Few Will Be Laid Off Due To Wage Increase: Thai Officials

[hansnl]

Those jobs the Thais won't do might start to look more attractive.

Those jobs have gone and are going to people from Laos, Cambodia, Birma and Vietnam.

Because they certainly are cheaper......

[dcutman]

If you can't afford to pay 300 baht a day then you shouldn't be in business in Thailand.

Some of the above responses would be funny if they were not being so serious.

If you don't like the price of things here then please do us all a favor and leave.

Here is an example for ya angsta.

I have a small company that makes clay pots. I employ 31 workers, I pay them the min wage B245 and provide lunch for them, give some special holidays, and a BBQ for them and there families ones a month. Most have been here over 2 years and seem to be happy.

I have been in contact with all of my customers this last week. I told them that there will a slight increase of B4.5 in my pots due to wage increases. 75% of my long time customers replied, they will no longer be buying my pots. I have been beating the bush trying to find new customers, with no success. If i cannot secure new orders within the next week, I will be giving all of my staff notice of closure, effective in 30 days.

Now what where you saying about how I should not be in business?

[Soi Dog]

Mixed feelings about this. On the one hand any statement from a Thai official should be taken with mountains of salt. On the other hand, I think the wage hike can be a good thing as it will help wake employers up to the fact that Thailand cannot be relied on as a low cost labor market. In fact, the low wage jobs tend to be filled by people from surrounding countries. There is in reality a labor shortage here and if this wage hike forces the issue to make companies more productive then it could be a good thing. However, I suspect that some of the companies will respond either by going off the grid or moving to other countries.

[asiawatcher]

I think these people in Govt are way out of touch. The price hike will cause a lot of Thai owners to simply seek alternative labour. Numbers quoted here are just a fabrication in trying to justify the 'policy'. Laos and Burma are more than willing to supply at the present rates or less and whilst Thai's at large tend to mistreat these foreigners more from a social contempt attitude than physical abuse, when it hits Thai's in the pocket, the decisions will more than likely be a spontaneous reaction. The numbers in the next few months - if anyone can rely on the sanitised reporting of the Thai media - should rebuke Phadermchai's drivel and denial.

So how is the reduction in corporate tax from 30 to 23% (& to 20% next year) going to affect these businesses then?

The same way the rise in social security payments will. Take from one and give to the other - same old pea shell game. And tax is paid on declared profit, and no-one reports actual. You may be an academic (if your avatar name is real) but you certainly are no businessman. Wages and SS generally cannot be faked easily. Revenue and expenses are way too easy. Wages and SS are accounted monthly. Revenue tax annually.

Edited November 23, 2012 by asiawatcher

[Moruya]

I think these people in Govt are way out of touch. The price hike will cause a lot of Thai owners to simply seek alternative labour. Numbers quoted here are just a fabrication in trying to justify the 'policy'. Laos and Burma are more than willing to supply at the present rates or less and whilst Thai's at large tend to mistreat these foreigners more from a social contempt attitude than physical abuse, when it hits Thai's in the pocket, the decisions will more than likely be a spontaneous reaction. The numbers in the next few months - if anyone can rely on the sanitised reporting of the Thai media - should rebuke Phadermchai's drivel and denial.

So how is the reduction in corporate tax from 30 to 23% (& to 20% next year) going to affect these businesses then?

Do you know what corporation tax is? Doesn't sound like it.

[angsta]

If you can't afford to pay 300 baht a day then you shouldn't be in business in Thailand.

Some of the above responses would be funny if they were not being so serious.

If you don't like the price of things here then please do us all a favor and leave.

I think you need a cop of hot, sweet tea and a dose of reality.

Labour intensive businesses selling low mark-up products will take a big hit. That will include a lot of Thai SMEs

Sent from my Nexus 7 using Thaivisa Connect App

For example?

How low a mark up do you think these businesses are working off?

[angsta]

If you can't afford to pay 300 baht a day then you shouldn't be in business in Thailand.

Some of the above responses would be funny if they were not being so serious.

If you don't like the price of things here then please do us all a favor and leave.

Here is an example for ya angsta.

I have a small company that makes clay pots. I employ 31 workers, I pay them the min wage B245 and provide lunch for them, give some special holidays, and a BBQ for them and there families ones a month. Most have been here over 2 years and seem to be happy.

I have been in contact with all of my customers this last week. I told them that there will a slight increase of B4.5 in my pots due to wage increases. 75% of my long time customers replied, they will no longer be buying my pots. I have been beating the bush trying to find new customers, with no success. If i cannot secure new orders within the next week, I will be giving all of my staff notice of closure, effective in 30 days.

Now what where you saying about how I should not be in business?

And what is your profit margin as a % of sale?

[Moruya]

If you can't afford to pay 300 baht a day then you shouldn't be in business in Thailand.

Some of the above responses would be funny if they were not being so serious.

If you don't like the price of things here then please do us all a favor and leave.

I think you need a cop of hot, sweet tea and a dose of reality.

Labour intensive businesses selling low mark-up products will take a big hit. That will include a lot of Thai SMEs

Sent from my Nexus 7 using Thaivisa Connect App

For example?

How low a mark up do you think these businesses are working off?

If they drive a Benz and use an iPhone 5 then it's a healthy business.

If they have a Nokia and a motorcycle or pick-up then you can figure it out.

[dcutman]

If you can't afford to pay 300 baht a day then you shouldn't be in business in Thailand.

Some of the above responses would be funny if they were not being so serious.

If you don't like the price of things here then please do us all a favor and leave.

Here is an example for ya angsta.

I have a small company that makes clay pots. I employ 31 workers, I pay them the min wage B245 and provide lunch for them, give some special holidays, and a BBQ for them and there families ones a month. Most have been here over 2 years and seem to be happy.

I have been in contact with all of my customers this last week. I told them that there will a slight increase of B4.5 in my pots due to wage increases. 75% of my long time customers replied, they will no longer be buying my pots. I have been beating the bush trying to find new customers, with no success. If i cannot secure new orders within the next week, I will be giving all of my staff notice of closure, effective in 30 days.

Now what where you saying about how I should not be in business?

And what is your profit margin as a % of sale?

Its not that much and its none of your business. I will be laying off 31 Thai workers, and you say I dont deserve to be in business, Whats your point? Dont worry I dont expect a response from somebody ignorant to reality. Edited November 23, 2012 by dcutman