of minimum wage, schools children not getting their free I-pads....superb goverment in control i must say...suppose the only thing they will get right is bringing Brother #1 back into the fold

All nationalities working legally in Thailand (including Westerners) are covered under all aspects of Thai Labour law - the rules also apply to minimum wage salary payments. Any one who feels that he or she has fallen foul of an employer can take their case to a labour court!

[Skywalker69]

Will the minimum wage rise also apply to foreign workers, such as those from Burma /Laos etc?

I would say yes if working here legally....

Rice pledge scheme failing, 1/3 of employees dismissed because of minimum wage, schools children not getting their free I-pads....superb goverment in control i must say...suppose the only thing they will get right is bringing Brother #1 back into the fold

Plus the Commerce Ministry has reported that almost 2,800 companies closed down in the first quarter of 2012, a 96% increase from the first quarter of 2011's figure. Meanwhile, the number of new business registration in the first quarter of this year is 5% fewer than last year’s.

I think every thing goes according to Thaksin´s plans.

[Unkomoncents]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

Have you considered how you would feel working for 150/200 baht a day? I'm surprised that Thai people on minimum wage bother to do anything and I'm not surprised that they try and do the least possible! Perhaps a hike in salary might make for a person to work harder? Of course some decent training wouldn't go amiss either!

They don't bother. That's why the quality of service from most of island-Thailand is legendary. It's also why the salary-hike will kill Thais. More money equals more inflation. The quality of Thai labor has not improved. Good luck pricing the world out of manufacturering, Thailand.

[Soutpeel]

All nationalities working legally in Thailand (including Westerners) are covered under all aspects of Thai Labour law - the rules also apply to minimum wage salary payments. Any one who feels that he or she has fallen foul of an employer can take their case to a labour court!

The "English teachers" in Thailand are in for a windfall then....

[culicine]

Will the minimum wage rise also apply to foreign workers, such as those from Burma /Laos etc?

I would say yes if working here legally....

Rice pledge scheme failing, 1/3 of employees dismissed because of minimum wage, schools children not getting their free I-pads....superb goverment in control i must say...suppose the only thing they will get right is bringing Brother #1 back into the fold

All nationalities working legally in Thailand (including Westerners) are covered under all aspects of Thai Labour law - the rules also apply to minimum wage salary payments. Any one who feels that he or she has fallen foul of an employer can take their case to a labour court!

Feel free to correct me but I don't think the Thai labour laws protect teachers in private schools' but that's a whole other story.

One poster mentioned about Thais not wanting to work for minimum wage - i think many don't, as many of those unskilled jobs are taken by our nearby neighbours. And there seem to be a lot of them, judging by the queue at immigration yesterday!

Edited May 1, 2012 by culicine

[Fgis]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

Have you considered how you would feel working for 150/200 baht a day? I'm surprised that Thai people on minimum wage bother to do anything and I'm not surprised that they try and do the least possible! Perhaps a hike in salary might make for a person to work harder? Of course some decent training wouldn't go amiss either!

No offense but it seems that you don't know so much Thai at work...

I could pay them 10 times more in my company but they still wouldn't do anything more and just suddenly disappear as they always do !

[NanaFoods]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

Have you considered how you would feel working for 150/200 baht a day? I'm surprised that Thai people on minimum wage bother to do anything and I'm not surprised that they try and do the least possible! Perhaps a hike in salary might make for a person to work harder? Of course some decent training wouldn't go amiss either!

No offense but it seems that you don't know so much Thai at work...

I could pay them 10 times more in my company but they still wouldn't do anything more and just suddenly disappear as they always do !

I have to agree with fgi... only I would add that they might even disappear more often if paid 10x, as they would have more money to goof off with.

I have tried to train up an "older" (middle-aged) female worker to be a supervisor - offered more money and responsibility etc... didnt want it. Was quite happy doing a repetitive task all day for less money. I guess she didnt want to "think too much".

But yeah, several of our workers have a tendency to "disappear", meaning not show up, without notice.

[Ulysses G.]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

Have you considered how you would feel working for 150/200 baht a day? I'm surprised that Thai people on minimum wage bother to do anything and I'm not surprised that they try and do the least possible! Perhaps a hike in salary might make for a person to work harder? Of course some decent training wouldn't go amiss either!

No offense but it seems that you don't know so much Thai at work...

I could pay them 10 times more in my company but they still wouldn't do anything more and just suddenly disappear as they always do !

Not always true. I employ a bunch of Thais and they all do a pretty good job and get paid well over the minimum wage. A few would be exceptional employees even in the West.

Edited May 1, 2012 by Ulysses G.

[eddo]

Does anyone wants to work for 150/200 bht a day???? If not so stop your silly posts, you probably have a riant salary already or be rich whatever and dont give a dam_n for those people who are facing the rising costs of living on their meagre wages of 6000 bht a month. Think about that...!!!!

Anybody who is against the wage hike should try to live on 6000 bht a month i think you will sing a different song.

[phl]

Am I the only one to think that workers do not deserve any salary hike in this country ?

Shouldn't they show more interest and responsability in their work before expecting any salary increase ?

NO you not

I have had to put up the wages since April 1. Firstly let me say that the staff has not even tried to put in an extra 1%, if anything for more slack

People coming for interview asking for starting salary of 10 000+with no experience at all

I have no alternative but to put up the prices also, i am noticing prices going up all around.

Also keep in mind that a huge number of businesses if not most businesses(especially smaller one's) do not exactly employ an accountant(though not sure it would be different if they did) to calculate price increase according to wage increase. ie, many simply put up the price just as much as the wages, so basically the price of some goods went up by as much as 30% because they wages did

[phl]

Does anyone wants to work for 150/200 bht a day???? If not so stop your silly posts, you probably have a riant salary already or be rich whatever and dont give a dam_n for those people who are facing the rising costs of living on their meagre wages of 6000 bht a month. Think about that...!!!!

Anybody who is against the wage hike should try to live on 6000 bht a month i think you will sing a different song.

So do you think/feel now that so many had a wage rise, they should perhaps contribute little more to the business? instead of little less? or the same?

Perhaps taking a sick day off every second week, instead of every single week with doctor's certificate stating "headache" or "period pain"

[GilesPeach]

e wage hike will impact the competitiveness of Thai entrepreneurs in the long run, especially those whose businesses rely mainly on the labor workforce.

BS.

Not BS... my company has already stopped hiring new staff and is not running on Sundays to reduce labour costs. We are also moving part of our production to India.