Daily Minimum Wage Increase To Bt300 Falls Behind Living Costs: Thai Study

[webfact]

Wages fall behind living costs: study

The Nation

BANGKOK: -- The daily minimum wage increase to Bt300, in effect since April 1, has not kept pace with daily living costs, according to a survey reported yesterday by the Thai Labour Solidarity Committee (TLSC).

As of this past May, daily expenses averaged Bt462.31 - Bt113.92 more than August 2011, the survey said. Workers' debts rose to approximately 30 to 40 per cent of their incomes.

The survey, conducted on 2,516 workers in eight provinces including Bangkok, found that 76 per cent saw their wage increase after April, while 18 per cent got the raise with conditions; 5.1 per cent received no wage hike, despite the law.

TLSC chairman Chalee Loysung suggested that the daily minimum wage should be Bt348 and that it should be imposed nationwide. He urged the government to strictly control goods prices to ensure the cost of living doesn't outstrip wages. He also called for the elimination of provincial wage sub-committees in favour of a central committee. There should also be a clear structure of salaries for skilled labourers apart from the minimum wage for unskilled workers.

-- The Nation 2012-08-17

[MaxLee]

That was a stupid implemented policy from the start, but as it is typical with Thai politics, nothing has web thought of about the consequences of such a critical issue...

[whybother]

The survey, conducted on 2,516 workers in eight provinces including Bangkok, found that 76 per cent saw their wage increase after April, while 18 per cent got the raise with conditions; 5.1 per cent received no wage hike, despite the law.

How many of these were already above minimum wage?

[Pdaz]

All well and good pushing the wages up but what happens when the employers decide that they can't support the dead weight of surplus workers ? You only have to go into any of the big stores or malls to see staff playing on their phones or standing around. Guess this isn't a problem at 25 baht an hour but if wages increase and they become a larger part of the company overhead I can see plenty of Thais being made redundant. I had four guys arrive yesterday to fix a phone line/PC problem yesterday. Most anywhere else in the World it was a one man job.

They still took an hour to confirm what I had already told them. Had to show them how to use their TDR too

Unless staff become more efficient, work harder and put some effort into their work I can't see any return for the employers.. And that means trimming the fat to continue making a profit.

This is the same <deleted> the West has been thru. Increase wages, increase the cost of business and then finally price themselves out of the market and manufacturing/business etc moves somewhere cheaper and less regimented. Unless the Thai workforce can offer something that others can't raising wages is a false move.

[GentlemanJim]

Such a pity that this country is run by people who never had to achieve or learn at school and Uni. Everything was paid for regardless of performance or ability and the right money bought the right grades, from Science Ministers to PM's to ex PM's to most of them with a 'Doctorate'. There is only one guy with a functioning brain in his head and that is Abhisit, but sadly that is what makes him different from the crowd and therefore unwelcome.

[jackr]

This was inevitable and a totally irresponsible policy in the first place--other costs were always going to rise because of it. But unless it is wholesale, on top of higher prices all-round, what you end up with is utterly shafting the poor guy who didn't get one!

[Moruya]

Spiralling wages increase inflation.

Spiralling inflation increases wages.

The losers are those who pay a higher proportion if their earnings on food - the lower paid.

Thaksinomics meets Mugabe

[fareastguy]

Actually I think in my humble opinion the "government' once again is showing it's complete lack of understanding & education!!

Shouldn't they be talking about a minimum "hourly rate" as apposed to a day rate.

I mean what constitutes a working day????

6 hours like the government officials, 8 hours such as office employees or 10, 12 or even more like in the real world!!

Let the people be paid for what hours they work, theres a big difference between Bt300 fo 8 hours than Bt300 for 12 hours!!

I'm sure someone can work out the hourly rate for skilled workers then a pro-rata rate for semi-skilled un-skilled etc

Then it's up to the employer to work out how many hours each employee works per week/month.

Also many "canny" employers pay a daily minimum retainer for each day with the employee having to make up the rest with percent payment from sales,

this is why you see so many staff at large department stores all vying for your purchase.

This practice should be outlawed & let them be paid for a fair day's work in relation to the hours they are clocked in!!

[tlansford]

The survey, conducted on 2,516 workers in eight provinces including Bangkok, found that 76 per cent saw their wage increase after April, while 18 per cent got the raise with conditions; 5.1 per cent received no wage hike, despite the law.

How many of these were already above minimum wage?

0, or is that too hard to figure out, Whybother?

[tlansford]

Spiralling wages increase inflation.

Spiralling inflation increases wages.

The losers are those who pay a higher proportion if their earnings on food - the lower paid.

Thaksinomics meets Mugabe

Imagine where the min wage workers would be today if they were still making 150B/day...

Moruya meets Mugabe

[Ricardo]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

[Moruya]

The survey, conducted on 2,516 workers in eight provinces including Bangkok, found that 76 per cent saw their wage increase after April, while 18 per cent got the raise with conditions; 5.1 per cent received no wage hike, despite the law.

How many of these were already above minimum wage?

0, or is that too hard to figure out, Whybother?

0.9% were lost in the counting - maybe they got the new minimum wage.

Maybe they died waiting.

[tlansford]

By my count, this is now the 3rd article which has come from the perspective of the TLSC - compared to dozens from TDRI and The Nation's general pro-business perspective.

The TLSC has pointed out that some companies do not comply with the law. Here they point out that the increase has not kept up with the cost of living. (BTW, the cost of living increases are not due to the minimum wage as some posters above seem to believe).

The TLSC is doing its job to point out the conditions in which the lowest wage workers live. It is an important perspective to highlight and discuss, otherwise, we just get the business lobby in their BMWs telling the public how Thailand won't be competitive if people are paid enough to live on.

I am a businessman and I don't feel sorry for any business in Thailand (or anywhere else) that is larger than a mom & pop shop. If a business has minimum wage jobs, then they should pay the minimum wage with pleasure - it is a hell of a deal for them.

[h90]

That was a stupid implemented policy from the start, but as it is typical with Thai politics, nothing has web thought of about the consequences of such a critical issue...

Thailand invite millions of cheap labor from Cambodia and Myanmar and wonder why the payments are low.

If you cut slightly, year per year on these foreign labor (or with good economic grow keep them stable), automatically the salaries will raise and the companies will try to work more efficient (having 1 CNC machine with a skilled person instead of 5 unskilled on manual lathes...just as example).

And even if they want to change the minimum salary, than best would be countrywide slow increases, like every 3 month 10 Baht.

[tlansford]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

you know that all the other provinces received an average 40% increase in the minimum wage in April and will have the 300 B in January, .... don't you?

[MaxLee]

That's why I see more people from Burma doing the labor work that Thai people would normally do, like yesterday at a seafood restaurant.

Whenever you go to the toilet or any cafeteria of any language school, listen carefully to what people are saying, and you will notice it doesn't sound Thai language at all. I take it with a grin, because actually the language school I go to, where a bunch of Burnese laborers work, the food that they cook is actually really gooood!!!!!! So I can't really complain, and thru seem friendly, too.

Just a hint... Thai people in Bangkok are becoming expensive for the most basic labors as they are reaced by cheap laborers dfron their neighboring countries...

Edited August 17, 2012 by MaxLee

[chainarong]

The guide line most counties adopt is automatic adjustment in line with the CPI, however here we have some elitist committee arranging the lives of ordinary working Thai's, whats new.

[GentlemanJim]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

you know that all the other provinces received an average 40% increase in the minimum wage in April and will have the 300 B in January, .... don't you?

No they didn't, and no they won't. Take that as first hand information from somebody sat in Thailand rather than the states.

[trainman34014]

I have a Female neighbour who earns 6,000 Baht a month and supports a family of five on it. I say support because she is the only one working at present and she has a Government job. Her salary is 300 Baht per day as a Hospital cleaner. Her sister had a good job on 8,000 a month in town until she had a Motorcycle accident, but now she is injured and cannot work for several months, she gets no wages at all until she returns to work but ,as she puts it, she is 'lucky' because her boss has told her he will hold her job open. Basically the family survives with only enough to buy very basic food supplies and people like my wife help them out with some extra food from our budget for the young 9 year old kid etc. The only man in the family is 85 and cannot work and the Mother is 79 and partially incapacitated. If there were five people earning the basic 300 a day they would be rich by Thai rural standards but many families have only one or two wage earners. There are literally hundreds of families living around our area alone that are just surviving and it seems plainly obvious to anyone with half a brain that it will stay this way for a long time to come, no matter which political party are at the helm.

Edited August 17, 2012 by trainman34014

[Ricardo]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

you know that all the other provinces received an average 40% increase in the minimum wage in April and will have the 300 B in January, .... don't you?

Yes, Thanks, I did know that.

But right now they're still waiting for the 300B/day immediate universal minimum-wage they were promised pre-election, are they not ?

[jaltsc]

"TLSC chairman Chalee Loysung suggested that the daily minimum wage should be Bt348 and that it should be imposed nationwide. He urged the government to strictly control goods prices to ensure the cost of living doesn't outstrip wages. He also called for the elimination of provincial wage sub-committees in favour of a central committee. There should also be a clear structure of salaries for skilled labourers apart from the minimum wage for unskilled workers."

Is that your solution?...Pseudo Socialism?.

Hey....It's called "Inflation"!!!...You raise expenses (Hint: Minimum Wage), then the business has to raise its prices. After all, they are businesses, not welfare agencies. So when the minimum wage is raised 50%...Yes...a 100 THB increase equals a 50% increase...not only do the large businesses raise their prices, but the little noodle stand which might not be as affected by the minimum wage increase, figures it's OK to raise its price from 10 to 15 THB. At the end, the overall inflation is considerably more than just the increase in the minimum wage. Pass whatever economic laws you want. The laws of supply and demand will beat your laws 100% of the time.

[whybother]

The survey, conducted on 2,516 workers in eight provinces including Bangkok, found that 76 per cent saw their wage increase after April, while 18 per cent got the raise with conditions; 5.1 per cent received no wage hike, despite the law.

How many of these were already above minimum wage?

0, or is that too hard to figure out, Whybother?

Where does it say that? Do you have access to other information on the poll that we don't?

Sent from my HTC phone.

[MaxLee]

"TLSC chairman Chalee Loysung suggested that the daily minimum wage should be Bt348 and that it should be imposed nationwide. He urged the government to strictly control goods prices to ensure the cost of living doesn't outstrip wages. He also called for the elimination of provincial wage sub-committees in favour of a central committee. There should also be a clear structure of salaries for skilled labourers apart from the minimum wage for unskilled workers."

Is that your solution?...Pseudo Socialism?.

Hey....It's called "Inflation"!!!...You raise expenses (Hint: Minimum Wage), then the business has to raise its prices. After all, they are businesses, not welfare agencies. So when the minimum wage is raised 50%...Yes...a 100 THB increase equals a 50% increase...not only do the large businesses raise their prices, but the little noodle stand which might not be as affected by the minimum wage increase, figures it's OK to raise its price from 10 to 15 THB. At the end, the overall inflation is considerably more than just the increase in the minimum wage. Pass whatever economic laws you want. The laws of supply and demand will beat your laws 100% of the time.

May I kindly ask you, where you got this information from?

[whybother]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

you know that all the other provinces received an average 40% increase in the minimum wage in April and will have the 300 B in January, .... don't you?

No they didn't, and no they won't. Take that as first hand information from somebody sat in Thailand rather than the states.

They were supposed to. The implementation leaves a little to be desired.

Sent from my HTC phone.

[GentlemanJim]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

you know that all the other provinces received an average 40% increase in the minimum wage in April and will have the 300 B in January, .... don't you?

No they didn't, and no they won't. Take that as first hand information from somebody sat in Thailand rather than the states.

They were supposed to. The implementation leaves a little to be desired.

Sent from my HTC phone.

Well, that's the trick! Until something is effectively implemented it is all just words and bluster, and whilst this issue remains only partly implemented it will continue to cause chaos in the economic sector of the poor.

Edited August 17, 2012 by GentlemanJim

[Moruya]

Spiralling wages increase inflation.

Spiralling inflation increases wages.

The losers are those who pay a higher proportion if their earnings on food - the lower paid.

Thaksinomics meets Mugabe

Imagine where the min wage workers would be today if they were still making 150B/day...

Moruya meets Mugabe

This maybe a tad off-topic, but please tell me - do you think that the implementation of the 'rice pledging scheme' has been a raging success or abject failure for the poor rice farmers, as I know what your initial feelings were on this?

In pure vote buying terns it was a success.

In terms of benefiting the farmer it was a failure. I shall be up with my family in darkest Isaan this weekend and that is their opinion.

In terms of bringing the Thai agriculture sector along, it was a waste of money that could have been put into much better things - agriculture colleges, efficiency, use of chemicals, providing equipment for village use

More of the stone age I'm afraid

[TheFishman1]

So do all the people now get 300 bht per day?

[mic6ard]

It's impossible to implement totally. I, for one, can't see wage rising with out being followed by living cost increase.

Work places are going to get rid of extra people, are would probably be running on bare minumum to cover vacations, etc. I know mine already is.

On that note, has anybody notice a change in spending pattern of shoppers? I'm seeing a drop in spending/person trend going on.

[tlansford]

Heaven help the majority of workers, who didn't even get the (9 months !) late-delivered only-a-pre-election-promise minimum-wage of 300B/day, because they don't live in the handful of provinces which did receive it !

One can argue about the theoretical economic rights/wrongs of this headline-policy of PTP, meanwhile the poor continue to suffer under this government, time perhaps for the Big Boss overseas to put his thinking-cap on again !

you know that all the other provinces received an average 40% increase in the minimum wage in April and will have the 300 B in January, .... don't you?

Yes, Thanks, I did know that.

But right now they're still waiting for the 300B/day immediate universal minimum-wage they were promised pre-election, are they not ?

Ah, so on August 9th 2011 everyone was promised to have 300B / day min wage?

Now I see where the "untruths" begin... which clarifies your (as we now know) purposeful omission of the increase everyone already received.

And it would be far too much to expect that you would consider adding why the delay came about, a concession to the business lobby to raise the rate more gently... Which by the way was also the demand from anti-minimum wage posters here. And even though the policy was generated by a 3 party wage commission, including the business lobby, the imagined failures of the result are clearly just the fault of the government?

But you see, when something is, after all, done in a reasonable way, the whiners on TVF still need to find an excuse to complain and a reason to blame the gov't for something just because a day with slamming the PTP is like a day without sunshine...

[tlansford]

- deleted for quotation limits -

How many of these were already above minimum wage?

0, or is that too hard to figure out, Whybother?

Where does it say that? Do you have access to other information on the poll that we don't?

Sent from my HTC phone.

Please read this part of the article ... again, ... very carefully. Repeat if you need to...

The survey, conducted on 2,516 workers in eight provinces including Bangkok, found that 76 per cent saw their wage increase after April, while 18 per cent got the raise with conditions; 5.1 per cent received no wage hike, despite the law.

And then tell me if you honestly feel that they did a survey of non-min-wage workers... No, never mind - I don't need to know.