Minimum wage should not be equal in all region, says Thai Min Chakramonin

[webfact]

Minimum wage should not be equal in all region, says Chakramon

BANGKOK: -- The minister for industry says the daily minimum wage should not be the same for all regions but should be adjusted with regard to the current 300 baht base so that the respective provincial tripartite wage committees are given the opportunity to study and make appropriate recommendations at the next national wage meeting in October.

Chakramon Phasukvanich, the minister for the Ministry of Industry, made comment on floating wage during a seminar on the occasion of the World Accreditation Day and the World Metrology Day.

He said that fixing the daily minimum wage equally for the entire country was contrary to economic realities and does not accurate reflect the actual competency of local provincial industries.

He stated that minimum wages can only realistically be determined by tripartite mechanisms and the appropriate base as a starting point is 300 baht per day.

Provincial tripartite wage committees will then determine the necessary adjustments befitting each region, he said.

At the same event, deputy prime minister for economy, M.R. Pridiyathorn Devakula commented that the present administration has never stated that it was planning to increase the daily minimum wage in 2016.

He however stated that businesses that are able to afford to pay higher wages could do so at their own discretion.

He also refuted rumors that the government was planning to reduce the daily minimum wage even further.

Source: http://englishnews.thaipbs.or.th/minimum-wage-should-not-be-equal-in-all-region-says-chakramon


-- Thai PBS 2015-06-11

[keith101]

A minimum wage is just that and should apply to all provinces and not be adjusted because of where you live .

[peptidebomber]

lol typical, I'm just waiting for when the people outside Bangkok only get half a vote in the next election.

[phoenixdoglover]

I think what he is saying is that there will be a national minimum (300 baht) but there may be a mechanism for raising it in some regions.

However, statements like this are confusing:

He said that fixing the daily minimum wage equally for the entire country was contrary to economic realities and does not accurate reflect the actual competency of local provincial industries.

I was under the impression that minimum wages are based on cost-of-living, not the "competency" of businesses.

Maybe "competency" is not the right word, i.e., lost in translation.

Edited June 11, 2015 by phoenixdoglover

[Tywais]

Before the 300 baht minimum wage across all provinces came into being due to the populist platform of the previous government, minimum wage varied by region/province. Sounds like he wants to take a step back in time.

[Thaddeus]

Do the shops/stalls vary their prices for basic human requirements, like food.

[DP25]

A minimum wage is just that and should apply to all provinces and not be adjusted because of where you live .

Different places have different costs of living and different economic conditions. It is difficult to survive on the minimum wage in Bangkok, while out in the countryside it is much easier.

The USA has the same system, each state and city can set it's own minimum wage, as long as it's equal or above the national minimum. The city of Seattle has a minimum wage more than double the national minimum wage. Seattle is expensive, Oklahoma is not.

So everywhere will have to pay at least 300 baht per day. But in some places, employers will have to pay more because of higher cost of living and better economic conditions.

[DP25]

Do the shops/stalls vary their prices for basic human requirements, like food.

Yes, they do. Food and housing is much more expensive in Bangkok than it is out in the countryside.

[JOC]

Before the 300 baht minimum wage across all provinces came into being due to the populist platform of the previous government, minimum wage varied by region/province. Sounds like he wants to take a step back in time.

Isn't that the whole point of the coup? To turn the clock back to the good old days!!

Makes me sick to my stomach, that wealthy people in their airconned offices are discussing if Somchai or Lek "deserve" 10 baht more or less for their backbreaking work!!

That Pridiyatorn Devakula aka Mom Rajawongse are even commenting on minimum wages, with his net worth of more than 1 billion baht and his family connections are just adding insult to injury!!

[Thai at Heart]

300 should stay, but they can make Bangkok 450......I somehow doubt this what they are intending to do....

[gabruce]

Do the shops/stalls vary their prices for basic human requirements, like food.

The answer is yes they do vary. Prices vary in ChiangMai depending on where you are. Here it ranges from 25 thb to 45 thb. When I moved here from Bangkok, prices were noticeably cheaper in ChiangMai, so it seems reasonable that wages in Bangkok would need to be higher to maintain the same standard of living. Same thing for city vs country.

[toybits]

If wage rates are not equal, will that not trigger another Rural to Urban migration of workers? Doesn't it look like a My Sweat is more valuable than Your Sweat feeling? Won't that policy create more resentment from the people in the provinces? Well, all we can do is wait and see because not of the people that matter ever read our posts anyway...

Edited June 11, 2015 by toybits

[recycler]

A minimum wage should be the same all over the country and it's up to the people to choose where they live and work, not to the government to force them in to choices.

By the way, many basic requirements are more expensive up country due to longer supply routes and less competition. Many goods are traded and distributed via Bangkok and are cheaper there than in remote areas.

[Godders]

M.R. Pridiyathorn Devakula commented that the present administration has never stated that it was planning to increase the daily minimum wage in 2016.

In October 2014 the National Anti-Corruption Commission (NACC) published the declared wealth of all ministers in the cabinet. Pridiyathorn was the wealthiest with assets of 1.38 billion Baht.^{[36] . (Source: Wikipedia)}

How the other one per cent of one per cent lives.

[Saan]

A minimum wage is just that and should apply to all provinces and not be adjusted because of where you live .

There is nothing new about having a loading on a minimum wage to assist people who are working in areas were rent and food is well above the average.

This happens in metropolitan awards in other countries.

Try moving from Buriram, or where ever in Issan, to Bangkok and live on the same wage at the same standard. It can't be done.

[quandow]

They'll keep this straw man argument going as long as possible to avoid actually dealing with the issue.

[NickJ]

Bangkok costs more for everything.For eveeybody.....300b a day doesnt cutt it for anybody anywhere. With factory workers

they count on overtime. 40 B an hour. In the West overtime is most often a sometime thing at best....here its almost a constant. So a worker makes 460 for a 12 hour day.....

Or 38 b an hour.

What needs to be done is a MIN HOURLY WAGE....with sometimes overtime. and the most productive workers get OT. production goes up all around.

[Thongkorn]

The Builder I use, wants and gets 500 baht a day. minimum. and he is worth it.

[Torrens54]

How about the latest Aussie Minimum Wage?

Just announced it will be AUD$679 per WEEK !

So glad I no longer employ anyone down there.

Edited June 11, 2015 by Torrens54

[hgma]

I just came from 7/11 and mini Tesco to buy my kids breakfast.

210 bath without counting the petrol to drive there and the micro wave use to heat up some items.

Just milk and flavored crisps and 2 hot-dogs.

now that leaves 90 bath to cover utilities and rent.

Oh dear....the kids need pocket money another 80 bath...........

Thank God we are not having a beer a day and walk most of the day.

Amazing Thailand.

[recycler]

I just came from 7/11 and mini Tesco to buy my kids breakfast.

210 bath without counting the petrol to drive there and the micro wave use to heat up some items.

Just milk and flavored crisps and 2 hot-dogs.

now that leaves 90 bath to cover utilities and rent.

Oh dear....the kids need pocket money another 80 bath...........

Thank God we are not having a beer a day and walk most of the day.

Amazing Thailand.

Just imagine the margins they make.... CP owns from the food the pigs eat to the shop they sell the sausage at 3 to 4 times the price of similar sausages in Europe!

No competition gives the few rich the opportunity to rob the poor masses dry.

[h90]

A minimum wage is just that and should apply to all provinces and not be adjusted because of where you live .

Thailand had always split it.

If you have the same minimum wage in Nakhon Nowhere and in Bangkok, every industry will go to BKK (and some industry estate close by) as there is the best infrastructure. The labor don't find any work in their home city and all come to Bangkok.

de-populate the country side. Makes the big cities even bigger.

Better have different minimum wages, but not huge differences, say 10-20 % plus and minus a base rate.

[Thai at Heart]

A minimum wage is just that and should apply to all provinces and not be adjusted because of where you live .

Thailand had always split it.

If you have the same minimum wage in Nakhon Nowhere and in Bangkok, every industry will go to BKK (and some industry estate close by) as there is the best infrastructure. The labor don't find any work in their home city and all come to Bangkok.

de-populate the country side. Makes the big cities even bigger.

Better have different minimum wages, but not huge differences, say 10-20 % plus and minus a base rate.

Not really true. Higher value industries go to industrial parks and logistics when they are invested in minimum wage activities.

Just look up country to the types of industry they have. Agribusiness, and locally based stuff such as pottery in chiangmai for example. The provinces have fewer foreign businesses but have isolated sugar factories or paper processing.

Higher value industries such as cars or electronics were set up by FDI so are centred outside bangkok or rayong for access to logistics. Huge volumes of labour have been imported from the provinces to staff these industries. But they don't pay minimum anyway. Where is the furthest major estate? Chachoengsao? Why? Has a massive road.

Up country to bangkok and Rayong migration is measured in the millions and there has been little incentive for companies to go up country because the logistics are poor and expensive. Even a notorious fishing net company up country 1000km from Burma uses Burmese labor because they pay as little as possible and over the years millions of locals have moved to Rayong and Bangkok.

Isaan is viewed by Bangkok as agriculture and little else.

Note though canon for example opening in Laos. Transport cost for a camera or parts is diddly squat.

They have to fix the minimum wage to inflation before they do anything else and should phrase any changes as cost of living allowances.

[Sydebolle]

Since 2011 the salaries across the board went up 28.4% without a single percent of increased output; that's the result of that populistic programme launched by a politician and paid by the private sector. Well, in our case it meant paying 28.4% less taxes - simple as that!