Thailand's Construction Industry Faces Labour Shortage

[webfact]

Construction industry faces labour shortage

BANGKOK, Oct 24 - Thailand's construction industry is now facing labour shortage resulting in stagnancy of new projects, according to the Construction Institute of Thailand.

The institute director Chakporn Oonjitt said the construction industry cannot expand or begin new projects due to a severe labour shortage, particularly in housing development projects.

He said this resulted in the delay of housing transfers to home buyers, and predicted that the existing labour force is still insufficient for 2012-2013 state and private construction projects.

Mr Chakporn said the construction sector grew by 15 percent this year, with at least Bt900 billion investment cost, but project expansion could not reach the target it should have.

The National Statistical Office reported a shortage of at least 300,000 labourers, according to the the institute director, adding that the country's construction industry needs up to 2.9 million workers this year due to increasing projects, above averages of other years of 2.3-2.6 million.

Mr Chakporn also admitted that the average age of Thai labourers is also rising, while new generations preferring to work in service sector rather than in the construction industry which is branded as difficult and hard work.

He said the institute has worked with the labour ministry and educational institute to lay out construction curriculum so they can produce more workforce in the industry, while some fields of skilled labour work with higher pay will be reserved for Thais.

Mr Chakporn added that Thailand will be affected on certain levels after the Myanmar government launched a campaign to bring Myanmar migrant workers back home, as several mega infrastructure projects will be invested in to support the growth of the country and prepare to host the SEA Games in 2013. It is estimated that Myanmar needed a 100,000-strong workforce to run the projects.

According to data of the Thai labour ministry, he said, a workforce of at least 200,000 foreign labourers is needed for Thailand's construction industry. Most of them come from Myanmar, Laos and Cambodia. (MCOT online news)

-- TNA 2012-10-24

[HiSoLowSoNoSo]

I am sure that the Thais would do the work if the payment was good enough.

[Thai at Heart]

Better go invest in s

ome equipment instead if relying in an army if burmese worker ants.

[I Like Thai]

I know a Thai man that is a Supervisor with a construction company. He was saying that since the minimum wage was increased, all the Thai workers are not being re-employed on new projects. The bosses were employing cheaper Cambodian workers. He was complaining that they didn't understand him and that he couldn't get them to do the work because of this.

[Somtamnication]

Once Myanmar opens up, they will regret treating the Burmese workers as scum. Somnamna!!!

[jerrysteve]

That is because the hourly wage SUCKS...Any here who has done contruction a time in their life, knows its hard back breaking work...even if your highly skilled.

I don't know what kind of wage they pay their heavy equipment operatiors, I would guess its far less than what their counter parts make in the west...

Edited October 24, 2012 by jerrysteve

[Albacore]

That's what happens when people are expected to weld without eye protection and otherwise permanently damage their bodies for incredibly low wages.

[asiawatcher]

Talking to some guys in the biz, they tell me carpenters, concrete workers and 'electricians' (unqualified) get 7,000 Baht a month and work 0600 to 1900, work seven days a week until the construction is finished and are either housed in the tin shed humpies on site or share floor space arranged between them selves. They also said they have more than enough willing workers from all over the country but the bosses won't up the wages. So it is not a matter of labour not being available, it is a matter of the developers not paying for what is already, slave labour. There is always two sides to the story but sadly one will not get an airing.

Edited October 24, 2012 by asiawatcher

[Pormax]

Talking to some guys in the biz, they tell me carpenters, concrete workers and 'electricians' (unqualified) get 7,000 Baht a month and work 0600 to 1900, work seven days a week until the construction is finished and are either housed in the tin shed humpies on site or share floor space arranged between them selves. They also said they have more than enough willing workers from all over the country but the bosses won't up the wages. So it is not a matter of labour not being available, it is a matter of the developers not paying for what is already, slave labour. There is always two sides to the story but sadly one will not get an airing.

You are so right in what you say. My wife's two sisters and two cousins are down in Rayong working as labourers for 300B a day 8am to 5pm.

The problem they have is when it comes time for the boss to pay he says ' I no have money' They now have to borow money so they can eat. Now in UK you don't get paid then you down tools until you get your wages. But not in Thailand.

[lizardtongue]

The labor force no matter where it comes from is exploited, I hope that the construction work falls flat maybe then the people doing the back breaking work will get a fair day's pay.

My sister-in-law and hubby are working down south, living in squalor earning 300 THB a day, any money that is saved is simply eaten up when the work dries up and they have to move to another part of the country.

A sad state of affairs and one that I do not see changing in the near future.

[Moruya]

I am sure that the Thais would do the work if the payment was good enough.

Note the comment about hard work and difficult

[hellodolly]

That is because the hourly wage SUCKS...Any here who has done contruction a time in their life, knows its hard back breaking work...even if your highly skilled.

I don't know what kind of wage they pay their heavy equipment operatiors, I would guess its far less than what their counter parts make in the west...

so is their cost of living.

[toenail]

Working and living in Thailand for seven years, I have had enough conversations with CEO's of companies that cannot find enough Thais to work in their factories. The pay is good (I am talking about the industries in Mantra for example) including the benefits. There is too much of a turn-over. So, when I hear the poor farmers in Isaan whine about not having enough income, I wonder why they do not move to where the jobs are???? This is what happened a couple generations ago in North America and Europe - farmers moved from the small farms to the cities to make a better living. I think the whole problem of getting Thai workers to stay and work 8-10 hours a day is a "cultural" thing. Many Thais don't want to work that long, they want their breaks, long lunches, and sanook. So hiring Cambodians, and Laos will continue. (True, the construction work does not pay enough and will continue to illegally hire Cambodians to do the laborous work.)

[chiangmaikelly]

Once Myanmar opens up, they will regret treating the Burmese workers as scum. Somnamna!!!

Like the Burmese can't get across the border now?

[chiangmaikelly]

Talking to some guys in the biz, they tell me carpenters, concrete workers and 'electricians' (unqualified) get 7,000 Baht a month and work 0600 to 1900, work seven days a week until the construction is finished and are either housed in the tin shed humpies on site or share floor space arranged between them selves. They also said they have more than enough willing workers from all over the country but the bosses won't up the wages. So it is not a matter of labour not being available, it is a matter of the developers not paying for what is already, slave labour. There is always two sides to the story but sadly one will not get an airing.

You are so right in what you say. My wife's two sisters and two cousins are down in Rayong working as labourers for 300B a day 8am to 5pm.

The problem they have is when it comes time for the boss to pay he says ' I no have money' They now have to borow money so they can eat. Now in UK you don't get paid then you down tools until you get your wages. But not in Thailand.

Tell her to have them go to work for GM they are accepting applications daily.

[reader]

Documentary on national TV in Sweden yesterday highlighted the appauling conditions and abuses the Burmese have been experiencing in Thailand. The program clearly demonstated that Thailand does not treat non-Thais in the same fashion and openely descriminates against them with impunity. This behaviour in western eyes is clearly unacceptable and some now are questioning why tourists are even going to Thailand in the first place knowing that all of these abuses are not being picked by the authorities. No doubt you will see more Burmese returning home now that their country is starting to spread it's wings and are in their own right attracting more and more tourists. Thailand will certainly experience a shortfall of labour whilst such abuses exist.

[chiangmaikelly]

Documentary on national TV in Sweden yesterday highlighted the appauling conditions and abuses the Burmese have been experiencing in Thailand. The program clearly demonstated that Thailand does not treat non-Thais in the same fashion and openely descriminates against them with impunity. This behaviour in western eyes is clearly unacceptable and some now are questioning why tourists are even going to Thailand in the first place knowing that all of these abuses are not being picked by the authorities. No doubt you will see more Burmese returning home now that their country is starting to spread it's wings and are in their own right attracting more and more tourists. Thailand will certainly experience a shortfall of labour whilst such abuses exist.

The Burmese abuses have been going on for a long time; I doubt if anything will change. The labor keeps coming because Burma is worse. I don't see Burma getting any better for the next ten years or so if then.

[Payboy]

Most everyone knows that 3D (Dirty, Difficult or Dangerous) work is beneath the Thais.

Above post may contain matter offensive to some. Parental guidance is advised.

Edited October 24, 2012 by Payboy

[scorecard]

There's a large Tai Yai workfroce on my new Moo baan here in Chiang Mai.

The project manager and a couple of senior supervisors are Thai, all the rest are Tai Yai folks.

Why? Thai project manager says he prefers to have Tai Yai workers, they do good work, they're not lazy, and they are reliable. He also says he pays preium to get the best workers.

The Tai Yai workers tell me:

- Basic labor staff get 300Baht a day, plus they are paid overtime,

- Experienced staff doing detailed cement work / laying tiles / installing windows etc, get between 350 to 400Baht a day, plus overtime.

- They are paid on time,

- and 'boss is good man'.

[Somtamnication]

Very rare example of a good boss man. I do know that besides the 189b the local Burmese receive a day (yes, 188baht, not 300, or 200 per day), they are also in debt with the vegetable trucks that come around and charge huge prices for their daily purchases.

The drivers have the books and each Burmese takes the products to the driver, he in turn writes what was purchased and on pay day, he gets his money.

You think Tops and Villa is expensive. Wait till you see the prices these poor folks pay.

[Kalbo]

Talking to some guys in the biz, they tell me carpenters, concrete workers and 'electricians' (unqualified) get 7,000 Baht a month and work 0600 to 1900, work seven days a week until the construction is finished and are either housed in the tin shed humpies on site or share floor space arranged between them selves. They also said they have more than enough willing workers from all over the country but the bosses won't up the wages. So it is not a matter of labour not being available, it is a matter of the developers not paying for what is already, slave labour. There is always two sides to the story but sadly one will not get an airing.

You are so right in what you say. My wife's two sisters and two cousins are down in Rayong working as labourers for 300B a day 8am to 5pm.

The problem they have is when it comes time for the boss to pay he says ' I no have money' They now have to borow money so they can eat. Now in UK you don't get paid then you down tools until you get your wages. But not in Thailand.

Tell them to come work for me in Chonburi. I pay B9,000/ month wage, along with good overtime, very well subsidized lunch along with free rice (all you can eat), hospital and accident insurance, travel expenses, etc etc etc etc. My staff turnover is extremely low, but if they are lazy then forget it.

[Bender]

A decade ago Burmese used to get paid as low 77 baht per day.

After they wonder why nobody want these dangerous job.

Edited October 24, 2012 by Bender

[hellodolly]

Thailand would have a unemployed work force of Thai's if every Thai did a days work in a day. There would be no need for Burmese workers.

Other than the fact they will work for less.

But that should change when every body gets a minimum of 300 baht a day.

Now that I think about it isn't 300 baht a day ridiculously high for a politician?

[dcutman]

Talking to some guys in the biz, they tell me carpenters, concrete workers and 'electricians' (unqualified) get 7,000 Baht a month and work 0600 to 1900, work seven days a week until the construction is finished and are either housed in the tin shed humpies on site or share floor space arranged between them selves. They also said they have more than enough willing workers from all over the country but the bosses won't up the wages. So it is not a matter of labour not being available, it is a matter of the developers not paying for what is already, slave labour. There is always two sides to the story but sadly one will not get an airing.

A Thai construction worker go to work at 0600. Thats a laugh. Most Thai construction workers work 0818 to 1647 and in those 71/2 hours you are lucky to get 21/2 hours work out of them. Edited October 24, 2012 by dcutman

[dcutman]

Talking to some guys in the biz, they tell me carpenters, concrete workers and 'electricians' (unqualified) get 7,000 Baht a month and work 0600 to 1900, work seven days a week until the construction is finished and are either housed in the tin shed humpies on site or share floor space arranged between them selves. They also said they have more than enough willing workers from all over the country but the bosses won't up the wages. So it is not a matter of labour not being available, it is a matter of the developers not paying for what is already, slave labour. There is always two sides to the story but sadly one will not get an airing.

You are so right in what you say. My wife's two sisters and two cousins are down in Rayong working as labourers for 300B a day 8am to 5pm.

The problem they have is when it comes time for the boss to pay he says ' I no have money' They now have to borow money so they can eat. Now in UK you don't get paid then you down tools until you get your wages. But not in Thailand.

I live in Rayong, I can say you are correct about the boss screws the labor a lot on wages. Most laborers are Cambodians down here, so thats typical Thai, and they do put down their tools, leave and never come back. The few Thai's that are working construction here, are worthless, I wouldn't pay them B100 a day.

[h90]

That's what happens when people are expected to weld without eye protection and otherwise permanently damage their bodies for incredibly low wages.

Actually the other way...my people almost refuse to use eye protection. Only after I forced them to use it, they did (and yes I explained why it is necessary). Of course when I checked back 5 later they didn't use it again.

Reason:

you sweat behind it

you don't see well where you start

[Johpa]

Working and living in Thailand for seven years, I have had enough conversations with CEO's of companies that cannot find enough Thais to work in their factories. The pay is good (I am talking about the industries in Mantra for example) including the benefits. There is too much of a turn-over. So, when I hear the poor farmers in Isaan whine about not having enough income, I wonder why they do not move to where the jobs are???? This is what happened a couple generations ago in North America and Europe - farmers moved from the small farms to the cities to make a better living.

And why would anyone want to move to a large Asian primate city to live in a crowded tenement apartments (this is indeed what immigrants did in the US a century ago) to work for a pittance in the heat for unbearable hours and with relentless sexual exploitation (which your CEO buddies are hiding from your

naiveté). Yes young people with dreams and immigrants with no other options will fill these labor positions, but someone with even a little land and some seasoning behind them would know better than to enter the capitalist trap and will instead argue (you call it whining as it is against your interests) against the gaming of the system to displace them. And then of course there is the ethnic aspect of moving into the heart of the Sino-Thai heartland where one will become a despised minority. Or, after seven years are you still unaware that in Isaan and up north in Khon Muang country that to be referred to as "pen khon thai" is to be called "not one of us".

[chiangmaikelly]

Working and living in Thailand for seven years, I have had enough conversations with CEO's of companies that cannot find enough Thais to work in their factories. The pay is good (I am talking about the industries in Mantra for example) including the benefits. There is too much of a turn-over. So, when I hear the poor farmers in Isaan whine about not having enough income, I wonder why they do not move to where the jobs are???? This is what happened a couple generations ago in North America and Europe - farmers moved from the small farms to the cities to make a better living.

And why would anyone want to move to a large Asian primate city to live in a crowded tenement apartments (this is indeed what immigrants did in the US a century ago) to work for a pittance in the heat for unbearable hours and with relentless sexual exploitation (which your CEO buddies are hiding from your

naiveté). Yes young people with dreams and immigrants with no other options will fill these labor positions, but someone with even a little land and some seasoning behind them would know better than to enter the capitalist trap and will instead argue (you call it whining as it is against your interests) against the gaming of the system to displace them. And then of course there is the ethnic aspect of moving into the heart of the Sino-Thai heartland where one will become a despised minority. Or, after seven years are you still unaware that in Isaan and up north in Khon Muang country that to be referred to as "pen khon thai" is to be called "not one of us".

I think they are talking about moving to Rayong and working for an auto factory. Not many hookers in Rayong and as far as "relentless sexual exploitation" as you wrote there is none and chances are a tenement will be a 3 bedroom single family home shared by two or three people.

[fatman0757]

All this low wage business is rubbish I employ good tradesman and to keep them I have to pay 15,000 baht a month and more. Most of our work is in condos so you can only work an eight hour day and a five day week. If you are good you will get the money

[hellodolly]

All this low wage business is rubbish I employ good tradesman and to keep them I have to pay 15,000 baht a month and more. Most of our work is in condos so you can only work an eight hour day and a five day week. If you are good you will get the money

Just out of curiosity how long have you been doing this and how many workers do you go through before you get a good one and what percentage of the good ones are Thai?