Employers concerned about costs, inflation

[laphanphon]

i thought the previous wages were 170 for bkk and metro area, and 129 for upcountry. how wrong i can be sometimes. it's so much more. watch out for all the new purchasing power. sad state indeed.

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.

udon thani, 5 whole baht, although it doesn't say what it was or will be.

http://www.bangkokpost.com/Business/01Nov2006_biz42.php

[BKKSTAN]

It sounds like the minimum rates basically apply to new employees starting regular jobs in factories,not the day worker rates paid or the normal rates paid to longer term employees.
I wouldn't gage what workers in different areas are getting by the minimum wage!

[kevh]

Don't forget that the quoted minimum wage is taxable.

Most people in our area would normally work and not be taxed, and therefore, the legal minimum taxed wage does not apply.

They can and are paid less, because if they do not want to pay tax then they are not part of the offical legal pay system.

Kev