Thai opinion: Workers' tales shed light on the PRODUCTIVITY ISSUE

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STREETWISE
Workers' tales shed light on the PRODUCTIVITY ISSUE

BANGKOK: -- Once in a while, workers are told they must increase their productivity if they want increased rewards. However, that simple equation doesn't apply to all workers. Masseuses, for instance, need to do a lot more than increase their productivity, in order to receive higher pay.

Traditional Thai massage shops are everywhere, offering a significant number of jobs. But only the lucky few masseuses will land employment in five-star hotels, where pay and tips are handsome.

The hundreds of masseuses at one of Bangkok's biggest chains, with more than 15 outlets, have to work six days a week, eight hours per day. On a good day, a masseuse here will treat four customers for two hours each, and earn half of the Bt500 each treatment costs - a total of Bt1,000. But on days when no customers show up, they get nothing. The chain does not offer minimum pay, let alone other benefits.

Masseuses are often keen to find a job at shops in tourist destinations, hoping for big tips from foreign visitors. In Bangkok, massage therapists wearied by the daily eight-hour grind welcome tourists since they can seldom tell the difference between a high-quality massage and a poor one, and tip well either way.

To gain a competitive edge, some standalone shops use guaranteed minimum pay to attract quality masseuses. One such shop in Bangkok has just hooked a masseuse from Kanchanaburi.

New here, she is now ready to trade anything for higher pay. Away from home, she is having to rent a place to stay. And she's feeling the pinch in other ways too. In Kanchanaburi, lunch was just Bt30, compared to Bt50 in Bangkok. Travel costs are an added new drain on her finances.

Another masseuse said that young people these days enter the business with a single dream - to land a job in a foreign country that pays more. In Hokkaido, Japan, an hour of traditional massage typically costs 4,000 yen, or about Bt1,100. In London, the price is 50 pounds - about Bt2,550. If the masseuse gets half, that's significantly more than the pay at most massage shops in Thailand. But chasing that dream requires investment and skills. While many of the young dreamers can't match the older masseuses in terms of skill, they have the desire and ability to finance their move abroad.

The tales from these masseuses reveal that pay does not rely solely on productivity, especially in the service sector.

In other sectors, where the minimum wage is more strictly adhered to, workers are at the mercy of the tri-partite wage committee, which reviews the wage every year. Millions were delighted when the minimum daily wage jumped to Bt300 nationwide on January 1, 2013. It was more than many had been expecting.

The Yingluck Shinawatra government was heavily criticised for the decision, which replaced a wage that differed depending on location with a flat rate. In more economically deprived provinces, like Chaiyaphum in the Northeast, the wage had been about Bt160. In thriving provinces like Phuket, it was Bt221.

But workers' happiness at the hike was short-lived. As it turned out, not all enjoyed the benefits - particularly those living in border provinces where cheap labour was abundant for unskilled jobs. Activists in Tak, bordering Myanmar, have complained that migrants there are being paid below the Bt300 rate. That's hardly a surprise given that there are Thai workers in Tak who still don't get the minimum. Meanwhile, workers who are being paid the minimum mark are finding the hike hasn't matched the increased cost of living.

The political instability in 2013 brought lower economic growth, which makes it difficult to evaluate the benefits or otherwise of the higher wage. The economic disruption and drop in foreign visitors led to meagre growth of 1.8 per cent.

The higher wage was expected to encourage a boost in productivity. But in the absence of strategic moves in relevant areas, that hasn't materialised. Training courses are available, but they don't cover the 10 million-plus workers in question. Not all employers welcome the training courses, since they see no short-term concrete gains. In some jobs, technology can help to boost productivity, but that requires investment.

Despite the Labour Ministry's directive, many employees are not paid according to their skills. From January to September last year, 23,750 workers - or 2 per cent of 1.17 million workers at 33,747 workplaces - were mistreated pay-wise, according to the latest ministry data. Some workers managed to pass skill tests to earn above the minimum wage. Some employers do not want to pay it, but refusal to do so is against the law. The wage committee in January resolved that the minimum pay scale for skilled labour is backfiring. Employers wre tending not to keep those workers who had higher skills, so as to avoid breaking the law if they could not pay more. Failing to win higher pay, workers had little incentive to improve their skills. So the wage committee agreed that the legal penalties attached to the pay scale should be scrapped.

Two years have passed and it remains just as difficult to determine whether the higher minimum wage has truly benefited either workers, their employers or the economy.

But with the cost of living already increased and civil servants having been granted a pay hike, the minimum wage can't be reversed. Like it or not, the Bt300 scale is here to stay. What matters now is how we handle future increases. It's not healthy for any economy if workers don't have the incentive of higher pay in return for improved productivity.

Source: http://www.nationmultimedia.com/opinion/Workers-tales-shed-light-on-the-PRODUCTIVITY-ISSUE-30262400.html


-- The Nation 2015-06-16

[thesetat2013]

Wow! Where do they get their numbers from? Every masseuse I ever talked to told me they only get between 50 to 100 baht per customer! 1/4 the fee charge by the shop and earn an average of 300 baht per day without tips.

[SABloke]

Wow! Where do they get their numbers from? Every masseuse I ever talked to told me they only get between 50 to 100 baht per customer! 1/4 the fee charge by the shop and earn an average of 300 baht per day without tips.

So either the reporter is being lied to or you are... So who would a Thai masseuse receive more benefit from? The researcher or rhe tip paying customer

[zaphod reborn]

The writer doesn't understand a basic business principle. If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage. In the services industries, you have to provide better service to earn a higher wage. I'm waiting for the masseuses to make their customers happier.

[Soutpeel]

The writer doesn't understand a basic business principle. If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage. In the services industries, you have to provide better service to earn a higher wage. I'm waiting for the masseuses to make their customers happier.

seems you don't either

If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage.

The goal is to increase productivity, thereby bring the unit cost down, but still being able to sell said product at the same price, thereby increasing the profit on said product for shareholders in the company

Edited June 16, 2015 by Soutpeel

[NeverSure]

The writer doesn't understand a basic business principle. If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage. In the services industries, you have to provide better service to earn a higher wage. I'm waiting for the masseuses to make their customers happier.

seems you don't either

If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage.

The goal is to increase productivity, thereby bring the unit cost down, but still being able to sell said product at the same price, thereby increasing the profit on said product for shareholders in the company

The goal in manufacturing is to increase productivity, thereby bringing the unit cost down, lowering the price to blow the competition away while still maintaining a good profit margin. The goal of the retailer is to find that manufacturer, sell his product and blow his competition away. See Sam Walton and Walmart.

No one every started a business for the benefit of the employees. He started it to make money for himself. Without the profit motive we wouldn't have products and services, and without productivity increases most people couldn't afford them.

The reason people have so much today as opposed to 100 years ago is productivity. Productivity brings a TV, smartphone, computer, automobile and so much more to so many people.

[seajae]

trying to compare prices overseas with Thailand,, what a moron, of course they are more expensive as its more expensive to live, then you have the fact that many of them are not qualified but self taught where as overseas you need a qualification. Most of the one in Thailand are in it to try to gain extras while doing a crappy massage, if they want a better wage they need to do a better job and actually be qualified not ok'd by their boss, a proper massage is supposed to relax the body/muscles not have to have happy endings as most "girls" want to do these days, they are mostly just fronts for sexual favours and everyone knows it.

[Balance]

There is something wrong with the picture. The article states that employers did not welcome training to increase skills, and further down that they would fire the workers with higher skills because they did not want to pay them more and would run afoul of the law if they did not.

In most western countries, the skills of workers are of the highest importance and the more skills they have the higher their pay. The reason for this is that the owners make more money if there workers are skilled and can work well at not just one, but perhaps two or three jobs so they can be moved to where they are needed when necessary. High quality products can not be produced without skilled workers who care about the job they are doing.

It would be interesting for someone to study labor practices in larger Thai owned SME's that manufacture for export with those that manufacture for domestic markets and then contrast the results with the factories owned by foreign companies. Historically, the last thing that Thai business people are willing to do is make any investment, choosing instead to strip out all the cash that is available, probably not a good business practice for the long term.

[Emster23]

Ex wife and current gf both work for Thai firms. The management "style" is biggest impediment to productivity. It is like managers went to business school and then did everything 180 degrees off what should be. Mobs of signatures required for even the slightest action. GF had to leave her desk, walk down 3 flights of stairs, go to another building, up 4 flights to get sign off. I asked "How about using internet for approval?" No can do. When she brought up view that company was paying her more for exercising than doing job, their solution was to say would hire younger worker to replace her.... one example from dozens.

Structure (if you could call it that) is feudal, time and resource wasting cockup. Ex signed on with international managed company, said never would work for Thai firm again.

[Soutpeel]

Ex wife and current gf both work for Thai firms. The management "style" is biggest impediment to productivity. It is like managers went to business school and then did everything 180 degrees off what should be. Mobs of signatures required for even the slightest action. GF had to leave her desk, walk down 3 flights of stairs, go to another building, up 4 flights to get sign off. I asked "How about using internet for approval?" No can do. When she brought up view that company was paying her more for exercising than doing job, their solution was to say would hire younger worker to replace her.... one example from dozens.

Structure (if you could call it that) is feudal, time and resource wasting cockup. Ex signed on with international managed company, said never would work for Thai firm again.

Ex wife and current gf both work for Thai firms. The management "style" is biggest impediment to productivity. It is like managers went to business school and then did everything 180 degrees off what should be.

This is not just Thai firms I assure you, it seems these days the "following the process" is more important than the actual result / efficiency , there is very little lateral thinking in most companies, they are just drones, most companies don't want people think for themselves

[islandguy]

I work extensively with Thai masseuses. Here in Samui, possibly the most expensive place in Thailand for regular Thai workers, some of the better massage shops and smaller resorts are paying 20,000 baht a month without a service charge. Hotel massage staffs make less than that in salary, but have a guaranteed service charge. The service charge at a few resorts is high enough for them to do very well, especially with tips. Yes, the desire to work overseas is widespread, but many of the masseuses I know that have gone overseas have not done well, many have been blatantly exploited. Some of the top masseuses working overseas do very well, but eventually want to return home. While the Thai brand for massage is strong in many places, cheaper competition from Bali on the world market is already happening. The chain mentioned in the article also has a higher tier of staff that do more therapeutic treatments, they get paid more. The industry and attitudes about massage as a profession have changed quite a bit in Thailand the last 10 years, and more middle class people and university graduates are entering the field. The best hotel jobs require English skills. And while illegal extras are widespread both here and abroad, I am talking strictly about legitimate massage in my comments.

[kaorop]

The writer doesn't understand a basic business principle. If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage. In the services industries, you have to provide better service to earn a higher wage. I'm waiting for the masseuses to make their customers happier.

seems you don't either

If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage.

The goal is to increase productivity, thereby bring the unit cost down, but still being able to sell said product at the same price, thereby increasing the profit on said product for shareholders in the company

The goal in manufacturing is to increase productivity, thereby bringing the unit cost down, lowering the price to blow the competition away while still maintaining a good profit margin. The goal of the retailer is to find that manufacturer, sell his product and blow his competition away. See Sam Walton and Walmart.

No one every started a business for the benefit of the employees. He started it to make money for himself. Without the profit motive we wouldn't have products and services, and without productivity increases most people couldn't afford them.

The reason people have so much today as opposed to 100 years ago is productivity. Productivity brings a TV, smartphone, computer, automobile and so much more to so many people.

lol 100 yrs ago you could not buy most of those things

maybe you meant invention,

and anyway robotics bring those things these days,

big companies see humans as to expensive and require fair conditions

no ones hand soldering a phone or welding car bodies anymore 55

[h90]

Ex wife and current gf both work for Thai firms. The management "style" is biggest impediment to productivity. It is like managers went to business school and then did everything 180 degrees off what should be. Mobs of signatures required for even the slightest action. GF had to leave her desk, walk down 3 flights of stairs, go to another building, up 4 flights to get sign off. I asked "How about using internet for approval?" No can do. When she brought up view that company was paying her more for exercising than doing job, their solution was to say would hire younger worker to replace her.... one example from dozens.

Structure (if you could call it that) is feudal, time and resource wasting cockup. Ex signed on with international managed company, said never would work for Thai firm again.

And you have younger one who just follow what they learned at the business school but without really knowing their products and technical difficulties...of course in combination with feudal system...not speaking with the lower ranks about problems.....Reducing the costs just where it kills of the quality.

That signing off everything 10 times has some sense. It is to prevent corruption and stealing. A lot time the documentations on paper was the only rescue....as things on the computer you can loose/change. Documents that stay with various people want disappear all. But of course common sense......double proof everything OK, not 10 useless signatures.

If it is important (which I doubt) instead of walking 10 min, why not fax it over and return, than both have a copy as well. If it is printed before. Why not print it over network in the other building and just fax it back with the signature.

Or if someone like it difficult: these pneumatic tube systems which we used in the 1960s would do it.

[billd766]

Last week I went to Global house in Khampaeng Phet armed with knowing what I wanted and print outs of them too in case the Thai staff couldn't understand me. (par for the course for a partly deaf old man).

I wanted a particular brand of water pump Grundfos which Grundfos in BKK assured me was available at Global. I also wanted a safety helmet with a full face visor.

There are lots of water pumps but no Grundfos and even when I went to the enquiry desk nobody really knew any thing. Of the 6 staff at the enquiry desk only one spoke some English

Safety helmets, plenty of those but with a visor, none. Enquiry desk, no have.

I looked a water filters and saw 3 sepeate prices for a similar item. I spoke to one of 5 ladies working in that section and they had to get someone else who spoke some English to help me.

Overall at Global house they could lose over half the staff and it still wouldn't make much difference to the service.

There are some pretty looking staff there but few have any idea about the stuff they are selling.

[Godders]

Here's wishing all massage workers with money troubles a happy ending.

[NeverSure]

seems you don't either

If you work in manufacturing, the goal is to increase productivity so worker can earn a higher wage.

The goal is to increase productivity, thereby bring the unit cost down, but still being able to sell said product at the same price, thereby increasing the profit on said product for shareholders in the company

The goal in manufacturing is to increase productivity, thereby bringing the unit cost down, lowering the price to blow the competition away while still maintaining a good profit margin. The goal of the retailer is to find that manufacturer, sell his product and blow his competition away. See Sam Walton and Walmart.

No one every started a business for the benefit of the employees. He started it to make money for himself. Without the profit motive we wouldn't have products and services, and without productivity increases most people couldn't afford them.

The reason people have so much today as opposed to 100 years ago is productivity. Productivity brings a TV, smartphone, computer, automobile and so much more to so many people.

lol 100 yrs ago you could not buy most of those things

maybe you meant invention,

and anyway robotics bring those things these days,

big companies see humans as to expensive and require fair conditions

no ones hand soldering a phone or welding car bodies anymore 55

100 years ago we didn't have so many things and yes invention was a big part of productivity. The wheels for the first cars were wagon wheels and the steel rims were made by blacksmiths. Soon they were banded with solid rubber. Today wheels are stamped from steel and welded by machines and one person can turn out gobs of them while one wheelwright and one blacksmith made just one from wood and steel.

100 years ago few could afford a car even if they decided they wanted one. They were hand built with too much labor. The standard part assembly line hadn't been developed well yet and when it was even the factory workers could afford a car. A car became something for the masses due to productivity.

If we look around our house we couldn't afford all we have if it weren't for high productivity making everything affordable. A lot gets made with a minimum of labor cost.

[Jonmarleesco]

'In London, the price is 50 pounds ...' Well, in the UK, massage is hardly the common pastime it is here ... and food comes at rather more than B50, rent at somewhat more than a few thousand baht, and the industry is probably run by Eastern Europeans.

[janpharma]

Let's not concentrate on masseusses...But on Thai labourers; about 2 years ago an Australian professor conducted a study on "productivity in labour". To produce the same labour of 1 Australian worker 77 Thai were needed, this was calculated on a yearly base. This says enough about "productivity" doesn't it?

[janpharma]

If LOS wants to see a spectacular raise of productivity without any cost...than ban all the mobile phones (games, Line...etc.....) during working hours!

[SABloke]

Let's not concentrate on masseusses...But on Thai labourers; about 2 years ago an Australian professor conducted a study on "productivity in labour". To produce the same labour of 1 Australian worker 77 Thai were needed, this was calculated on a yearly base. This says enough about "productivity" doesn't it?

So he's saying 1 Aussie labourer could have built the apartment block next to my home in the same time as the Thai team that did it? Wow. That is impressive

[SABloke]

Let's not concentrate on masseusses...But on Thai labourers; about 2 years ago an Australian professor conducted a study on "productivity in labour". To produce the same labour of 1 Australian worker 77 Thai were needed, this was calculated on a yearly base. This says enough about "productivity" doesn't it?

So he's saying 1 Aussie labourer could have built the apartment block next to my home in the same time as the Thai team that did it? Wow. That is impressive

I should add that my friend is a property developer in Melbourne and he can't stand the labourers there. Due to the Unions he's left with a bunch of over-paid (his words) lads with one eye on the thermometer: When it hits the magic number (34 degrees?), tools go down. He reckons he averages about 1 full days work a week in the summer, but still forks out for 5.

[Soutpeel]

Let's not concentrate on masseusses...But on Thai labourers; about 2 years ago an Australian professor conducted a study on "productivity in labour". To produce the same labour of 1 Australian worker 77 Thai were needed, this was calculated on a yearly base. This says enough about "productivity" doesn't it?

So he's saying 1 Aussie labourer could have built the apartment block next to my home in the same time as the Thai team that did it? Wow. That is impressive

But said Australian professor never factored in "Union's" in his "productivity in labour" study adjusting for this parameter we find that 1 Aussie labourer requires 3 HSE personnel to monitor his work, 5 cost accountants, 3 supervisors to supervise the supervisors, 12 smoko's per day, extended lunch breaks, Union strikes and 90 sick days a year..therefore it takes 8 aussies to employ 1 aussie labourer at 4000% of the cost of Thai labourer, and the Aussie is in on strike, sick leave or in the smoko shack more than he is on site...

[Thai at Heart]

I am not sure a productivity study of Thai masseuses is what they are necessarily talking about when they discuss labour productivity.........