Federation of industries opposes minimum wage hike

[Chris Lawrence]

They should have unions.

not even a smiley face after the above reply, I love deadpan humor

I am all with you for that. perhaps take to the streets? and maybe wear red shirts

That's not humor son.

May have helped some people in the Natural Fruit Company? and similar type companies.

[sirineou]

They should have unions.

not even a smiley face after the above reply, I love deadpan humor

I am all with you for that. perhaps take to the streets? and maybe wear red shirts

That's not humor son.

May have helped some people in the Natural Fruit Company? and similar type companies.

I hate to disagree with you Pops

I am all for Unions, Currently I belong to two Unions , International Brotherhood of carpenters, and Teamsters in the US, and though unions are permitted in Thailand

"The Labour Relations Act, B.E. 2518 (1975) (the Act)) specifically provides for the establishment of labour unions. - See more at: http://www.pricesanond.com/knowledge/thai-labour-unions.php#sthash.jql3VLwx.dpuf"

I am afraid current labor conditions and the political situation in Thailand is not conducive for the creation of effective Unions, to force the government to raise the minimum wage, I am sure Dear leader would have something to say if it came to that.

Edited April 5, 2015 by sirineou

[Tomtomtom69]

"When the nationwide minimum wage of 300 baht was imposed, a large number of small and medium enterprises went out of business, he said."

And evidently recovered, as the unemployment rate has been reported in the range of o.5 to 1.0% the past 2 years. Or, could the reported unemployment rate be a fantasy?

"The nationwide adjustment would tantamount to about 80 per cent increase in certain areas and local businesses could not absorb such a drastic and sudden change in production cost, he said."

Er, no. A nationwide increase from 300 to 360 does not produce an "80% increase in certain areas".

"He argued that the country’s minimum wage has already been high in comparison to worker’s pay in several neighbouring countries."

And well it should be, considering the overall wage differences. Let's make the comparison of GDP per capita (PPP basis)

Thailand $9,500

Cambodia $2,400

Laos $2,800

Myanmar $1,700

At any rate, I'm so surprised the Federation of Industries would oppose a wage hike. It's not like they want to keep wages low, right?

Of course Thailand's minimum wage should be higher than it's much poorer neighboring countries. What an idiotic statement to make. And doesn't he think that Thailand should be able to attract more higher value added industries than these neighboring countries, or does he think Thailand should just make garments and compete on price?

300 Baht is still peanuts. Give the workers a raise and lift living standards.

[djjamie]

I remember when the 300 baht minimum wage was implemented and inflation (predictably) increased accordingly.

The excuse was attributed to the….have a guess?…Yep, the weather. “The flood and the hot weather, when combined, could make people feel that product prices are more expensive,” Apparently people had an "overactive imagination"

Unbelievable…From the PM none the less.

Lets hope economically minded people as opposed to weatherman dictated the countries economic future this time.

Edited April 5, 2015 by djjamie

[lostoday]

A lot of local small companies relie on cheap, unqualified labour. It works because of the high tolerance of Thai people for ... how to put it in a nice way ... shit jobs. Therefore there is no incentive for more professional training and higher productivity. One of the negative consequence of higher productivity is an increase of unemployment. But unemployment rate in Thailand is around 1%. Actually a lot of companies in Bangkok relie on imported Burmese workers not because they can't afford to pay higher wages but because Thais more and more are not interested to do an increasing number of low status jobs.

This situation is not really sustainable. Everybody agree that Thailand needs a better trained, more educated workforce. For that higher minimum wage is needed, especially since there is no pressure on the unemployment rate.

Thailand has 197 collegs. I don't know for sure but how many are there in Laos and Cambodia? 30?

Thailand produces 500,000 college grads per year; none of whom work for minimum wage.

What is the relation between my post and yours ?

Minimum wage has never been for college graduates. What is your point ?

You wrote, "Everybody agree that Thailand needs a better trained, more educated workforce." Not true. Thailand has too many college graduates.

You wrote, "This situation is not really sustainable. Everybody agree that Thailand needs a better trained, more educated workforce. For that higher minimum wage is needed." Not true. Thailand can import as many lower than minimum wage workers as it needs right now from Burma and Cambodia.

Supply and demand determine wages. Mess with supply and demand and one should know what they are doing. I don't think there is anyone on Thai Visa or in Thailand who does.

Example, "The flood and the hot weather, when combined, could make people feel that product prices are more expensive,” You really don't want people like that messing about with the laws of supply and demand.

Edited April 7, 2015 by lostoday