Buriram Expats
Buriram Province - General Category => Jobs, economy, banking, business, investment in Buriram => Topic started by: Admin on December 22, 2009, 03:23:04 PM
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No decision on new Thai minimum wage
Bangkok Post: 22 Dec 2009
No decision yet on minimum wages
The Central Wage Committee on Monday failed again to reach agreement on a new minimum wage for labourers in various provinces due to a conflict over the wage for Bangkok, a Labour Department source said.
The committee, chaired by Chanthawan Thongsomboon, spent more than four hours discussing the mininum wage for Bangkok and adjacent provinces but could not agree on it.
The committee agreed to hold the next meeting on Dec 24.
A technical subcommittee had proposed that the minimum wage for Bangkok and five adjacent provinces go up by 2 baht per day except Samut Prakan which it said should get a 4-baht increase. However, employee representatives in the committee said all of the six provinces should get the same increase of 4 baht.
The minimum wage for Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, and Samut Sakhon is currently 203 baht per day, the highest in the country. The lowest wage of 150 baht per day applies in Phayao, Phichit, Phrae and Si Sa Ket provinces.
www.bangkokpost.com/breakingnews/163267/no-decision-yet-on-minimum-wages (http://www.bangkokpost.com/breakingnews/163267/no-decision-yet-on-minimum-wages)
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21% minimum Thai wage raise debated
Bangkok Post: 4 Oct 2010
EMPLOYMENT
21% raise in minimum wage debated
Business leaders today will discuss a radical government proposal to increase the daily minimum wage to 250 baht - 21% higher than the current Bangkok rate of 206 baht.
Prime Minister Abhisit Vejjajiva first floated the idea of a 250-baht minimum wage in June. In an address to Board of Trade members, he urged business leaders to think "out of the box" about ways to improve income distribution to promote social reconciliation.
His proposal will be debated today by the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from the Federation of Thai Industries (FTI), the Thai Chamber of Commerce and the Thai Bankers' Association. Members hope to come up with a clear response to the government.
"This is because the government's statement has caused confusion among business operators and might cause tremendous increases in their costs," said FTI chairman Payungsak Chartsutthipol.
He said the FTI agreed that wages should increase but that the decision should rest with the tripartite Central Wage Committee, a group of government, employer and labour representatives that reviews rates every December. "Increasing the minimum wage immediately to 250 baht per day is too high, and doing so might cause some provinces to increase wages by up to 100 baht, which will be a burden for business operators such as in Nan province, where the rate is 152 baht per day," said Mr Payungsak.
Currently, the minimum wage exceeds 200 baht in Bangkok and Samut Prakan (206 baht), Nakhon Pathom, Nonthaburi, Pathum Thani and Samut Sakhon (205), and Phuket (204). Elsewhere the rates range from 151 baht (Phayao, Phichit, Phrae and Mae Hong Son) to 184 baht (Chon Buri and Saraburi).
Mr Payungsak said any sudden large increase would have a big impact on small and medium-sized enterprises, many of which use a lot of unskilled workers, unlike big businesses that use mostly skilled workers and usually pay more than the minimum wage.
The agricultural and service sectors would also be widely affected as they use many unskilled labourers, he added.
He said he was willing to accept changes since they would help improve the quality of life for workers, but in the long term, operators would like to see incomes more closely linked with skills.
The private sector, along with the Education and Labour ministries, has been working on a plan to specify wages for each skill level, which would be an incentive for workers to enhance their skills to meet the standards.
"The move will also create an opportunity for workers to advance in their jobs rather than waiting for the government to increase minimum wages," added Mr Payungsak.
http://www.bangkokpost.com/business/economics/199531/21-raise-in-minimum-wage-debated (http://www.bangkokpost.com/business/economics/199531/21-raise-in-minimum-wage-debated)
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What is the current minimum wage in Buriram? I would infer it's about 152 baht based on this article.
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What is the current minimum wage in Buriram? I would infer it's about 152 baht based on this article.
A Thai lad who lives nearby works for the local council on a roadworking gang & gets 160 baht per day!!!,,,A large bottle of Low Kow & a packet of cigs & its almost gone......
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Thai govt must stay out of wage debate
Bangkok Post: 5 Oct 2010
'Stay out of wage debate'
Central committee best group to decide
The government should stay out of the minimum-wage debate and let the tripartite Central Wage Committee do its job, business leaders said yesterday.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) issued the declaration following a meeting to discuss Prime Minister Abhisit Vejjajiva's proposal to lift the minimum wage to 250 a day, 21% higher than the 206 baht now paid in Bangkok.
The JSCCIB groups representatives of the Thai Bankers Association, the Thai Chamber of Commerce and the Federation of Thai Industries (FTI).
FTI secretary-general Sommat Khunset said the Central Wage Committee, which contains government, employer and the labour representatives from each province, considered various factors such as economic growth, inflation and the ability of employers to pay, adding that each region of the country had different conditions.
The committee reviews wages every December.
"Therefore, the bottom line is that the government shouldn't interfere and should not make suggestions that could imply taking the lead," said Mr Sommat.
If the minimum wage increased to 250 baht, he added, some small businesses would "drop dead instantly," while some large-scale businesses would survive with difficulty.
The minimum wage exceeds 200 baht in Bangkok and six other provinces, and is 151 to 184 baht elsewhere.
FTI vice-chairman Chen Namchaisiri declined to comment, saying that making assumptions would be seen as putting pressure on the wage committee.
"There will be no opinions until the committee reveals some numbers since it has the information. Prior to that, we shouldn't speculate," he said.
A business executive who declined to be named said that Mr Abhisit's proposal was politically motivated.
"Everyone knows that it's a matter of winning popular votes and that politics is interfering with the committee," said the executive.
The premier first raised the idea in June, saying that improved income distribution would help promote national reconciliation following the tense and violent political protests of April and May. He repeated his proposal on Sunday during his weekly television address.
In a related development, the JSCCIB also expressed concern that the strengthening of the baht would weaken the competitiveness of exporters.
"I don't think there's anything we could [ask from the government] at this point," said Dusit Nontanakorn, chairman of the Thai Chamber of Commerce. "Many [businesses] are already dead, and I think it's our karma [that we are born as Thais]. We want agencies to at least help and not say anything that would discourage us.
"It would be acceptable if [businesses die] because we aren't skilled enough. But if we die because we don't get any help, then that's another issue," he said.
http://www.bangkokpost.com/business/economics/199703/stay-out-of-wage-debate (http://www.bangkokpost.com/business/economics/199703/stay-out-of-wage-debate)
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like someone is really going to pay this minimum wage rates. most are not registered anyway.
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Economist calls for urgent reduction in income inequity
Empowering poorer people through fair income redistribution and an efficient social welfare system is the only feasible way for Thailand to ensure political stability and reduce social conflicts, a noted economist said yesterday.
Somkiat Tangkitvanich, vice president of the state think-tank Thailand Development Research Institute (TDRI), said the country's increasingly high degree of social inequity over the past two decades has resulted in the severe political conflicts witnessed over the past few years.
"Thailand has never seen democracy take hold for a long period. Thai society has a high degree of inequity and the major cause is poverty," Somkiat said. "Rich people evade taxes and most of the taxes collected come from salaried people. There is inequality in social and economic opportunities.
"The government makes the situation worse by allowing some groups of people, especially the rich, to benefit from the unfair policies. … Inequity in the areas of economy, society and education has adverse impacts on the country's democratic development in the long run," he added.
Somkiat was giving an address on "Economic Inequality and Democracy" as part of events held to mark the 37th anniversary of the October uprising of 1973 at the October 14 Memorial.
He said that without fair income distribution, an uprising similar to the one in 1973 could happen again and would lead to large-scale social changes as it did following that event.
"If we have no income distribution, our only option is to be undemocratic. If we want to remain a democracy, there will always be pressure for income distribution. In any democracy, people who decide the future of society and the country's policies are in the middle while poorer people want to get fair income distribution," he said.
He said one part of society, particularly the elite, do not want income distribution because they will stand to lose. And they opt for suppressing the lower classes to prevent democracy from taking roots. This happened in South Africa during the apartheid period and in Thailand during the lynching of university students in October 1976.
Somkiat said income distribution could be done in two ways - with populist policies or without such policies while focusing on empowering people in the long term.
However, he warned that the option with populist policies brought allegations of corruption against politicians in power, which in 2006 led to the coup that toppled the government of Thaksin Shinawatra. He said repeated coups also occurred in Latin American countries where populist policies were adopted.
"The remaining choice is to return to a basic welfare system. If Thailand opts for this option. I think all of us should help to ensure this system can be established. A welfare system and income distribution is the only remaining option to help stabilise politics and reduce social conflicts. It is the choice with the lowest cost for the ruling class," Somkiat said.
He also suggested a 10-point guideline for efforts to make Thailand a welfare society in order to reduce social and economic inequality and bring about sustainable democracy.
Among the proposals, he said, there should be fairer conditions for tax-deductible costs; the tax base should be expanded to people capable of paying taxes; government spending should be kept at a reasonable level; corruption should be reduced; and political rules must be amended to encourage participation of people with lower income.
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like someone is really going to pay this minimum wage rates. most are not registered anyway.
What is the salary threshold where Thais would start to pay income tax??
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Wage hike to slow GDP
11-baht raise shaves 0.2% off growth
Published: 27/11/2010 at 12:00 AM
Bangkok Post: Newspaper section: Business
The government's decision to lift the minimum wage will affect economic growth by 0.2% on average, says the Finance Ministry, while this year's growth will decline slightly to between 7.3% and 7.4% due to the recent floods.
Pisit Puapan, director of the Macroeconomic Analysis Division in the ministry's Fiscal Policy Office (FPO), said a wage increase from an average of 200 baht to 210 baht a day would have an impact, as wages are a significant investment cost.
Prime Minister Abhisit Vejjajiva said in Bangkok yesterday that effective from Jan 1, the government would raise the minimum wage by 11-12 baht, depending on each province's cost of living.
Mr Abhisit had previously proposed a flat rate of 250 baht nationwide. However, the tripartite Central Wage Committee comprising the government, employers and labour representatives disagreed and countered with an average increase of 10 baht.
The committee said a 250-baht flat rate, representing a 21% increase from the top wage in Bangkok, currently 206 baht, would hurt overall economic growth too severely.
The minimum wage currently exceeds 200 baht only in Bangkok and six other highly developed provinces, and is 151 to 184 baht elsewhere.
Economists had called the premier's idea too aggressive and inappropriate. They said a too rapid rise in wages would place more pressure on employers' costs with no corresponding improvement in worker productivity.
Mr Pisit said the FPO would make its final review of the overall economy next month. The most recent one projected 7.5% growth in GDP.
Thailand registered growth of 6.7% in the third quarter, with estimates of a rise of 2-3% in the fourth, he said.
Mr Pisit said that projection was based on the baht remaining at 29 to the US dollar. If so, it could shave 0.2% off GDP growth. Staying at 29.50 baht would affect GDP growth by only 0.1%.
"Right now it's standing at about 30 to the dollar, and that should not affect the overall economy," he said.
Despite the severity of damage from the recent flooding, pressure on growth will be slight, dropping the projection to 7.3-7.4% from an earlier figure of 7.5%. That is also lower than the recent 7.9% figure from the National Economic and Social Development Board.
Mr Pisit said that even though many items in the October economic index declined, the economy remains strong.
Last month, revenue from value-added tax slid in line with reduced growth of 4.5% in domestic consumption, from a 7.1% rise in September.
Automobile sales expanded by 42.7%, down from 46.6% growth in September, while motorcycle sales growth fell to 14.4% from 15.7%.
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Thai minimum wage to increase 6.7%
Bangkok Post: 10 Dec 2010
Workers set to enjoy 6.7% wage boost
The National Wage Committee has agreed to raise the daily minimum wage around the country by between 8 and 17 baht.
The raise, which amounts to an increase of 6.7% on average, is considered a big jump.
The increase takes the average minimum wage to 176.3 baht a day, said Somkiat Chayasriwong, the permanent secretary for labour and chairman of the wage committee.
Mr Somkiat attributed the raise to the government's policy to reduce disparity in society.
The Social Security Office says about 2 million Thai workers and 2 million migrant workers will benefit from the increase.
The raise for Thai workers adds more than 6.92 billion baht to the national payroll, while the increase for migrant workers adds up to more than 7.78 billion baht.
The increase will boost the purchasing power of the 4 million workers by 14.69 billion baht.
The increase of 17 baht in the minimum wage in Phuket, from 204 baht to 221 baht, is the highest in the country.
The minimum wages in Bangkok and nearby provinces were put on an equal footing of 215 baht a day.
The minimum wage in Bangkok and Samut Prakan was raised by nine baht from 206 baht. In Nakhon Pathom, Pathum Thani, Samut Sakhon and Nonthaburi, it was increased by 10 baht from 205 baht.
Workers in Nakhon Si Thammarat and Songkhla received the second-highest raise of 15 baht.
Workers in seven provinces - Phayao, Si Sa Ket, Amnat Charoen, Nakhon Sawan, Phetchabun, Uthai Thani and Prachuap Khiri Khan - received the lowest raise of eight baht.
The minimum wage in Phayao, at 159 baht a day, remains the lowest in the country.
Prime Minister Abhisit Vejjajiva earlier suggested that the minimum wage be raised to a flat rate of 250 baht across the country.
Mr Somkiat said it would take time to raise the figure to 250 baht nationwide as any increase must be made gradually. It would affect employers' ability to pay wages and workers could suffer if it was done at once.
Pannaphong It-atthanan, an employer representative on the wage committee, said the government should offer direct subsidies to low-income workers instead of pushing for minimum wage raises.
He suggested the government control the rise in commodity prices that often follows the minimum wage increase, otherwise workers would not benefit from their pay raises.
Employees' Labour Development Council of Thailand chairman Manas Kosol said he was quite satisfied by the wage committee's decision.
However, he still wanted the committee to review the raise for provinces where the pay increase was less than 10 baht.
Workers' living conditions in those provinces are still below general living standards, he said
http://www.bangkokpost.com/news/local/210573/workers-set-to-enjoy-6-7-wage-boost (http://www.bangkokpost.com/news/local/210573/workers-set-to-enjoy-6-7-wage-boost)
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JUMP IN SALARY
14% rise for lawmakers draws flak
By Piyanart Srivalo,
Naya Jittanon,
Budsarakham Sinlapalavan
The Nation 2010-12-15
The Cabinet decision yesterday to increase salaries for lawmakers by about 14 per cent has attracted widespread criticism.
Social-media enthusiasts and online critics aired their views and left messages against the unpopular move. Many said the performance of most MPs did not warrant a salary hike. They also pointed to the frequent collapse of House meetings due to the lack of a quorum.
The National Salary Committee's proposal for increases of salaries for the Speakers and Deputy Speakers of the Senate and the House of Representatives, the leader of the opposition, MPs, senators and bureaucrats got the green light from the Cabinet at its weekly meeting, said Deputy Government Spokesman Watchara Kannikar.
The pay rise for senators, bureaucrats and members of the administrative branch - including the prime minister - will be effective from April 1, while that for MPs will come into effect after the next general election, he said.
The salary panel's report submitted to the Cabinet explained that the lawmakers should get a pay rise of about 14 per cent because they had not had a salary increase since February 2005, although members of the administrative branch had benefited from rises in 2005 and 2007. The latter will get a pay rise of only 5 per cent.
With the upcoming increase, the Parliament president, who is chief of the legislative branch, will get a monthly salary of Bt125,590, which is the same as that of the prime minister.
Members of the Cabinet debated the matter for more than half an hour, with most of them expressing support for the proposal, according to a Government House source.
Some ministers, however, proposed that because of strong social opposition, the salary increase should benefit the Parliament president only and that there should be no hike for MPs. This idea was opposed by Deputy Prime Minister Suthep Thaugsuban, who cited the fact that there had been no pay rises for MPs since 2005.
Finance Minister Korn Chatikavanij proposed that the pay rise for MPs become effective for the new group of lawmakers taking office after next year's general election.
Senator Rosana Tositrakul from Bangkok expressed her disagreement with the pay increase for lawmakers. She also offered not to accept the extra amount in her salary.
"Private companies often base salary increases on their performance. This Parliament caused a political crisis that led to burning of the capital city. Do these people deserve the award? I want to see my salary increased like other people do, but the public interest must come first," she said.
Financial burden
Senator Ruangkrai Leekitwattana, who has often campaigned against abuse of power, also said he disagreed with parliamentarians getting a pay rise. However, he did not make it clear whether he would decline the increase.
The Cabinet yesterday again put the brakes on a plan proposed by Interior Minister Chaovarat Chanweerakul to increase salaries for members of tambon administrative organisations around the country, said deputy government spokesman Supachai Jaisamut. The pay rise was expected to put a financial burden on the local administrations' budgets.
The matter is likely to be resubmitted to the Cabinet after the Interior Ministry has consulted the Finance Ministry and the Budget Bureau.
Also yesterday, the Cabinet endorsed the Minimum Wage Committee's decision to increase the daily minimum wage by between Bt8 and Bt17 for low-skilled workers all over the country, with effect from New Year's Day, Watchara said.
Prime Minister Abhisit Vejjajiva rejected a light-hearted question suggesting that he was being viewed as Santa Claus giving presents to all groups of people.
"I don't think so. My shape doesn't permit that," he joked, adding that the increase in the minimum wage took place every year.
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The government is now considering to increase the daily minimum wage of workers to have it in line with rising cost of living and the process will complete in one month, the prime minister said.
Why does it take one month and no doubt dozens of committees and hundreds of people to add 2/3bt to the minimum wage? TIT!
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Wage hike worries investors
By Wichit Chaitrong
The Nation 2011-06-16
In seminar hosted by Asean TV , foreigners set agenda for the next govt while economic leaders claim they have clear plans to deal with major issues
Foreign investors are worried about the proposed increase in wages, the rising cost of electricity, widespread corruption and low education standards, and want the new government to start liberalising the service sectors.
Investors, both local and foreign, raised these issues at yesterday's "July 3 Election: Foreign Trade, Investment and Tourism" seminar hosted by The Nation and Asean-TV. Thanong Khantong, editor of Asean TV, moderated the forum.
An investor from India said electricity and labour cost a lot less in Indonesia, and expressed concerns about political parties promising an increase in minimum wages. Instead, he said, the government could help by reducing income tax.
Nandor G von der Luehe, chairman of the Joint Foreign Chambers of Commerce in Thailand, called on the government to liberalise service sectors and remove restrictions in the Foreign Business Act.
Finance Minister Korn Chatikavanij, meanwhile, said electricity in Thailand was cheaper compared to neighbouring countries with the exception of Indonesia, which has an abundance of fuel resources. However, he said a nuclear power plant was out of the question because there was far too much opposition and everybody was afraid of a nuclear crisis like the one Japan is suffering.
He added that Thailand had the advantage of being well placed geographically to become a logistics hub in the region, which would lower the cost for manufacturing sectors.
The Democrat Party also plans to further develop the Laem Chabang port in the East and link it to Burma's Dawei (Tavoy) port. "We have to look beyond what is available within our own borders," he said, as he ruled out the question of building new ports in the South, because it is a tourism hub.
Korn said if the Democrat Party wins it would introduce reforms in the tax system, like increasing property tax, which would allow cuts in other taxes. Korn also implied that value-added tax might also be increased because the current 7 per cent was very low. In addition, companies that are willing to increase minimum wage would be given tax rebates, he said, in reference to his party's election pledges to increase minimum wage by 25 per cent in two years "We're looking at a comprehensive tax package, not a specific one," he reiterated.
Korn added that if the next government ended up being led by the Democrat Party, then the Commerce Ministry would take care of the restrictions in the Foreign Business Act.
Olarn Chaipravat, chief economic strategist of Pheu Thai Party, meanwhile, has promised that his party would improve the education system in the next six years. The party plans to spend about Bt4 billion on providing Tablet PCs to about a million schoolchildren nationwide, and also aims to encourage parents to oversee their children's studies. These moves are aimed at solving the issue of the lack of skills in both foreign languages and mathematics among young children.
Olarn added that each university would be given Bt1 million as funding for training courses in order to help increase productivity, which should offset the high cost of labour as the party plans to raise the minimum daily wage to Bt300.
In addition, he said, corporate income tax would be cut to 23 per cent this year and 20 per cent in two years. "It's well thought out and quantified," he said, as he tried to allay the fear of rising wages.
Kasemsant Virakul, a senior member of Chart Thai Pattana's economic team, promised to allocate a bigger part of the budget to the National Anti-Corruption Commis-sion to fight corruption, as well as invest Bt1 trillion in mega-infrastructure projects.
Goanpot Asvinvichit, chief of Chart Pattana Puea Pandin Party's economic team, promised to work closely with the private sector to help increase productivity and earnings.
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'Daily wage' only applies to people working for limited companies, or similar organisations which have audited accounts etc. It does not apply to daily labourers in the villages.
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'Daily wage' only applies to people working for limited companies, or similar organisations which have audited accounts etc. It does not apply to daily labourers in the villages.
Or local restaurant workers.
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Quality products, not cheap labour, Pheu Thai policy: Jaruphong
The Nation 2011-07-07
Pheu Thai secretary-general Jaruphong Ruengsuwan said his party's election promise to increase the daily minimum wage to a flat Bt300 would help labourers stand on their own feet.
"From now on cheap labour will no longer exist in Thailand, and with this policy, skills of workers will be upgraded and a policy to make only high-quality products adopted, to accommodate a party policy - Year 2020," he said.
Asked whether this policy would result in foreign companies migrating from Thailand, he said the Pheu Thai-led government would subsidise operations of Thai firms in other countries where labour is cheap.
Citing a study by the International Labour Organisation, he said the daily minimum wage should be Bt441 - a rate he said would by sufficient to feed and support a labourer with a wife and a child in one day.
Jaruphong dismissed criticism that the Pheu Thai Party would want to scrap the wage tripartite structure, saying it would want to make the Wage Tripartite Committee truly represent employees.
The highest minimum wage is now Bt215 paid in Bangkok. An adviser to the WTC said on Tuesday that the most practical increase would be Bt7, which could be approved by October at the earliest.
He said another promise to pay a minimum salary of Bt15,000 to government officials at entry level would continue, and could be implemented by October. Personal income tax could be lower by January.
Caretaker Labour Minister Chalermchai Sri-on warned against approving the flat Bt300 rate, saying it would result in a higher cost of living and higher commodity prices.
He said the Bt15,000 promise would also affect the entire financial structure and burden fiscal policy, because those now receiving less than Bt15,000 would not accept new officials getting more than they did, and would demand equal or higher salaries.
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POLICY RATE
Economists predict another rate hike tomorrow
By SEETALAVAJIT SABAYJAI
The Nation 2011-07-12
Economists forecast that Thailand's monetary policy will continue to tighten for the rest of this year due to higher spending and rising inflation, and expect another hike in the policy interest rate by 25 basis points at tomorrow's Monetary Policy Committee meeting.
The MPC is widely expected to lift the policy rate tomorrow by a quarter of a percentage point to 3.25 per cent. The one-day bond repurchase rate has been raised four times this year.
"Inflationary pressures stemming from increased personal and government spending will likely build and could see the BOT [Bank of Thailand] accelerate its policy-interest-rate hikes to temper the higher inflation that could result," said Chow Penn Nee, a Singapore-based economist at United Overseas Bank (UOB).
Wellian Wiranto, Asia economist at HSBC, said: "A lot hinges upon the policy platform of the incoming administration. If highly populist measures are adopted, then there is definitely a risk that the Bank of Thailand will have to counterbalance them by embarking on monetary-policy tightening."
If minimum wages go up by a great extent early next year, the central bank may nudge up its policy rate to 4.25-4.5 per cent by mid-2012, he said.
Ramya Suryanarayanan, an economist at DBS Bank in Singapore, said the minimum wages should be raised in a gradual manner, not by 50 per cent a year.
"If such drastic changes are implemented, then there is risk of inflation, wider fiscal deficit, etc, which will ultimately hamper the ability to attract investment. Even otherwise, inflation is a problem in Thailand this year and next," she said.
DBS Research noted that comments so far from prime minister-elect Yingluck Shinawatra suggested the new government's policy might tend towards an expansion of subsidies, in line with electoral promises. This approach lends itself to suppressing inflation in the short term but fanning it in the medium term.
Meanwhile, a Reuters Poll shows that the policy rate should be 3.75 per cent by the end of the year, and DBS expects the rate to be 4 per cent by end-December.
There is a high chance for a rate hike in the MPC meeting given relative political stability after this month's election, making the BOT more comfortable with its interest-normalisation process, Wiranto said.
HSBC expects the policy rate to reach 3.75 per cent by the end of this year as the central bank continues to stem price pressures after the expiry of producer-price agreements in April.
"Given the inflation risks that it is already seeing, it is no surprise then that the BOT has been rather vocal in expressing its wariness about the further upside inflation risk: the populist measures by the incoming administration, that is," HSBC said in its research.
"Particularly discomforting, given the tight labour-market conditions, is the potential minimum-wage increase to Bt300 per day, which would nearly double the current level for some provinces. Hence, even as global uncertainties prevent it from pursuing meatier, 50-basis-point hikes, we see the BOT trying its best to counter these risks and to keep inflation expectations well anchored, by hiking rates by 25 basis points whenever it can."
UOB predicts one more move in the fourth quarter, which could take the rate to 3.5 per cent by year-end. The DBS Bank economist forecast the rate to take another 25-basis-point increase, after tomorrow's meeting, in the third quarter and a 50-basis-point rise in the fourth quarter to end the year at 4 per cent.
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Pay policy worries manufacturers
By Nalin Viboonchart,
Petchanet Pratruangkrai
The Nation 2011-07-12
Manufacturers are worried that the new government's policy to hike wages would push up the whole pay scale, which could make them lose their cost-competitiveness while consumers would inevitably have to shoulder higher prices.
"This means that we'll be in a difficult situation, as human-resource expenses will definitely surge. We may have to think about revising our production in Thailand to reduce the impact from higher costs," Anusorn Muttaraid, executive director of Delta Electronics (Thailand), said yesterday.
Raising the minimum daily wage to Bt300 is not an insurmountable problem, but the biggest impact will be on the company's workers who are currently receiving more than Bt300 per day, he said.
"Delta has to think about those workers' feelings, so it may have to raise their wages so that it can keep the gap between skilled workers and the newcomers," he said.
Delta employs about 7,000 daily workers, of whom roughly 1,000 get the minimum wage of about Bt200. The rest are paid more than Bt300 per day as they have worked with the company for years and have developed their skills.
Delta, one of the country's largest private employers, also carries about 13,000 full-time staff, whose salaries are not less than Bt15,000 per month. It seems that the company would not face any hardship paying a starting salary of Bt15,000, but that is not the case.
If Delta offers a higher salary to fresh graduates, it may have to think about adjusting the salary for holders of bachelor's degrees.
Paiboon Ponsuwanna, former chairman of the Food Industry Club of the Federation of Thai Industries, said hiking wages would send ripples through industry and end up hitting consumers and exports.
The food industry has more than 2 million workers, both skilled and unskilled, on the payroll now.
"Many buyers have asked whether Thailand will increase prices after hiking wages. We will destroy our own competitiveness if we quote higher prices when economic growth is sluggish in many import markets," he said.
Half of small and medium-sized enterprises might go out of business, particularly in the food and beverage industries. Millions of migrant workers will flow into Thailand. Exports this quarter will likely fall, Paiboon warned.
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Panel backs wage-hike plan
By Business Reporters
The Nation 2011-07-12
Committee in favour of 2-step approach towards implementing Bt300-a-day minimum wage
The Wage Tripartite Committee yesterday voiced initial support for the Pheu Thai Party's controversial election promise to raise the daily minimum wage to Bt300. However, its provincial sub-committees later proposed a two-step approach - one for major provinces and another for the rest of the country - far below the Pheu Thai plan.
The panel, which brings together representatives of the government, employers and workers, proposed that the daily wage of Bt300 should start in Bangkok, nearby provinces and Phuket as a pilot project.
However, the panel's provincial sub-committees were apparently not prepared for the big increase. After the meeting, Labour Ministry permanent secretary Somkiat Chayasriwong disclosed that sub-committees in 75 provinces had proposed an increase of Bt2 to Bt28 for 35 key provinces, while the remaining 40 provinces should get gradual adjustments to the same rates starting early next year. The proposed increase is a far cry from the Pheu Thai Party's Bt300 minimum-wage proposal.
The WTC will call another meeting early next month to consider the issue further.
Somkiat said the Wage Tripartite Committee agreed that hiking the wage to Bt300 should start in some provinces, including Bangkok and nearby provinces and Phuket. The minimum wage in Bangkok and nearby provinces is currently Bt215 and in Phuket it is Bt221. The remaining provinces would then be gradually adjusted, he said.
"We should wait until the new Labour Minister comes into office to manage the way the adjustment [is handled]," Somkiat said.
Somkiat warned that the minimum-wage policy would draw more labourers from neighbouring countries such as Cambodia, Laos and Burma, because they would also be entitled to reap the benefits of the higher wage environment. "I met Pheu Thai Party secretary-general Jarupong Ruangsuwan, to exchange views on this issue, but he didn't put any pressure on the ministry."
Meanwhile, the Centre for International Trade Studies at The University of the Thai Chamber of Commerce warned yesterday that Pheu Thai's populist policy to increase the minimum wage was likely to undermine exports, especially from labour-intensive industries. An increase in the minimum wage will mean higher costs and decreased revenue and efficiency, it said.
Centre director Aat Pisanwanich revealed that increasing the daily minimum wage to Bt300 and the starting salary for bachelor's degree graduates to Bt15,000 per month would increase costs of production by a monumental 28 per-cent. Production costs would soar by 31.5 per cent in the services sector and by 26.5 per cent for manufactured goods. Hence, exporters of food and tobacco goods will have to contend with a 35-per-cent rise in costs, the embroidery industry with 34-per-cent higher costs and the paper industry with a rise of 22 per cent.
As a consequence of the 39.5-per-cent increase in the minimum wage alone, hiking it from Bt215 to Bt300, costs of production will increase by an average 22 per cent; 29.6 per cent for manufactured goods and 19 per cent for the service sector, Aat said. Labour-intensive industries will suffer most from the minimum-wage increase.
Similarly, the increased starting salary for bachelor's degree graduates, raising it from Bt11,000 to Bt15,000, or an increase of 36 per cent, will prompt an overall increase in production costs of 5.7 per cent - 1.9 per cent for manufactured-goods industries and 7.3 per cent for the service sector, Aat said.
The paper industry will be hardest hit, with costs rising by 5.4 per cent, followed by textile and garment industries, with a1.5-per-cent rise in costs, and the tobacco industry, with costs rising by 0.8 per cent.
The UTCC's Centre for International Trade Studies said the value of Thailand's exports was likely to grow by 13 to 17 per cent, to between US$221 billion and $229 billion (Bt6.69 trillion and Bt6.94 trillion). It predicted that export industries would grow by 9.5 per cent to a value of $112 billion during the second half of 2011.
Although export industries have recorded significant growth of 21.5 per cent over the first half of this year, it is expected that industries will grow by a mere 9.5 per cent throughout the third and fourth quarters of 2011.
Moreover, the slow recovery of the global economy due to skyrocketing crude-oil prices and persisting public debt problems in European nations will stimulate the decline in Thailand's export growth, it said.
Negative effects
Raising the minimum daily wage to Bt300 and giving graduates a starting salary of Bt15,000 will hit the Kingdom's exports, with textile and garments and paper and paper products manufacturing being hardest hit by the significant increase in production costs.
Production costs increase:
By 22.3% (if the daily wage is Bt300)
By 5.7% (if Bt15,000 is starting salary)
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WAGE
Wage rises could cost Bt100 bn in FDI
By Nalin Viboonchart
The Nation 2011-07-21
Thailand may lose Bt100 billion per year in foreign direct investment (FDI) if the new government immediately raises the daily minimum wage to Bt300, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) says.
Chairman Dusit Nontanakorn yesterday said the minimum wage in Malaysia was 10 per cent higher than the minimum wage in Thailand, whereas in Indonesia it was 10-20 per cent lower.
If Thailand adjusts the daily minimum wage to Bt300 throughout the country, it will be more expensive than other production bases in Southeast Asia. In the long term, foreign investors may consider relocating to other countries such as Vietnam, he said.
Thailand attracts FDI of about Bt400 billion per year. If the country raises minimum wages, FDI is likely to drop 25 per cent per year or Bt100 billion, he said.
Dusit said he had discussed the issue with many foreign chambers of commerce in Thailand. Most said foreign investors considered competitiveness before deciding to invest in a country. If labour costs rose, some investors could relocate to other countries and it would be very difficult to bring them back.
"The Asean Economic Community will happen in the next four years. Investors have many choices for their investments. It is not necessary for them to stick with Thailand all the time," he said.
Dusit said that in the short term, about 90 per cent of small and medium-sized enterprises would be affected, as they would not be able to absorb the increased costs.
The JSCCIB is ready to discuss the policy with the new government to find a way to reduce its impact, he said.
Payungsak Chartsuthipol, chairman of the Federation of Thai Industries, said the daily minimum wage should be adjusted through the Wage Tripartite Committee without political interference. If the Pheu Thai-led government insisted on the policy, the FTI would require it to pay the wage difference.
In a separate matter, Payungsak said the Thai Industries Sentiment Index (TISI) in June dropped to 107.4 from 108.3 in May because of higher oil prices, financial problems in Europe and concern about political problems.
Flooding in Northern provinces was also a concern for industrialists, as it was affecting production volumes.
Over the next three months, the TISI is forecast to increase slightly to 113.5 from 111.2 in May, reflecting industry confidence in terms of orders, sales and production volume.
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WAGE
Minimum wage hike 'a challenge' for business: MPC
The Nation 2011-07-28
A sudden one-time rise in the minimum wage nationwide at a rate "faster than labour productivity growth" will pose a challenge to the business sector, the Bank of Thailand's Monetary Policy Committee (MPC) has warned.
In the minutes of its July 13 meeting, when the policy rate was raised for the fourth time this year to 3.25 per cent, the MPC said many members said the wage rise must be at levels commensurate with rising living costs. Many parties have voiced concerns over the Pheu Thai government's policy to raise the nationwide daily minimum wage to Bt300.
TMB Bank's research house said the move would push core inflation beyond 5 per cent, way above the BOT's 3-per-cent target.
June's headline inflation rate was 4.06 per cent, with the previous month's figure being 4.19 per cent. Core inflation rose 2.55 per cent in June, compared with 2.48 per cent in May.
The MPC said rising food and energy prices remained the key risks to the Thai economy amid robust growth and continued fiscal stimulus, prompting it to agree unanimously on another rate hike, according to the minutes of its July 13 meeting, released yesterday.
"Despite a slowdown in the rise of prepared-food prices, continued upward adjustments in the prices of prepared foods together with high energy prices resulted in inflationary pressure remaining at an elevated level," the minutes said.
The risks of inflation outweighed the risks to growth, especially in light of continued fiscal stimulus, which may add to inflationary pressure. "As a result, a continued increase in the policy rate would be needed to contain inflation, particularly as it is demand-driven," the minutes said.
Inflationary pressure remained a key risk in the second half of this year on persistently high prices of prepared food and fuel and a narrowing output gap that could allow greater pass-through of production costs to retail prices, it said.
Even if measures aimed at relieving the cost of living slow price rises, the incoming government's planned measures, including the increase in minimum wages, would add to price pressure and may accelerate inflationary expectations.
The policy-makers are also keeping an eye on the global economic recovery, the euro zone's sovereign debt problems and the fiscal-policy formulation of the incoming government.
There is considerable uncertainty surrounding more government spending, particularly next year, and fiscal prudence will be required, it said.
The incoming government should gradually phase in its spending over time, prioritise its projects and target those with the greatest need, according to the minutes.
Besides, it should put emphasis on investment to improve productive capacity for a sustainable increase in growth and living standards. Tax reform should be implemented to raise government revenue to cope with increasing expenditure.
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This is another slippery slope, increase the minimum wage to keep up with food prices, and then food prices go up because labor costs increased.
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So you think 300 baht a day is ott
What really pisses me off is farang bars paying 2300 baht per month salary and charging 70 baht a beer which is a tidy profit.
Disgraceful
What salarys do other issan establishments pay?
Feel free to post
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This is another slippery slope, increase the minimum wage to keep up with food prices, and then food prices go up because labor costs increased.
So what do you think is a fair monthly salary?
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This is another slippery slope, increase the minimum wage to keep up with food prices, and then food prices go up because labor costs increased.
So what do you think is a fair monthly salary?
Whatever someone is willing to pay, and whatever someone is willing to work for.
We pay our help higher than average to keep them happy. Good help is worth the price. We also pay bonus for days when milestones are met (it was very hard to get this concept understood), and since we started it, our milestone days have doubled.
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So you think 300 baht a day is ott
What really pisses me off is farang bars paying 2300 baht per month salary and charging 70 baht a beer which is a tidy profit.
Disgraceful
What salarys do other issan establishments pay?
Feel free to post
Lets have the name of the place.............
My lass pays her helper 160 baht per shift (8am-3pm) plus two feeding frenzies,which isnt bad considering she does none of the cooking only 'waiting on' & washing up!!
And here we also have the cheapest beer & Cider prices in Isaan
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EDITORIAL
The whole wage system needs an overhaul
The Nation 2011-08-14
Push for a Bt300 daily wage obscures need for greater skills, productivity, bargaining power
Pheu Thai's vow to implement a Bt300 minimum daily wage could be a "damned if you do, damned if don't" scenario for new Labour Minister Phadermchai Sasomsap. Although it is not known to what extent Phadermchai has been involved in the party's decision to announce the Bt300 minimum wage policy, he would be one of the key people to decide whether to go ahead with the policy, and how it is pursued.
The wage policy is not easy. While every party agrees that the current minimum wage is too low to keep up with productivity and GDP growth, leaders of industry have cried foul that a sudden rise to Bt300 per day is too drastic. But the labour representatives insist the new government will have to fulfil the promise it made to voters during the election.
Phadermchai will face a daunting task in having to protect the well-being of Thai workers while ensuring that compensation or the new wage don't turn into a double-edged sword. Big business operators claim such a wage hike could force many small and medium-sized factories to shut down. A sudden rise in the minimum wage could wreck the competitiveness of small and medium-sized industries because most of them are in high labour-intensive industries.
Shoe-making companies, for instance, say that labour costs account for 17-19 per cent of their production expenses. But big corporates have generally turned to automation and the labour cost might only be 10-12 per cent or less.
With opposition from some industrialists, Phadermchai and the Yingluck government will have to find the solution by balancing the interest of all parties.
The party recently floated an idea that it would cut the corporate income tax rate from 30 per cent to 23 per cent. But this might not benefit the affected small businesses. The fear is that big corporates which hire a small number of workers may get a free ride, because the corporate tax cut would be apply to all.
Some have proposed government coupons to make up the wage differential for industries that can't afford to pay their workers. But all these proposals are short-term ideas to enable the government get away with its Bt300-a-day promise.
What's unfortunate is the minimum wage issue takes attention away from the real issue that workers face. And that's the duty of Phadermchai: to get the public spotlight on the real issue.
The first thing the government should do is more fundamental: the entire wage system should be overhauled. It is ironic that while Thailand faces a shortage of labour, workers don't have strong bargaining power. According to Sakdina Chatkul na Ayutthaya, a labour expert, only 1.3 per cent of Thai workers are in unions.
In addition, the minimum wage should come from s scientific calculation based on a level of production, productivity and a level that will ensure the workers' well-being. The new labour minister should appoint independent bodies to decide the right minimum wage to ensure a fair rise. Presently, the minimum wage is a result of bargaining in a tripartite committee made up of representatives of employers, employees and the government.
While the discussion so far is concentrated on the size of the minimum wage, the other aspects of workers' well-being should also be considered.
Thai labour can be described as 3Ls: low-wage, long-time work and low productivity. From 2000 to 2007, the productivity of Thai workers increased by only 3 per cent compared to 5.3 per cent in Vietnam.
Phadermchai should promote the welfare of Thai workers by ensuring they have an opportunity to improve their technical skills to enable them to improve their livelihood.
In the meanwhile, the government must require that employers take care of their employees by providing fair treatment and proper welfare benefits.
Unfortunately, the other side of welfare benefits for workers has not been sufficiently addressed, as the minimum wage promise has blurred other issues behind the wage discussion.
Thai workers should have a chance to improve their skills to the point where they don't have to rely on the minimum wage to raise their worth. And that's the challenge that the Labour Ministry should strive to fulfil. Otherwise, the minimum wage will be politicised every election and such confusion does not bode well at all for industry or workers.
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MINIMUM WAGE
Govt plans to be clear by October
The Nation 2011-08-19
Labour Ministry official ready to consider staggered raise over 34 years.
How the government will implement its policy to raise the daily minimum wage to Bt300 will become clear by October, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.
The top official did not rule out a request by the Federation of Thai Industries (FTI) to gradually lift the minimum wage step by step over three to four years.
"We are ready to listen to all sides," Somkiat said.
The Labour Ministry, he added, was now surveying wage rates across the country.
Somkiat said the Department of Skill Development (DSD), in the meantime, had been instructed to promote skill training by offering eServices to interested employers.
He said improved skills would make workers well qualified for a daily wage of at least Bt300.
At present, laws encourage employers to provide training for their workers/employees by giving tax benefits. Employers should be able to claim tax deductions of an amount two times of the training cost. However, due to complicated procedures, some employers have not organised the training, paying fines to the Skill Development Fund instead.
"To simplify procedures to claim tax deductions as part of training costs, the DSD will launch eServices on September 8," Somkiat said.
He said employers could also check out useful training courses at www.dsd.go.th, and register the courses they were going to provide to their employees/workers via the web site.
Jiyuan Wang, the International Labour Organisation's country office director for Thailand, Cambodia and Lao People's Democratic Republic, downplayed any concern that rising wages would worsen inflation.
He said it was inflation that was now putting pressure for higher wages.
He said Thailand's daily minimum wage had clearly not risen in line with the country's inflation rate during the past decade.
In 1995, wages accounted for 72 per cent of the country's total income. By 2006, they accounted for just 63 per cent of total income.
Wang also pointed out that the Gini coefficient of Thailand, a measure of inequality of income or wealth, was the highest in Asia.
"It's at 0.43," he said.
According to Wikipedia, Gini coefficients for income ranged from around 0.23 (Sweden) to 0.70 (Namibia) although not every country has been assessed.
Wang said although some economic sectors would offer less job opportunities if the minimum daily wage rose, workers would still be able to switch to other economic sectors.
"Higher wages will mean higher consumption. It will stimulate the country's economy too," he said.
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Better skills will make Bt300 wage worth it
The Nation 2011-09-08
In order to make Bt300 daily minimum wage fair on employers, a skill-enhancement exercise and evaluation strategies should be put in place in large provinces before the hike can take effect nationwide, the Labour Ministry told a Bangkok seminar yesterday.
Workers and employers should try to make compromises in the meantime because the higher wages will possibly burden employers and likely force tens of thousands of small businesses to immediately close down, permanent secretary Somkiat Chayasriwong said. Therefore, he added, skill enhancement and evaluation should become part of the national agenda and be implemented throughout 2012.
The Bt300 daily wage should then be introduced in Bangkok in 2013 and in other large cities before it is extended to the rest of the country, he said. The Labour Ministry will propose to the government that it tentatively make 2012 the "year of increased productivity" and make skill enhancement and evaluation part of the national agenda.
"More skilled labour will make employers feel it is worthwhile having to shoulder higher expenses because they will get better returns," he added.
A budget of Bt3 billion is being sought to improve the ministry's 12 skill-development institutes and 65 provincial skill-training centres. More emphasis will be placed on regional centres to develop labourers' skills in relevant fields, such as planting and producing rubber in Region 12 based in Songkhla, and in the assembly of vehicles and machinery in Region 1 based in Samut Prakan.
Under a planned joint cooperation between the Labour Ministry and waterworks and electricity agencies, small- and medium enterprises that agree to pay a daily wage of Bt300 to workers who undergo training will be given discounts in utilities as well as tax incentives, he said.
Asst Prof Wichai Thosuwannajinda from Kasem Bundit University (KBU) said government subsidies for SMEs should be a short-term measure because it would not be fair to taxpayers.
He said another populist policy guaranteeing that every university graduate would make a minimum monthly salary of Bt15,000 would result in fewer students studying arts and humanities and more focusing on skills needed in the employment market.
Anusorn Thamjai, dean of KBU's Economics Faculty, said he was all for increasing the daily wage to Bt300 because it would lift the standard of living and help cut down problems associated with poverty. He called for cost-related incentives for SMEs and government-assisted improvement of logistical structure for them.
Meanwhile, a clay-doll factory with no labour union in Nakhon Pathom is planning to cut down on work incentives and meal subsidies once it starts paying the Bt300 daily wage, local labour counsellor Daorueng Chanok said.
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THAI TALK
Minimum wage plan: Where's the tripartite committee?
By Suthichai Yoon
The Nation 2011-09-08
If Deputy Premier Kittiratt na Ranong had to "go down on my knees and beg" the private sector to comply with the government's pledge to pay the proposed Bt300 daily minimum wage to workers, it means there is still a long way before the Pheu Thai Party's election pledge on this issue can be fulfilled.
As soon as the Labour Ministry said last week that the plan would be implemented in phases, starting with a "pilot project" for seven provinces, the labour unions came out to say that that wasn't what the election promise had stipulated in the first place. They want the Bt300 minimum wage scheme to be applied to "all provinces throughout the country" without exception.
The seven provinces are Bangkok and five outlying provinces of Samut Sakhon, Pathum Thani, Nakhon Pathom, Nonthaburi, Samut Prakan, plus Phuket.
A well-known labour academic, Lae Dilokvihdyarat, chimed in: "If it's a pilot project, does it mean that if the experiment with the first seven provinces doesn't work out, then the rest of the country won't get the Bt300 wage? It doesn't sound like it's going to go down too well with the labour leaders."
This will become a classic case for all politicians. The lesson learned should be: Never ever offer a specific pledge that could return to haunt you. A labour union leader put it matter-of-factly: "It was because most workers believed Pheu Thai could deliver on the minimum wage pledge that they all cast their votes for the party. Now it's time to show that it wasn't just an empty political gimmick."
The seven provinces that come under the first test will have their minimum wages raised by about 40 per cent. It's not clear by what yardstick the Labour Ministry will consider the "pilot project" a success or failure. But it's clear that the government will still have to be able to persuade the private sector to go along with the plan.
Big conglomerates such as CP and SCG have expressed their readiness to be part of the government's major experiment. But the Federation of Thai Industries (FTI), which represents a significant part of the private sector, has raised a few reservations, including the concern that small and medium-sized enterprises (SMEs) will stand to suffer the most as a result of the increase in production costs.
The government's initial plan to reduce their tax burden in exchange for compliance has not pacified the struggling companies: because of their negative bottom lines, they haven't had to pay corporate taxes anyway.
The crucial question that the Yingluck government hasn't addressed in its approach, at least in public, is how it will handle the Wages Tripartite Committee, which has had the legal authority to decide minimum wages for many years.
The three parties in the joint committee represent employers, employees and the government. The committee has drawn up at least nine benchmarks on which it decides the minimum wage. The committee has done a reasonably good job so far - as a legitimate balancing force to reach the kind of compromise that's acceptable to all three parties concerned.
With the government announcing its plan to raise the minimum wage to Bt300, is it sending the signal that the tripartite panel will be abolished? If that's the case, the existing law will have to be scrapped - and that requires a legislative process that can't be implemented overnight.
To get rid of the "independent" three-party body on minimum wages could be risky politically, for it means that there won't be a neutral body to act as a buffer for the government in the highly controversial and complicated process of annual negotiations over minimum wages. Is the government ready to remove that buffer and adopt a face-to-face relationship with the country's labour force on all major issues?
I am all for offering better welfare and remuneration - and upgrading skills - for the country's labour force. But for the Pheu Thai Party, that Bt300 minimum wage policy seems to have got stuck, because the guys who drew up the party's campaign slogans aren't the ones who are supposed to implement them now.
The electorate may appreciate that fact, but they aren't supposed to be so understanding as to distinguish between "electioneering techniques" and "election pledges", and then declare: "Let's forget about the promises".
Are they?
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Bt300 wage push will hit SSO contributions, govt warns
The Nation 2011-09-13
The government may cut its contribution to the Social Security Office (SSO) fund because of the financial burden from the Bt300 minimum wage - but retirement and medical treatment payments would not be affected, Labour Ministry permanent secretary Somkiat Chayasriwong said yesterday.
The government would subsidise medical treatment to beneficiaries if SSO funds were insufficient, while payment of retirement returns starting in 2014 would not be affected, he said.
Somkiat did not say how much the government's SSO contribution - currently at five per cent - would be reduced by.
He did not support his statement by explaining what he or the SSO would do to secure a government subsidy, or provide a guarantee that the government would subsidise SSO treatment funds.
Somkiat was speaking at a Bangkok seminar for employers and owners of small-medium businesses worried about their operations being affected or forced to shut down because of the Yingluck government's election promise to raise the daily wage to a flat Bt300.
The seminar was told that a number of foreign electric appliance firms were preparing to move operations to locations in Burma, across from Kanchanaburi and Tak's Mae Sot district, and to Cambobia's Poi Pet and Koh Kong Island, where an Bt80 daily wage is allegedly paid to local assembly workers.
"The foreigners are all worried about the flat Bt300 to be imposed in Thailand. They vow to move when the new rate is in effect, because they will have to shoulder higher costs," said Chianchuang Kalayanamitr, a partner with a foreign company.
Dragan Radic, a senior International Labour Organisation official, suggested a government measure be put in place immediately to assist around 300,000 SME owners in Thailand who will be affected.
Help would also be needed for a large number of new graduates who could be without jobs for many years, as employers would seek only experienced workers to get full value for having to pay them Bt300 a day, he said.
Labour Minister Phadermchai Sasomsap said a request was made to the Financial Ministry on ways to cut corporate tax from 30 to 27 per cent next year - and to reduce electricity and water bills for SME owners, hopefully with the cooperation of electricity and waterworks agencies.
Phadermchai said skill enhancement would be crucial for all parties involved, and a request for Bt3 billion had been made to the government to improve existing skill and career training centres or to build new ones.
Anantachai Khunananthakul, chairman of the Employers Confederation of Thailand, said subcontractors likely to be hit hard by the push for a flat Bt300 a day wage should be granted immediate assistance, because they relied solely on labourers and the increased cost would be a big burden.
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Employers' representatives still blocking wage hike
The Nation 2011-09-15
Employers' representatives at the Central Wage Committee yesterday objected to the plan of raising the daily minimum wage to Bt300 in seven provinces from January, leading to a resolution to set up a working panel to study the plan first.
"Employers, especially those in the textile, service and security guard businesses, do not make enough to pay each worker Bt300 daily," Attayut Leeyawanich said in his capacity as employers' representative.
The Central Wage Committee is a tripartite unit, comprising representatives from employers, employees and government agencies.
The government has been pushing for this significant hike in the daily minimum wage because this was one of the pledges the Pheu Thai Party made while campaigning for votes.
However, due to an outcry from employers, the government recently floated the idea of raising the minimum wage in seven provinces first. However, the employers are still not happy.
"Political interference should not take place here. We should let the tripartite committee function independently," Attayut said.
He pointed out that the committee was considering several factors in determining how much the minimum daily wage should be. "We are considering factors like the cost of living, employers' ability to pay and the current economic conditions," he said.
According to Attayut, employers will agree to gradually raise the minimum daily wage over four years. However, if the government wants the hike to be put in place immediately, the government must provide subsidies, not offer impractical measures like lowering monthly contributions to the social-security fund.
"Even tax measures are not good enough," he opined.
Suradej Chumanee, who represents employees, said the Labour Ministry's permanent secretary Somkiat Chayasriwong had instructed all parties to find a way of raising the daily minimum wage to Bt300 in Bangkok, Samut Prakan, Samut Sakhon, Nakhon Pathom, Pathum Thani, Nonthaburi and Phuket.
The minimum daily wage in Bangkok and nearby provinces is currently Bt215, and is Bt221 in Phuket.
Suradej said that if employers' representatives continued blocking the wage hike, employees' representatives would demand a 40-per-cent raise across the country.
Labour Ministry's academic adviser Ammorn Chawalit said the Central Wage Committee would convene again early net month.
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PM quizzed on Bt300 wage
The Nation 2011-09-16
During Parliament yesterday, Yala Democrat MP Prasert Pongsuwanasiri asked about the Bt300 daily minimum wage - to which Labour Minister Phadermchai Sasomsap replied the government had actually promised voters that "labourers will get Bt300."
In his question to Prime Minister Yingluck Shinawatra, Prasert said the Pheu Thai Party used the word "minimum wage" during the election campaign and later changed it to "income" - as "minimum wage" was net payment for work while "income" could include work payments and other welfare. He wondered when the government would deliver the Bt300 wage.
Prasert said the voterwooing campaign promised to increase the minimum wage to Bt300 nationwide right away, but only seven pilot provinces have so far received it such as Phuket with a rise from Bt221 per day to Bt310.
Phadermchai, answering on the premier's behalf, said the government had campaigned by promising only "labourers will get Bt300." The hike in income to Bt300 must wait for the consent from tri parties and undergo the annual budgeting for fiscal year 2012, combined with the individual income tax reduction from 30 per cent to 23 per cent next year and 20 per cent soon. He said it would take 3-4 years before all provinces received the Bt300 income per day.
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8 provinces agree to lift minimum wage to B300
Committee says it will look at proposals today
Published: 4/10/2011 at 12:00 AM
Bangkok Post: Newspaper section: News
Wage committees of eight provinces have agreed to increase the minimum daily pay to 300 baht in line with the government's policy.
They are Bangkok, Nonthaburi, Pathum Thani, Nakhon Pathom, Phuket, Buri Ram, Mukdahan and Nakhon Ratchasima.
Nakhon Ratchasima has come up with two options _ 300 baht for large enterprises and 256 baht for small and medium enterprises.
Padermchai: Plans to help businesses cope
The wage rise proposals are expected to be considered by the central wage committee today.
Buri Ram has proposed the highest wage rate from 166 baht to 300 baht or 83.7%, followed by Mukdahan which has proposed lifting the wage from 165 to 300 baht or 81.8%, Labour Minister Padermchai Sasomsap said.
There are 52 provinces, out of a total of 77, which have agreed with the proposal to boost the minimum wage by 40% or more from the current levels in their respective provinces whereas minimum wage rates in 23 provinces will be raised by between 30% and 35%, Mr Padermchai said.
However, no conclusion had been reached on the proper wage rates in Samut Prakan and Samut Sakhon.
As for Samut Songkhram, the provincial wage committee had come up with two options _ a 40% wage rise or a gradual increase to 300 baht over a three-year period.
The wage committee comprises government, employer and labour representatives.
Permanent secretary for labour Somkiat Chayasriwong who chairs the central wage committee, said the ministry aims to raise the daily minimum wage in all provinces to 300 baht by next year.
Mr Somkiat said the central wage committee will consider adjusting the wages according to the differing circumstances of each province, such as the cost of living, inflation, the economic environment and the commercial sector's ability to bear the cost in each province.Mr Padermchai said that the government will take measures to help small- and medium sized enterprises which would be affected by the 300-baht minimum wage hike.
He said the Finance Ministry will waive a tax on earnings from sales of old machinery, provide financial assistance to the affected business operators and will cut corporate taxes next year from 30% to 23%, among other measures.
Manas Kosol, chairman of the Confederation of Thai Labour, said that labour movements will hold a rally on Friday to call on the government to ensure better pay and welfare for workers. Representatives of the workers will also meet Prime Minister Yingluck Shinawatra to hand a letter in support of the government's 300-baht minimum wage hike policy across the country.
The rise was one of the Pheu Thai Party's major policies during this year's election campaign, but implementing it has proved to be a thorny issue.
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This only applies to workers on an official payroll (government or a company which has audited accounts). I wonder what will happen to the daily wage of casual labour... like many of the villagers we live among.
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This only applies to workers on an official payroll (government or a company which has audited accounts). I wonder what will happen to the daily wage of casual labour... like many of the villagers we live among.
Nothing ,,,,,,,,,but it will create a bigger class divide ,,,,,,,,,it will also cause a bigger rise in crime than the one the current climate is causing
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This only applies to workers on an official payroll (government or a company which has audited accounts). I wonder what will happen to the daily wage of casual labour... like many of the villagers we live among.
Nothing ,,,,,,,,,but it will create a bigger class divide ,,,,,,,,,it will also cause a bigger rise in crime than the one the current climate is causing
I think Drugs and Gambling is the biggest problem that has cause a rise in crime rate,not giving worker a few extra Baht in their pockets. That along with constant adverts on the TV saying "if you don't have this your life is incomplete". Like lots of Countries around the world now,where to poor are rising up demanding a better life ( even though they are not prepared to get off their backsides to achieve it.so it seems to me )..lets hope Thailand doesn't go down that route and that this Government can start to heal the rift in the big divide in the population here pray1
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want to bet that unemployment goes up in those provinces? Especially with the lowest paid people.
Coming Soon: Self service gas at Thailand Gas Station near you.
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Stalemate in wage panel over Bt300 daily wage
THANONGSAK MUENNOO
The Nation 2011-10-06
The Central Wage Tripartite Committee yesterday failed to reach a decision as to when the flat Bt300 minimum daily wage should go into effect after employees' representatives refused to accept employers' demand for a four-year delay.
The panel will discuss the issue again on October 17.
After the four-hour meeting, Labour Ministry permanent secretary Somkiat Chayasriwong said employers wanted to wait for four years before increasing the daily wage rate to Bt300 and also wanted concrete measures and guarantees from the government.
The government has been under pressure to deliver on its campaign promise, with the workforce demanding that the Bt300 rate be implemented immediately in Bangkok and its vicinity, by January 1 in other large provinces and the rest of the country in the next two years.
Somkiat said he hoped the October 17 meeting would be final, though he did not want to force the result through voting, because "a voting-enabled win would not be accepted by all parties concerned".
Atthayuth Leeyawanich, a panel member representing employers, said that under the Labour Protection Act wages could not be adjusted freely, but had to depend on inflation, cost of living and production cost.
"The 40-per-cent average increase [based on the flat Bt300 rate] does not go according to law," he said, adding that he doubted if the Bt300 would be constitutional.
"Although the Act does not stipulate liabilities for violation, I wonder if the panel's decision would go against the Constitution," he said.
Labour leader Wilaiwan sae-Tia had earlier submitted an open letter to the ministry saying the Bt300 wage should be implemented by January 1 or the government would face legal action for failing to keep its election promise.
She added that some 3,000 labourers and members of the Thai Labour Solidarity Committee (TLSC) would gather outside Government House to submit this request to Prime Minister Yingluck Shinawatra, she added.
Labour Minister Pol General Phadermchai Sasomsap, who met Wilaiwan and fellow workers, said the flat Bt300 rate would most probably not be implemented by January 1 as the process of many related incentives, including corporate tax reduction, had yet to be completed.
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Just heard that the 7-11 large gas station just north of Buriram at Ban Yang upped their wages to 300 baht.
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40% minimum wage rise approved
Published: 17/10/2011 at 02:42 PM
Bangkok Post: Online news:
The Central Wage Committee on Monday passed a resolution approving a proposal to raise the daily minimum wage by 40 per cent for every province, effective from Jan 1 next year, labour permanent secretary Somkiat Chayasriwong said.
Mr Somkiat, who chairs the Central Wage Committee which comprises representatives of the governnment, employers and employees, said the proposal was made by the representatives of the government and employees.
The tripartite committee based its decision on information from the provincial wage committees and a technical subcommittee which scrutinised it, he said.
As a result, as of Jan 1, 2012 the daily minimum wage in Bangkok, Nakhon Pathom, Nonthaburi, Samut Prakan, Samut Sakhon, Phuket, and Pathum Thani will go up to 300 baht.
The minimum wages in other provinces will go up by 39.5-40 per cent over the present rates which apply there. They will be further increased to 300 baht from Jan 1, 2013. This means from Jan 1, 2013 the daily minimum wage for every province nationwide will be 300 baht.
After that the 300 baht daily minimum wage will continue in force until 2015. However, this is subject to change depending on future economic conditions.
Today's resolution of the Central Wage Committee will be forwarded to the cabinet for consideration, Mr Somkiat said.
Mr Somkiat said the Finance Ministry has agreed to allow about 300,000 small and medium enterprises to take the difference from raising the daily minimum wage from the present rates to 300 baht to claim a tax reduction by 1.5 times of it from the Labour Ministry.