Low-income earners unable to make ends meet on 300 baht minimum wage

[Pralaad]

of course the likes of Suthep and co want to keep them on 300 bahts so he can laugh all the way to the bank by utilising cheap labour

What are the likes of Shin and Co?

Oh did i miss Shin and Co are BILLIONAIRES

[Thai at Heart]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

Actually it's not true that Thailand imports all of it's oil. Thailand uses a little less than a 1,000 Barrels per day of which Thailand produces

about 1/3 of that.

Thai produced oil doesn't affect the price in Thailand just as Canadian and US produced oil doesn't affect the price there.

Oil is a global commodity and market forces will cause it to move to where the price is best. It's the same as if countries were bidding for oil. If oil were suddenly worth twice as much in India as it is in Thailand, Thai oil would flow to India and Thailand would have to import all of its oil at world market prices.

Unless Thailand was communist and took over all Thai oil production by force, it couldn't control the price of its oil. Even if it did that, it would still be eating a large loss by selling to Thais at below market price, absolutely subsidising it. This is just one of the things which always breaks communism.

The majority of oil in Thailand is imported in USD. Thus, chasing a devaluation as a policy causes inflation in many things.

[JesseFrank]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

Between July 2011 and July 2014 the Baht decreased in value by 6% against the dollar. I think inflation was a tad higher in the same time period.

[JesseFrank]

I beliwve one poster here tonytiger already is making a lot of money manufacturing TGAUs. Its a niche market that he has clawed his way into.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Is that right ?... OK I stand corrected, I thought that the TGAU market was a hole that was looking to filled in Thailand, so maybe not a good example, seeing as tonytiger has already got his fingers in there

I may be mistaken, there may be room for a few more producers. I think he got TGA approval last week, which is good for him as he tries to funnel the market into Thailand. I think his factiry is all geered up

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Did you mean funnel or should it have been tunnel ?

Do TGAU manufacturers employ GB's, or am I on the wrong leg.

[kingalfred]

Ptp did NOTHING for low wage workers. policies caused inflation.Oh they did one crazy thing.Allowed poorer folk to get into debt by buying their"first car"

Sent from my iPhone using Thaivisa Connect Thailand mobile app

[mrtoad]

I beliwve one poster here tonytiger already is making a lot of money manufacturing TGAUs. Its a niche market that he has clawed his way into.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Is that right ?... OK I stand corrected, I thought that the TGAU market was a hole that was looking to filled in Thailand, so maybe not a good example, seeing as tonytiger has already got his fingers in there

I may be mistaken, there may be room for a few more producers. I think he got TGA approval last week, which is good for him as he tries to funnel the market into Thailand. I think his factiry is all geered up

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Did you mean funnel or should it have been tunnel ?

Do TGAU manufacturers employ GB's, or am I on the wrong leg.

I am out of likes, but I think you might need to speak to the main TGAU expert, drop him a PM

[Thanet]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

You are saying that because you are not on the minimum wage.

[arthurwait]

18 year old lad, N/E.

m/cycle payments...............................2,500 per month,

Food....................................................3,000,

Water..................................................... 250,

Mobile top up..........................................250,

Room..................................................2,000,

Min wage 9,000.

Save 1,000. per month. If he already has a m/cycle Save 3,500 per month.

Petrol, drinking water, toiletries, a third meal a day, electricity, clothes, shoes, mobile payments, girlfriend, candy crush, no helmet tea money, beer, whiskey, gambling debts, karaoke girl, massage ?

[eguerra305]

Thats what you get for being bought at the polls. Some people just need to learn the hard way.

Sent from my GT-I9300 using Thaivisa Connect Thailand mobile app

[Pralaad]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

You are saying that because you are not on the minimum wage.

No. he is saying that because he understand how economics works

[daveAustin]

The main reason there was a rise in the minimum wage level was so as people could live as opposed to exist.

BS. The ONLY reason there was a rise in the minimum wage was so the PTP could get their votes, period! It was always going to backfire on all levels.

[Thai at Heart]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

Between July 2011 and July 2014 the Baht decreased in value by 6% against the dollar. I think inflation was a tad higher in the same time period.

18 months ago, it.was 27 to the USD and everyone had kittens. Its now 33. Plus minimum wage going up and hey presto.

20%+

[spidermike007]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

What a complete load of horse manure. Inflation was present here long before the workers started getting their 300 baht per day. The increase in the minimum wage had a very minimal effect on why oranges are now 60-90 baht per kilo, or why prices keep rising. I would say the disastrous policies of the incompetent Yingbat were more to blame than rising wages. Can you imagine living on 300 baht per day?

Spidermike

Sent from my iPad using Thaivisa Connect

Edited July 11, 2014 by spidermike007

[Chris Lawrence]

Stuff the minimum wage, they should get back to the more gratifying and cheaper people trafficking? Oh, yeah its all Mr T's fault?

This article has also met the approval of the Junta?

Whats the smoke screen for? The elite?

A fairer means of Taxation may be a better topic to have read in the paper to pay for the excesses. There are a lot more excesses in Thai society that would have a direct effect on cost of living, then the minimum wage expressed in the OP.

Most of these minimum wage earners will be working 6-7 days a week, taking 3-4 years to save and buy a used motor bike. I don't begrudge someone living in a third world existence, just getting by.

Or, so these money hungry bas#ards are sending the costs soaring for the poor expat community? Poor dears.

The Junta's spin doctors have got some of the expat community, again? stirring excess in the minds of the excessive?

[noendtoit]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

This is the argument made by the capital owners. But years ago, when McDonald's was protesting a proposed increase on the minimum wage in the US, I saw a statistic that the $2 an hour increase in the minimum wage would have added something like 1/2 cent to the cost of a 99 cent burger. Of course that is not going to either contribute significantly to inflation nor is it going to result in somebody not buying the burger. But McDonald's liked the marketing effect of its burger priced at 99 cents and did not want to give up one bit of its lucrative profits to better the lives of its employees.

So it is here. I don't know how anyone can live on the 300 baht a day. Many are supporting families. It is a sad situation in a country that could do better . . .

I favor a minimum of at least 1,000 baht per day, to go into effect as soon as I finish building my house.

[AnotherOneAmerican]

Why is it that all blue collar workers assume they are the ones doing all the work, while boss does nothing???

It's about equatable division of profits.

When a country sets a minimum wage, it should also set a maximum wage.

In the past I suggested maximum wage was set at 20x minimum wage.

That would allow the boss and the workers fair wages.

You are paid what you are worth.

It is much much much much harder to find brilliant GM to run the company as oppose to finding a factory worker, who could be replaced even by machinery in the near future.

Just as you can manufacture some fantastic product, but without it being sold product is worthless.

You can also manufacture crappy product, but with brilliant marketing and management it sells.

Most of the higher jobs in Thailand (and the world) are distributed to friends and family.

They are not awarded on worth. Why do you think the western banks are in such a mess?

[tonytigerbkk]

I beliwve one poster here tonytiger already is making a lot of money manufacturing TGAUs. Its a niche market that he has clawed his way into.

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Is that right ?... OK I stand corrected, I thought that the TGAU market was a hole that was looking to filled in Thailand, so maybe not a good example, seeing as tonytiger has already got his fingers in there

I may be mistaken, there may be room for a few more producers. I think he got TGA approval last week, which is good for him as he tries to funnel the market into Thailand. I think his factiry is all geered up

Sent from my GT-I9500 using Thaivisa Connect Thailand mobile app

Did you mean funnel or should it have been tunnel ?

Do TGAU manufacturers employ GB's, or am I on the wrong leg.

[Larry001]

More importantly employers need to be policed to ensure they are at least paying the minimum wage. I know of many in my area that are only paying 200 - 250 Bt per day.

[Thanet]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

You are saying that because you are not on the minimum wage.

No. he is saying that because he understand how economics works

Of course the cost of living will go up if the minimum wage is increased. But other things will change too: Business owners, instead of living like feudal lords, will need to work harder to improve productivity in order to stay competitive. The government will need to invest more in educating its people so that they can produce more and innovate more. This transition is normal for all developing countries, and results in the emergence of a larger middle class, who can afford the higher cost of living and stimulate the economy by spending more.

By just relying on cheap labour, Thailand will not only be doing its citizenry an injustice, but will also get stuck in a middle income trap - overtaken in the industrial sector by countries that develop their people and productivity faster, and in the overtaken in the agricultural sector by countries with cheaper labour still.

That's what you mean by economics, right?

[JesseFrank]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

Between July 2011 and July 2014 the Baht decreased in value by 6% against the dollar. I think inflation was a tad higher in the same time period.

18 months ago, it.was 27 to the USD and everyone had kittens. Its now 33. Plus minimum wage going up and hey presto.

20%+

Let me see, 18 months ago that would be around january 2013

Kasikorn says 29.63 instead of 27.

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchangeHistory.aspx?d=15&m=1&y=2013&r=0

On Friday Kasikorn again said 31.80, again a far cry from 33.00

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchange.aspx

I'm sure you can post any links to proof you're not just talking bullocks.

Edited July 12, 2014 by JesseFrank

[Krataiboy]

One man's wage rise is another man's inflation.

[Thai at Heart]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

it's a little more complex than that - the strength weakness of the baht does not drive inflation - it is a product of measure taken to curb inflation - measures will likely have the effect of driving inflation and the baht down which is exactly what is needed

Virtually every drop of fuel in Thailand is imported and priced in USD.

A cheaper baht feeds directly into the cost of everything because you can't make or move anything without oil, gas and elextricity.

Just go an ask even the most labour intensive factory what went up the most last year. His boiler, his electricity or some other input.

I guess you missed those oil wells in the Gulf of Thailand

Most of that is gas of which thailand is also a net importer. Don't worry I have spent plenty of time around enough oil and gas guys to know well enough what Thailand has or doesnt have.

Why are you discussing this as though Thailand is fuel independent and the USD value to baht has no effect on inflation. You think Thailand is like the Saudi or SE Asia?

That may well be Myanmar.

[Thai at Heart]

Everyone was crying for a weaker baht.

Well they got it, and everything went up in price. Inflation. its a bitch

Between July 2011 and July 2014 the Baht decreased in value by 6% against the dollar. I think inflation was a tad higher in the same time period.

18 months ago, it.was 27 to the USD and everyone had kittens. Its now 33. Plus minimum wage going up and hey presto.

20%+

Let me see, 18 months ago that would be around january 2013

Kasikorn says 29.63 instead of 27.

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchangeHistory.aspx?d=15&m=1&y=2013&r=0

On Friday Kasikorn again said 31.80, again a far cry from 33.00

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchange.aspx

I'm sure you can post any links to proof you're not just talking bullocks.

Hey I didn't have time to look at the charts.

So.let's not split decimals here. Do you remember the discussions with kittirat and everyone panicking when the baht got to about 28?

And everyone was begging for a weaker baht?

Jan 2014 33 to the USD

Apr 2013 28.5 to the USD

My apoglogies Mr.currency trader but that looks to me like about 4.5baht in 28, which is about 16%.

Is that good enough for youhttp://opentoexport.com/article/thailand-economy-thailand-wrestles-strong-baht-as-economy-slows-june-2013/

Thailand Economy: Thailand Wrestles Strong Baht as Economy Slows June 2013

Current rating:

Everyone was having a good old moan in early 2013 about the strong baht. Well now they got their wish. Any export boom? Thought not.

[billd766]

but a minimum wage was introduced only in a very few provinces, I think only 6 of them. The rest of the country is without any minimum wage.

but the ultimate solution to exploitation of work and powerty of employed is not a minimum wage, but a socio-economic system, where human needs of all, and not profit for a few, are the objective. That means ending with capitalism. So far thailand is closer to feudalism than global capitalism

Not totally correct.

It WAS introduced in a few provinces originally and was then implimented across the whole coutry in 2013. In Khampaeng Phet province the minimunwage was 178 thb and is now 300 thb.

A pay rise of about 68% assuming it was paid of course.

[billd766]

18 year old lad, N/E.

m/cycle payments...............................2,500 per month,

Food....................................................3,000,

Water..................................................... 250,

Mobile top up..........................................250,

Room..................................................2,000,

Min wage 9,000.

Save 1,000. per month. If he already has a m/cycle Save 3,500 per month.

My nephew is 18 and works for the Forestry Dept and earns 6,500 per month.

He has to pay his grandmother 1,000 baht to pay for the motorbike she bought for him and I charge him 1,500 baht to live here.

That is 50 baht a day and includes living, 2 or 3 meals a day, electricity, water, laundry etc.

He has 4,000 baht to get him to work and back, about 1,500 a month and 2,500 to spend on himself.

He usually runs out of money by the middle of the month and gets credit at the local shops at least for a while.

I controlled his money for a while and sometimes he had money left at the end of the month. Now he is lucky if he has any by the 3rd of the month.

He doesn't have the brains to realise that if he only went out 1 night in 3 after 2 months he would be in credit.

Today is the 12th and he has not paid me or his grandmother yet.

[kannot]

Ive yet to see a "poor" person without a mobile phone.............even my Myanmar staff have 2.

You can save if you want to, my Wife saved on less salary than that years ago

Its more a case of "wanting" things, motorbikes, computers, phones...........I mean u aint gonna starve in Thailand you can grow almost anything and scavenge a lot for free .

Of course for this increase they seek they are going to work so much better/efficiently etc?

[JesseFrank]

Let me see, 18 months ago that would be around january 2013

Kasikorn says 29.63 instead of 27.

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchangeHistory.aspx?d=15&m=1&y=2013&r=0

On Friday Kasikorn again said 31.80, again a far cry from 33.00

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchange.aspx

I'm sure you can post any links to proof you're not just talking bullocks.

Hey I didn't have time to look at the charts.

So.let's not split decimals here. Do you remember the discussions with kittirat and everyone panicking when the baht got to about 28?

And everyone was begging for a weaker baht?

Jan 2014 33 to the USD

Apr 2013 28.5 to the USD

My apoglogies Mr.currency trader but that looks to me like about 4.5baht in 28, which is about 16%.

Is that good enough for youhttp://opentoexport.com/article/thailand-economy-thailand-wrestles-strong-baht-as-economy-slows-june-2013/

Thailand Economy: Thailand Wrestles Strong Baht as Economy Slows June 2013

Current rating:

Everyone was having a good old moan in early 2013 about the strong baht. Well now they got their wish. Any export boom? Thought not.

Stop sprouting drivel to float your boat,

Currency exchange April 2013

Currency exchange January 2014

Please point out where we can find the bs figures you claim.

[Pralaad]

I guess the reason that the cost of living is higher is to a large extent due to the steep rise in minimum wage. If so, raising the minimum wage further might not have the desired effect.

You are saying that because you are not on the minimum wage.

No. he is saying that because he understand how economics works

Of course the cost of living will go up if the minimum wage is increased. But other things will change too: Business owners, instead of living like feudal lords, will need to work harder to improve productivity in order to stay competitive. The government will need to invest more in educating its people so that they can produce more and innovate more. This transition is normal for all developing countries, and results in the emergence of a larger middle class, who can afford the higher cost of living and stimulate the economy by spending more.

By just relying on cheap labour, Thailand will not only be doing its citizenry an injustice, but will also get stuck in a middle income trap - overtaken in the industrial sector by countries that develop their people and productivity faster, and in the overtaken in the agricultural sector by countries with cheaper labour still.

That's what you mean by economics, right?

Did business owners work harder last wage hike?

This should answer your question about your knowledge of economics

[rubl]

I just walked to Ratchawat market close to where I stay in Bangkok.

I bought one kilo of Rambutan 30 Baht, one kilo of Mangosteen 25 Baht, some fried banana and so 20 Baht, one ice coffee 20 Baht. That's 95 Baht already and I didn't buy anything special.

Now imagine 300 Baht a day for you, and your wife, and your two small children who go to school ... ...

[Thai at Heart]

Let me see, 18 months ago that would be around january 2013

Kasikorn says 29.63 instead of 27.

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchangeHistory.aspx?d=15&m=1&y=2013&r=0

On Friday Kasikorn again said 31.80, again a far cry from 33.00

http://www.kasikornbank.com/EN/RatesAndFees/ForeignExchange/Pages/ForeignExchange.aspx

I'm sure you can post any links to proof you're not just talking bullocks.

Hey I didn't have time to look at the charts.

So.let's not split decimals here. Do you remember the discussions with kittirat and everyone panicking when the baht got to about 28?

And everyone was begging for a weaker baht?

Jan 2014 33 to the USD

Apr 2013 28.5 to the USD

My apoglogies Mr.currency trader but that looks to me like about 4.5baht in 28, which is about 16%.

Is that good enough for youhttp://opentoexport.com/article/thailand-economy-thailand-wrestles-strong-baht-as-economy-slows-june-2013/

Thailand Economy: Thailand Wrestles Strong Baht as Economy Slows June 2013

Current rating:

Everyone was having a good old moan in early 2013 about the strong baht. Well now they got their wish. Any export boom? Thought not.

Stop sprouting drivel to float your boat,

Currency exchange April 2013

April 2013.JPG

Currency exchange January 2014

January 2014.JPG

Please point out where we can find the bs figures you claim.

Took them off a chart.

Hey its a trend matey. The baht got relatively strong at the beginning of 2013, everyone in exports was panicking and today, it has weakened. If we are going to sit here and debate whether 32.75 is 33 or 28.20 is 28, let's just call it quits and say the baht has weakened in the last 18 to 24 months shall we.

Strewth. Didn't know this was a currency trading site. Or is your point that the baht strengthened in this period and thus fuel prices got lower?

By the way, where can't you see 28.5 in April 2013 on your chart? And for the sake of argument let's not wonder if 32.85 is 33 OK.

Bloody hell, what a pedant.

Edited July 12, 2014 by Thai at Heart