Firms Hire Cambodian Workers Under Mou

[Lite Beer]

Firms hire Cambodian workers under MoU

The Nation on Sunday

BANGKOK: -- Thai factories have opted to hire Cambodian workers under a memorandum of understanding between Cambodia and Thailand after the Bt300 minimum wage policy came into effect for Thai workers across the country.

A total of 154 Cambodians - 118 men and 36 women - with work permit documents crossed the border in Sa Kaew's Aranyaprathet district on Monday.

Four companies brought buses and vans to pick up the Cambodian workers, Lt-Colonel Benchapol Rawdsawat, deputy superintendent of Sa Kaew Provincial Immigration Division, said.

Although legal migrant workers are entitled to the Bt300 minimum wage, Thai factory owners can pay them less by making deductions from their salaries for electricity, water and accommodation expenses. Besides, they said Thai workers were too demanding.

He said Cambodian factories had complained that they were facing a labour shortage because locals have chosen to migrate to Thailand as they can enjoy three times higher wages. Cambodian factory owners also face protests from workers demanding a rise in monthly wages from Bt1,500-Bt2,500 to Bt4,500-Bt6,000.

Ranong Provincial Federation of Thai Industries chairman Krissana Iamwongnathee said the rise in the minimum wage adversely affected industries in the province where 32 factories are preparing to import machinery to replace labour. He said although machinery requires huge capital outlay, it is worth the investment in the long term. Others are planning to shift their manufacturing base to neighbouring countries after formation of the Asean Economic Community in 2015.

Ranong has more than 300 companies, which operate sea-food processing factories and hire more than 80,000 migrant workers.

He said the Federation of Thai Industries for 14 southern provinces all agreed they needed time to adjust and have called on the government to help business operators absorb the financial burden from the wage increase by financially supporting factories through grace periods. For instance, the government could support the wage rise at a ratio of 75:25 this year and 50:50 in 2014 and 25:75 in 2015 and in 2016 business operators wholly pay for the wage hike.

Trang Provincial Federation of Thai Industries chairman Withi Supitak said the wage rise would hurt small firms in the long term. Many factory owners in the province had adjusted by cancelling special welfare that they normally provide to staff in order to save costs, or by laying off workers who are not productive and hiring only high-quality workers. He believed companies would not close down immediately but try cutting costs first and determine within six months if they can survive.

As of now, eight factories in Tak closed down following the first round of the minimum daily wage increase of 40 per cent in April last year, putting 1,343 workers out of work.

Tak Provincial Federation of Thai Industries chairman Chaiwat Withit-thammawong claimed since the Bt300 wage had come into effect, factories would have to shoulder an 80 per cent increase in wage costs and thus would struggle to survive. They may have to take steps like slashing contributions to the social security fund from five to four per cent. Supportive measures by the government would not help them sustain their operations. It was likely that in three months, many factories, most of which are SMEs, would start to shut down one by one.

But Deputy Premier Kittiratt Na-Ranong has insisted that while the private sector faces higher costs, they would benefit in the long run because workers would have more purchasing power to buy their products.

He said it was time Thailand shifted from being a production base for labour-intensive industries to higher-quality products. He said factory closures were normal and he did not believe the wage hike was the main factor behind some companies closing down.

The government could not provide direct financial support to business operators by absorbing the wage rise but would help SMEs with liquidity and boosting business potential.

-- The Nation 2013-01-06

[Lite Beer]

Wage hike forces Thai firms hire Cambodians

The Nation on Sunday

BANGKOK: -- Thai factories have opted to hire Cambodian workers under a memorandum of understanding between Cambodia and Thailand after the Bt300 minimum wage policy came into effect for Thai workers across the country.

A total of 154 Cambodians - 118 men and 36 women - with work permit documents crossed the border in Sa Kaew's Aranyaprathet district on Monday.

Four companies brought buses and vans to pick up the Cambodian workers, Lt-Colonel Benchapol Rawdsawat, deputy superintendent of Sa Kaew Provincial Immigration Division, said.

Although legal migrant workers are entitled to the Bt300 minimum wage, Thai factory owners can pay them less by making deductions from their salaries for electricity, water and accommodation expenses. Besides, they said Thai workers were too demanding.

He said Cambodian factories had complained that they were facing a labour shortage because locals have chosen to migrate to Thailand as they can enjoy three times higher wages. Cambodian factory owners also face protests from workers demanding a rise in monthly wages from Bt1,500-Bt2,500 to Bt4,500-Bt6,000.

Ranong Provincial Federation of Thai Industries chairman Krissana Iamwongnathee said the rise in the minimum wage adversely affected industries in the province where 32 factories are preparing to import machinery to replace labour. He said although machinery requires huge capital outlay, it is worth the investment in the long term. Others are planning to shift their manufacturing base to neighbouring countries after formation of the Asean Economic Community in 2015.

Ranong has more than 300 companies, which operate sea-food processing factories and hire more than 80,000 migrant workers.

He said the Federation of Thai Industries for 14 southern provinces all agreed they needed time to adjust and have called on the government to help business operators absorb the financial burden from the wage increase by financially supporting factories through grace periods. For instance, the government could support the wage rise at a ratio of 75:25 this year and 50:50 in 2014 and 25:75 in 2015 and in 2016 business operators wholly pay for the wage hike.

Trang Provincial Federation of Thai Industries chairman Withi Supitak said the wage rise would hurt small firms in the long term. Many factory owners in the province had adjusted by cancelling special welfare that they normally provide to staff in order to save costs, or by laying off workers who are not productive and hiring only high-quality workers. He believed companies would not close down immediately but try cutting costs first and determine within six months if they can survive.

As of now, eight factories in Tak closed down following the first round of the minimum daily wage increase of 40 per cent in April last year, putting 1,343 workers out of work.

Tak Provincial Federation of Thai Industries chairman Chaiwat Withit-thammawong claimed since the Bt300 wage had come into effect, factories would have to shoulder an 80 per cent increase in wage costs and thus would struggle to survive. They may have to take steps like slashing contributions to the social security fund from five to four per cent. Supportive measures by the government would not help them sustain their operations. It was likely that in three months, many factories, most of which are SMEs, would start to shut down one by one.

But Deputy Premier Kittiratt Na-Ranong has insisted that while the private sector faces higher costs, they would benefit in the long run because workers would have more purchasing power to buy their products.

He said it was time Thailand shifted from being a production base for labour-intensive industries to higher-quality products. He said factory closures were normal and he did not believe the wage hike was the main factor behind some companies closing down.

The government could not provide direct financial support to business operators by absorbing the wage rise but would help SMEs with liquidity and boosting business potential.

-- The Nation 2013-01-06

[Moruya]

Another kick to the balance of payments' nether regions.

The plus for these factories will be training a workforce in Cambodia for free.

[mccw]

Genius

[Markaew]

"Although legal migrant workers are entitled to the Bt300 minimum wage, Thai factory owners can pay them less by making deductions from their salaries for electricity, water and accommodation expenses. Besides, they said Thai workers were too demanding."

This is an understatement. Thai workers in general have to be laziest people on the planet with absolutely no work ethic. Their phones have a higher priority than their jobs. They get insulted if you disturb their texting. As with any competition, the Thais will need to change their ways to compete in the new AEC. This is just the beginning. For once, the Thai government was smart (maybe by accident) to introduce international competition on a small scale before the real shock comes when the AEC is implemented.

[djayz]

I know of one factory just outside Korat City has been hiring Cambodians (and Laotians as well I think) since mid November 2012. These employees are given a place to stay in a newly build block of flats just opposite the factory. 4 per room, 280 rooms in total (go do the math). Rent, electricity, etc. will be deducted by the employer and paid directly to the landlord.

Because they're "cheaper" than Thais...

I'm sure this is just the tip of the iceberg.

[MEL1]

I know of one factory just outside Korat City has been hiring Cambodians (and Laotians as well I think) since mid November 2012. These employees are given a place to stay in a newly build block of flats just opposite the factory. 4 per room, 280 rooms in total (go do the math). Rent, electricity, etc. will be deducted by the employer and paid directly to the landlord.

Because they're "cheaper" than Thais...

I'm sure this is just the tip of the iceberg.

I'm sure the landlord owns the factory too!

-mel.

[Thai at Heart]

I know of one factory just outside Korat City has been hiring Cambodians (and Laotians as well I think) since mid November 2012. These employees are given a place to stay in a newly build block of flats just opposite the factory. 4 per room, 280 rooms in total (go do the math). Rent, electricity, etc. will be deducted by the employer and paid directly to the landlord.

Because they're "cheaper" than Thais...

I'm sure this is just the tip of the iceberg.

I'm sure the landlord owns the factory too!

-mel.

Of course he does.

[seajae]

The only ones to benefit from this are those not living in Thailand, they will get all the work and the thais will all be sitting on their bums. How this will leed to more spending on the products made has me beat, just another way for the govt to say its not our fault you are being screwed.

[crazygreg44]

I know of one factory just outside Korat City has been hiring Cambodians (and Laotians as well I think) since mid November 2012. These employees are given a place to stay in a newly build block of flats just opposite the factory. 4 per room, 280 rooms in total (go do the math). Rent, electricity, etc. will be deducted by the employer and paid directly to the landlord.

Because they're "cheaper" than Thais...

I'm sure this is just the tip of the iceberg.

Exactly, and I would not be surprised if the "foreigners" are being charged double or triple the actual expenses. They are only there at will of the landlord. And they will make sure their magic power wands work.

[EyesWideOpen]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

[annabel]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Well I do not entirely agree with the minimum wage increase... however.... Thais are paid a very low wage and no! .. I am not saying that paying them more will increase their performance and / or loyalty but when I see some maebans working for me / others and doing 2 -3 jobs at the same time 7/24 to support their Mother/ Father and 3 children because the Thai Drunkard husband left them high & dry, I have to say I have second thoughts about us foreigners haggling over paying them a bit more ... 300 Baht a day is 9,000 baht per month = 300 USD for 30 days work at 8 hours per day = 10 USD PER DAY!!! ....Hell , where in your country can you find someone to do this shit work or ANYTHING for you at 10 $$ / per day??? it's more like 10$$ per hour and HONESTLY ... THEY ALSO RIP YOU OFF AND DO SHITTY WORK!! ... I am not against this increase at all but I think it should have been in the tune of 250 Baht per day for like 1 or 2 years max and then another increase thereafter... the cost of living has gone up SOO MUCH over the past 2 years for all of us and so why shouldn't they get a higher salary to compensate also..?? Business people are all increasing their prices so why are they not increasing their employees salaries ?? Let's get a bit of reality in here no?? You all want western standards in your life styles here but are not willing to pay for it and by which I mean pay a little more to get a little closer to it... If I were a Thai lady and was expected to work as a perfect Western type of Maeban for 150 / 200 Baht per day, and then go home to cook and look after the family I would have 2nd thoughts also ... better to get a little noodle shop going on my own for sure than work for an obnoxious farang who thinks the 150 Baht per day he/ she is giving me is a gold mine ... and expect me to have their house spic&span and also look after their brats ... And that is another reason why you hear and see so many foreigners complaining about being able to find good Maebans or house help ... Noodle shop is more appealing to them for sure ...... Food for thought !

[MEL1]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Those on the ladder of success here don't give a money's where their employees come from. As long as the turn-over is flowering, and the Beamer or Benz is paid for, or a Porsche is able to be ordered, believe you me they care not a jit. It's not ironic. It's simply the way a third world country begins to develop into a second one; and for what one of those is credited for I am not sure.

I believe, if most of us had been born here, and had had the opportunity of the knowldege of the culture from the West with it's ideas of success. then most of us would be doing the same, if owners of companies of our own in Thailand.

-mel.

[Thai at Heart]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Those on the ladder of success here don't give a money's where their employees come from. As long as the turn-over is flowering, and the Beamer or Benz is paid for, or a Porsche is able to be ordered, believe you me they care not a jit. It's not ironic. It's simply the way a third world country begins to develop into a second one; and for what one of those is credited for I am not sure.

I believe, if most of us had been born here, and had had the opportunity of the knowldege of the culture from the West with it's ideas of success. then most of us would be doing the same, if owners of companies of our own in Thailand.

-mel.

Mel, i wholeheartedly agree with your sentiments about business owners. But....

This mou has to be closed or, any changes are pointless.

Edited January 6, 2013 by Thai at Heart

[MEL1]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Well I do not entirely agree with the minimum wage increase... however.... Thais are paid a very low wage and no! .. I am not saying that paying them more will increase their performance and / or loyalty but when I see some maebans working for me / others and doing 2 -3 jobs at the same time 7/24 to support their Mother/ Father and 3 children because the Thai Drunkard husband left them high & dry, I have to say I have second thoughts about us foreigners haggling over paying them a bit more ... 300 Baht a day is 9,000 baht per month = 300 USD for 30 days work at 8 hours per day = 10 USD PER DAY!!! ....Hell , where in your country can you find someone to do this shit work or ANYTHING for you at 10 $$ / per day??? it's more like 10$$ per hour and HONESTLY ... THEY ALSO RIP YOU OFF AND DO SHITTY WORK!! ... I am not against this increase at all but I think it should have been in the tune of 250 Baht per day for like 1 or 2 years max and then another increase thereafter... the cost of living has gone up SOO MUCH over the past 2 years for all of us and so why shouldn't they get a higher salary to compensate also..?? Business people are all increasing their prices so why are they not increasing their employees salaries ?? Let's get a bit of reality in here no?? You all want western standards in your life styles here but are not willing to pay for it and by which I mean pay a little more to get a little closer to it... If I were a Thai lady and was expected to work as a perfect Western type of Maeban for 150 / 200 Baht per day, and then go home to cook and look after the family I would have 2nd thoughts also ... better to get a little noodle shop going on my own for sure than work for an obnoxious farang who thinks the 150 Baht per day he/ she is giving me is a gold mine ... and expect me to have their house spic&span and also look after their brats ... And that is another reason why you hear and see so many foreigners complaining about being able to find good Maebans or house help ... Noodle shop is more appealing to them for sure ...... Food for thought !

I think you're a little out of context here Annabel.... for he wasn't remarking about farang; farang complaints; or farang expectancy.... ?

I for one employed a maeban... I paid her a lot more than most - 14k a month to be precise. I also paid her 2 daughters school fees for her time she was employed with me. I bought them meagre things for me, which to them were worldy; such as bikes, swimming costumes, watches, phones - so that they were with the 'in crowd' .. she left after I bunged her lots of bonues, and now she has her own little shop, garage selling petrol to bikes, a restaurant she cooks and people come for large delieveries from...... and we are still in touch, and the girls call me Loong Mike (Uncle Mike).... and I love them all.

I could trust her with my life! Never a baht missing, when I left ridiculous amounts about the house....... so it isn't all one way.

She made a success of her moments of my employ. She saved every baht, I supplied extra, and she worked damned hard 10 hours a day.

She and her kids are on my fb - daily - always in touch... PM me to see.....

-mel.

[MEL1]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Those on the ladder of success here don't give a money's where their employees come from. As long as the turn-over is flowering, and the Beamer or Benz is paid for, or a Porsche is able to be ordered, believe you me they care not a jit. It's not ironic. It's simply the way a third world country begins to develop into a second one; and for what one of those is credited for I am not sure.

I believe, if most of us had been born here, and had had the opportunity of the knowldege of the culture from the West with it's ideas of success. then most of us would be doing the same, if owners of companies of our own in Thailand.

-mel.

Mel, i wholeheartedly agree with your sentiments about business owners. But....

This mou has to be closed or, any changes are pointless.

I also fully agree that the MoU is a disgrace, and that it is a complete insult to Thais in their own country. However, TaH, it isn't unique to Thailand, as it is a part of a growing international country, is it not?

How many Poles work in plumbing in the UK?

How many Mexicans fill the factories of the US?

How many British and American engineers work in top positions in the car industry in China?

Mere examples of cultural migration. Thailand has always been so afraid of even its own nurses migrating, for better pay abroad, that it implemented laws against it.

Thailand is not the greatest player in cultural inter-dependence, as it is not individualistic but collectivist........ as most Asian countries are.

It's time to accept foreign labour here, but but what exactly does Thailand have to offer in response to counter the balance?

If the people at the top were not so interested in lining their own back pockets then, I believe, this country could hold international weight.

Currently its a lead feather - a real feather, but the leaders feel the weight of lead - in their bank accounts.

-mel.

[annabel]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Well I do not entirely agree with the minimum wage increase... however.... Thais are paid a very low wage and no! .. I am not saying that paying them more will increase their performance and / or loyalty but when I see some maebans working for me / others and doing 2 -3 jobs at the same time 7/24 to support their Mother/ Father and 3 children because the Thai Drunkard husband left them high & dry, I have to say I have second thoughts about us foreigners haggling over paying them a bit more ... 300 Baht a day is 9,000 baht per month = 300 USD for 30 days work at 8 hours per day = 10 USD PER DAY!!! ....Hell , where in your country can you find someone to do this shit work or ANYTHING for you at 10 $$ / per day??? it's more like 10$$ per hour and HONESTLY ... THEY ALSO RIP YOU OFF AND DO SHITTY WORK!! ... I am not against this increase at all but I think it should have been in the tune of 250 Baht per day for like 1 or 2 years max and then another increase thereafter... the cost of living has gone up SOO MUCH over the past 2 years for all of us and so why shouldn't they get a higher salary to compensate also..?? Business people are all increasing their prices so why are they not increasing their employees salaries ?? Let's get a bit of reality in here no?? You all want western standards in your life styles here but are not willing to pay for it and by which I mean pay a little more to get a little closer to it... If I were a Thai lady and was expected to work as a perfect Western type of Maeban for 150 / 200 Baht per day, and then go home to cook and look after the family I would have 2nd thoughts also ... better to get a little noodle shop going on my own for sure than work for an obnoxious farang who thinks the 150 Baht per day he/ she is giving me is a gold mine ... and expect me to have their house spic&span and also look after their brats ... And that is another reason why you hear and see so many foreigners complaining about being able to find good Maebans or house help ... Noodle shop is more appealing to them for sure ...... Food for thought !

I think you're a little out of context here Annabel.... for he wasn't remarking about farang; farang complaints; or farang expectancy.... ?

I for one employed a maeban... I paid her a lot more than most - 14k a month to be precise. I also paid her 2 daughters school fees for her time she was employed with me. I bought them meagre things for me, which to them were worldy; such as bikes, swimming costumes, watches, phones - so that they were with the 'in crowd' .. she left after I bunged her lots of bonues, and now she has her own little shop, garage selling petrol to bikes, a restaurant she cooks and people come for large delieveries from...... and we are still in touch, and the girls call me Loong Mike (Uncle Mike).... and I love them all.

I could trust her with my life! Never a baht missing, when I left ridiculous amounts about the house....... so it isn't all one way.

She made a success of her moments of my employ. She saved every baht, I supplied extra, and she worked damned hard 10 hours a day.

She and her kids are on my fb - daily - always in touch... PM me to see.....

-mel.

Hi Mel ... True but I just wanted to make a point about the minimum wages that have been imposed which as I said I don't entirely think is wrong from the PTP to have done so .. but maybe should not have been 50% more in 1 shot ...??,...However.. yes on your other points I am essentially agreeing with what you are saying. I also give the people who work for me a lot more than the 300 Baht / day as a salary +++++ and stuff and bonuses' and whatever and they are happy working with me ... I am referrring to the other farangs bitching about paying their maebans the minimum wage and whatever and believe me I know many of them who bitch about each and every thing they fork out for their in house helpers and who are now saying "There is no way I will pay more than 150 Baht per day for a Maeban... and if so they can leave .. ! Well good luck to them because they will leave ... Anyway let's see down the road because as it is it is very difficult to find any Maebans at all ..

[Thai at Heart]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Those on the ladder of success here don't give a money's where their employees come from. As long as the turn-over is flowering, and the Beamer or Benz is paid for, or a Porsche is able to be ordered, believe you me they care not a jit. It's not ironic. It's simply the way a third world country begins to develop into a second one; and for what one of those is credited for I am not sure.

I believe, if most of us had been born here, and had had the opportunity of the knowldege of the culture from the West with it's ideas of success. then most of us would be doing the same, if owners of companies of our own in Thailand.

-mel.

Mel, i wholeheartedly agree with your sentiments about business owners. But....

This mou has to be closed or, any changes are pointless.

I also fully agree that the MoU is a disgrace, and that it is a complete insult to Thais in their own country. However, TaH, it isn't unique to Thailand, as it is a part of a growing international country, is it not?

How many Poles work in plumbing in the UK?

How many Mexicans fill the factories of the US?

How many British and American engineers work in top positions in the car industry in China?

Mere examples of cultural migration. Thailand has always been so afraid of even its own nurses migrating, for better pay abroad, that it implemented laws against it.

Thailand is not the greatest player in cultural inter-dependence, as it is not individualistic but collectivist........ as most Asian countries are.

It's time to accept foreign labour here, but but what exactly does Thailand have to offer in response to counter the balance?

If the people at the top were not so interested in lining their own back pockets then, I believe, this country could hold international weight.

Currently its a lead feather - a real feather, but the leaders feel the weight of lead - in their bank accounts.

-mel.

The issue is that they can be paid less than 300.

300, is 300, is 300 or the whole thing doesn't work.

Edited January 6, 2013 by Thai at Heart

[cbrer]

Although legal migrant workers are entitled to the Bt300 minimum wage, Thai factory owners can pay them less by making deductions from their salaries for electricity, water and accommodation expenses.

He said Cambodian factories had complained that they were facing a labour shortage because locals have chosen to migrate to Thailand as they can enjoy three times higher wages. Cambodian factory owners also face protests from workers demanding a rise in monthly wages from Bt1,500-Bt2,500 to Bt4,500-Bt6,000.

No matter how long you live here, the reality of many people's lives is still shocking.

[MEL1]

Although legal migrant workers are entitled to the Bt300 minimum wage, Thai factory owners can pay them less by making deductions from their salaries for electricity, water and accommodation expenses.

He said Cambodian factories had complained that they were facing a labour shortage because locals have chosen to migrate to Thailand as they can enjoy three times higher wages. Cambodian factory owners also face protests from workers demanding a rise in monthly wages from Bt1,500-Bt2,500 to Bt4,500-Bt6,000.

No matter how long you live here, the reality of many people's lives is still shocking.

Shocking relative to what? ?

-mel.

[Markaew]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Those on the ladder of success here don't give a money's where their employees come from. As long as the turn-over is flowering, and the Beamer or Benz is paid for, or a Porsche is able to be ordered, believe you me they care not a jit. It's not ironic. It's simply the way a third world country begins to develop into a second one; and for what one of those is credited for I am not sure.

I believe, if most of us had been born here, and had had the opportunity of the knowldege of the culture from the West with it's ideas of success. then most of us would be doing the same, if owners of companies of our own in Thailand.

-mel.

That's exactly why they keep us blocked out. They don't want the competition.

[cbrer]

Although legal migrant workers are entitled to the Bt300 minimum wage, Thai factory owners can pay them less by making deductions from their salaries for electricity, water and accommodation expenses.

He said Cambodian factories had complained that they were facing a labour shortage because locals have chosen to migrate to Thailand as they can enjoy three times higher wages. Cambodian factory owners also face protests from workers demanding a rise in monthly wages from Bt1,500-Bt2,500 to Bt4,500-Bt6,000.

No matter how long you live here, the reality of many people's lives is still shocking.

Shocking relative to what? ?

-mel.

Shocking relative to our lives, and even the poor Thai menial worker's life.

Can you imagine earning 1,500-2,500b per month. Perhaps with a wife earning the same and wanting to provide for some sort of family?

When people are dreaming of upping sticks and emigrating to Thailand to earn well less than 300b p/d for 12 hours of labour, it's a sad and shocking situation for us in our air-con offices earning that in an hour, while on our lunch break.

[007]

The only ones to benefit from this are those not living in Thailand, they will get all the work and the thais will all be sitting on their bums. How this will leed to more spending on the products made has me beat, just another way for the govt to say its not our fault you are being screwed.

So you see, Thais are 'jai dee', and support the poor people in the neighbouring countries.

Perhaps someone in government could suggest to promote Thailand as "Hub for Labour Export"...

[Thai at Heart]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Those on the ladder of success here don't give a money's where their employees come from. As long as the turn-over is flowering, and the Beamer or Benz is paid for, or a Porsche is able to be ordered, believe you me they care not a jit. It's not ironic. It's simply the way a third world country begins to develop into a second one; and for what one of those is credited for I am not sure.

I believe, if most of us had been born here, and had had the opportunity of the knowldege of the culture from the West with it's ideas of success. then most of us would be doing the same, if owners of companies of our own in Thailand.

-mel.

Mel, i wholeheartedly agree with your sentiments about business owners. But....

This mou has to be closed or, any changes are pointless.

I also fully agree that the MoU is a disgrace, and that it is a complete insult to Thais in their own country. However, TaH, it isn't unique to Thailand, as it is a part of a growing international country, is it not?

How many Poles work in plumbing in the UK?

How many Mexicans fill the factories of the US?

How many British and American engineers work in top positions in the car industry in China?

Mere examples of cultural migration. Thailand has always been so afraid of even its own nurses migrating, for better pay abroad, that it implemented laws against it.

Thailand is not the greatest player in cultural inter-dependence, as it is not individualistic but collectivist........ as most Asian countries are.

It's time to accept foreign labour here, but but what exactly does Thailand have to offer in response to counter the balance?

If the people at the top were not so interested in lining their own back pockets then, I believe, this country could hold international weight.

Currently its a lead feather - a real feather, but the leaders feel the weight of lead - in their bank accounts.

-mel.

Coming back to this issue, it isn't the issue to allow so called Thai companies to ferry in who ever is the cheapest person to put into work in their factory. The only way, is to make 300 across the board and HAVE to prove that you advertise first to the local population, and that any shortfall is made up with imported labour. The way it is set up, they simply ferry in ALL the labour from across the border claiming that they can't find any domestic workers.

The job is never planned to pay 300 baht a day to anyone. It pays less because they claim that they give accomodation. Would the workers come if they didn't get given free accomodation, and I have little doubt that the accomodation becomes a profit centre for the employing company anyway. The free importation of labourat less than minimum. into the country is not the way it should be, and will simply push up unemployment for Thais which defeats any point in having a minimum wage whatsoever. Better to do away with it completely if you are going to extend the supply of labour to the entire region. Could you imagine the Chinese allowing the import of foreign labour into their factories so that the company could save a buck here or there? And if the Malaysians or Singaporeans started importing Thai's into their countries at less than legal minimum, the Thai's would have apoplexy.

Edited January 7, 2013 by Thai at Heart

[Thai at Heart]

Country Thailand

Textile and Apparel Wage Comparison (US$)

1996 1998 2000 2002 2004 2007 2008

1.56 1.09 1.18 1.24 1.29 1.75 1.80

http://sourceasean.com/wp-content/uploads/2010/10/SourceASEAN_Thailand_profile_100331.pdf

Some incredibly interesting stats in here about wage cost levels in textiles. Am trying to find some for the last few years. So in 1996, wage costs were 1.56 USD per hour, going full circle and only reaching the same level again in 2007. So tell me that the exporters didn't get a nice big windfall out of that one?

Edited January 7, 2013 by Thai at Heart

[Moruya]

Country Thailand

Textile and Apparel Wage Comparison (US$)

1996 1998 2000 2002 2004 2007 2008

1.56 1.09 1.18 1.24 1.29 1.75 1.80

http://sourceasean.c...file_100331.pdf

Some incredibly interesting stats in here about wage cost levels in textiles. Am trying to find some for the last few years. So in 1996, wage costs were 1.56 USD per hour, going full circle and only reaching the same level again in 2007. So tell me that the exporters didn't get a nice big windfall out of that one?

That doesn't seem right. That would give 450 Baht for an 8 hour shift

[Thai at Heart]

Country Thailand

Textile and Apparel Wage Comparison (US$)

1996 1998 2000 2002 2004 2007 2008

1.56 1.09 1.18 1.24 1.29 1.75 1.80

http://sourceasean.c...file_100331.pdf

Some incredibly interesting stats in here about wage cost levels in textiles. Am trying to find some for the last few years. So in 1996, wage costs were 1.56 USD per hour, going full circle and only reaching the same level again in 2007. So tell me that the exporters didn't get a nice big windfall out of that one?

That doesn't seem right. That would give 450 Baht for an 8 hour shift

There is a small addendum attached. It was impossible to drag and copy the table as is.

Note: Wage per hour including allowance and social expenses

Source: Werner International Managing Consultants

Quite what 'allowances' entail I am not sure, but anyway, that's the figure that Asean was using in this report.

[CrisRMenumate]

What an absolutely staggering win for PT !!!!!! Raise the minimum wage to 300 baht, so Thai workers are let go. Then Cambodian workers

are brought in to replace the Thai workers at a lower cost. Ok irony key is now off.....

Well I do not entirely agree with the minimum wage increase... however.... Thais are paid a very low wage and no! .. I am not saying that paying them more will increase their performance and / or loyalty but when I see some maebans working for me / others and doing 2 -3 jobs at the same time 7/24 to support their Mother/ Father and 3 children because the Thai Drunkard husband left them high & dry, I have to say I have second thoughts about us foreigners haggling over paying them a bit more ... 300 Baht a day is 9,000 baht per month = 300 USD for 30 days work at 8 hours per day = 10 USD PER DAY!!! ....Hell , where in your country can you find someone to do this shit work or ANYTHING for you at 10 $$ / per day??? it's more like 10$$ per hour and HONESTLY ... THEY ALSO RIP YOU OFF AND DO SHITTY WORK!! ... I am not against this increase at all but I think it should have been in the tune of 250 Baht per day for like 1 or 2 years max and then another increase thereafter... the cost of living has gone up SOO MUCH over the past 2 years for all of us and so why shouldn't they get a higher salary to compensate also..?? Business people are all increasing their prices so why are they not increasing their employees salaries ?? Let's get a bit of reality in here no?? You all want western standards in your life styles here but are not willing to pay for it and by which I mean pay a little more to get a little closer to it... If I were a Thai lady and was expected to work as a perfect Western type of Maeban for 150 / 200 Baht per day, and then go home to cook and look after the family I would have 2nd thoughts also ... better to get a little noodle shop going on my own for sure than work for an obnoxious farang who thinks the 150 Baht per day he/ she is giving me is a gold mine ... and expect me to have their house spic&span and also look after their brats ... And that is another reason why you hear and see so many foreigners complaining about being able to find good Maebans or house help ... Noodle shop is more appealing to them for sure ...... Food for thought !

I think you're a little out of context here Annabel.... for he wasn't remarking about farang; farang complaints; or farang expectancy.... ?

I for one employed a maeban... I paid her a lot more than most - 14k a month to be precise. I also paid her 2 daughters school fees for her time she was employed with me. I bought them meagre things for me, which to them were worldy; such as bikes, swimming costumes, watches, phones - so that they were with the 'in crowd' .. she left after I bunged her lots of bonues, and now she has her own little shop, garage selling petrol to bikes, a restaurant she cooks and people come for large delieveries from...... and we are still in touch, and the girls call me Loong Mike (Uncle Mike).... and I love them all.

I could trust her with my life! Never a baht missing, when I left ridiculous amounts about the house....... so it isn't all one way.

She made a success of her moments of my employ. She saved every baht, I supplied extra, and she worked damned hard 10 hours a day.

She and her kids are on my fb - daily - always in touch... PM me to see.....

-mel.

Hi Mel ... True but I just wanted to make a point about the minimum wages that have been imposed which as I said I don't entirely think is wrong from the PTP to have done so .. but maybe should not have been 50% more in 1 shot ...??,...However.. yes on your other points I am essentially agreeing with what you are saying. I also give the people who work for me a lot more than the 300 Baht / day as a salary +++++ and stuff and bonuses' and whatever and they are happy working with me ... I am referrring to the other farangs bitching about paying their maebans the minimum wage and whatever and believe me I know many of them who bitch about each and every thing they fork out for their in house helpers and who are now saying "There is no way I will pay more than 150 Baht per day for a Maeban... and if so they can leave .. ! Well good luck to them because they will leave ... Anyway let's see down the road because as it is it is very difficult to find any Maebans at all ..

it is also worthwhile to understand that this minimum wage has been put in place across all of the 78 provinces whereas before there were higher rates in Bangkok and some other provinces compared to say some in the North East. For most factories in major provinces they are already paying more than 300 baht per day in salary/benefits packages but up north say in tiny provinces like Phayao the factory workers only were getting 146 baht per day - so now they jump right up to 300 baht per day. Bangkok has more costs for accommodation, transport food etc than most rural places so it would be appropriate that the rate in the major city is higher but now, people in the rural provinces are going to lose jobs because their bosses in food processing (most factories are in food/agriculture processing in these far flung places) and they will either bring in machinery to do it to avoid being sucked into a HR vortex of ever escalating costs or import labor from Cambodia, Laos and Burma - which from 2015 they will be free to do. They should still have to follow the labor law and not rip the imported labor off. But PT's policy for this minimum wage, whilst a grand idea, was poorly thought through and even more poorly executed, the comments from the minister that the new increase will actually help business merely shows that reality is not a regular visitor to any thinking processes related to what comes out of that source. Most farangs pay over the odds for their mae baan (maid or nanny) compared to what Thais pay their domestic helpers and certainly more than 300 baht per working day (remember there are only 25/26 working days in the month as each person must by law be given at least 1 day off per week and National Holidays) and most places only work 5 days nowadays. My maid works only 1 day per week, about 5 hours and we pay her 1,000 baht - expensive for here, cheap for where we come from, compromise, makes us feel good, gives her a decent side income from her other job and she keeps our place spotless. win-win-win - but the losers will be the factory workers and very low income workers in the provinces where the law is not applied fairly most times and the local "bosses" will do all they can to ensure they avoid paying additional costs, no matter what. Sadly many of these places that will be affected are the provinces that voted so highly for PT and its partners in the election because of this kind of policy without any understanding of how it could work or the impact of job losses if it came into effect.