Bt300 Minimum Wage A Failure, Survey Says

[webfact]

Bt300 minimum wage a failure, survey says

The Nation

BANGKOK: -- The Bt300 minimum wage policy has failed to elevate workers' quality of life, according to the results of a survey released yesterday by the Thai Labour Reconciliation Committee (TLRC), which urged the Labour Ministry to review its role and do more to protect workers' rights.

The minimum wage policy, in effect in seven provinces since April 1, hasn't forced many establishments to raise their minimum wages and most companies are including their welfare allowance with the wage in order to meet the policy requirement, TLRC chairman Chalee Loysung said.

The situation has been especially hard on workers who've been on the job for more than 10 years, Chalee said. Requests for raises were rejected and met with threats of termination, and the older workers felt they had no choice but to accept the condition because they feared they wouldn't find another job at their age, he said.

Subcontract companies that employ such workers as security guards and maids told their employees that the wage hike was out of the question because the contract was already fixed, Chalee said.

The Labour Ministry has seemingly ignored its duty and has largely left the matter for employers and the workers to argument among themselves, Chalee said.

The policy of Prime Minister Yingluck Shinawatra's administration calls for a daily minimum wage of Bt300 and a salary of Bt15,000 for workers with bachelor's degrees, but the private sector is not complying because of a lack of clear guidelines, Chalee said. The TLRC will gather the workers' complaints and submit them to Labour Minister Phadermchai Sasomsap.

According to the survey, collected from eight TLRC complaint gathering centres, there were 5,134 complaints: 2,380 from workers, mostly in the hotel, transport, auto parts and jewellery sectors, who didn't receive the wage hike; 2,168 from workers, mostly in the textile industry, who faced changes in employment condition, lower welfare, position transfer or factory move; and 586 workers, mostly in the electronics, service, transport, food and furniture sectors, who saw their welfare allowances included with the Bt300 minimum wage.

TLRC deputy chair Wilaiwan Saetia said employers were using the minimum wage policy to reduce taxes, which mainly benefits big companies while small businesses simply threatened their workers with layoffs to force them to take the lowerthanlegal wages.

Wilaiwan urged the government to implement the Bt300 minimum wage nationwide by the end of this year as it had promised before the election, and resist the push by employers to postpone the wage hike.

Thailand Autoworkers Federation (TAW) president Yongyuth Mentapao echoed the TLRC's assertion that the Bt300 minimum wage has been a failure. He urged the Labour Ministry to do more to protect workers' rights, including foreign migrant labourers.

-- The Nation 2012-07-20

[RickBradford]

Gee, what a surprise.

Vote-Grubbing Socialist Grandiose Fantasy Policy Fails (Again).

[Reasonableman]

We're all gonna be rich, I tellya!! )))

Oh......... 8(

[dcutman]

Wow!

What a surprise, employers are unwilling to pay thier employee's more, even though it became law.

Not to many laws enforced in this country, not sure why this one would be any different.

[Notstupid30]

Hub failure ...

[Tywais]

So the minimum wage is now a suggestion rather than a legal requirement.

[drdoom6996]

This government sure knows how to make a promise...........................................

[Roadman]

I do not see why not getting the promised Baht300/day should be a problem for those north and east of Bangkok. After all as Pheu Thai and their supporting mobs keep telling us they won the last election camapaign on a "screw over the constitution to bring back the convicted fugitive criminal" platform, so they all should just forget the minimum wage rise (seeing they did not really vote for that) and the better living conditions it brings and cheer, applaud and thank their gods for the expected return of their Dubai KIng crim.

[Lifer]

Forcing the minimum wage up without the participation and concent of the employers does no good because employers will just reduce any other fringe benefits they might be giving their employees as part of their old compensation. It's kind of like increasing prices at restaurants. Prices go up (or portions go down), people eat there less often and tip less, or not at all, to make up for it. This does not mean that employees don't deserve more pay, its economics for everyone. There is never a satisfactory answer.

[givenall]

This government sure knows how to make a promise...........................................

Government makes promises for vote but they are not the one who pays for it. Where the extra money should come from? Especially when the revenue stays the same. Economics 101

Edited July 20, 2012 by givenall

[toenail]

Oh well, the campaign promise of raising minimum wage at least got the prime minister into office. So true about "laws" in Thailand...they are only looked by the citizens as "suggestions",nothing enforced... or "regulations" can be overlooked with bribes.

Next: The "smart pads" for school children will be another failure (no training for teachers in how to use them effectively, not enough wi-fi hook ups, children only using them for social net working since they are not aware of the various educational website to go to (how many educational sites are in Thai language by the way?) That's ok, it was a campaing promise also.

[rotary]

If they really enforce this law it will cost thousands of jobs which will be sent out of the country. Also with things getting better in Myanmar jobs will go there. I agree workers need more money but compaines will just move manufacturing jobs out in the end. This is just reality. Look at what high wages done for the USA, the only thing you can buy thats really made in the USA is plastic trash cans, fly swatters and water coolers as it requires very little labour.

Edited July 20, 2012 by rotary

[horsewell]

The worst thing about it is that all those people have to contend with higher prices because of the wage hike that they didn't get. 5000 odd people is also probably the tip of the ice burg. Probably the only people that get the full wage promised would be government workers that would mean the cost of the government would have to rise as well.

[Ricardo]

This government sure knows how to make a promise...........................................

Their problem is with keeping promises post-election, not with making them, pre-election.

But remember, and keep repeating, that all Thais will be rich, six months after electing Thaksin Yingluck/PTP.

[Moruya]

This government is just good for talking

[scorecard]

Forcing the minimum wage up without the participation and concent of the employers does no good because employers will just reduce any other fringe benefits they might be giving their employees as part of their old compensation. It's kind of like increasing prices at restaurants. Prices go up (or portions go down), people eat there less often and tip less, or not at all, to make up for it. This does not mean that employees don't deserve more pay, its economics for everyone. There is never a satisfactory answer.

- And/or many employers will just sack a percentage of their staff and ignore the severance provisions of the labor law, and make the remainder work harder.

- And/or many employers will not replace those who leave thereby reducing their overall total staff numbers and make those who remain work harder..

- And/or many employers will just increase the daily standard hours so that total production goes up but overtime payments don't kick in until later in the work day.

What is of course is still missing (and all government for the last several decades are at fault, and that includes the paymasters governments who for 10 years have claimed they are the champions of the poor):

- Is any real policy and action whereby a very large percentage of Thais are more capable, work opportunities are wide spread, the right infrastructure is in place, all aimed specifically at getting a large percentage of the wokforce into a better quality of life through their own productivity.

- Is policies which are aimed at some level of redistribution of wealth, aimed at giving the lower earning members of society more spending power.

It can be done, but still no discussion on any of this.

[givenall]

Oh well, the campaign promise of raising minimum wage at least got the prime minister into office. So true about "laws" in Thailand...they are only looked by the citizens as "suggestions",nothing enforced... or "regulations" can be overlooked with bribes.

Next: The "smart pads" for school children will be another failure (no training for teachers in how to use them effectively, not enough wi-fi hook ups, children only using them for social net working since they are not aware of the various educational website to go to (how many educational sites are in Thai language by the way?) That's ok, it was a campaing promise also.

This government has no substance, and all their policies will be failure one after the other. Of course they don’t care their only goal is to bring back Thaksin and making sure he does not go to jail

[givenall]

Forcing the minimum wage up without the participation and concent of the employers does no good because employers will just reduce any other fringe benefits they might be giving their employees as part of their old compensation. It's kind of like increasing prices at restaurants. Prices go up (or portions go down), people eat there less often and tip less, or not at all, to make up for it. This does not mean that employees don't deserve more pay, its economics for everyone. There is never a satisfactory answer.

- And/or many employers will just sack a percentage of their staff and ignore the severance provisions of the labor law, and make the remainder work harder.

- And/or many employers will not replace those who leave thereby reducing their overall total staff numbers and make those who remain work harder..

- And/or many employers will just increase the daily standard hours so that total production goes up but overtime payments don't kick in until later in the work day.

What is of course is still missing (and all government for the last several decades are at fault, and that includes the paymasters governments who for 10 years have claimed they are the champions of the poor):

- Is any real policy and action whereby a very large percentage of Thais are more capable, work opportunities are wide spread, the right infrastructure is in place, all aimed specifically at getting a large percentage of the wokforce into a better quality of life through their own productivity.

- Is policies which are aimed at some level of redistribution of wealth, aimed at giving the lower earning members of society more spending power.

It can be done, but still no discussion on any of this.

I guess all the economy around the world is based on productivity increase. Why should Thailand be any different. You want more money work harder and/or make more gadgets

Edited July 20, 2012 by givenall

[LucidLucifer]

A noble idea which was always doomed to fail (sadly).

[tlansford]

Well, well, well, surprise me with the negative comments above.

The issue is enforcement. Fine, go enforce it. I commend The Nation : this is by my count article #2 covering the minimum wage from the stand-point of the employee. Fair & balanced coverage given the innumerable articles from the perspective of the Thai Business Lobby whining about the rate hike. Truly a bold move for this conservative mouthpiece.

the Thai Labour Reconciliation Committee (TLRC), which urged the Labour Ministry to review its role and do more to protect workers' rights.

That is a sane call for action. Good idea.

[Skywalker69]

Oh well, the campaign promise of raising minimum wage at least got the prime minister into office. So true about "laws" in Thailand...they are only looked by the citizens as "suggestions",nothing enforced... or "regulations" can be overlooked with bribes.

Next: The "smart pads" for school children will be another failure (no training for teachers in how to use them effectively, not enough wi-fi hook ups, children only using them for social net working since they are not aware of the various educational website to go to (how many educational sites are in Thai language by the way?) That's ok, it was a campaing promise also.

This government has no substance, and all their policies will be failure one after the other. Of course they don’t care their only goal is to bring back Thaksin and making sure he does not go to jail

True words spoken.

[jaltsc]

Somehow they just can't override the law of supply and demand.

[OzMick]

Well, well, well, surprise me with the negative comments above.

The issue is enforcement. Fine, go enforce it. I commend The Nation : this is by my count article #2 covering the minimum wage from the stand-point of the employee. Fair & balanced coverage given the innumerable articles from the perspective of the Thai Business Lobby whining about the rate hike. Truly a bold move for this conservative mouthpiece.

the Thai Labour Reconciliation Committee (TLRC), which urged the Labour Ministry to review its role and do more to protect workers' rights.

That is a sane call for action. Good idea.

Some day you will realise that impossible things do not happen because you think they should. In the past you have suggested that the red shirts should have been prevented bringing weapons to BKK, that the RTA should have handled armed insurgents without using lethal force, and now that B300/day should be enforced.

Please do us the simple courtesy of supplying a method to achieve any one of these aims.

Edited July 20, 2012 by OzMick

[mozzieslapper]

Away from politics, Thais just don't want to work. Around here, many make less than 300 a day, yet trying to get some help offering 500 baht a day to help me move some dirt & sand , lay some grass, general tidy up and NO ONE wants to work.

The most common answer was I have enough money for now, maybe at the end of the month.

Incredible Thailand alright.

[cup-O-coffee]

No surprise here, except the diagnosis of the situation should also include the people whom the money is supposed to be tapped for; and a lot of other factors too numerous to list.

There is no sense of responsibility in all of this. That includes people who can't manage their finances anyways. Illiterates and uneducated people have no concept of financial management, and hence they will always be lacking and ignorant of the concept of "a hard-earned-dollar"

Even the Japanese expressed concern in the other article that Thailand suffers from too much unskilled labor. Hah! That's an understatement.

If you don't have a Thai laborer under the thumb, they will piss off and do a crappy job. It's as plain as that and from personal experience with numerous "laborers". I have had friends in construction tell me that they would take one Burmese worker over 4 Thai workers any day.

So what's the point of all of this? Nothing! People should not think they deserve something when it is clear that they do not perform to the standards that deserve it. So lets include this factor; that the Thai laborers need to clean up their act and show some improvement in the quality of their workmanship and quantity of their production before we lay blame singularly on bosses who are allegedly cheap-Charlies.

I do not mean they should be educated. I mean that most Thai laborers know how to do their respective job. They know how to do it well, and they know how to do it poorly. And just which path do you think they take when the boss is away? There are too many illustrations to describe this issue: Lazy Thai Workers!

[Unkomoncents]

Thailand is a completely lawless country. The laws are never enforced and no one is EVER genuine about changing the status quo. Paying heed to anything the Thai government says is like taking testimony from an individual with the most pathological case of dishonesty known to man. Even the Syrian government has more credibility than the sadness Thailand musters politically.

[JimGant]

while small businesses simply threatened their workers with layoffs to force them to take the lowerthanlegal wages.

Threatened?

How about:

1. "As a small business, I have no monopoly power, thus cannot raise prices, and thus barely get along on a small profit margin as it is."

2. "If forced to pay the new minimum wage, I'll have no profit margin, and thus will have to go out of business."

3. "Ergo, if you want your job to continue, you'll have to accept the market wage, not the one dictated by fiat."

Forcing them to take the lowerthanlegal wage -- to enable them to have a job tomorrow to show up for -- certainly has a hollow ring to it.

At best, enforcement will need to be case by case, with waiver options available. Sadly, this probably won't happen, as this new populist "workers of the world unite" mentality has blinders on when it comes to economic reality. That Thailand has many jobs that just aren't economically worth 300 baht/day -- is conveniently ignored, under the guise that all employees earning less than 300bt are being gouged by their employer. Of course, the little guy picks right up on this theme.

Anyway, markets always trump fiat economics. And strict enforcement will see many businesses fold, runaway inflation, or both. Hopefully, then, strict will be de-emphasized. And, Thailand always seems to get around inconvenient laws with a wink and a nod -- and a smile. We'll see.

[phiphidon]

Thailand is a completely lawless country. The laws are never enforced and no one is EVER genuine about changing the status quo. Paying heed to anything the Thai government says is like taking testimony from an individual with the most pathological case of dishonesty known to man. Even the Syrian government has more credibility than the sadness Thailand musters politically.

"Even the Syrian government has more credibility than the sadness Thailand musters politically."

I don't care how partisan you are this statement is probably one of the most stupid statements I have seen on this forum.

I am not aware of the present government using a policy of attacking it's own people with helicopter gunships and artillery and then blaming it on terrorists.

[phiphidon]

while small businesses simply threatened their workers with layoffs to force them to take the lowerthanlegal wages.

Threatened?

How about:

1. "As a small business, I have no monopoly power, thus cannot raise prices, and thus barely get along on a small profit margin as it is."

2. "If forced to pay the new minimum wage, I'll have no profit margin, and thus will have to go out of business."

3. "Ergo, if you want your job to continue, you'll have to accept the market wage, not the one dictated by fiat."

Forcing them to take the lowerthanlegal wage -- to enable them to have a job tomorrow to show up for -- certainly has a hollow ring to it.

At best, enforcement will need to be case by case, with waiver options available. Sadly, this probably won't happen, as this new populist "workers of the world unite" mentality has blinders on when it comes to economic reality. That Thailand has many jobs that just aren't economically worth 300 baht/day -- is conveniently ignored, under the guise that all employees earning less than 300bt are being gouged by their employer. Of course, the little guy picks right up on this theme.

Anyway, markets always trump fiat economics. And strict enforcement will see many businesses fold, runaway inflation, or both. Hopefully, then, strict will be de-emphasized. And, Thailand always seems to get around inconvenient laws with a wink and a nod -- and a smile. We'll see.

1. "As a small business, I have no monopoly power, thus cannot raise prices, and thus barely get along on a small profit margin as it is."

2. "If forced to pay the new minimum wage, I'll have no profit margin, and thus will have to go out of business."

3. "Ergo, if you want your job to continue, you'll have to accept the market wage, not the one dictated by fiat."

For 10 years running?

[Pib]

Without enforcement laws are useless. Thailand is the Hub of generally not enforcing many laws, but is the Hub of selective law enforcement. Money seems to be the key as to how and if a law is enforced. TiT.