300 baht wage to be imposed no matter what...apparently

[Spitfire]

Firms told to pay or leave

Businesses that cannot afford to comply with the government's 300 baht daily minimum wage policy should relocate to neighbouring countries, says Virabongsa Ramangura, chairman of the Strategic Committee for Reconstruction and Future Development.

Virabongsa: Offers stark choice
The government would happily provide promotional assistance to those wanting to relocate their manufacturing bases, he said.

Mr Virabongsa said he explained these views to Naoyuki Shinohara, deputy managing director of the International Monetary Fund (IMF), who met him yesterday.

He said Thailand is now facing a labour shortage and the country has been relying on at least 10 million illegal foreign workers.

"We should understand that we can't keep all these industries in this country any more, particularly those that are labour intensive such as textiles, leather goods, and small and medium enterprises," he said. These businesses should relocate to countries with lower labour costs while industries that stay here must improve their competitiveness. The minimum wage takes effect on April 1.

He said the IMF believes Thailand will benefit after Myanmar opens its doors and embarks on economic reform.

Source - The Bangkok Post

http://www.bangkokpost.com/news/local/2 ... y-or-leave

Comments - Should be interesting......if it sees the light of day. Can't think that it's wise as it throws up a whole load of questions but they are politically 'strapped' by their promises.

[hhfarang]

I guess I can use this new law to lower my gardener's wage by 20 baht a day since he averages 320b.

[ste860]

this is going to cause big problems for everybody who is in buisiness regardless of what type it is
its going to make everything more exspensive worse than drops in exchange rates

but some will simply cut back on staff to cut costs ,

[JimmyGreaves]

this is going to cause big problems for everybody who is in buisiness regardless of what type it is
its going to make everything more exspensive worse than drops in exchange rates

but some will simply cut back on staff to cut costs ,

Don;t think it will be worse than the drop in exchange rate for us UK lot since 2008!

[Lung Per]

Mrs- LP's son who works in the automotive industry in Bangkok was notified of a corresponding wage increase per April 1. No April's fool.
Wonder what the impact will be on small hotels/GHs in HH. Room prices up??
Welcome any decrease in the value of the ThaiBahnt.

[ste860]

another thought it will hit 7/11s really hard the one near me has 7-8 on shift everytime i go in

[Lung Per]

The Thai Baht is almost certain to deteriorate and prices to go up correspondingly. Not good prospects.

But as Virabongsa Ramangura, chairman of the Strategic Committee for Reconstruction and Future Development says, "Businesses that cannot afford to comply with the government's 300 baht daily minimum wage policy should relocate to neighbouring countries" .
And:
"The government would happily provide promotional assistance to those wanting to relocate their manufacturing bases".

Question: Where do I go to collect subsidies to move to Burma or Laos and who wants to join me? :-)

[BaaBaa.]

The Baht is dropped quite a bit over the past week or so, great for me but I do think it was ridiculously low before.

50 to the pound soon?

[Big Boy]

That would be a nice start.

[lomuamart]

I wonder whether Khun Virabongsa will be quite as willing to give promotional assistance to the Japanese and other large foreign investors to relocate to another country?
Jeeze, they're having enough trouble keeping big investors here after the floods anyway. Maybe they'll move without any incentive?

[av8er]

O.K. But how much of a raise is that? I would imagine that, as a percentage, it's a very small amount. 300b a day equates to 6,600b/month (22 working days), and even low paid people are pulling in more than that.

[PeteC]

O.K. But how much of a raise is that? I would imagine that, as a percentage, it's a very small amount. 300b a day equates to 6,600b/month (22 working days), and even low paid people are pulling in more than that.

Yes, I think that is part of the employer complaint. There is a lot of overtime, some places it's mandatory per my understanding. The overtime rate is probably 1.5 and 2.0 times the normal wage depending upon how much is worked and when. Pete

[HHADFan]

O.K. But how much of a raise is that? I would imagine that, as a percentage, it's a very small amount. 300b a day equates to 6,600b/month (22 working days), and even low paid people are pulling in more than that.

http://www.business-in-asia.com/thailan ... e2011.html

The link has a table showing minimum wages in 2011. The highest minimum wage shown is 221 baht/day in Phuket. The lowest is 159 baht/day in Payao. Setting the minimum wage at 300 baht/day across all provinces does represent a significant increase for companies with large labor forces working at minimum wage.

[Takiap]

I do think a lot of employees will be happy with this, but I also think than many of those who are in desperate need of a pay increase won't stand to benefit, because many are just paid in cash on Friday afternoons, such as building site workers for example. I also think we start to see even more illegal workers, rather than less, as has been suggested by the government. Every second building crew around this area is made up mostly of Cambodian or Burmese workers, and personally I can't see this changing any time soon.


I also won't be surprised if the government simply introduces new laws which help employers get around the minimum wage issue. A similar situation exists abroad, in places such as the UK, at least within the oil and gas industry. For example, offshore workers are expected to work 12 hours per day, seven days a week, with no overtime payment at all. One could argue that this is okay because offshore workers get plenty of time off between their trips. If they work 3 weeks on, they get 3 weeks off, but then the pay they get for their 3 weeks on should actually cover them for six weeks, in which case their are plenty of people working in the North Sea for below the minimum UK wage. They also don't get any perks such as pension and/or medical aid, because drilling companies use agencies so that they can get around such obligations. I know this has nothing to do with Thailand and the new minimum wage, but I'm just pointing out that employers will more than likely be able to avoid this wage change, and possibly even with help from the government.


If companies like Honda and Toyota threaten to pull out, I'm sure the government will soon change their tune. I hope not, but this is actually quite a complex issue after all.

[caducus]

I really believe that in Thailand in 2012 all workers deserve at least 6600 baht per month whatever they are doing and wherever they are working. Rather than close down or move elsewhere, an employer with a large workforce should be able to save on the wage bill by cutting down on dividends, director's fees and perks paid to senior staff.