Skilled Labourers See Daily Wages Climb: Thailand

[webfact]

Skilled labourers see daily wages climb

Thanapat Kitjakosol

The Nation

Keep Moo Road day-labour market thriving; workers earning between Bt500-Bt900

BANGKOK: -- While SMEs are crying over the blanket Bt300 wage, fierce competition in some industries and the scarcity of skilled workers is pushing the daily pay of some above Bt500.

For the past eight years, Narong Jampatho, 30, a tile layer, has never found difficulty in finding someone willing to pay him Bt700 per day, allowing him to earn Bt20,000 a month. Some of his relatives from Nong Bua Lamphu are also in Bangkok at his persuasion.

"It's not a permanent job, but I enjoy my freedom. I work to get paid and rest when I want to. Working for a company is tiring and pays less. The government's wage hike policy has no merit for us, as we've been earning at least Bt500 a day since the floods," he said.

Narong is one of about 10,000 workers living along Keep Moo Road, which, according to the master's thesis of a Sri Pathum University student, is now the country's largest day labour market, mostly for the construction industry.

Most are from northeastern provinces like Buri Ram, Si Sa Ket and Surin. Mixing with them are migrants from Myanmar, Cambodia and Laos who can speak Thai. They demand at least Bt500 a day, while the very skilled ones can command Bt900.

Prakiat Kaewkhamharn, 48, an electrical system contractor, said he pays Bt600 for tile layers. "It's high but we have to take it, as we can't find other workers."

At dawn every day, the day workers line up for one kilometre on the small road, which connects to Ram Intra Road, waiting for contractors or employers. It has become the usual scene for contractors in their pickup trucks to show up, while even individuals who want to do small-scale renovations to their houses bypass builders and come and pick up workers with the skills they require.

BURGEONING DEMAND FOR SKILLED WORKERS

For big or small projects, wage negotiations are necessary as the skilled workers quote at least Bt500. These contractors have to yield to get the best workers at the lowest rates.

Thanks to the burgeoning demand for skilled workers due to the 2011 flood and recovery in property sales, these workers can insist on above-normal rates for their work.

Five years ago, only 3,000 workers sold their labour here, estimates Prasit Sakuma, a Muslim community leader. Their numbers shot up last year, when the need for extra labour to fix flood damage was very high. About 70-80 per cent of them would find jobs every day, while the rest, who had low skills or were choosy or lazy, could get hired every few days.

According to the thesis authored in 2011 by Phinyo Bunchuay, the community's original members were only 935, mostly Muslims, in 185 households. The paper's estimate of the total pool of workers by then is 5,000-8,000.

"The workers bring in good money, with Bt2.5 million in cash circulating every day. The areas that used to be farms and weed patches are now full of housing and apartments," said Usaman Kaewkes, leader of a nearby Muslim community that shares the Arabic name of Keep Moo with an old mosque in the neighbourhood.

Most of the many accommodations for low-income earners are low-priced quarters built in and around the road. The area is also filled with mom-and-pop shops and grocery stores whose sales have surged along with the increase of workers living there and those living elsewhere who come and go.

Land prices have also soared to Bt10 million per rai from Bt2 million just 10 years ago.

However, the hordes of workers migrating to Bangkok looking for better opportunities means more crime, and especially frequent drunken brawls among workers, which is not welcomed by the original, mostly Muslim residents of the area.

The Islamic culture was under threat, with booze being widely sold and drunk. However, about 80 per cent of the workers behave and police have taken care of the troublemakers.

Keep Moo Road could grow more famous, as the labour deficit - now topping the list of business risks for property and construction firms in 2013 - could worsen. With a low unemployment rate of 0.6 per cent, or only 232,400 jobless, the construction, infrastructure and manufacturing industries are now facing a shortfall of about 200,000 hands.

Bank of Thailand data also show that the labour market has tightened. Employment was up 0.7 per cent to 39.2 million as of September from the same month last year, while the average paycheque also rose by 7.9 per cent.

The rush for manpower is anticipated to pick up when the government's mega infrastructure projects are kicked off. While they will attract minimum-wage workers, it also means abundant openings are out there for skilled ones who can charge well above Bt300 a day.

Keep Moo Road: located in northern Bangkok, off Ram-Indra Road

Population

10,000 Workers

935 residents, mostly Muslims

Daily hire rates

Bt500 for basic labour

Bt500-Bt900 for skilled work

Skilled workers:

breakdown in types of work

Bt600-Bt700: Tiler

Bt800: Welder

Bt600-Bt900: Plasterer

Bt600-Bt800: Carpenter

Bt600-Bt700: Electrician

Bt700: Painter

Bt500-Bt600: Planter/gardener

-- The Nation 2013-01-28

[angsta]

Clearly they are still making big profits paying there 'high' wages so basically they have been massively underpaid for years.

[Robby nz]

^{Fine, thats BKK but what about the rest of the country}

[Thai at Heart]

In fairness, this goes directly hand in hand with how much construction work there is. These guys are freelance, so if they don't guarantee 25 days a month work, their daily wage may well be 500 baht, but it isn't the same as being salaried at that level. If the building boom stops, they actually get zero per day. Risk and reward working.

So, in reality, it shows that the mechanism can work in both the companies and the labourers benefit. The companies don't have to take on full time workers with the associated costs, and the labour can freelance. I really don't see why this is such an amazing story.

Workers rejoice at 1.25 GBP per hour would be how Notthenation would report this phenomenon.

[VocalNeal]

Like drawing maps Thais are useless at giving any information about places. Keep Moo road probably isn't called Keep Moo or even spelled that way. Easier would be to say Keep Moo road near Ramintra soi xxx. Not that I'm ever likely to go there but somebody might If they could find it.

Edited January 28, 2013 by VocalNeal

[BigSkip]

And a 4 year grad (BA) teaching just got a minimum rasie from the govt. to 11,400b per month...big deal what wrong with this picture..

[dcutman]

I wonder how much they have to pay the BIB to have one of these coveted spots along this road.

[Chopperboy]

Most of them will try to say they're "High Skilled" to avoid hard work, but in reality they can't even measure/ or align properly and always use the wrong cement/ sand ratios. The quality is OK for poor quality Thai construction but useless if you are attempting anything more.

[andre47]

I try to get a maid for a part time job. She should clean my house for 3 hours one time per week. I pay 300 Baht. You can't imagine, how difficult it is to find somebody. They want 500 Baht and go away after 2 hours. If you complain something, they don't come back.

The main problem here in Thailand is not the wage level. The problem is the qualtity of work, the willingness to work and the skills. How Thailand wants to compete with other countries? Without the tourism this country would be far back. The goverment should invest more efforts in the education of the people. This is a hard task and it will take generations.

I just found this post regarding the education deficit:

http://www.thaivisa.com/forum/topic/614943-tackle-shortage-of-skilled-labour-says-german-thai-chamber-chief/

Edited January 28, 2013 by andre47

[Sharp]

Skilled labourers see daily wages climb

Thanapat Kitjakosol

The Nation

Keep Moo Road day-labour market thriving; workers earning between Bt500-Bt900

BANGKOK: -- While SMEs are crying over the blanket Bt300 wage, fierce competition in some industries and the scarcity of skilled workers is pushing the daily pay of some above Bt500.

For the past eight years, Narong Jampatho, 30, a tile layer, has never found difficulty in finding someone willing to pay him Bt700 per day, allowing him to earn Bt20,000 a month. Some of his relatives from Nong Bua Lamphu are also in Bangkok at his persuasion.

"It's not a permanent job, but I enjoy my freedom. I work to get paid and rest when I want to. Working for a company is tiring and pays less. The government's wage hike policy has no merit for us, as we've been earning at least Bt500 a day since the floods," he said.

Narong is one of about 10,000 workers living along Keep Moo Road, which, according to the master's thesis of a Sri Pathum University student, is now the country's largest day labour market, mostly for the construction industry.

Most are from northeastern provinces like Buri Ram, Si Sa Ket and Surin. Mixing with them are migrants from Myanmar, Cambodia and Laos who can speak Thai. They demand at least Bt500 a day, while the very skilled ones can command Bt900.

Prakiat Kaewkhamharn, 48, an electrical system contractor, said he pays Bt600 for tile layers. "It's high but we have to take it, as we can't find other workers."

At dawn every day, the day workers line up for one kilometre on the small road, which connects to Ram Intra Road, waiting for contractors or employers. It has become the usual scene for contractors in their pickup trucks to show up, while even individuals who want to do small-scale renovations to their houses bypass builders and come and pick up workers with the skills they require.

BURGEONING DEMAND FOR SKILLED WORKERS

For big or small projects, wage negotiations are necessary as the skilled workers quote at least Bt500. These contractors have to yield to get the best workers at the lowest rates.

Thanks to the burgeoning demand for skilled workers due to the 2011 flood and recovery in property sales, these workers can insist on above-normal rates for their work.

Five years ago, only 3,000 workers sold their labour here, estimates Prasit Sakuma, a Muslim community leader. Their numbers shot up last year, when the need for extra labour to fix flood damage was very high. About 70-80 per cent of them would find jobs every day, while the rest, who had low skills or were choosy or lazy, could get hired every few days.

According to the thesis authored in 2011 by Phinyo Bunchuay, the community's original members were only 935, mostly Muslims, in 185 households. The paper's estimate of the total pool of workers by then is 5,000-8,000.

"The workers bring in good money, with Bt2.5 million in cash circulating every day. The areas that used to be farms and weed patches are now full of housing and apartments," said Usaman Kaewkes, leader of a nearby Muslim community that shares the Arabic name of Keep Moo with an old mosque in the neighbourhood.

Most of the many accommodations for low-income earners are low-priced quarters built in and around the road. The area is also filled with mom-and-pop shops and grocery stores whose sales have surged along with the increase of workers living there and those living elsewhere who come and go.

Land prices have also soared to Bt10 million per rai from Bt2 million just 10 years ago.

However, the hordes of workers migrating to Bangkok looking for better opportunities means more crime, and especially frequent drunken brawls among workers, which is not welcomed by the original, mostly Muslim residents of the area.

The Islamic culture was under threat, with booze being widely sold and drunk. However, about 80 per cent of the workers behave and police have taken care of the troublemakers.

Keep Moo Road could grow more famous, as the labour deficit - now topping the list of business risks for property and construction firms in 2013 - could worsen. With a low unemployment rate of 0.6 per cent, or only 232,400 jobless, the construction, infrastructure and manufacturing industries are now facing a shortfall of about 200,000 hands.

Bank of Thailand data also show that the labour market has tightened. Employment was up 0.7 per cent to 39.2 million as of September from the same month last year, while the average paycheque also rose by 7.9 per cent.

The rush for manpower is anticipated to pick up when the government's mega infrastructure projects are kicked off. While they will attract minimum-wage workers, it also means abundant openings are out there for skilled ones who can charge well above Bt300 a day.

Keep Moo Road: located in northern Bangkok, off Ram-Indra Road

Population

10,000 Workers

935 residents, mostly Muslims

Daily hire rates

Bt500 for basic labour

Bt500-Bt900 for skilled work

Skilled workers:

breakdown in types of work

Bt600-Bt700: Tiler

Bt800: Welder

Bt600-Bt900: Plasterer

Bt600-Bt800: Carpenter

Bt600-Bt700: Electrician

Bt700: Painter

Bt500-Bt600: Planter/gardener

-- The Nation 2013-01-28

I find paying per square meter with some trades is the better option or likes of the election per fix ...first fix ,second fix,final ...it Definatly works out cheaper ....as day work prices they tend to relax and do want they want ...

Sent from my iPad using ThaiVisa app

[o2eZy]

I am currently having a house built in bangkok...it is nearly finished

I live in australia and am used to having the work to a good standard

fell over when I saw the wouldbe workmanship...now we are paying really good money

like the 15mtr brick fence is costing me 150000bht without the gates

the tiler wants 250bht m2

the house has gone from 2.2mbht to nearly double and we have supplied all the fittings like windows,

doors...led lighting all the bathroom and 2 kitchens fittings like granite bench tops.floor and wall tiles,etc

when the wife(thai) who also works in Australia saw the problems there were fireworks with the builder

doors,windows, walls,and even the front fence have been knocked down and done again...wall render done again

never seen the wifie like this...absolutely ripped into the builder

won't be arguing with her I tell ya

might pay this street a visit and fire what so called trades persons we have

anyone want the builders name so you dont get a krap job done email me