Jump to content
BANGKOK
webfact

No adverse impacts on businesses from minimum wage hike, says expert

Recommended Posts

No adverse impacts on businesses from minimum wage hike, says expert

By THE NATION

 

800_05f28cc7e896269.jpg?v=1575878471

 

An increase in the minimum wage by Bt5 to Bt6 will neither hike the cost liability for entrepreneurs nor increase inflation, Anusorn Tamajai, the director of the Economic and Business Research Centre for Reform at Rangsit University's Institute of Economics, said yesterday (December 8).

 

“An increase in wage will not affect the purchasing power in the economic system,” he added. “However, the government should promote measures to help small firms that could be impacted by the burden of a higher wage bill. Besides, there should be a salary structure specified for those firms with over 50 employees as wage collateral.”

 

In addition, the director said that Thai entrepreneurs should use an hourly minimum wage system with a higher rate than the daily wage to help those who do not work full-time. “By this system, entrepreneurs can be more flexible in employment and cost management,” he added.

 

Moreover, he suggested that the government, employers, and skill improvement institutes should hasten to improve employees’ skills to cope with advanced technology in the future, as well as deal with the effects of using robots, Internet of Things, and 3D printing in the textile, clothing, shoes, electrical and electronic equipment and automotive industries.

 

The director said that according to the International Labour Organisation (ILO)’s research, 44 per cent of working positions in Thailand will be substituted by automatic systems in the next 20 years. “Those who will be affected are store shopkeepers, service staffs, agricultural personnel, and low-skilled workers who do repetitious jobs,” he explained. “About 70 to 80 per cent of textiles, clothes and shoe industries will possibly be affected by the automatic system.

 

“An economic system designed to be less competitive is very important for stable politics and society,” he suggested. “It can help lessen the working hours of employees, while output and business profits do not decrease."

 

Source: https://www.nationthailand.com/news/30379233

 

nation.jpg

-- © Copyright The Nation Thailand 2019-12-09

Share this post


Link to post
Share on other sites
1 minute ago, webfact said:

No adverse impacts on businesses from minimum wage hike, says expert

By THE NATION

 

800_05f28cc7e896269.jpg?v=1575878471

 

He looks smart with those arrows. 

I'm convinced! 

Share this post


Link to post
Share on other sites

The adverse impact will be on the workers. Six baht (if the employers actually pay it) will give the workers 0.02% pay rise and if they work for 20 days a month they will get a huge 120 baht extra per month.

 

Of course the management and the owners and the rich will get far more than 6 baht per day.

Share this post


Link to post
Share on other sites

If 5 baht or even 6 baht per day impacts an employer he is obviously nearing bankruptcy!

8 hours ago, Genmai said:

The armies of obnoxiously useless HomePro staff who graciously take a break from Candy Crush/zit popping/nose picking to shlepshlop behind you

I agree the staff treat you like a shoplifter and if one does ask them a question they have no clue.  Perhaps if they were to lay off 75% of the staff, take the money saved and pay a living wage to a few persons who actually know what they are doing they would be more successful!

  • Like 2

Share this post


Link to post
Share on other sites

Minimum  wage pushes up inflation.

Wnd cost the customer  shall pick up  plus it pushes  more thais out of work and more Burmese  in to work

 

Which is counter  productive 

  • Like 1

Share this post


Link to post
Share on other sites
10 hours ago, Genmai said:

 

Spoken exactly like somebody who has never been through the hell that is called hiring Thai workers. Management, the owners, the rich, the lizard wizards, the greedy CEOs, blah blah - you realize that all those terribly evil businessmen who risk their capital to provide something of value to society only get whatever money is left AFTER paying all those poor hardworking esteemed individuals FIRST, yes? The armies of obnoxiously useless HomePro staff who graciously take a break from Candy Crush/zit popping/nose picking to shlepshlop behind you while mumbling something about a promotion all get paid before the shareholders do, no matter how half assed a job they do, how many holidays they take or how many costly mistakes they make. Don’t like seeing these fine young men getting screwed by the system? Then start your own company and pay them x10 the minimum wage! See how long you last.

 

We’re a comparatively tiny company, and yet we’ve already seen such amounts of BS that you wouldn’t believe. People straight up stealing, lying, not giving a ****, not showing up, excuses “not me” “you don’t understand”, etc. then you break their fragile ego and 99% of the time they quit at the drop of a hat. Then you’re back at square one looking for and training for the nth time.

 

by the way, such comments aren’t exclusively made by internet permavirgins raging on a farang forum. Every Thai small business owner I’ve known shares these frustrations and works their ass off to pick up the slack for their staff. 

Well said and 100% true - Thai friends of mine/wife always have problems with staff, and what I thought were problems back in Australia are nothong compared to what they have to doeal with in Thailand.  In Australia it is about 'rights and costs' - but in Thailand it is actually getting them to give a ***t and actually getting them to work.  This is the reason why so many small businesses in Thailand are family and friends, and why nepotism is rife in larger organisations, and why so many workers you actually see working a lot (like at construction sites) are often Laos or Myanmars.  Most farangs have absolutely no idea about it, or most things in Thailand - indeed in the World. 

 

 

Edited by AussieBob18
  • Like 1

Share this post


Link to post
Share on other sites
13 hours ago, billd766 said:

The adverse impact will be on the workers. Six baht (if the employers actually pay it) will give the workers 0.02% pay rise and if they work for 20 days a month they will get a huge 120 baht extra per month.

 

Of course the management and the owners and the rich will get far more than 6 baht per day.

If the monthly salary is approx 300Baht then an extra 6baht/month must be 2% not 0.02%

Share this post


Link to post
Share on other sites

A 2% hike is not going to hurt businesses, who are already blessed with some of the lowest labor rates in the developing world. The real question is, how do those who are making minimum wage survive? Real inflation has to be 6-10% annually, despite the lies we are being told by the authorities. Same in the US. Inflation is out of control. 

  • Like 1

Share this post


Link to post
Share on other sites
2 hours ago, Bizzie Lizzie said:

If the monthly salary is approx 300Baht then an extra 6baht/month must be 2% not 0.02%

Actually the 300 baht is a daily rate and not a monthly rate.

 

  • Thanks 1

Share this post


Link to post
Share on other sites
12 hours ago, Genmai said:

 

Spoken exactly like somebody who has never been through the hell that is called hiring Thai workers. Management, the owners, the rich, the lizard wizards, the greedy CEOs, blah blah - you realize that all those terribly evil businessmen who risk their capital to provide something of value to society only get whatever money is left AFTER paying all those poor hardworking esteemed individuals FIRST, yes? The armies of obnoxiously useless HomePro staff who graciously take a break from Candy Crush/zit popping/nose picking to shlepshlop behind you while mumbling something about a promotion all get paid before the shareholders do, no matter how half assed a job they do, how many holidays they take or how many costly mistakes they make. Don’t like seeing these fine young men getting screwed by the system? Then start your own company and pay them x10 the minimum wage! See how long you last.

 

We’re a comparatively tiny company, and yet we’ve already seen such amounts of BS that you wouldn’t believe. People straight up stealing, lying, not giving a ****, not showing up, excuses “not me” “you don’t understand”, etc. then you break their fragile ego and 99% of the time they quit at the drop of a hat. Then you’re back at square one looking for and training for the nth time.

 

by the way, such comments aren’t exclusively made by internet permavirgins raging on a farang forum. Every Thai small business owner I’ve known shares these frustrations and works their ass off to pick up the slack for their staff. 

You have a tiny company you say.

 

If you have 10 workers on the minimum salary the increase will be 1,200 per month for you.

 

If 1,200 baht on your wage bill will result in your company going bankrupt, then you have a serious problem.

 

Probably down to morale I would think. I have no Idea what you pay your staff but the Thai companies that I used to work for paid more than the minimum salary and the staff turnover was quite low, but they were large companies but with far more overheads than you have.

 

An extra 6 baht per day will get your employees one extra meal from the street per week.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

×
×
  • Create New...