FTI rejects proposed minimum wage hike

[webfact]

FTI rejects proposed wage hike
The Nation

BANGKOK: -- The Federation of Thai Industries rejected the tri-partite wage committee's proposal to raise the minimum wage to Bt360.

Wallop Witanakorn, vice-president of the federation, said that the hike would significantly affect the domestic manufacturing sector and drive investment to neighbouring countries that offer lower wage.

He noted that the committee should take into consideration that the wage was just recently raised to Bt300. At present, several manufacturing firms are operating with lower profits, amid poor economic condition.

Source: http://www.nationmultimedia.com/breakingnews/FTI-rejects-proposed-wage-hike-30257260.html

-- The Nation 2015-04-02

[zaphod reborn]

Common sense prevails. The minimum wage increase from two years ago to 300 baht in Bangkok had a significant impact on the economy, and caused quite a few large factories to close up shop in Thailand.

Edited April 2, 2015 by zaphod reborn

[Mosha]

They'll need that rise to pay income tax levied on them.

[Katipo]

As long as Thailand maintains it's position as a 'factory' for more developed nations, they simply cannot afford to raise the minimum wage more. The consequences would be devastating.

Instead of suppressing the masses, keeping them tamed with shiny trinkets and vague promises, overhaul the education system; make sure all those billions being spent end up in the class room and not in officials pockets; offer quality free tertiary education; and then, only then will the country be in a position to really move forward.

Of course, this would mean that a lot of the established elite with big factories and shiny BMW's would go out of business, and we couldn't have that now could we? So I don't expect to see the necessary reforms in the near future.... just more shiny trinkets and vague promises.

[Fat Haggis]

So the previous story about minimum wage related to cost of living in relation to the area and region will also be expected to be shelved ?

[Balance]

Common sense prevails. The minimum wage increase from two years ago to 300 baht in Bangkok had a significant impact on the economy, and caused quite a few large factories to close up shop in Thailand.

So, the wage goes up, but the factories close? That is because to most (and I think a guess of >70% is about right) Thai business owners of SME the concept of efficiency and productivity has absolutely no meaning. Even if the concepts are known, the implementation would be a complete non starter.

It is not the workers' responsibility to conduct business in the correct way. It is the responsibility of the owners of the businesses, full stop.

[Sydebolle]

20% salary increase without any increase on efficiency/output?
No problem; Yingluck did a 50% populistic stint (previously called vote buying promise) some years ago which rose the salaries across the board by 38% with an increase in productivity of the Big ZERO!

[English_M_in_Bkk]

If the wages go up then the bosses won't be able to afford another Merc - we can't have that can we

[worgeordie]

Let them eat cake ! don't increase the wages but lower corporation taxes thats OK.

regards Worgeordie

[UTH001]

20% salary increase without any increase on efficiency/output?

No problem; Yingluck did a 50% populistic stint (previously called vote buying promise) some years ago which rose the salaries across the board by 38% with an increase in productivity of the Big ZERO!

I would not be against that 20% increase, that might force HomePro, Thai Watsadu, DoHome, Global etc to have staff on the floors who actually work and not constantly play on their cell phones, being completely oblivious of any customers or any other goings on....

[tbthailand]

Common sense prevails. The minimum wage increase from two years ago to 300 baht in Bangkok had a significant impact on the economy, and caused quite a few large factories to close up shop in Thailand.

utter nonsense...

[tbthailand]

20% salary increase without any increase on efficiency/output?

No problem; Yingluck did a 50% populistic stint (previously called vote buying promise) some years ago which rose the salaries across the board by 38% with an increase in productivity of the Big ZERO!

you understand what minimum wage is, right?

I doubt it, because if you did, you would realize that your statement is nonsense.

[rubl]

Common sense prevails. The minimum wage increase from two years ago to 300 baht in Bangkok had a significant impact on the economy, and caused quite a few large factories to close up shop in Thailand.

utter nonsense...

Absolutely. They're more likely to close due to fires caused by short circuits and so.

Edited April 2, 2015 by rubl

[tbthailand]

set the minimum wage and then peg it to inflation, job done. Move on to other important issues like investing in the people of Thailand with good primary schools, universities, hospitals, etc...

[rubl]

20% salary increase without any increase on efficiency/output?

No problem; Yingluck did a 50% populistic stint (previously called vote buying promise) some years ago which rose the salaries across the board by 38% with an increase in productivity of the Big ZERO!

you understand what minimum wage is, right?

I doubt it, because if you did, you would realize that your statement is nonsense.

Minimum wage, as in Baht a day or Baht a month.

Was between 158 - 214 Baht a day (depending on province). First increased to 300 Baht a day in the provinces with the highest level already and in all of Thailand per 2013-01-01. Also minimum monthly wage for jobs requiring a Bachelor Degree moved to 15,000/month. Unclear if the last is only valid for government workers.

Of course this is just the law, no idea how it's applied since 2013-01-01

ADD: registration of worker and salary - in progress

Edited April 2, 2015 by rubl

[rubl]

set the minimum wage and then peg it to inflation, job done. Move on to other important issues like investing in the people of Thailand with good primary schools, universities, hospitals, etc...

This is more like it.

Mind you, in the yearly deliberations and adaptations we had before the last general elections, inflation was one of the items in increase justification. There never was an automatic increase and certainly not inflation related. Note that only in other countries increases are never pegged to inflation, and seldom completely covering inflation.

BTW the Ministry of Labour as being mainly responsible for the minimum wage setting will hardly 'move on' to Education or Health. We have other Ministries for that.

[rubl]

duplicate post, blanked on purpose

Edited April 2, 2015 by rubl

[elgordo38]

They'll need that rise to pay income tax levied on them.

I agree. The few rich and powerful who control the businesses do not the many who just want to survive to live in dignity. Its no longer about the welfare of people its all about profit profit profit.

[seajae]

in other countries a wage hike is linked to a productivity gain, here productivity means absolutely nothing to workers, too busy on the i phones and looking at their faces to actually do work. For a company to pay higher wages they need to be able to make higher profits, unfortunately this is the way of the world, if people want to whinge about how much workers should be paid then they should start their own business and pay them. We all know wages are low here but so is the cost of living, if they didnt buy the latest iphones and you beaut trucks and drink every night they wouldnt be in so much debt, they need to learn to budget more than anything. Inflation needs to be locked in as well to wages but the workers need to actually work first

[winstonc]

They'll need that rise to pay income tax levied on them.

I agree. The few rich and powerful who control the businesses do not the many who just want to survive to live in dignity. Its no longer about the welfare of people its all about profit profit profit.

thats the way its always been .....surely...

[Srikcir]

They'll need that rise to pay income tax levied on them.

Unlikely.

Thailand has the lowest tax collection rate in the world at 20% vs 40%. Even the Junta falls short with all its absolute powers.

Edited April 2, 2015 by Srikcir

[geriatrickid]

Common sense prevails. The minimum wage increase from two years ago to 300 baht in Bangkok had a significant impact on the economy, and caused quite a few large factories to close up shop in Thailand.

They may have closed, but there is still a labour shortage.

[Srikcir]

If the Thai GDP growth rate remains relatively flat throughout 2015 (and the 1st quarter is close to that), Thailand will have a bigger issue with its first unemployment rates and how those people can sustain themselves.

[geriatrickid]

in other countries a wage hike is linked to a productivity gain, here productivity means absolutely nothing to workers, too busy on the i phones and looking at their faces to actually do work. For a company to pay higher wages they need to be able to make higher profits, unfortunately this is the way of the world, if people want to whinge about how much workers should be paid then they should start their own business and pay them. We all know wages are low here but so is the cost of living, if they didnt buy the latest iphones and you beaut trucks and drink every night they wouldnt be in so much debt, they need to learn to budget more than anything. Inflation needs to be locked in as well to wages but the workers need to actually work first

Many of the companies targeted are already making sizeable profits. In Thailand as you know, the owners/top managers get the big money, while the workers get relatively little.

Are you against capitalism and free markets and all that good stuff? When there is a labour shortage, in the free market system, wages increase. When there is an abundance of labour, wages are driven down.

I am aghast, shocked to see the amount of dirty commies espousing a policy more fitting of a centrally managed Soviet era economy. It seems free markets and capitalism only applies to the wealthy and well positioned, and not to workers.

Forgive me if I guffaw.

Remember what that strident little pommie socialist Billy Bragg used to warble? Sometimes you got to take the crunchy along with the smooth? Well, in capitalism workers asking for higher wages and sometimes getting them, is part of what makes capitalism fair for participants.

Signed,

A conservative

[geriatrickid]

If the Thai GDP growth rate remains relatively flat throughout 2015 (and the 1st quarter is close to that), Thailand will have a bigger issue with its first unemployment rates and how those people can sustain themselves.

How so? The number of workers entering the workforce is unable to meet the current labour requirements. Couple with this is the increasing mortality associated with the 21-45 age group and Thailand will still have a labour shortage with a flat GDP. The economy would have to shrink or suffer a loss of export markets (e.g. due to sanctions or boycotts) for the unemployment rate to reach a level so as to cause social unrest. Keep in mind that there are millions of illegal and legal foreign workers in Thailand. They would be the first to feel the pinch.

[rubl]

in other countries a wage hike is linked to a productivity gain, here productivity means absolutely nothing to workers, too busy on the i phones and looking at their faces to actually do work. For a company to pay higher wages they need to be able to make higher profits, unfortunately this is the way of the world, if people want to whinge about how much workers should be paid then they should start their own business and pay them. We all know wages are low here but so is the cost of living, if they didnt buy the latest iphones and you beaut trucks and drink every night they wouldnt be in so much debt, they need to learn to budget more than anything. Inflation needs to be locked in as well to wages but the workers need to actually work first

Many of the companies targeted are already making sizeable profits. In Thailand as you know, the owners/top managers get the big money, while the workers get relatively little.

Are you against capitalism and free markets and all that good stuff? When there is a labour shortage, in the free market system, wages increase. When there is an abundance of labour, wages are driven down.

I am aghast, shocked to see the amount of dirty commies espousing a policy more fitting of a centrally managed Soviet era economy. It seems free markets and capitalism only applies to the wealthy and well positioned, and not to workers.

Forgive me if I guffaw.

Remember what that strident little pommie socialist Billy Bragg used to warble? Sometimes you got to take the crunchy along with the smooth? Well, in capitalism workers asking for higher wages and sometimes getting them, is part of what makes capitalism fair for participants.

Signed,

A conservative

Interesting is that the Yingluck Government in order to prepare the business sector for the possible impact of the 'election promise' raise of the minimum wage, lowered Corporate tax from 30% to 23% September 2011, a month after Ms. Yingluck read out 'her' government's plans, and to 20% a year later. Workers in 70 out of 76 provinces had to wait till January 2013 and the government having pronounced "mission accomplished" a year before (as in 'all is planned') forgot to ensure the new law was enforced.

So, big business profited doubly, thank to the 'big business' proxy government which said to help the poor, the common people. Utterly disgusting.

Signed,

a dangerous lefty

(aka uncle rubl)

[tbthailand]

in other countries a wage hike is linked to a productivity gain, here productivity means absolutely nothing to workers, too busy on the i phones and looking at their faces to actually do work. For a company to pay higher wages they need to be able to make higher profits, unfortunately this is the way of the world, if people want to whinge about how much workers should be paid then they should start their own business and pay them. We all know wages are low here but so is the cost of living, if they didnt buy the latest iphones and you beaut trucks and drink every night they wouldnt be in so much debt, they need to learn to budget more than anything. Inflation needs to be locked in as well to wages but the workers need to actually work first

Many of the companies targeted are already making sizeable profits. In Thailand as you know, the owners/top managers get the big money, while the workers get relatively little.

Are you against capitalism and free markets and all that good stuff? When there is a labour shortage, in the free market system, wages increase. When there is an abundance of labour, wages are driven down.

I am aghast, shocked to see the amount of dirty commies espousing a policy more fitting of a centrally managed Soviet era economy. It seems free markets and capitalism only applies to the wealthy and well positioned, and not to workers.

Forgive me if I guffaw.

Remember what that strident little pommie socialist Billy Bragg used to warble? Sometimes you got to take the crunchy along with the smooth? Well, in capitalism workers asking for higher wages and sometimes getting them, is part of what makes capitalism fair for participants.

Signed,

A conservative

Interesting is that the Yingluck Government in order to prepare the business sector for the possible impact of the 'election promise' raise of the minimum wage, lowered Corporate tax from 30% to 23% September 2011, a month after Ms. Yingluck read out 'her' government's plans, and to 20% a year later. Workers in 70 out of 76 provinces had to wait till January 2013 and the government having pronounced "mission accomplished" a year before (as in 'all is planned') forgot to ensure the new law was enforced.

So, big business profited doubly, thank to the 'big business' proxy government which said to help the poor, the common people. Utterly disgusting.

Signed,

a dangerous lefty

(aka uncle rubl)

god you are such a troll... you do not even understand what happened with the agreement for the minwage increase and the delay in implementation but you are happy to blame it on the wrong people.

The corp tax cut was part of the deal to get the increase through - call it appeasement, but it was a demand of the business lobby, not the idea of the government.

Then that same group turned around and did everything in their power to delay the implementation - even whining about how they couldn't afford it due to the flooding...

So yeah, corporations profited from the break and from the delay and it was their own doing. Yes, utterly disgusting but hardly unexpected. It's the way people with money manuver so as to horde more money for themselves and not carry their own weight in society.

[BSJ]

Businesses are run to make a profit. Why on god's earth would any sane businessman want to pay more corporate tax than necessary? It was the businessman who found the money, built the factory and bought in the machinery and has the responsibility to find the sales channels, pay the workers and then we have a greedy government who then put their hand out for 30% of the profits.....yet they haven't done a darn thing to earn it!

All the worker has to do is turn up for work, do the days work and go home secure in the knowledge the business owner will do everything else the business needs.

300 baht a day is a lot to pay someone with little skills and no real motivation to do anymore than they can get away with.

I fail to see how the governments corporate tax money grab can be linked to the wages paid to the workers.

[Bcgardener]

Ask anyone who runs a business here and you will get the same answer. Thais have a poor work ethic. It's a common topic at business meetings I attend. All of my workers earn well above the 300 baht minimum and we do give cost of living increases on an annual basis. However if I was asked to give a 20% increase to my staff I would have to see a serious change in both attitude and productivity. Start time of 7.30am to them means that's when you eat your breakfast. Midday lunch means you stop 15 minutes before then so you can wolf down your lunch and then sleep for the 1 hour break.

[tbthailand]

Businesses are run to make a profit. Why on god's earth would any sane businessman want to pay more corporate tax than necessary? It was the businessman who found the money, built the factory and bought in the machinery and has the responsibility to find the sales channels, pay the workers and then we have a greedy government who then put their hand out for 30% of the profits.....yet they haven't done a darn thing to earn it!

All the worker has to do is turn up for work, do the days work and go home secure in the knowledge the business owner will do everything else the business needs.

300 baht a day is a lot to pay someone with little skills and no real motivation to do anymore than they can get away with.

I fail to see how the governments corporate tax money grab can be linked to the wages paid to the workers.

then we have a greedy government who then put their hand out for 30% of the profits.....yet they haven't done a darn thing to earn it!

like build roads, airports, railways, harbors, etc which the businessman needs to move supplies and finished products...

or provide education to the citizens who work in the businessman's factories and offices...

or provide the justice system that protects the businessman's property and let's him settle disputes...

or manages the financial infrastructure that allows the businessman access to capital so his business can grow...

or promotes international trade to increase the markets for the businessman's exports....

yeah, that "greedy government" ....