Government under fire as businesses close, saying they cannot pay the new minimum daily wage

Abhisit slams 300 baht wage hike policy

Published: 9 Jan 2013 at 17.45
Online news: News

The government needs to accept the truth about the negative impact of its policy to suddenly raise the daily minimum wage to 300 baht nationwide, Democrat Party leader Abhisit Vejjajiva said on Wednesday.

"The opposition and critics warned the government about the effects of its wage policy last year but it chose to ignore them," said the opposition leader.

He said the government should not have refused a suggestion by the private sector to set up a temporary compensation fund to help small- and medium enterprises (SMEs) hit by the wage hike. The money needed to set up the fund would be far less than the budget for the rice price scheme.

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boons
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Discussion 24 : 14 Jan 2013 at 04.4124
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To all those who believe we "should" raise wages because its hard to live on less -- should all governments of countries with lower wages also raise wages? Should Burma and Cambodia raise wages? And why only 300 baht per day? Why not a US or European minimum wage? Why does your moralist argument stop short? Are you bound by any sort of financial or economic limitations in your reasoning? If so, what? Why don't we provide healthcare and pensions too? How has your moral reasoning arrived comfortably at 300 baht and no healthcare and no pension? Does math enter the equation for you?
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jacksprat
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Discussion 23 : 11 Jan 2013 at 22.2823
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"I am cannot live on 300 baht pocket money a day." If you were Thai, you could. How much do you think the average Thai lives on? Leaving out rent and utilities, I could get by on 300 if I had to. Take buses, eat Thai food. It wouldn't be fun and I don't wish it on anyone, but it is quite doable. Probably the majority of Thais are even doing it, especially in rural areas.
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DonAleman
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Discussion 22 : 10 Jan 2013 at 18.3122
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"SUDDENLY" ? A years notice is suddenly ? Nonsense as the companies "operating on a shoestring", and knew it, should have been preparing for the past year and the government
also knowing the wage increase negatives shpuld have had plenty of time to set up compensation boards, re education centers,etc. A number of these businesses would have closed without the wage increase so the figures are distorted. Every day, yes every day, as I walk down familiar streets, I see some business "packing up " and closeby another "setting up" - normal attrition.
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whatajoke
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Discussion 21 : 10 Jan 2013 at 13.0521
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Almost all these comments so far miss the point; it's not about 'living on less than 300 a day', few people are mean enough to dispute that, but the abrupt implementation is an economics nightmare. Ask anyone who deals with money whether a sudden 40% increase/decrease is a good idea. Sure, some people now get 300 baht a day but they will be taking care of their brothers/sisters who are now get zero baht because they lost their jobs. It needs graduated implementation. In any case, unemployment is so low here you can afford to close down some factories. And I'd sooner believe an Oxford educated economist than a protest leader turned politician.
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truegrit
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Discussion 20 : 10 Jan 2013 at 10.0320
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Peterd the factories stayed open until the new wage took affect because it made sense or they had to finish contracts maybe. I know for a FACT that running a business the workers always think you are making a fortune OK then I say you try being the boss, 24-7 it never stops and if you run a good company you should make money, you take the gamble you should be rewarded. SIMPLE stop gripping
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ploydonut
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Discussion 19 : 10 Jan 2013 at 01.4219
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I am cannot live on 300 baht pocket money a day. Maybe if company cannot afford to pay this much then it mean they have taken advantage of their worker for a long time, and so maybe the owner should close business and work for another company better.
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flooding
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Discussion 18 : 10 Jan 2013 at 00.1718
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I think it is the failure of all government officials in Thailand who overestimates industrialist all the time, thinking they make alot of money. I think other trade earns much more. Manufacturing is a dying trade in Thailand. Now that India currency to devalued, we can think the trade figures are going to change drastically into Thailand, as industries shift base from South East Asia, to Indian subcontinent. Thailand already lost rice trade to India. What next it's electronic industry. India also have a strong automobile industry. Thailand be careful as Indian Labour is only 33% of Thailand and has over one billion citizens.
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Wester
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Discussion 17 : 09 Jan 2013 at 22.1717
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Inflation is a monetary phenomenon said Milton Friedman. Money printing started in earnest during Abhisit's administration. Now he wants to deny the ill effects it created for the country and try to blame a policy that tries to mitigate the damage he helped to cause. For shame. Everyone knows that 300 is a sub-poverty wage, and promoting anything lower reveals starkly the underlying business and social class that benefits directly from the misery it imposes upon the weakest and least fortunate in the society. For shame.
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peterd
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Discussion 16 : 09 Jan 2013 at 21.5716
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#11, Bob, AV is British citizen. Can you imagine AV considering the English workers as he considers the Thai workers and talking in the European medias as he talks in Thailand? No one second. And don't say it's not the same context because Thailand is rich as England. Just in one you have medieval/feudal society with privileged class who don't want sharing a bit and in the second you have a democratic country now pretty far of Dickens. You ask often what the PT do, you already have an answer.
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dao
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Discussion 15 : 09 Jan 2013 at 21.4215
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PTs quick fix policies seem to hurt the people they are suipposed to help .Ironic or is it ?
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