Author Topic: B300 wage to be scrapped next year  (Read 2046 times)

Offline thaiga

  • Korat forum specialist
  • *****
  • Posts: 16011
B300 wage to be scrapped next year
« on: June 06, 2015, 12:30:05 PM »
B300 wage to be scrapped next year

The 300-baht national daily minimum wage will be scrapped next year, to be replaced by the old system where wages vary by each province based on the cost of living.

The rate will take effect until the end of this year, Labour Ministry permanent secretary Nakhon Silpa-archa was quoted by Thai media as saying at a seminar of wage committee members on Friday.

It remains undecided whether the daily minimum wage will be higher but the Wage Committee decided on Dec 8, 2014 to reinstate the old regime where wages vary by the cost of living and the economy of each province, he said.

"The ministry is studying the feasibility of floating wages and an appropriate way to set the rates," he said.

The change will increase Thailand's competitiveness and employment rates, said Mr Nakorn, adding it would also improve the living conditions of workers and reduce wage disparities. Employees will have to improve their skills and productivity, the key factors determining wages and incomes.

For 2016, the provincial wage committees were asked to study and propose the minimum wages, to be considered at a national meeting in October.

A guideline for 2016 will also be used as a standard for the following years.

The Thai Labour Solidarity Committee proposed in late March that the minimum wage be increased to 360 baht a day after a 2015 survey found the cost of living of workers almost doubled from 2013.

The 300-baht minimum wage, a more than 100% increase for workers in some provinces, was one of the election campaigns of the Yingluck Shinawatra government. Taking effect in 2013, it drew substantial resistance from employers who claim it undermine the country's competitiveness. The hike was also blamed for the current export slump Thailand is now facing.

The Yingluck government defended the move, saying the wage had not been revised for several years and was far below a reasonable cost of living. It helped operators by provide tax breaks for machine imports to replace more expensive labour

A wage committee consists of five representatives each from employers, employees and the government.

Daily minimum wages in Asean (in baht)

Singapore 2,000

Brunei 1,800

Thailand 300

Philippines 300

Malaysia 270

Indonesia 230

Myanmar 110

Vietnan 95

Laos 80

Cambodia 75

Anyone who goes to a psychiatrist should have his head examined.

Offline Johnnie F.

  • Administrator
  • Korat forum specialist
  • *****
  • Posts: 6492
    • Korat-Info
Re: B300 wage to be scrapped next year
« Reply #1 on: June 06, 2015, 01:33:32 PM »
Employees will have to improve their skills and productivity, the key factors determining wages and incomes.

That's the real problem! Skilled and reliable workers don't have problems finding jobs that pay far above the minimum wage. And comparisons with other countries' wages usually don't point out the problem either. It's the whole organization of working processes, that could become more effective, if all people involved in a production chain were trained properly and could work hand in hand with the others in the team. I do see that with people working in my garden or at constructions here. Some are best working alone, as others do more obstructing than supporting. But they have to be paid high as well for just clinching to the rakes. The minimum wage didn't do anything than push up the costs of living and the exchange rate (baht's value to other currencies), making exports too expensive.

Offline thaiga

  • Korat forum specialist
  • *****
  • Posts: 16011
Re: B300 wage to be scrapped next year - Labour rights groups oppose
« Reply #2 on: June 08, 2015, 12:10:38 PM »
Labour rights groups opposed to plans to float minimum wage

LABOUR rights groups are against any move to float the minimum wage, saying the move would be retrogressive and unfavourable for workers.
The latest decision on setting the minimum wage for 2016 was made last Friday by the national wage committee, which approved setting different minimum wages based on each province's economic situation.

Floating the minimum wage was one method considered to increase it.

Wilaiwan Saetia, president of the Thai Labour Solidarity Committee (TLSC), said the new payment-rate policy was not just for labourers as the provincial wage subcommittees have the power to set minimum wages.

"We will have to negotiate for a higher payment because the provinces where the labour rights groups are not strong enough will be disadvantaged by having to accept an insufficient wage," Wilaiwan said.

"Most of the labours don't have the knowledge of the law in order to campaign for a higher payment."

She said the TLSC still wanted a nationwide minimum daily wage of Bt300 with an appropriate increase in accordance with the cost of living, individual job experience and length of employment.

Nakorn Silpa-archa, permanent secretary of the Labour Ministry, said the national wage committee had come out with five possible methods to raise the minimum wage: let the provincial commerce subcommittees set the minimum wage; float the minimum wage; increase the minimum wage according to each province's economic standing; set the payment based the industry type; and mixed methods.

Nakorn said the minimum wage subcommittees would submit the new minimum salary rates for each province for the national wage committee to consider this month, with the matter to be concluded by October.

"The setting of the minimum wage rate should not be bound with political policy because the minimum wage will affect employers, employees and the wider economy of the country," he said.

"The workers also have to develop their ability, skills and experience in order to ask for a raise," he added.

The nation
Anyone who goes to a psychiatrist should have his head examined.

Offline thaiga

  • Korat forum specialist
  • *****
  • Posts: 16011
TDRI says floating minimum wage is a disadvantage for workers

 The National Wage Committee's resolution to float minimum wage beginning next year will be a disadvantage for workers, a research director of labour development of Thailand Development Research Institute (TDRI) Dr Yongyuth Chalamwong said.

The researcher said although floating the minimum wage will clearly define economy of each region, but it will be a disadvantage for workers as at present wage structure remains unclear.

He said what the government should do right now was to quickly solve the problem of workers who still do not receive the 300-baht minimum wage.

There are around 2.5 million workers who are still not paid the official minimum wage rate, he said.

He also said although minimum wage will be floated, but the float also sticks to 300-baht as basic rate.

Deputy permanent secretary of the Ministry of Labour, Mr Arak Promanee, meanwhile, said the nations wage committee has no resolution to scrap the present 300-baht minimum wage but only resolved to set minimum wage that will vary to economy and cost of living in each region.

He said final decision on minimum wage will be reached at the meeting of the national wage committee in October this year after each province file its information to the committee.

He affirmed that no matter what will be the final pattern of wage floating, new minimum wage will not stand below the present 300-baht wage per day.

But Pan Asia Footwear director Sommart Kunset saw differently.

He said floating minimum wage might deteriorate the current labour shortage problem in the industry sector, and could bring about cost by leaps and bounds.

He suggested that minimum wage should be decided by market and by economy of each region.
Anyone who goes to a psychiatrist should have his head examined.

Offline thaiga

  • Korat forum specialist
  • *****
  • Posts: 16011
Re: Workers ask for B360 minimum wage
« Reply #4 on: June 10, 2015, 11:17:58 AM »
Workers ask for B360 minimum wage

The Thai Labour Solidarity Committee, one of Thailand's major labour organisations, has called for Prime Minister Prayut Chan-o-cha to increase the minimum wage to 360 baht from the current 300 baht per day.

Wilaiwan Sae Tia, president of the TLSC, said higher public utilities charges and rising food prices have increased the cost of living and placed a greater burden on workers.

To compensate for this, the daily labour minimum wage should be increased to 360 baht, she said.

Anyone who goes to a psychiatrist should have his head examined.