Thai private sector says clear minimum wage policy will boost investors’ confidence

[webfact]

Private sector says clear minimum wage policy will boost investors’ confidence



BANGKOK: -- The private sector yesterday urged the government to establish a national wage policy to bolster investors' confidence in the economy.

They however suggested that wage rates cannot be set at a fixed rate for the entire country.

The call was made by Mr Benjarong Suwankiri, the deputy president of the Thai Military Bank.

He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence.

In light of the increased interest from foreign investors in the country, this will provide greater confidence and peace of mind for both local and foreign investors to make long-term investments, he said.

A clear cut wage policy will allow investors to make secure business plans and provides greater ability to predict wage rate fluctuations.

Along with this, he recommended that greater emphasis must also be placed on improving the quality of local labor force.

He further advised that adjustments in wage rate must not be set at a fixed rate or the same for the entire country.

Each region must be allowed to determine the most appropriate wage rates in accordance with economic conditions, cost of living and other localized factors, he said.

According to recent survey, investors found that predominantly, local labor was paid lower than average wages.

As a norm this resulted in workers being unable to meet expenditures.

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Source: http://englishnews.thaipbs.or.th/content/162269


-- Thai PBS 2016-05-06

[Pib]

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Stop BSing businesses!!!!...just pay your employees more than Bt300/day...You don't need the govt to make that happen.

[jaltsc]

"He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence."

No, What is needed to boost confidence is a well educated and trained populace. Whichever nation in the ASEAN community offers the best "bargain" of combined production expertise at the most bang for the buck will get the business.

Edited May 6, 2016 by jaltsc

[shirtless]

Nothing is clear cut in the land of smiles, salaries are no exception.

[dageurreotype]

Lure business with cheap labour or pay them a living wage. What to do, what to do ..

[SoFarAndNear]

Lesser then 300 baht per day? This is not a minimum wage this a minimum to survive....

Everyone who works more then 10 hours per day and get lesser then 300 baht is a slave in my eyes...

[marcusd]

AHA! Now I know who is the spin doctor for this idiot government! the really smart looking guy with these glasses. Must be him because he looks so intelligent!

I love this quote

"In light of the increased interest from foreign investors in the country, this will provide greater confidence and peace of mind for both local and foreign investors to make long-term investments, he said."

And what about the 81% DECREASE in Japanese investment last year alone?

So wow! Lots of interest?

I am interested in space science too but I don't want to travel there.

[marcusd]

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Stop BSing businesses!!!!...just pay your employees more than Bt300/day...You don't need the govt to make that happen.

May I ask why they should be paid mopre per day?

To sit and look at facebook? To post pics of the food they eat?

Stupid face pics saying look how beautiful I am?

Do you know how other countries fare to Thai workers? I do. I operate in 4 countries.

Thai workers are the WORST and take the most training and have absolutely no skills. they need to be taught everything which is a HUGE cost.

Philippine workers have good education, get less money and TURN UP and work

1 Filipino is equivalent to 3 Thai staff.

YES I am all for improving their lives.

BUT it must start with Education and THAT my dear friend is what we in business complain about

Have you ever thought why Thailand only has tourism and DUMB ASS industry work? Fishing, manufacturing? And the workers press buttons. NOTHING skilled. The machines have the sills.

THIS IS SO SAD and why? GOVERNMENT POLICY over decades.

[Asiantravel]

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Stop BSing businesses!!!!...just pay your employees more than Bt300/day...You don't need the govt to make that happen.

May I ask why they should be paid mopre per day?

To sit and look at facebook? To post pics of the food they eat?

Stupid face pics saying look how beautiful I am?

Do you know how other countries fare to Thai workers? I do. I operate in 4 countries.

Thai workers are the WORST and take the most training and have absolutely no skills. they need to be taught everything which is a HUGE cost.

Philippine workers have good education, get less money and TURN UP and work

1 Filipino is equivalent to 3 Thai staff.

YES I am all for improving their lives.

BUT it must start with Education and THAT my dear friend is what we in business complain about

Have you ever thought why Thailand only has tourism and DUMB ASS industry work? Fishing, manufacturing? And the workers press buttons. NOTHING skilled. The machines have the sills.

THIS IS SO SAD and why? GOVERNMENT POLICY over decades.

Cambodians seem to earn 50% of what Thais do and have a much better attitude and work ethic.

[elgordo38]

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Stop BSing businesses!!!!...just pay your employees more than Bt300/day...You don't need the govt to make that happen.

In other words pay them as little as possible so big business can prosper. If not we will go elsewhere.

[elgordo38]

"He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence."

No, What is needed to boost confidence is a well educated and trained populace. Whichever nation in the ASEAN community offers the best "bargain" of combined production expertise at the most bang for the buck will get the business.

Vietnam a TPP partner hands down.

[Baerboxer]

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Stop BSing businesses!!!!...just pay your employees more than Bt300/day...You don't need the govt to make that happen.

May I ask why they should be paid mopre per day?

To sit and look at facebook? To post pics of the food they eat?

Stupid face pics saying look how beautiful I am?

Do you know how other countries fare to Thai workers? I do. I operate in 4 countries.

Thai workers are the WORST and take the most training and have absolutely no skills. they need to be taught everything which is a HUGE cost.

Philippine workers have good education, get less money and TURN UP and work

1 Filipino is equivalent to 3 Thai staff.

YES I am all for improving their lives.

BUT it must start with Education and THAT my dear friend is what we in business complain about

Have you ever thought why Thailand only has tourism and DUMB ASS industry work? Fishing, manufacturing? And the workers press buttons. NOTHING skilled. The machines have the sills.

THIS IS SO SAD and why? GOVERNMENT POLICY over decades.

In which business sector or sectors do you operate? I've operated in the Philippines in two sectors and my experienced are seemingly very different to you.

I remember seeing armed guards lining up employees at a factory ready for searching after they clocked out - and that was metal spinning and bending. In another sector I worked with people who had Masters degrees and quite frankly were not well educated.

If I remember correctly, on another thread, you wrote that you were a doctor and implied medical doctor. Is your experience in the Philippines medical related? If so I don't hear of many medical tourists going there as they do to Thailand.

[Baerboxer]

"He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence."

No, What is needed to boost confidence is a well educated and trained populace. Whichever nation in the ASEAN community offers the best "bargain" of combined production expertise at the most bang for the buck will get the business.

Vietnam a TPP partner hands down.

Over 10 years ago shoe manufacturers were moving production out of India to Vietnam. They said it was due to less bureaucracy, favorable government incentives and and more productive workforce.

I expected Vietnam to have grown far quicker based on that. Something, and I don't know what has slowed and stagnated that growth.

[tbthailand]

They however suggested that wage rates cannot be set at a fixed rate for the entire country.

This is, sadly, a typical view which allows government policy to discriminate against the already less-fortunate regions of Thailand. One has to wonder if there is not a bit of the Thai/Lao issue in such policies.

[GeorgesAbitbol]

Yeah good idea, make the minimum wage different according to the region, so the people will flock where the wage is the higher and will result in unemployment in those regions because to many people, while the other region will suffer of shortages...

Why not just put back slavery, this will boost investors confidence

Edited May 6, 2016 by GeorgesAbitbol

[Kiwiken]

"He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence."

No, What is needed to boost confidence is a well educated and trained populace. Whichever nation in the ASEAN community offers the best "bargain" of combined production expertise at the most bang for the buck will get the business.

Vietnam a TPP partner hands down.

Over 10 years ago shoe manufacturers were moving production out of India to Vietnam. They said it was due to less bureaucracy, favorable government incentives and and more productive workforce.

I expected Vietnam to have grown far quicker based on that. Something, and I don't know what has slowed and stagnated that growth.

I am in Ho Chi Minh City atm and my thoughts are. A lot of the Manufacturers who relocated to Thailand over the last 25 years will look seriously at moving Production here. More literate workforce willing to work. A more stable Government. Personally now if I was setting up manufacturing in S.E Asia Vietnam would be my number one choice.

[Jimbo2014]

Not sure defining minimum wage will really help address core issues of investor confidence such as low skilled and poorly motivated workforce, unstable autocratic government, weak legal system and high corruption index... but hey what do I know. That guy looks damn smart ?

[marcusd]

The survey also showed that most businesses want the minimum wage to be increased from 300 baht day as this rate has been in use for 3 years already and an adjustment is long overdue.

Stop BSing businesses!!!!...just pay your employees more than Bt300/day...You don't need the govt to make that happen.

May I ask why they should be paid mopre per day?

To sit and look at facebook? To post pics of the food they eat?

Stupid face pics saying look how beautiful I am?

Do you know how other countries fare to Thai workers? I do. I operate in 4 countries.

Thai workers are the WORST and take the most training and have absolutely no skills. they need to be taught everything which is a HUGE cost.

Philippine workers have good education, get less money and TURN UP and work

1 Filipino is equivalent to 3 Thai staff.

YES I am all for improving their lives.

BUT it must start with Education and THAT my dear friend is what we in business complain about

Have you ever thought why Thailand only has tourism and DUMB ASS industry work? Fishing, manufacturing? And the workers press buttons. NOTHING skilled. The machines have the sills.

THIS IS SO SAD and why? GOVERNMENT POLICY over decades.

In which business sector or sectors do you operate? I've operated in the Philippines in two sectors and my experienced are seemingly very different to you.

I remember seeing armed guards lining up employees at a factory ready for searching after they clocked out - and that was metal spinning and bending. In another sector I worked with people who had Masters degrees and quite frankly were not well educated.

If I remember correctly, on another thread, you wrote that you were a doctor and implied medical doctor. Is your experience in the Philippines medical related? If so I don't hear of many medical tourists going there as they do to Thailand.

Thank you yes I remember and you are partially correct. I am a Medical Doctor and I operate Medical Call centres and Office administration and Everything a medical clinic needs to operate. It is complicated and easy work dependent upon what part. We also develop medical practice software.

Yes there are a large number of Uni educated idiots but i also find that In Australia. BUT overall my staff have better skill sets in Philippines Thailand and anyone I get in for an interview is way ahead of the thai.

And as you point out the experience you have shown here is again lower paid manufacturing.

I have a joint venture in Cebu and Makati and we employ over 140 Philippine workers with skills unfortunately are just not here in Thailand.

Back to what i said earlier.

And the work ethics are just there for me and sadly not here.

Thailand for living - Philippines for working I am afraid.

[marcusd]

"He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence."

No, What is needed to boost confidence is a well educated and trained populace. Whichever nation in the ASEAN community offers the best "bargain" of combined production expertise at the most bang for the buck will get the business.

Vietnam a TPP partner hands down.

Over 10 years ago shoe manufacturers were moving production out of India to Vietnam. They said it was due to less bureaucracy, favorable government incentives and and more productive workforce.

I expected Vietnam to have grown far quicker based on that. Something, and I don't know what has slowed and stagnated that growth.

basically, up until about 3 years ago Thailand was the ONLY real choice for small to medium businesses wanting to relocate o set up in Asia. Stable and cheap. BUT everyone now is vying for the money from the West. AND Vietnam is now a key player for Manufacturing. India ha=s too much red tape and corruption by Modi is possibly trying top change that perception. Vietnam is moving away from dependence upon China. Philippines and Indonesia are also being aggressive players although right now, Philippines is a more stable and viable option for many businesses because of the ENGLISH and Education - overall - not implicitly so but overall.

[marcusd]

Not sure defining minimum wage will really help address core issues of investor confidence such as low skilled and poorly motivated workforce, unstable autocratic government, weak legal system and high corruption index... but hey what do I know. That guy looks damn smart ?

How can they say in one sentence A clear minimum wage and then a wage differing for each province? So nothing changes. IDIOTS they are as usual.

[phoenixdoglover]

Since when is a Vice President of the Thai Military Bank speaking for the entire private sector?

[JAG]

Since when is a Vice President of the Thai Military Bank speaking for the entire private sector?

Since the military took over the government?

Come on PDL!!

[phoenixdoglover]

Since when is a Vice President of the Thai Military Bank speaking for the entire private sector?

Since the military took over the government?

Come on PDL!!

Yes, sir! (snaps smart salute)

[IamNoone88]

I can think of many things that would boost investor confidence and a minimum wage policy is definitely not one of them. There is plenty more to fix first.

[sjaak327]

Hmm, I guess this means they want the 300 baht lower in some places ?

I always thought that was the reason for the Cambodian, Laotian and Burmese workers, as they never ever get that wage...

[Strangebrew]

First of all repair your education system and teach your people how to get to work on time and once there work for your money. How many Thai's to screw in light bulb? 6 ,5 to stand around scratching there butt watching while the other finds out what a light bulb is.

[gandalf12]

"He said the country vitally needed a comprehensive and clear cut wage policy to boost confidence."

No, What is needed to boost confidence is a well educated and trained populace. Whichever nation in the ASEAN community offers the best "bargain" of combined production expertise at the most bang for the buck will get the business.

Vietnam a TPP partner hands down.

Over 10 years ago shoe manufacturers were moving production out of India to Vietnam. They said it was due to less bureaucracy, favorable government incentives and and more productive workforce.

I expected Vietnam to have grown far quicker based on that. Something, and I don't know what has slowed and stagnated that growth.

I talked about this to Vietnamese people when I worked there. They all agreed on one thing it is the old guard in the Vietnamese government that is holding them back

[gk10002000]

I was never going to be a big investor in Thailand, but just a few short years ago I almost purchased one of the larger beer bars and room places in Pattay, along with a small internet café, and at least one condo for me to live in. The internet cafes are probably struggling as so many people simply use their smart phones. The condo, well, I never was comfortable with the water situation and the possibility of noisy neighbors I might be stuck with. The bar, well, since the Junta took over, the lack of clear civilian control, ad hoc rules arising, make me very glad I am not locked into anything financial wise. I will just visit for now.

[Srikcir]

According to recent survey …

April 2016 survey by University of the Thai Chamber of Commerce conducted from 1,212 working people who earn less than 15,000 baht a month, working people want the government to increase minimum wage from 300 baht a day to 356 baht, cut contributions to the social security fund and stimulate economic growth because they are worried about possible unemployment, although there was no sign of mass layoff, but cutting employees’ overtime payments and freezing new recruitment were underway already.

wage rates cannot be set at a fixed rate for the entire country

Countries such as Poland. Latvia, Estonia and the Slovak Republic don't seem to have that problem.

the country vitally needed a comprehensive and clear cut wage policy to boost confidence

A wage policy that includes economic conditions and other localized factors is not a clear cut policy.

There are developed countries that have NO statutory Minimum Wage: Nordic countries, Denmark, Iceland, Austria, Itay and Switzerland. However, they do have strong trade unions, employee associations and or wage floors that can through collective bargaining gain equitable wages for employees.¹ Thailand lacks such collective bargaining empowerment to offset any arbitrarily-set national and/or provincial minimum wage.

The bottom line is that the Prayut and all previous regimes fail to understand the dynamics of wage policies.² The result will be an ineffective minimum wage policy at best and a failed policy at worse.

¹For the academic-minded see the OECD 2015 report on Minimum Wages. OECD Minimum Wage.pdf

²The exception being the FY 2015 and 2016 pay raises of 5% for civil service employees and likely the same for FY 2017. This may be driven more by junta politics than by economics.

[marcusd]

According to recent survey …

April 2016 survey by University of the Thai Chamber of Commerce conducted from 1,212 working people who earn less than 15,000 baht a month, working people want the government to increase minimum wage from 300 baht a day to 356 baht, cut contributions to the social security fund and stimulate economic growth because they are worried about possible unemployment, although there was no sign of mass layoff, but cutting employees’ overtime payments and freezing new recruitment were underway already.

wage rates cannot be set at a fixed rate for the entire country

Countries such as Poland. Latvia, Estonia and the Slovak Republic don't seem to have that problem.

the country vitally needed a comprehensive and clear cut wage policy to boost confidence

A wage policy that includes economic conditions and other localized factors is not a clear cut policy.

There are developed countries that have NO statutory Minimum Wage: Nordic countries, Denmark, Iceland, Austria, Itay and Switzerland. However, they do have strong trade unions, employee associations and or wage floors that can through collective bargaining gain equitable wages for employees.¹ Thailand lacks such collective bargaining empowerment to offset any arbitrarily-set national and/or provincial minimum wage.

The bottom line is that the Prayut and all previous regimes fail to understand the dynamics of wage policies.² The result will be an ineffective minimum wage policy at best and a failed policy at worse.

¹For the academic-minded see the OECD 2015 report on Minimum Wages. OECD Minimum Wage.pdf

²The exception being the FY 2015 and 2016 pay raises of 5% for civil service employees and likely the same for FY 2017. This may be driven more by junta politics than by economics.

It is NOT just about wages. As an employer, I cannot hire 25 people to sit around doing nothing AKA CENTRAL DEPARTMENT STORES - and I need a return on investment. Money in cannot be less than money out