News Forum - Federation of Thai Industries concerned about plans for minimum wage hike

[Thaiger]

Thailand’s Federation of Thai Industries has expressed concern about the impact a rise in the minimum wage could have on small and medium-sized businesses. The federation says if a proposal to increase the minimum wage to 492 baht goes ahead, it will have a severe impact on such firms. According to a Bangkok Post report, the FTI was responding to a letter submitted to the government by the Thai Labour Solidarity Committee and the State Enterprises Workers’ Relations Confederation, ahead of today’s Labour Day holiday. In the letter, both labour advocacy organisations urged the government to implement the minimum wage […]

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[alex12345]

nothing new same thing happens all over the world employers just need to charge more for their product which these days they probably are anyway. Wage hikes always get complaints from employers but they need to realise these are re invested often in them by consumers.

Edited May 2, 2022 by alex12345

[Soidog]

I’m all for increases to minimum wages as long as the economics stack up. I think this represents a 45% step increase. This seems and illogically high amount. Why not an inflation busting 10% to start with, reviews annually? Like many things in society, it needs a range of inter connected initiatives to change mindsets and laws. Employee representation and unions. Employment laws such as unfair dismissal and age discrimination all need to feed in to things like minimum wages. Too often it’s seen as some kind of “Gift” by the ruling selfish clowns. 
 

Minimum wage hikes can often lead to positive and unexpected changes. More money in the pocket of people leads to more consumer spending. More spending leads to more tax collection, which leads to better public services. Well that’s how it should work in a society with low levels of corruption and transparency of taxation and government spending. So it won’t work like that in Thailand. 

[Ramanathan.P]

Wage increase and additional disposable income will definitely create a multiplier effect to the ailing economy. However the employees being the consumer, have to accept the fact that it will eventually accelerate inflation. Hence measures has to be in placed to control the anticipated inflation before implementing things....

[oldschooler]

4 hours ago, Soidog said:

I’m all for increases to minimum wages as long as the economics stack up. I think this represents a 45% step increase. This seems and illogically high amount. Why not an inflation busting 10% to start with, reviews annually? Like many things in society, it needs a range of inter connected initiatives to change mindsets and laws. Employee representation and unions. Employment laws such as unfair dismissal and age discrimination all need to feed in to things like minimum wages. Too often it’s seen as some kind of “Gift” by the ruling selfish clowns. 
 

Minimum wage hikes can often lead to positive and unexpected changes. More money in the pocket of people leads to more consumer spending. More spending leads to more tax collection, which leads to better public services. Well that’s how it should work in a society with low levels of corruption and transparency of taxation and government spending. So it won’t work like that in Thailand. 

Jobs will be cut as always happens with national minimum wage increases. These people need to be up skilled to get away from the bottom of the pile. Lowest value resources always highest unemployed.

[Scribble]

per day. How many hours is classed as a work day in Thailand?

[alex12345]

Most people just serve food anyway ... if your a good cook thats where the money is .. I calculate by their non stop selling that the gang of somtam saleswomen near my apartment must be making 2500 a day . thats 75,000 a month, minus supplies its still a fair wedge for someone grilling chicken and making somtam all day. By they start 7am and by 2pm they give up ... so they can relax .. seems like a good life to me.

[alex12345]

5 minutes ago, Scribble said:

per day. How many hours is classed as a work day in Thailand?

depends if your local or a migrant id say. Mind you migrants wont be on that minimum wage will they. Unless their boss is a stand up guy.

Edited May 2, 2022 by alex12345

[Skip]

This is exactly what they did in the USA... raised minimum wage to $15/hr... a significant increase... apx 60%... now a minimum wage earner can buy a better phone... but inflation and gas prices has diminished any real advantage.

A worse outcome to raising minimum wages is that the work force is reduced over time because the company budget is fixed... 10 employees at minimum wage equals 8 employees at new minimum wage.

Couple that with the fact that sooo many are not willing to work........

I'd like to add that in the building of my new house here in Chiang Mai and dealing with the builder and sub-contractors, I have found that there are very few workers that have any pride or for that matter skill in what they do... maybe a better grade of worker would justify paying higher wages...

Training and education money would go allot further than raising the wage. 

[KaptainRob]

16 minutes ago, Skip said:

I'd like to add that in the building of my new house here in Chiang Mai and dealing with the builder and sub-contractors, I have found that there are very few workers that have any pride or for that matter skill in what they do... maybe a better grade of worker would justify paying higher wages...

Chicken and the egg .... training and certification costs money = higher wages, and in many western countries has lead to ridiculously expensive building costs.  NZ and Australia in particular.

Most building labourers in Thailand are Burmese/Lao or Khmer migrants - Thai's are the plant operators, electricians and supervisors.  Cottage builders are often University Engineering graduates employing unskilled workers at below minimum wages or thru middle-men who rip off the labourers.

There are good builders in Chiang Mai, albeit hard to find, I've found 2 - One farang 17 years in Thailand with ~ 60 employees.  He pays his labourer staff above minimum (currently ~450bt/day) plus health entitlements and EOY bonuses.

AND one Burmese team - at least 12 years local construction. The Burmese family group have more work on offer than they can handle as they are meticulous in every detail from start to finish, they even do the tiling and painting.  Self-employed so minimum wage doesn't apply.

[Skip]

22 hours ago, KaptainRob said:

Chicken and the egg .... training and certification costs money = higher wages, and in many western countries has lead to ridiculously expensive building costs.  NZ and Australia in particular.

Most building labourers in Thailand are Burmese/Lao or Khmer migrants - Thai's are the plant operators, electricians and supervisors.  Cottage builders are often University Engineering graduates employing unskilled workers at below minimum wages or thru middle-men who rip off the labourers.

There are good builders in Chiang Mai, albeit hard to find, I've found 2 - One farang 17 years in Thailand with ~ 60 employees.  He pays his labourer staff above minimum (currently ~450bt/day) plus health entitlements and EOY bonuses.

AND one Burmese team - at least 12 years local construction. The Burmese family group have more work on offer than they can handle as they are meticulous in every detail from start to finish, they even do the tiling and painting.  Self-employed so minimum wage doesn't apply.

So what I said is true... the 2 builders that you cite are both Farang... not Thai... I wonder why...

Just because they feel that they are underpaid should not be an excuse for lack of pride.