Thai private sector does not want wage rise to be the same nationwide

[webfact]

Private sector does not want wage rise to be the same nationwide

BANGKOK, 1 July 2015 (NNT)-The majority of manufacturers recently surveyed have agreed that the minimum wage should not be adjusted at this time as the economy still remains in doldrums.

Employers’ Confederation of Thai Trade and Industry Vice President Tanit Sorat has revealed in the survey that most manufacturers in Thailand do not want the minimum wage to be the same throughout the nation, given the costs of production vary from one region to another.

They do not want the wage to rise just yet as the export growth is slow and prices of farm goods are declining. Permanent Secretary of the Ministry of Labor Nakorn Silapa-archa said the Provincial Wage Committee is currently collecting information on the minimum wage rate and economic growth in each province.

The Central Wage Committee is expected to finalize its decision on the new wage rate within August. The new rate will be fair to both workers and their employers, according to the Labor Permanent Secretary.


-- NNT 2015-07-01

[useronthenet]

Thailand is already becoming less competitive. Any futher increase in wages, will significantly affect their ability to compete with their neighbours. Those that invested in Thailand must be concerned about their rising operational costs, and indeed some have already moved out from the Kingdom.

[Thai at Heart]

The baht is devaluing, just wait for fuel prices to jump. Then what to do....

[Pib]

The manufacturers know if just one minimum wage is used country-wide then it would end up on the high end...probably a wage for the Bangkok area.

[sanuk711]

The baht is devaluing, just wait for fuel prices to jump. Then what to do....

Wont it be going down------it looks like we are about to have another hugh producer of fuel, coming back on line---Iran.

Then again you may be right---the amount of Oil around doesn't seem to make any sense to the pricing of it.

[Thai at Heart]

Just because they space the minimum wage it doesn't mean someone will move their factory to that place. Large up country factories are processing local products that are moved to bangkok, such as paper, sugar, corn etc. This doesn't mean that all of a sudden Toyota is going to decamp its factory to nakorn nowhere because wages are 30 baht less.

Keep it the same or make a mobile cost of living component to minimum wage on top of 300 that can be modified.

[mmh8]

none the less, you look on adecco or whatever the name is and look at the wages, compare with korea, singapore, Australia, Europe, us etc etc. it aint' even close, ifyou can hire a new engienering graduate from top school in Thaialnd for 20 -25k a month even if you think education standards are being dumbed down, its a no brainer, optimising profit for current investments, as previous poster types they will look at current investment, olets see wonce that investment is no longer making the margins.

these grads are still skilled labour, you won't find many firms taking on western workers to fill skill gaps unless they are highly specialised in a niche or highly experienced, just ask for a job offshore, or on with chevron etc etc

[rubl]

Different views, different aspects, still this NYT article is an interesting read. It helps understand issues.

www.nytimes.com/2015/07/27/business/economy/scale-of-minimum-wage-rise-has-experts-guessing-at-effect.html

Edited July 28, 2015 by rubl