Bt300 Minimum Wage A Failure, Survey Says

[isaanbrit]

Yellow shirt Propaganda!

[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.

"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.

The Syrian government released yesterday's report of the attack that killed Assad's brother in law. The Western media ate it up. Assad's regime also admitted that the Syrian Ambassador to Iraq had stepped down. I cannot remember a single instance of that type of honesty from the Thai side. Can you? In the last statement I read from the Thai government concerning the violence in the South of Thailand, the official in question recommended that if the people in the south don't like Thailand, they should leave (in the Bangkok Post). This isn't about war-crimes, remember, it's about credibility (i.e. openness and honesty in presenting information).

How am I partisan? What side biases me? And keep in mind, the Syrian regime is not attacking those from its own ethnic group. This is not a simple case of government against populace (a la Tienanmen Square). The Syrian fiasco is an ethnic conflict/civil war scenario.

Also, because "stupid" is a two-syllable word, the rules of English state that the superlative for this adjective should be "stupidest". Thanks, though, for having a wildly emotional reaction to my post.

Edited July 20, 2012 by Unkomoncents

[cheeryble]

My missus has a degree and responsible hospital job.........but stays on a lousy 8000pm because she was already employed. What happens when her hospital wants another degree person to work in the same section? oh! She gets 15k, I get 8? Oh, so better not hire any more graduates?

BTW my gf has to pay for her own uniforms which designs are compulsorily changed three new sets every two years. All staff have trouble paying this so the dear employer does it and lets them pay back over six months. When I mention "strike" centuries of successful conditioning from above come into play and she laughs.

Cheeryble

To be fair the hospital is very generous with fulfilling it's free healthcare role for employees. A friend's som went to work in the same hospital on computers......was. Working only ten weeks when he rode his mbike into the side of a pickup parked sideways at night. Was in intensive care for ages extended recovery for brain, but never a hint of financial pressure from the hospital thou the bill must have been into seven figures.

Edited July 20, 2012 by cheeryble

[zakk9]

Thailand is already losing its competitive edge compared to neighbouring countries. While Myanmar, Cambodia, Vietnam not to speak about Malaysia are all bending backwards to attract investors, those in charge in Thailand seem to think that they're still living in a bubble. While that was more or less true 30 years ago, when this was a peaceful spot in a turbulent region of the world, it's no longer so. It's a pity, since the industrial policy until recently has been hugely successful.

[hellodolly]

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.

Precisely

That is part of what the article was saying. The employes do get 300 baht minimum wage but not the way they wanted it. The fact is the government as usual thought they saw a chance to get a vote and took it. Not having a clue as to what it would involve to implement it for the employers.

As for the the employers who refuse to live up to it, well their refusal is matched by the governments refusal to do any thing about it. Why should they. They all ready got there votes.

They will use that as a promise in the next election to clean up dishonest employer's unless they are the government itself. I can hardly wait to see how that plays out with all the field workers. Can just see it now why you no pay. Government give you lots of money. Why you no pay 300baht.

[tenhoursaway]

Agree with JimGant, Lifer

Anyone with a basic education in economics would know, that the 300Baht minimum wage must fail.

Business owners who not comply with this - election pledge based - law just protecting the Thai economy.

Let's have a look on that from a macro economic view :

(might be a bit rough, to break this down to a single business, but since the law effects the whole economy)

Irving Fisher (1867 – 1947) formulated the quantity theory of money in terms of the "equation of exchange":

MV = PT

with:

-----

M = the total stock of money,

P = the price level,

T = the amount of transactions carried out using money (= all goods in a economy)

V = the velocity of circulation of money

Let's have a deeper look on this with focus on 300Baht minimum wage:

V = It's common sense that velocity of circulation of money is relatively constant in an economy. (So I will set this to "1" to simplify the equation):

M = PT

T = the amount of transactions carried out using money

Understandably changing the minimum wage will have no effect on the quantity of produced/available goods.

So T is also an constant value in such case.

Taking this into account M (the total stock of money) would be equal to P (the price level).

M = P

And that is what we see daily, while shopping, eating in a restaurant,...

Raising the total stock of money (e.g. by nearly double minimum wages) without measurements for a higher productivity (T - more goods) will raise the price level (P).

Raised price levels in such a construct will lead to a lower value of the money --> inflation.

On the other hand, this theory shows what happens if higher price levels can not be reached also.

If a business can't raise the price level (P), and cant raise the productivity (T - more goods), then the factor wich influences M (the total stock of money) needs to be influenced (this time not by government regulation but business reaction) - in other words, lay-offs, business closures, or shifting to a more favourable location.

Just a very simplified macro econonomic view, ...

PS:

I am not against higher wages, but there has to be productivity improvement in line. Policy based "gifts" make the situation just worst of everyone. (Higher prices for those who can get the policy based wage, and no money for those who loose their job or business, and reduced spending power for thoose who already had a higher income due to raised prices, but most likely no adaption of their salaries.)

Just to give a positive example:

I learned about a company which educates unskilled workers for their business needs within the first 2 years, pays them a salary which is much higher then a graduate may earn by this populistic law - and nothing is wrong with that. The output of this workforce is equal to the received salary. The company has a low fluctuation of employees, quality products, and they are successful while doing so.

Edited July 20, 2012 by tenhoursaway

[Udox]

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.

Agree with your comment

I live above a restaurant and the owner is desperate for staff and has tried all methods - including a sign asking for staff directly at the restaurant which is on Sukhumvit and has a huge amount of people walking past. Good salary, free food and accommodation and still has to look for staff from neigbouring countries as Thais aren't interested. Maybe they don't need to work as they are so rich already ?

[MEL1]

And I always thought they were offering 300Baht per hour ... ... ...

-mel.

[culicine]

Hub failure ...

The wheels have definitely fallen off !!

[philw]

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.

All of my staff make considerably more than 300 baht per day and we make a handcraft type product and have to compete against suppliers in China, Vietnam and Phils.

Which we can normally beat on price and quality.

Few people and certainly no quality workers, will work for less than 300bt per day and why should they be expected to ??

Wages have been too low, for too long and every body is entitled to a livable wage.

If it forces some companies to be more efficient, so much the better.

[Reasonableman]

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.

All of my staff make considerably more than 300 baht per day and we make a handcraft type product and have to compete against suppliers in China, Vietnam and Phils.

Which we can normally beat on price and quality.

Few people and certainly no quality workers, will work for less than 300bt per day and why should they be expected to ??

Wages have been too low, for too long and every body is entitled to a livable wage.

If it forces some companies to be more efficient, so much the better.

If they feel obliged (for good reason or not) to lay off staff "to be more efficient", for whom is that better?

[tlansford]

Agree with JimGant, Lifer

Anyone with a basic education in economics would know, that the 300Baht minimum wage must fail.

Business owners who not comply with this - election pledge based - law just protecting the Thai economy.

Let's have a look on that from a macro economic view :

(might be a bit rough, to break this down to a single business, but since the law effects the whole economy)

Irving Fisher (1867 – 1947) formulated the quantity theory of money in terms of the "equation of exchange":

MV = PT

with:

-----

M = the total stock of money,

P = the price level,

T = the amount of transactions carried out using money (= all goods in a economy)

V = the velocity of circulation of money

Let's have a deeper look on this with focus on 300Baht minimum wage:

V = It's common sense that velocity of circulation of money is relatively constant in an economy. (So I will set this to "1" to simplify the equation):

M = PT

T = the amount of transactions carried out using money

Understandably changing the minimum wage will have no effect on the quantity of produced/available goods.

So T is also an constant value in such case.

Taking this into account M (the total stock of money) would be equal to P (the price level).

M = P

And that is what we see daily, while shopping, eating in a restaurant,...

Raising the total stock of money (e.g. by nearly double minimum wages) without measurements for a higher productivity (T - more goods) will raise the price level (P).

Raised price levels in such a construct will lead to a lower value of the money --> inflation.

On the other hand, this theory shows what happens if higher price levels can not be reached also.

If a business can't raise the price level (P), and cant raise the productivity (T - more goods), then the factor wich influences M (the total stock of money) needs to be influenced (this time not by government regulation but business reaction) - in other words, lay-offs, business closures, or shifting to a more favourable location.

Just a very simplified macro econonomic view, ...

PS:

I am not against higher wages, but there has to be productivity improvement in line. Policy based "gifts" make the situation just worst of everyone. (Higher prices for those who can get the policy based wage, and no money for those who loose their job or business, and reduced spending power for thoose who already had a higher income due to raised prices, but most likely no adaption of their salaries.)

Just to give a positive example:

I learned about a company which educates unskilled workers for their business needs within the first 2 years, pays them a salary which is much higher then a graduate may earn by this populistic law - and nothing is wrong with that. The output of this workforce is equal to the received salary. The company has a low fluctuation of employees, quality products, and they are successful while doing so.

nice theory.

Has, however, nothing to do with a successful 300B minimum wage. And the min wage must not fail. Another common mistake is that there must be a corresponding increase in productivity with a min-wage hike.

The point missed is that the min wage is a floor. If a job is to be done, then it needs to pay X amount. The very good reason for doing this is for the overall benefit of the society. This still leaves the market conditions in place to decide if a job should be done at X amount or not. It just cannot be done for less. Some here call that fiat - others call it limits. And businesses deal with limits all the time, so that is not new to them.

Enforcement of the labor laws is a good idea IMO. There seems to be some room to criticize the current situation for a lack of clear guidelines. But most of the blame should be placed on the businesses refusing to comply with the law.

Coming back to your equations and conclusions, this argument does not use real numbers. The implication of that is that if an increase to a 300B minimum wage must fail, then any increase in the minimum wage in the past must have failed, too. This is clearly not true.

I am not arguing that an increase in the minimum wage has no impact at all. It is that, on one hand, the increase will not be the catastrophe depicted here, and on the other, if it is properly implemented / enforced, it has the ability to improve the quality of life for a poor segment of society.

The economy is not a zero-sum game.

[Phatcharanan]

Also, because "stupid" is a two-syllable word, the rules of English state that the superlative for this adjective should be "stupidest". Thanks, though, for having a wildly emotional reaction to my post.

Actually you are wrong. Rules of English have many exceptions so the point you make is somewhat incorrect. Technically, the correct superlative would be 'most stupid' and the comparative form would be 'more stupid'.

Do the following seem correct to you? Candid-est, lucid-est, rancid-est. Correct forms would of course be 'most lucid', more candid' and 'most rancid'. Just because the word 'stupidest' is common usage doesn't necessarily make it correct, despite the fact that the word appears in modern dictionaries.

Anyway, your reference to comparing Thai and Syrian governments is somewhat bizarre. Hard for the Syrian regime to say anything other about the Ambassador to Iraq, seeing as how the guy appeared on all of the Al Jazeera news stations within hours of entering Qatar.

Edited July 20, 2012 by Phatcharanan

[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.

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.

All of my staff make considerably more than 300 baht per day and we make a handcraft type product and have to compete against suppliers in China, Vietnam and Phils.

Which we can normally beat on price and quality.

Few people and certainly no quality workers, will work for less than 300bt per day and why should they be expected to ??

Wages have been too low, for too long and every body is entitled to a livable wage.

If it forces some companies to be more efficient, so much the better.

It is nice to see a business owner with a business exposed to labor costs making this point. IMO, and the only reasonable thing for a business owner/manager to do, is pay at least the minimum wage for a job if the job is worth that much value to the company. If is not, then it should not be done. The company doesn't do itself a favor by paying more than the value of the job and they don't do the employee any favors when they pay less than a living wage.

[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.

The Syrian government released yesterday's report of the attack that killed Assad's brother in law. The Western media ate it up. Assad's regime also admitted that the Syrian Ambassador to Iraq had stepped down. I cannot remember a single instance of that type of honesty from the Thai side. Can you? In the last statement I read from the Thai government concerning the violence in the South of Thailand, the official in question recommended that if the people in the south don't like Thailand, they should leave (in the Bangkok Post). This isn't about war-crimes, remember, it's about credibility (i.e. openness and honesty in presenting information).

How am I partisan? What side biases me? And keep in mind, the Syrian regime is not attacking those from its own ethnic group. This is not a simple case of government against populace (a la Tienanmen Square). The Syrian fiasco is an ethnic conflict/civil war scenario.

Also, because "stupid" is a two-syllable word, the rules of English state that the superlative for this adjective should be "stupidest". Thanks, though, for having a wildly emotional reaction to my post.

Credibility is not defined as being open, it is a description of state of being as in something that is regarded as credible is something that is worth believing in. I do not believe that the syrian regime is credible in any way state or form, hence my "wildly emotional reaction" to your post which, if you wish for a superlative, is still the most stupid post I have read on this forum.

"Stupidest" - never would that form of the word cross my lips, I suppose you use stupider as a comparative?

Would you use lucidest , tepidest or rancidest? No, you wouldn't and there's a reason. -id words usually use more or most as their comparative and superlatives. He was the most lucid, it was more tepid than etc.

Edit to add: Phatcharan beat me to it on the english lesson

Edited July 20, 2012 by phiphidon

[rubl]

Regarding minimum-wage and productivity:

"Business is all about making money. A minimum wage costs money. However, businesses can and do succeed despite having to pay a minimum wage. One of the reasons for this is that workers have become much more productive over the years. This makes the minimum wage less of a burden on business than it would otherwise be. This is the key relationship between minimum wage and productivity, but there are other aspects to consider as well."

http://www.ehow.com/...oductivity.html

[Phatcharanan]

The implication of that is that if an increase to a 300B minimum wage must fail, then any increase in the minimum wage in the past must have failed, too. This is clearly not true.

Slightly flawed observation. I agree minimum wages are a good thing however, I don't know of any other countries that hiked up the minimum with such a huge increase...........in some cases by 150%?

I may be wrong however.

[chotthee]

Thailand Autoworkers Federation (TAW) president Yongyuth Mentapao echoed the TLRC's assertion that the Bt300 minimum wage has been a failure.

It is time to lower it back to 120 Baht/day.

[Thaddeus]

All of my staff make considerably more than 300 baht per day and we make a handcraft type product and have to compete against suppliers in China, Vietnam and Phils.

Which we can normally beat on price and quality.

Few people and certainly no quality workers, will work for less than 300bt per day and why should they be expected to ??

Wages have been too low, for too long and every body is entitled to a livable wage.

If it forces some companies to be more efficient, so much the better.

It is nice to see a business owner with a business exposed to labor costs making this point.

I agree, and there are many employees in Thailand that are paid more than 300B a day.

Because it is economically viable for those companies to do so.

However, there are also many companies/industries/businesses out there where it is not economically viable.

This election promise should never have been made as no government should be able to dictate business models, but hey, it got the votes in didn't it, the only reason it was made.

[tlansford]

The implication of that is that if an increase to a 300B minimum wage must fail, then any increase in the minimum wage in the past must have failed, too. This is clearly not true.

Slightly flawed observation. I agree minimum wages are a good thing however, I don't know of any other countries that hiked up the minimum with such a huge increase...........in some cases by 150%?

I may be wrong however.

It would seem that not raising it too much too fast was he reason for doing a 2 step increase. That increase was around 40%, not 150%. I have not memorized the numbers regarding what the final, maximum increase for Thailand will be once the 300B/day minimum wage comes into effect everywhere in January.

As Philw noted, for a lot of businesses and industries, the increase is irrelevant. The post from Rubl points out that the "burden" (love that wording) of the minimum wage is lessened due to productivity increases. In this case, if many companies are already in a position similar to Philw's, then the minimum wage increase could be viewed as catching up.

In any case, 300B / day is peanuts. I find it hard to believe any company's claim that this will put them out of business. It is not that companies won't go out of business, nor is it the case that the companies won't blame the minimum wage. I am certain that will happen.

[tlansford]

All of my staff make considerably more than 300 baht per day and we make a handcraft type product and have to compete against suppliers in China, Vietnam and Phils.

Which we can normally beat on price and quality.

Few people and certainly no quality workers, will work for less than 300bt per day and why should they be expected to ??

Wages have been too low, for too long and every body is entitled to a livable wage.

If it forces some companies to be more efficient, so much the better.

It is nice to see a business owner with a business exposed to labor costs making this point.

I agree, and there are many employees in Thailand that are paid more than 300B a day.

Because it is economically viable for those companies to do so.

However, there are also many companies/industries/businesses out there where it is not economically viable.

This election promise should never have been made as no government should be able to dictate business models, but hey, it got the votes in didn't it, the only reason it was made.

The government doesn't dictate the business model.

The minimum wage is to protect against exploitation. That is in the government's domain. Just as are all labor laws - safety, child labor, etc...

[tlansford]

Regarding minimum-wage and productivity:

"Business is all about making money. A minimum wage costs money. However, businesses can and do succeed despite having to pay a minimum wage. One of the reasons for this is that workers have become much more productive over the years. This makes the minimum wage less of a burden on business than it would otherwise be. This is the key relationship between minimum wage and productivity, but there are other aspects to consider as well."

http://www.ehow.com/...oductivity.html

That is a short little snippet. But as the rest points out, minimum wage and productivity are not related at all. The minimum wage is about a ... minimum wage. If that impacts a company, then the company has higher wages costs. This is the motivation for the company to increase the productivity of those jobs to reduce the impact of the minimum wage (if there is an impact).

In other words, either the job provides value at the minimum wage or the job goes away. But otherwise, minimum wage and productivity are not linked.

It was also noted in your link that the minimum wage has gone down (this was for the USA) 25% since its peak in the 60s. So unlike the snippet above, it is less of a burden not (only) because of increased productivity, but also because it is just plain lower.

[rubl]

So let the government enforce the 300B/day minimum wage. All those companies who can't or won't pay it can go out of business as they were not viable anyway.

now two questions

- how much will the unemployment rate change, not that it matters, it's below 1% anyway?

- what's the official unemployment benefit in Baht and for how long?

Of course, the government can stop companies from going out of business or force them to pay unemployment benefits. That's market mechanism abandoned by most by now though.

[Thaddeus]

All of my staff make considerably more than 300 baht per day and we make a handcraft type product and have to compete against suppliers in China, Vietnam and Phils.

Which we can normally beat on price and quality.

Few people and certainly no quality workers, will work for less than 300bt per day and why should they be expected to ??

Wages have been too low, for too long and every body is entitled to a livable wage.

If it forces some companies to be more efficient, so much the better.

It is nice to see a business owner with a business exposed to labor costs making this point.

I agree, and there are many employees in Thailand that are paid more than 300B a day.

Because it is economically viable for those companies to do so.

However, there are also many companies/industries/businesses out there where it is not economically viable.

This election promise should never have been made as no government should be able to dictate business models, but hey, it got the votes in didn't it, the only reason it was made.

The government doesn't dictate the business model.

...

By trying to dictate to all businesses an economically unrealistic wage structure for some, that is exactly what they are trying to do.

And as you say, those businesses will just go away, increasing unemployment in the process and placing an unnecessary burden on family members that are still employed, but of course they were only thinking about the ordinary people weren't they.

[rubl]

One of the Government's policies and the one implemented first was

"1.9 Reduce Corporate Income Tax to 23% in 2012 and to 20% in 2013 so as to generate competitiveness of the private sector, to broaden the tax base and to support entry to the ASEAN Community in 2015."

It has been said that this was also to help companies being faces with increased minimum wages. Is there any information on what companies profited from the reduced CIT rate and how that relates to the wage structure of their workforce?

[transam]

Can't think of any new government law that has ever worked here.

[tlansford]

- deleted -

It is nice to see a business owner with a business exposed to labor costs making this point.

I agree, and there are many employees in Thailand that are paid more than 300B a day.

Because it is economically viable for those companies to do so.

However, there are also many companies/industries/businesses out there where it is not economically viable.

This election promise should never have been made as no government should be able to dictate business models, but hey, it got the votes in didn't it, the only reason it was made.

The government doesn't dictate the business model.

...

By trying to dictate to all businesses an economically unrealistic wage structure for some, that is exactly what they are trying to do.

And as you say, those businesses will just go away, increasing unemployment in the process and placing an unnecessary burden on family members that are still employed, but of course they were only thinking about the ordinary people weren't they.

It's about labor laws, not business models.

Worker safety costs money. Not allowing companies to violate those laws is changing their business model?

Not letting companies exploit child labor or forcing companies to provide a safe working environment raises costs of doing business - is that dictating a business model? Well if you want to say "defining the rules under which companies do business" is defining their business model, then do so. It would be inaccurate, but in any case, governments not only have the right to do so, they have the obligation to do so. It is called protecting their citizens.

[Unkomoncents]

@ Phi Phi Don

Not really an English lesson, considering that "stupidest" is considered correct by most modern dictionaries. But thanks for providing other examples of exceptions to a rule. How to you handle "friendly"?

Credibility is not defined as being open, it is a description of state of being as in something that is regarded as credible is something that is worth believing in. I do not believe that the syrian regime is credible in any way state or form, hence my "wildly emotional reaction" to your post which, if you wish for a superlative, is still the most stupid post I have read on this forum.

Nit-picky at best, since openness would be a necessary precursor to establishing credibility. Congratulations on your beliefs. I presented evidence of behaviors I don't see the Thai government doing. Strange? Fine. Stupid? Explain how.

worth believing in

Only if that's how you want to word it. www.dictionary.com: Credible: "capable of being believed"

And yes, your "wildly emotional reaction" was hilarious. As is your reply.

[tlansford]

One of the Government's policies and the one implemented first was

"1.9 Reduce Corporate Income Tax to 23% in 2012 and to 20% in 2013 so as to generate competitiveness of the private sector, to broaden the tax base and to support entry to the ASEAN Community in 2015."

It has been said that this was also to help companies being faces with increased minimum wages. Is there any information on what companies profited from the reduced CIT rate and how that relates to the wage structure of their workforce?

"It has been said that this was also to help companies being faces with increased minimum wages. Is there any information on what companies profited from the reduced CIT rate and how that relates to the wage structure of their workforce?"

I've not seen any and this is one of the reasons I don't think the tax rate method was a good (ie: targeted) method to compensate for the increase in the minimum wage.

[rubl]

It's about labor laws, not business models.

Worker safety costs money. Not allowing companies to violate those laws is changing their business model?

Not letting companies exploit child labor or forcing companies to provide a safe working environment raises costs of doing business - is that dictating a business model? Well if you want to say "defining the rules under which companies do business" is defining their business model, then do so. It would be inaccurate, but in any case, governments not only have the right to do so, they have the obligation to do so. It is called protecting their citizens.

Tom, you're being too impatient. Thailand has a long way to go which cannot be done overnight. Even if some Western countries with their achievements could be used as role model, there is no way Thailand can do the same within a few years. To just tinker here, and a bit there, doesn't help. A structured approach is needed. If in Thailand citizens and especially workers were to be protected like in our home countries, most businesses would be ruined overnight with half the population without work.