Over 3,400 Have Lost Jobs In 6 Months: Thai Govt Bt300 Wage Policy

[webfact]

Over 3,400 have lost jobs in 6 months

The Nation

BANGKOK: -- The Bt300 wage policy has cost at least 3,434 workers their jobs during the past six months, according to official statistics.

The minimum daily wage was first hiked in April in seven industrialised provinces including Bangkok. The country's 70 other provinces also saw the minimum wage rise by about 40 per cent under the government policy.

On January 1, the Bt300 wage was made official throughout the country, raising concerns that the resulting boost to production costs would lead to mass layoffs and increased job insecurity.

Labour Minister Phadermchai Sasomsap said yesterday that only 275 have lost their jobs during the first four days of this year.

Many more workers had been given pink slips for reasons other than the wage hike, he said. During the past six months, 3,159 people became jobless because of the financial crisis in Europe while 5,378 people were let go for various other reasons.

The Labour Protection and Welfare Department was closely monitoring the situation and would rush to help laid-off workers.

"We will assist with negotiations with employers to ensure that affected workers get severance pay as soon as possible," he said.

The ministry found 39 businesses that appeared to be on the verge of releasing their workers because of Europe's debt crisis and the wage hike.

"These enterprises have now hired 33,655 people," he said.

The ministry would look into complaints that some employers had forced workers to do overtime without extra pay.

"If they work overtime, they must get the daily minimum pay plus OT," he said.

Employers could not count welfare such as food and housing allowances as part of the Bt300 wage.

"If they do that, they're violating the labour protection laws and will face legal punishment," he said.

The Cabinet is expected to consider more measures to cushion the blow from the wage policy on employers today. The private sector's proposal for a government fund to be set up to subsidise the increase in wages will not be one of them as the finance minister has found it infeasible.

The ministry would focus on shoring up employers by providing free skills training for their workers, he added.

-- The Nation 2013-01-08

[whybother]

In a country of 65 mil, 3,500 people losing their job is a drop in the ocean.

[Halion]

The tip of the iceberg. This chicken has come home to roost. I believe that we will see a hugh increase in the number of unemployed over the next 3 months owing to this shoot yourself in the foot policy. The Government should set up an agency to track the industries that start to lay off workers and the reasons behind the layoff's and report this data with honesty and integrity. Already we are seeing blame hounds being developed such as the poor economic performance in Europe. What ever is brought to light it will surely not touch on the inane nature of this vote buying populist policy. It will have to be someone else's fault. Accountability in Thailand is neither valued, practiced, nor expected.

[BEVUP]

No different world wide

espescialy Australia

Where their sacking airline hostesses & replacing them

Importing unskilled labour due to boom in oil/gas & allowing them to be citizen after a time

But once all that has finished Australia will be stuffed withnow more people looking for work

[chiangmaikelly]

From the OP. The ministry found 39 businesses that appeared to be on the verge of releasing their workers because of Europe's debt crisis and the wage hike. During the past six months, 3,159 people became jobless because of the financial crisis in Europe.

If those darn Euro people would get there stuff together no problem. Especially the Dutch,

The darkening outlook from the Dutch government’s Central Planning Bureau (CPB) suggests the economy will contract by 0.5 per cent in 2013. Earlier, the bureau had expected growth of 0.75 per cent.

This could set off a new round of budget cuts in a country that has already seen three bouts of austerity in three years, slashing government spending by €46bn – equivalent to more than 7 per cent of GDP.

http://www.ft.com/cm...l#axzz2HLUF3KDt

Edited January 8, 2013 by chiangmaikelly

[Valentine]

In Phuket many establishments are now not sharing the service tax with their employees due to the wage rise. This & things like being forced to work overtime with out extra pay, deducting extra salary for accommodation & transport, are what should be investigated. Businesses have had plenty of time to get ready for this as they will have when more freedom of movement, tax free, within ASEAN becomes a reality but you can bet your bottom dollar that many will kick & scream when the time comes.

These are amongst many issues which point to the inefficiency of many companies here in Thailand who genuinely could not compete in the outside world.

[Moruya]

Blame the Europeans for domestic problems why not!

[chiangmaikelly]

Blame the Europeans for domestic problems why not!

Sounds good to me. Check in the General forum the you would not believe things the Americans are still getting blamed for 70 years ago .

[MaxLee]

Face, consumerism and the status things determine Thai attitude.

Just an off topic: This doesn't stop millions of Thais, (or at least Bangkokians), to keep on buying smartphones, cars and other gadgets, with just 6000-15000 Baht salary with a soaring cost

[chiangmaikelly]

Face, consumerism and the status things determine Thai attitude.

Just an off topic: This doesn't stop millions of Thais, (or at least Bangkokians), to keep on buying smartphones, cars and other gadgets, with just 6000-15000 Baht salary with a soaring cost

Ya you would think the SET actually went up 33% last year

[chooka]

It is not just Thailand, many more than 3,400 have lost thier jobs in Australia during this period also. I think it is a worldwide issue with job loses.

[chiangmaikelly]

It is not just Thailand, many more than 3,400 have lost thier jobs in Australia during this period also. I think it is a worldwide issue with job loses.

How did the ASX do in 2012?

[chooka]

It is not just Thailand, many more than 3,400 have lost thier jobs in Australia during this period also. I think it is a worldwide issue with job loses.

How did the ASX do in 2012?

No idea but people are still losing jobs. Edited January 8, 2013 by chooka

[slapout]

In a country of 65 mil, 3,500 people losing their job is a drop in the ocean.

Since this wage hike was directed at a small portion of the proviences, and the remainder came under this rule on the first of Jan., your term 'drop' may be somewhat of a gross understatement.

[chiangmaikelly]

It is not just Thailand, many more than 3,400 have lost thier jobs in Australia during this period also. I think it is a worldwide issue with job loses.

How did the ASX do in 2012?

No idea but people are still losing jobs.

The market is important. I think the market has bottomed and the Aussie economy is heading up. The Thai market never went down. Job losses I would question being market related in Thailand if in fact there are any real job losses at all.

Edited January 8, 2013 by chiangmaikelly

[animatic]

In a country of 65 mil, 3,500 people losing their job is a drop in the ocean.

More like natural evaporation.

[animatic]

It is not just Thailand, many more than 3,400 have lost thier jobs in Australia during this period also. I think it is a worldwide issue with job loses.

This would be about the same as the cyclical downturn changes in employment numbers in any nation in this time frame.

[geriatrickid]

The thread is a joke.

The country is at near full employment and legitimate companies are desperate for workers.

Legitimate companies hiring foreign workers are paying the same wages to the foreigners as they do Thais.

Sketchy companies hiring on foreigners are not doing it to save only on the actual wage, but are doing so because;

1. They avoid the payroll costs of the mandatory contributions to the various pension schemes and payroll related government obligations

2. They can avoid the health and safety regulations. So what if a Burmese worker dies on the job. The body can be dumped and a new one taken on. Workers that refuse unsafe working conditions can be easily terminated.

If the government was not so intimidated by some of these employers, it would enforce the labour code.

[ggold]

If the government was not so intimidated by some of these employers, it would enforce the labour code.

I doubt that very much, more to do with lack of government controls being inforced because its not the agenda!

Sent from my GT-P6200 using Thaivisa Connect App

[waza]

Labour Minister Phadermchai Sasomsap said yesterday that only 275 have lost their jobs during the first four days of this year.

Many more workers had been given pink slips for reasons other than the wage hike, he said. During the past six months, 3,159 people became jobless because of the financial crisis in Europe while 5,378 people were let go for various other reasons.

So this mean 8812 people loss there jobs in the last 6 months, on top of the 3,434 workers sacked due to the governments wage policy. So thats 12246 people sack the last 6 months.

"The ministry found 39 businesses that appeared to be on the verge of releasing their workers because of Europe's debt crisis and the wage hike.

"These enterprises have now hired 33,655 people," he said."

Does this mean another 33,655 will soon be sacked as well? If so then the dismissals are excellerating at an alarming pace.

Edited January 8, 2013 by waza

[chiangmaikelly]

Labour Minister Phadermchai Sasomsap said yesterday that only 275 have lost their jobs during the first four days of this year.

Many more workers had been given pink slips for reasons other than the wage hike, he said. During the past six months, 3,159 people became jobless because of the financial crisis in Europe while 5,378 people were let go for various other reasons.

So does this mean 8812 people loss there jobs in the last 6 months? Is this on top of the 3,434 workers sacked due to the governments wage policy?

"The ministry found 39 businesses that appeared to be on the verge of releasing their workers because of Europe's debt crisis and the wage hike.

"These enterprises have now hired 33,655 people," he said."

Does this mean another 33,655 will soon be sacked as well?

Try google translate.

[drdoom6996]

Recession and inflation at the same time. This should be interesting.

[waza]

The thread is a joke.

The country is at near full employment and legitimate companies are desperate for workers.

Legitimate companies hiring foreign workers are paying the same wages to the foreigners as they do Thais.

Sketchy companies hiring on foreigners are not doing it to save only on the actual wage, but are doing so because;

1. They avoid the payroll costs of the mandatory contributions to the various pension schemes and payroll related government obligations

2. They can avoid the health and safety regulations. So what if a Burmese worker dies on the job. The body can be dumped and a new one taken on. Workers that refuse unsafe working conditions can be easily terminated.

If the government was not so intimidated by some of these employers, it would enforce the labour code.

Dont worry the building boom in Myarmar is excellerating and the "Burmese worker.[sic]" can find gainful employment and fairer treatment in his home country without the worry that his employers are skirting the Thain labour laws.

Edited January 8, 2013 by waza

[chiangmaikelly]

The thread is a joke.

The country is at near full employment and legitimate companies are desperate for workers.

Legitimate companies hiring foreign workers are paying the same wages to the foreigners as they do Thais.

Sketchy companies hiring on foreigners are not doing it to save only on the actual wage, but are doing so because;

1. They avoid the payroll costs of the mandatory contributions to the various pension schemes and payroll related government obligations

2. They can avoid the health and safety regulations. So what if a Burmese worker dies on the job. The body can be dumped and a new one taken on. Workers that refuse unsafe working conditions can be easily terminated.

If the government was not so intimidated by some of these employers, it would enforce the labour code.

Dont worry the building boom in Myarmar is excellerating and the "Burmese worker.[sic]" can find gainful employment and fairer treatment in his home country without the worry that his employers are skirting the Thain labour laws.

Burma better to work in than Thailand. Who do you think reads Thai Visa?

[Psych01]

I am a bit confused, I thought, Thailand has 76 provinces ;http://www.thaivisa.com/forum/topic/610328-business-steps-up-fight-for-subsidies%3B-thai-govt-still-says-no-to-support-for-wage-hike/, yet the reporter states, "The minimum daily wage was first hiked in April in seven industrialised provinces including Bangkok. The country's 70 other provinces also saw the minimum wage rise by about 40 per cent under the government policy."

[weegee]

No different world wide

espescialy Australia

Where their sacking airline hostesses & replacing them

Importing unskilled labour due to boom in oil/gas & allowing them to be citizen after a time

But once all that has finished Australia will be stuffed withnow more people looking for work

You would have to agree though mate....It is time to replace the Old bags and Drags, we have had to suffer for a long time, on QANTAS

[caughtintheact]

In a country of 65 mil, 3,500 people losing their job is a drop in the ocean.

That is not the point. You need to think well beyond the immediate impacts of any government policy. Some of the increases of the minimum wages just happened,, so it will take at least 6 months or more before the extent of the job losses can be measured. In addition, it does not take into consideration the hiring that will not be done because of the minimum wage increase. In other words people at the lower end of the income scale will not be able to get jobs because companies will not be able to afford to hire them. This especially hurts the poor and the young, inexperienced people who would otherwise start at the bottom, get trained and work their way above the minimum wage level. The only people who benefit from the minimum wage increase in the short run are people who already have jobs, and the producers of products they buy, but the impacts go much further than that. We have not begun to see the impacts stemming from companies moving their operations to other countries. Those impacts will not be known for some time to come. Money for wages or anything else is a limited resource that has alternate uses. When costs increase and supply and demand for products do not change, the company simply has to survive on less money; and if it cannot, it goes bankrupt, and when a company goes bankrupt, everyone in the company loses jobs. The trouble is that most people only see the immediate impact of people getting more money today, but never realize the negative aspects of a minimum wage increase in the future. These impacts do not even begin to count the ripple effect on prices caused by many people having less purchasing power in the future, unless the economy expands.

If there is really a labor shortage, then moving companies to other countries should alleviate that situation unless the companies takes their workers with them, which they will not because the are going to places with lower cost labor. So we will have to wait and see if there really is a labor shortage and full employment or if it is only in certain industries. A real labor shortage would mean that companies are unable to produce enough to meet demand, and that has other impacts. But the politicians who did this will probably get the votes of everyone whose wages increased, and that is the name of the game, like it or not.

Edited January 8, 2013 by caughtintheact

[nahkit]

In a country of 65 mil, 3,500 people losing their job is a drop in the ocean.

How many of the 65 million population are children, students or the elderly? Do you seriously think that the whole Thai population is counted as the eligible workforce?

In the UK last year, Ford announced closures to two plants that would affect up to 2,000 jobs. The BBC seemed to think that was worthy of reporting and a union representative described it as "devasting news for UK manufacturing".

I'm sure the 3,500 people who are now out of work will be thrilled to know its just "a drop in the ocean".

[whybother]

I am a bit confused, I thought, Thailand has 76 provinces ;http://www.thaivisa....-for-wage-hike/, yet the reporter states, "The minimum daily wage was first hiked in April in seven industrialised provinces including Bangkok. The country's 70 other provinces also saw the minimum wage rise by about 40 per cent under the government policy."

Thailand has 76 provinces PLUS Bangkok, which has a special administrative area. http://en.wikipedia.org/wiki/Provinces_of_Thailand

[simple1]

Given that the Thai government is providing a tax offset of 150% against the difference in cost of the now 300 baht a pay minimum and previous daily rate for 12 months you would hope that more Thai workers will not be laid whilst employers review their staffing strategy. I guess the effectiveness of the Thai government offer is dependent upon taxable earning actually being declared - fraud & corruption biting them in the arse. Also government is reducing the employer 5% contribution for Social Security to 4%