TDRI says floating Thai minimum wage is a disadvantage for workers

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TDRI says floating minimum wage is a disadvantage for workers



BANGKOK: -- The National Wage Committee's resolution to float minimum wage beginning next year will be a disadvantage for workers, a research director of labour development of Thailand Development Research Institute (TDRI) Dr Yongyuth Chalamwong said.

The researcher said although floating the minimum wage will clearly define economy of each region, but it will be a disadvantage for workers as at present wage structure remains unclear.

He said what the government should do right now was to quickly solve the problem of workers who still do not receive the 300-baht minimum wage.

There are around 2.5 million workers who are still not paid the official minimum wage rate, he said.

He also said although minimum wage will be floated, but the float also sticks to 300-baht as basic rate.

Deputy permanent secretary of the Ministry of Labour, Mr Arak Promanee, meanwhile, said the nations wage committee has no resolution to scrap the present 300-baht minimum wage but only resolved to set minimum wage that will vary to economy and cost of living in each region.

He said final decision on minimum wage will be reached at the meeting of the national wage committee in October this year after each province file its information to the committee.

He affirmed that no matter what will be the final pattern of wage floating, new minimum wage will not stand below the present 300-baht wage per day.

But Pan Asia Footwear director Sommart Kunset saw differently.

He said floating minimum wage might deteriorate the current labour shortage problem in the industry sector, and could bring about cost by leaps and bounds.

He suggested that minimum wage should be decided by market and by economy of each region.

Source: http://englishnews.thaipbs.or.th/tdri-says-floating-minimum-wage-is-a-disadvantage-for-workers


-- Thai PBS 2015-06-09

[Crash999]

The old system was better- set a minimum wage by province. It took into account the lower cost of living upcountry and also provided some incentive for factories to spend money in more remote provinces rather than cluster around central Thailand and the ports.

Not clear what is being proposed here. If they keep 300 as a base and also have a different rate by province it suggests that Bangkok and elsewhere could increase significantly. Given Thailand already has one of the highest minimum wages in SE Asia it'll only serve to punish those people who follow the law, and disuade foreign investment.

At a time when Vietnam is pulling in huge investment and probably more after TPP the government ought to think carefully before finalizing their decision.

[torpedo1970]

The old system was better- set a minimum wage by province. It took into account the lower cost of living upcountry and also provided some incentive for factories to spend money in more remote provinces rather than cluster around central Thailand and the ports.

Not clear what is being proposed here. If they keep 300 as a base and also have a different rate by province it suggests that Bangkok and elsewhere could increase significantly. Given Thailand already has one of the highest minimum wages in SE Asia it'll only serve to punish those people who follow the law, and disuade foreign investment.

At a time when Vietnam is pulling in huge investment and probably more after TPP the government ought to think carefully before finalizing their decision.

At a time when Vietnam is pulling in huge investment and probably more after TPP the government ought to think carefully before finalizing their decision.

wishful thinking

most likely scenario is 300 Baht up country and 500 Baht in BKK.

Then when all factories is moved to Vietnam one will start bitching about how foreign investors dont understand the Thainess......

[Praematura]

Manufacturing will move to Vietnam once the infrastructure is in place. Either TPP or ASEAN will demolish what's left of Thai manufacturing as costs are high and domestic consumption is nil with current household debt levels.

Thailand could so easily teach the masses English, emphasize hospitality management and keep their only real asset desirable (beaches.) But as we have seen the masses don't have skills to transition into such an economy, which is intentional by guess who. The powers at be want to keep face by showing increasing arrivals yet anyone here in Pattaya/Jomtien can see its dying. Maybe the handbag shops are making money but I've yet to see a single Chinese spend a cent unless they are sharing a water at the food court at central. Meanwhile their sheer numbers are destroying the environment, just like they do in their own country. This place increasingly resembles the polluted cesspool that is China by every new bus load of "quality tourists."

[smutcakes]

I wonder if they could let everyone know who the employers of these 2.5 million people not paid the minimum wage are.....

[Gunna]

I wonder if they could let everyone know who the employers of these 2.5 million people not paid the minimum wage are.....

In many rural areas, the poor (indebted ) farmers can't pay even poorer day labourers 300bt.

Most get around 200bt per day for casual work

[tbthailand]

TDRI states the obvious...

A bit or rare, working-class truthfulness from the good ol' boys club at TDRI...

[Thai at Heart]

Ok, make it 400 in Bangkok, Rayong, Pattaya, and other tourist places and 290 the rest of the country.

I await the maids in Bangkok protesting to get their 400......

But, if you look at the mandated floating rates across the country in 2012, by now, if they kept up with inflation, they would be around 300 by now anyway. I go with a flat rate nationwide. The demand in the prosperous places in the country means wages outstrip 300 anyway,