52,000 Thai Workers Lose Jobs From Minimum Wage Hike

[wprime]

Just wondering, who is doing the work of all this people, now.

Illegals?

No one?

But it's just to expect.

In the western world, a rise in minimum salary is affecting jobs from the minority of people, only

In Thailand, it is affecting the majority of all employeed people.

And with the price rally, it is affecting everyone in the kingdome!

52,000 is a tiny minority. Businesses will do what is most economical, if their product or service is no longer profitable, the jobs don't exist anymore, nobody does them. Since the risk cost of employing illegals is reduced relative to the minimum wage, that also becomes a more viable option.

[geriatrickid]

Considering that Thailand has a labour shortage, the small number of unemployed is insignificant.

western countries would kill for the Thai unemployment rate which is less than 1%.

It is 26% in spain with 55% of the youth demographic unemployed. If you want to see a country ripe for unrest look at Spain.

[BigC]

Why does this news not surprise me

What a stupid move

I see allot more Burmese workers now

Thai government has turned on its own people no doubt for there own benefit

[BigC]

Considering that Thailand has a labour shortage, the small number of unemployed is insignificant.

western countries would kill for the Thai unemployment rate which is less than 1%.

It is 26% in spain with 55% of the youth demographic unemployed. If you want to see a country ripe for unrest look at Spain.

Yes but u have to look at before and now

Just because things are not as bed yet as done where else does not support bad moves and the fact that 50k plus people lady year had jobs and this is not even due to a global ression it is bad government move very bad

[SICHONSTEVE]

Why does this news not surprise me

What a stupid move

I see allot more Burmese workers now

Thai government has turned on its own people no doubt for there own benefit

The stupid move was voting this abject party into power in the first place!!!

I can't think of a single policy that has benefited those people it was meant to have helped - unless you include the PTP helping themselves that is!!

[noob7]

The minimum wage has been raised yearly by a tripartite committee, where are you getting all your (wrong) information?

Oh, that would be news to me, too.

You have a link to the minimum salaries list over the last 10 years?

From my archive, collected with blood, sweat and tears and only to please TV members

2005-08-01 ??

2006-01-01 Bangkok 184

2007-01-01 Bangkok 191, Nan 143

2008-01-01 Bangkok 194, ChiangMai 159, Chiangrai 146

2008-06-01 Bangkok 203, ChiangMai 168, Chayaphum 148

2010-01-01 Bangkok 206, ChiangMai 171, Phayao 151

2011-01-01 Phuket 221, Bangkok 215, ChiangMai 180, Phayao 159

2012-04-01 seven provinces including Bangkok 300 B/d, rest 40% increase

2013-01-01 all provinces 300 Baht/day

Disclaimer: correct as far as I know and have verified, guarantee expired just after writing this down

Ah, now I see my mistake.

From 2006 to 2011 it was about 200baht/day. (here on Phuket)

2011 it was the 'big' rise to 220 Baht

1. April 2012 the next step to 300.

My fault, of course.Inflation compensation, but no rises.

Thanks for your heartblood and the tears.

And, like I said, they getting now not one baht more. Only the 'real' salary' is a bit higher, the service charge has to fill that up.

[MEL1]

I have not been using Thai workers for over 5 years

now ... imported workers work harder, are more reliable

and cheaper ....

Do you scold them, when they don't do what they are told?

-mel.

[jbrain]

He said the Social Security Fund had paid about Bt1.13 billion to the unemployed workers.

Among the workers affected, 3,735 were laid off, 10,989 resigned, 484 were not entitled to social security fund assistance and 34,408 had yet to be formally notified of their employment termination by their employers.

People who resigned are are not entitles to benefits, neither are those who are not informed yetof their unemployment. That means the paid 1.3 Billion to 3,735 people over a month?

Unemployment benefits seems to pay well in Thailand.

[Thai at Heart]

The big picture, as I see it, is this as the beginning of a domino effect situation. The people who have lost, or will lose their jobs, contribute to the economy, or at least, used to contribute. The purchases and payments they can no longer make, will effect even more people. But this is just one facet. It's going to get worse! Count on it!

I doubt many of these people on the minimum wage, have much residual money to spend on luxuries. I would be guessing (logically) that most if not all, goes towards food and shelter and that's about it.

I disagree with people who constantly say a Thai can live on 200-250 baht per day. It's borderline survival. Not living.

I also agree that multinationals or companies that are exporting say they can't afford the wage increase is bullshit. We hear the same everywhere, in every country.

If you are serving the local community, it is different, but no different elsewhere, where running your own business with employees is hard, when you have high salaries you have to pay, high overheads etc.

I think people just got used to the cheap cheap labour and don't want to have a greater expense than they are used to. For a Thai on minimum way life is hard. Nothing is that cheap here, if you look at it from the viewpoint of someone earning 300 baht a day.

................but if neighbouring countries with equally skilled (perhaps better and hard working employee's) having pay scales well below that of Thailand's then where are new investors going to set up shop???? or worse still, make it worthwhile for them to leave Thailand and build their plants elsewhere - result in both cases? less jobs in Thailand and increased employment in those benefitting countries.

U think a foreign mnc investment decision is made on 5 or 10 usd per DAY?

[IsaanUSA]

Just wondering, who is doing the work of all this people, now.

Illegals?

No one?

I imagine you must have lived in Thailand for many years.

What happens is that people are eliminated but the rest of us have to pickup their work. So we are doing more work than ever. Lots of companies have had increased profits by using less workers. However people are getting burned out faster. It makes for a more hostile work environment.

[chiangmaikelly]

December 2012 the the number of employed persons in agriculture sector decreased by 0.49 million but non-agriculture sector increased by 0.55 million. This increment was found in various industries, Construction by 0.43 million, followed by Manufacture 0.38 million, Public administration and defence 0.17 million. 52,000? Given the reality of the Thai job market 52,000 is a very small number of a 38.55 million labor force. There were 82 thousand idle in Decenber because on seasonal farm cycles.

Google Labor force survey Thailand.

Edited February 12, 2013 by chiangmaikelly

[chiangmaikelly]

Just wondering, who is doing the work of all this people, now.

Illegals?

No one?

I imagine you must have lived in Thailand for many years.

What happens is that people are eliminated but the rest of us have to pickup their work. So we are doing more work than ever. Lots of companies have had increased profits by using less workers. However people are getting burned out faster. It makes for a more hostile work environment.

Divide 52,000 by 40 million to find out the percent you have to pick up.

[Locationthailand]

Yippeee PTP, more of your policies working well. But fear not, the great Red uneducated will still vote for you on the promise of democracy... and a vote payment.

[chiangmaikelly]

Yippeee PTP, more of your policies working well. But fear not, the great Red uneducated will still vote for you on the promise of democracy... and a vote payment.

How many thousands got a raise? How many thousands were laid off? If you can't answer then you have no right to make the above statement.

[Mitker]

Is it just me or..

- "Among the workers affected..., 10,989 resigned" (!) What's the point of resigning because a wage increase is implemented?? (we're talking here about people who became "unemployed", not switched to another job)

- "34,408 had yet to be formally notified of their employment termination by their employers" (! again) Known by the administration but not by the worker??

Edited February 12, 2013 by Mitker

[Thai at Heart]

Any company announcing it newly wants to import labor from outside Thailand should instantly attract a tax audit.

[SICHONSTEVE]

The big picture, as I see it, is this as the beginning of a domino effect situation. The people who have lost, or will lose their jobs, contribute to the economy, or at least, used to contribute. The purchases and payments they can no longer make, will effect even more people. But this is just one facet. It's going to get worse! Count on it!

I doubt many of these people on the minimum wage, have much residual money to spend on luxuries. I would be guessing (logically) that most if not all, goes towards food and shelter and that's about it.

I disagree with people who constantly say a Thai can live on 200-250 baht per day. It's borderline survival. Not living.

I also agree that multinationals or companies that are exporting say they can't afford the wage increase is bullshit. We hear the same everywhere, in every country.

If you are serving the local community, it is different, but no different elsewhere, where running your own business with employees is hard, when you have high salaries you have to pay, high overheads etc.

I think people just got used to the cheap cheap labour and don't want to have a greater expense than they are used to. For a Thai on minimum way life is hard. Nothing is that cheap here, if you look at it from the viewpoint of someone earning 300 baht a day.

................but if neighbouring countries with equally skilled (perhaps better and hard working employee's) having pay scales well below that of Thailand's then where are new investors going to set up shop???? or worse still, make it worthwhile for them to leave Thailand and build their plants elsewhere - result in both cases? less jobs in Thailand and increased employment in those benefitting countries.

U think a foreign mnc investment decision is made on 5 or 10 usd per DAY?

Yes!!! especially if the workers are hard working unlike the lazy Thai's

[chiangmaikelly]

I doubt many of these people on the minimum wage, have much residual money to spend on luxuries. I would be guessing (logically) that most if not all, goes towards food and shelter and that's about it.

I disagree with people who constantly say a Thai can live on 200-250 baht per day. It's borderline survival. Not living.

I also agree that multinationals or companies that are exporting say they can't afford the wage increase is bullshit. We hear the same everywhere, in every country.

If you are serving the local community, it is different, but no different elsewhere, where running your own business with employees is hard, when you have high salaries you have to pay, high overheads etc.

I think people just got used to the cheap cheap labour and don't want to have a greater expense than they are used to. For a Thai on minimum way life is hard. Nothing is that cheap here, if you look at it from the viewpoint of someone earning 300 baht a day.

................but if neighbouring countries with equally skilled (perhaps better and hard working employee's) having pay scales well below that of Thailand's then where are new investors going to set up shop???? or worse still, make it worthwhile for them to leave Thailand and build their plants elsewhere - result in both cases? less jobs in Thailand and increased employment in those benefitting countries.

U think a foreign mnc investment decision is made on 5 or 10 usd per DAY?

Yes!!! especially if the workers are hard working unlike the lazy Thai's

Are all 40 million working Thais lazy Steve?

[paulchiangmai]

Although the numbers seem to be low, the workers effected are those who were supposed to be helped by the raise of the minimum wage it would seem.

Still rest assured, dear public, all those working now do get their 300 Baht a day. By law, promise, boy scout's honour, and so

quote

300 Baht a day, but how long is a day, in my wifes case, sewing at home, if she works about 23.5 hours a day she will get 300 Baht. I tell her she is mad but she replies she likes working.

Edited February 12, 2013 by paulchiangmai

[Thai at Heart]

Already, casual labor here in isaan wants minimum 325. give it another year, 300, will be in.

[BrianCR]

What was the minimum before that ? Maybe 200 or 250 or 280 THB ? An increase of max 100 THB a day ? Methinks, a company that cannot afford that amount a day should better get off the market altogether.

10 USD a day x 24 = 240 USD a month. Veeeeery little, even for Thai standard. Take one liter of gas for 40 THB... that means these people are supposed to work for 7.5 liters of gas a day, very often under veeeery inhuman conditions.

I knew a young lady working in a Japanese owned factory for 19 THB an hour, overtime was payed only 16 THB. Three shifts, six days a week, 7 off-days a year, hardly time to go to the loo or to eat in the cantina. Shame on extortion.

Which orifice are are you talking through?

[Thai at Heart]

Steve, have you ever been into the factories on the eastern seaboard? Everyone looks pretty studious and attentive to me.... Thing is, what is noticeable is the massive lack of robots. People are doing the work that robots took over in the west 30 years ago. At these wages, in comparison with a 1mn dollar robot, 20k per month looks cheap.

The problem of 300 is in massively labor intensive stuff. We in the west like peeled shrimps, we like them cheap, would you peel them for 200 baht a day?

[jrincon17]

in the mean time we are looking for workers and cannot find any .. how silly is that ?

sounds like here in the States !

[chiangmaikelly]

in the mean time we are looking for workers and cannot find any .. how silly is that ?

sounds like here in the States !

Try Detroit.

[noob7]

He said the Social Security Fund had paid about Bt1.13 billion to the unemployed workers.

Among the workers affected, 3,735 were laid off, 10,989 resigned, 484 were not entitled to social security fund assistance and 34,408 had yet to be formally notified of their employment termination by their employers.

People who resigned are are not entitles to benefits, neither are those who are not informed yetof their unemployment. That means the paid 1.3 Billion to 3,735 people over a month?

Unemployment benefits seems to pay well in Thailand.

Administration costs?

[noob7]

The big picture, as I see it, is this as the beginning of a domino effect situation. The people who have lost, or will lose their jobs, contribute to the economy, or at least, used to contribute. The purchases and payments they can no longer make, will effect even more people. But this is just one facet. It's going to get worse! Count on it!

I doubt many of these people on the minimum wage, have much residual money to spend on luxuries. I would be guessing (logically) that most if not all, goes towards food and shelter and that's about it.

I disagree with people who constantly say a Thai can live on 200-250 baht per day. It's borderline survival. Not living.

I also agree that multinationals or companies that are exporting say they can't afford the wage increase is bullshit. We hear the same everywhere, in every country.

If you are serving the local community, it is different, but no different elsewhere, where running your own business with employees is hard, when you have high salaries you have to pay, high overheads etc.

I think people just got used to the cheap cheap labour and don't want to have a greater expense than they are used to. For a Thai on minimum way life is hard. Nothing is that cheap here, if you look at it from the viewpoint of someone earning 300 baht a day.

................but if neighbouring countries with equally skilled (perhaps better and hard working employee's) having pay scales well below that of Thailand's then where are new investors going to set up shop???? or worse still, make it worthwhile for them to leave Thailand and build their plants elsewhere - result in both cases? less jobs in Thailand and increased employment in those benefitting countries.

U think a foreign mnc investment decision is made on 5 or 10 usd per DAY?

Times 5/10/20 thousand workers?

I think, it is!

[noob7]

Just wondering, who is doing the work of all this people, now.

Illegals?

No one?

I imagine you must have lived in Thailand for many years.

What happens is that people are eliminated but the rest of us have to pickup their work. So we are doing more work than ever. Lots of companies have had increased profits by using less workers. However people are getting burned out faster. It makes for a more hostile work environment.

That (pick up the work) will not 'work', i guess. Not over long time..

That is the reason, that companies hire many more people, than they usually need.

That's why I didn't ask, if people have to work more, now.

They would need illegals, methinks. Much easier to control, much more reliable.

And yes, I have long time experience, not only in Thailand

[lemoncake]

The reality is a huge number of people still do not even know about the minimum wage rise, as a very large number do not read the papers or listen to the news.

None of my staff were aware of it, when i informed them of a pay rise, they were thrilled and from what i learned they still do not have a clue.

A number of people coming for an interview are asking below the new minimum, which only means they are also not aware.

One thing that has not been mentioned anywhere is that social security contribution has also gone up from 3% to 4% and now 5%

I have said it before but will say it again, i am all for wage rise, but what about quality of work?! I just fired a retard who asked for 10 000 baht, university educated, 40 years old and she could not take a food order(mind you the menu had numbers).

I am sure those who quit or were fired, were not useful or productive employees. Most businesses already paid above the minimum wage to good and loyal staff and those who just come, do nothing and go are simply not worth the money(they only add costs to the business without any benefit)

[IsaanUSA]

Thing is, what is noticeable is the massive lack of robots. People are doing the work that robots took over in the west 30 years ago. At these wages, in comparison with a 1mn dollar robot, 20k per month looks cheap.

More like million baht robot. (Actually a couple million baht). Much much less than a million dollars now-a-days, unless you're talking about automobile manufacturing.

Noob7, we have been "picking up the work" for several years now. I am far from being retired and have went through a downsizing in the past few years. Same work load, but less employees. So everybody has to work harder.

[Thai at Heart]

Thing is, what is noticeable is the massive lack of robots. People are doing the work that robots took over in the west 30 years ago. At these wages, in comparison with a 1mn dollar robot, 20k per month looks cheap.

More like million baht robot. (Actually a couple million baht). Much much less than a million dollars now-a-days, unless you're talking about automobile manufacturing.

Noob7, we have been "picking up the work" for several years now. I am far from being retired and have went through a downsizing in the past few years. Same work load, but less employees. So everybody has to work harder.

I was referring specifically to car industry.