Posted: Wed Nov 01, 2006 5:44 pm Post subject: The Sweat Shops moan: Minimum Wage Increase!
Quote:
Employers concerned about costs, inflation
POST REPORTERS
Cabinet ministers yesterday approved increases in daily minimum wages ranging from three to eight baht, leading some manufacturers to warn of increased inflation and tighter profit margins due to higher labour costs. Wages in Nan province were raised by just three baht to 143 baht per day, while in Songkhla the wage rose eight baht to 152 baht. Starting from January, the basic minimum wage was increased to 143 baht from 140 baht.
The provinces that will have the highest daily wage, at 191 baht, are Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan and Samut Sakhon.
The wage will rise seven baht in Bangkok, Nakhon Pathom, Nonthaburi, Pathum Thani, Samut Prakan, Samut Sakhon, Sa Kaeo, Ratchaburi and Chachoengsao.
Six-baht increases were approved for Chon Buri, Phetchaburi, Rayong and Loei. Five-baht increases will apply in Phuket, Prachin Buri, Udon Thani, Chanthaburi, Sing Buri, Ranong, Prachuap Khiri Khan, Saraburi, Ayutthaya and Krabi. The wage will rise by four baht in Nakhon Ratchasima, Chiang Mai, Ang Thong, Surin, Roi Et and Yasothon.
Nipon Surapongrakcharoen, the vice-chairman of the Federation of Thai Industries (FTI), said the increases would not have much effect on the production costs as labour was not as large a factor as raw materials, transport and financing.
But Chen Namchaisiri, president of the FTI's Textile Industry Club, said he disagreed with the increases as they would reduce the competitiveness of some local industries, including textiles.
Local textile manufacturers, he said, were already suffering from a stronger baht, less utilisation of local content and falling consumption in the key US market.
''Higher wages would be meaningless to workers if their companies lose competitiveness to rivals when production costs increase,'' he said.
Mr Chen said minimum wages should not be increased until the impact of other negative factors declines.
Thamrong Tritipresert, president of the FTI's Footwear Industry Club, said entrepreneurs should help their workers cope with growing living costs due to inflation.
'' However, to add eight baht more to the current rate of minimum wage is too much,'' he said, adding that wages were 13-15% of total costs in the footwear industry.
It's the same old argumnt that was raging in Europe decades ago.
It is true - a labour force can outprice itself (see Germany as a prime example, luckily it has a social support net). The question is, however, if one wants one's country to remain at the bottom of the heap and be happy to be the lowest-income and least-skilled nation around.
Hardly. These are bullshit 'reasons' from people who are not the ones dangling from the subsistence level carrot. _________________ _____________________________________
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those 143 - 152 baht/day is really a minimum just to survive (food, shelter, clothing) and does not allow to save any money for an emergencies (there is no social security or pension in Thailand) or family (children).
Certainly some make a little more - after their parents sold grandfather's land to pay for their education at a private school . . . But many also find out that this investment doesn't pay off. _________________ Thailand Forum - Korat Forum..
I do believe the difference between an educated country and an uneducated country is that in the former it is understood that creating wealth is a surefire way to incresae the number of consumers, therefore increasing one's sales, therefore increasing one's wealth.
In the latter countries the idae is still to keep and hoard everything one has so the next two generations can waste it. _________________ _____________________________________
I do believe the difference between an educated country and an uneducated country is that in the former it is understood that creating wealth is a surefire way to incresae the number of consumers, therefore increasing one's sales, therefore increasing one's wealth.
In the latter countries the idae is still to keep and hoard everything one has so the next two generations can waste it.
How does that relate to the discussion on minimum wage?
and I dont understand your thoughts on wealth creation-how can an "uneducated country" "keep and hoard everything". Either you create wealth or you don't--the only possible "hoarding" could occur if you do not keep your wealth in the banking system _________________ Asia Expats Forum Expat Friends Dating
Quite simple, it relates to the minimum wage discussion by highlighting that wealth-creation is not even an idea in certain mentalities. The less you pay your workers, the more margin you make, tht less money is in daily circulation . . . etc . . .
Result: keeping the worker at subsistence level by keeping wages at an absolute minimum = minimum wage discussion.
Wealth creation by individuals, not the state, possibly I should have stated that more clearly.
Are you implying that I am not sticking to the topic? If so, then you have misread or are trying to mis-read what I write. _________________ _____________________________________
Quite simple, it relates to the minimum wage discussion by highlighting that wealth-creation is not even an idea in certain mentalities. The less you pay your workers, the more margin you make, tht less money is in daily circulation . . . etc . . .
Result: keeping the worker at subsistence level by keeping wages at an absolute minimum = minimum wage discussion.
Wealth creation by individuals, not the state, possibly I should have stated that more clearly.
Are you implying that I am not sticking to the topic? If so, then you have misread or are trying to mis-read what I write.
\
No I am not referring to being off topic
Although I am not sure I agree with your logic on wealth creation. Wages are a result of supply demand --not the result of business deciding to keep levels at an absolute minimum. _________________ Asia Expats Forum Expat Friends Dating
I, sir, am always on topic . . . well . . . mostly
I agree that wages are decided by the supply for labour, at least it used to be so before the advent of structured wage demands and olective bargaining with state intervention of set minimum wages.
I was trying to couple it with the sociological structure that binds it, particularly in 'developing countries'. One needs higher wages and better education to progress. No country can remain the low-cost manufacturing hub anymore - even China is now becoming too expensive for manufacturing and comoanies are looking around . . . finding Vietnam at the moment. China's advantage, of course, is its potenetially vast local market. _________________ _____________________________________
I, sir, am always on topic . . . well . . . mostly
I agree that wages are decided by the supply for labour, at least it used to be so before the advent of structured wage demands and olective bargaining with state intervention of set minimum wages.
I was trying to couple it with the sociological structure that binds it, particularly in 'developing countries'. One needs higher wages and better education to progress. No country can remain the low-cost manufacturing hub anymore - even China is now becoming too expensive for manufacturing and comoanies are looking around . . . finding Vietnam at the moment. China's advantage, of course, is its potenetially vast local market.
Thailand has progressed rapidly despite having a very poor level of education. Progresson has been a result of increased foreign investment.
Seems they have little or nothing to improve the educational system _________________ Asia Expats Forum Expat Friends Dating
Seems they have little or nothing to improve the educational system
They upgraded the names. What was "High School" is "College" now, and what was "College" before advanced to "University". And the tuitions went up. A big difference in quality or curriculum can not be noted. But the ajarns have aircon offices now! Relieves their stress and leads to improved teaching. _________________ Thailand Forum - Korat Forum..
I do believe the difference between an educated country and an uneducated country is that in the former it is understood that creating wealth is a surefire way to incresae the number of consumers, therefore increasing one's sales, therefore increasing one's wealth.
In the latter countries the idae is still to keep and hoard everything one has so the next two generations can waste it.
Quite astute, Quasimodo, although perhaps a tad broad. I would say that you have very neatly summarised the difference between Singapore and Malaysia. _________________ Spare us your professional annotations - they are irrelevant!
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