Firms ignore new graduates to save money

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Firms ignore new graduates to save money

B15,000 starting salary blamed for joblessness

Published: 30 Mar 2012 at 00.00
Newspaper section: News

Many entrepreneurs have refused to employ bachelor's degree graduates to avoid paying a starting salary of 15,000 baht, a seminar on youth employment was told yesterday.

Firms ignore new graduates to save money

Worachon Dulwit, secretary-general of the International Student Centre of Thailand, said many employers were reluctant to take on new graduates with a bachelor's degree because they did not want to pay the 15,000 baht starting salary promised by the Pheu Thai-led government during its election campaign last year.

Instead, employers have opted to hire diploma holders to cut costs, Mr Worachon said.

The seminar was jointly organised by the International Labour Organisation (ILO) and Chulalongkorn University's faculty of economics.

Mr Worachon said many university graduates also study in fields such as social sciences that do not serve the needs of the labour market.

These graduates have a hard time finding jobs or end up being underemployed. Some resort to doing part-time jobs such as distributing leaflets, which is a waste of talent and a loss to the economy, he said.

Secretary-general of the Employers Confederation of Thailand Siriwan Romchatthong said graduates in certain fields such as engineering, accountancy or medical sciences were certain to be employed in accordance with their fields of studies.

For these professional graduates, employers are willing to pay the 15,000 baht starting salary.

But when it comes to graduates from other fields, employers prefer to hire those with educational qualifications lower than a bachelor's degree, Ms Siriwan said.

She said many employers are now trying to circumvent the government's 300 baht daily minimum wage, which takes effect on Sunday, by outsourcing jobs or hiring workers in the non-formal sector.

Matthieu Cognac, a youth employment specialist with the ILO's Asia and Pacific office, called on Asia-Pacific countries to promote youth employment as unemployment rates in the region were high.

It is necessary for each country to work out strategies to provide young people with various practical skills to enter the job market and ensure they receive decent wages and enjoy physical well-being, Mr Cognac said.

John Ritchotte, labour relations specialist with the ILO's Southeast Asia office, lambasted the government's 300 baht minimum wage policy, saying it was misguided and it would not do anything to raise the living standards of the public and workers.

The policy was only aimed at seeking political gain, he said. The government should let labour organisations and employers hold direct talks on wage adjustments to find a better solution, Mr Ritchotte said.

Meanwhile, Labour Minister Padermchai Sasomsap said yesterday the ministry would set up a complaints centre on its ground floor to receive information on any problems arising from the minimum wage hike so that the ministry would be able to find ways to sort them out.

Arthit Issamo, chief of the Labour Protection and Welfare Department, said labour inspectors would be sent out to various areas next month to enforce compliance with the new wage hike policy.

Employers who fail to comply will be issued with a warning and they will have to rectify the situation within 30 days.

After that, if they still do not comply, they will face a fine of up to 100,000 baht and/or a jail term of up to six months, Mr Arthit said.

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johninbkk
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Discussion 29 : 04 Apr 2012 at 16.1029
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The 15,000 baht salary requirement is only for the public (government) sector. The private sector (ie firms) are exempt from the law. The reporter is likely very confused.
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banmebkk
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Discussion 28 : 31 Mar 2012 at 12.1228
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Promising new grads 15,000 baht is just lowering the standards of thai workers. That is why no firms are hiring unless they are of an engineering related degree. Many are simply not worth the value for their skills, knowledge, or work ethics.
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spiceman
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Discussion 27 : 31 Mar 2012 at 07.0827
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Khun Abbub #26, the solution to solve poor English problem in Thailand lies right underneath the nose of Thai educational establishment. God knows how many English-speaking "Farang," such as yourself who has made Thailand, their homes. I hope Thai educational dinosaurs will realize someday that the best way to learn English is by being taught by English-speaking teachers! You wouldn't learn Thai from another Farang, do you? So, why should I learn English from a fellow Thai?
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abbub
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Discussion 26 : 30 Mar 2012 at 20.2026
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HYPO D24: Yes you are writing about the lack of English skills and therefore about the learning process. I do not think there is anything conflictual in what SPICEMAN wrote.

Thais do not receive a decent English language education. I too know numerous people studying at university who have the English knowledge of an average 5th grader in the US or UK, with a few dozen fancy words thrown in. The 5th grade student has better pronunciation of course.

It is very difficult for foreigners to get positions teaching due to visa restrictions and so forth, and protection of their own teachers (who themselves learned from teachers who knew very little) Many are taught grammar and phrases by rote but little emphasis is made for conversational English. How cult it? My wife took me a few years ago to meet her high school English teacher. The woman new, at best 40 or 5 words and could parrot a dozen sentences by rote.

I am sure given the opportunity Thais could learn languages as well as anyone else. But that opportunity is not being offered.
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abbub
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Discussion 25 : 30 Mar 2012 at 18.5125
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FRANKLIN D: "“Thank you, Peaue Thai"

Why blame them? They are trying to make life better for the young graduates. Let us be logical.

- If the company needs someone with enough know-how they would pay the extra money.
- If the student's education does not give him or her an employment advantage, then the education received is not worth it.
- Or then the company can do with someone else, they did not NEED a graduate in the first place.
- Therefore we possibly eliminate some students who have been given degrees instead of earned them (having earned them would qualify them) because of which family they happen to come from.

If university graduates cannot be paid what international groups consider to be the MINIMUM Thai worker's wage then something is very wrong.
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hyponeros
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Discussion 24 : 30 Mar 2012 at 17.1524
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Spiceman Disc. 18
I was not talking about learning English but about a student with a foreign language as major who just graduated and would say something like "me to like work here"! Then in her last semester she was studying literature but when I asked her to name one book or one author she couldn't remember any!
In my country of origin most students are really bad in English therefore I can't really blame them in Thailand to be bad in English, too, however, if you study any foreign language as your major no one would graduate if they don't master that language.

My point was if every student masters his major as did that girl, I am not surprised no company wants to hire them for thb15,000.
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jacksprat
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Discussion 23 : 30 Mar 2012 at 15.5823
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> If only you realised how truthful that statement is. As to Thai universities, an English major graduate of the biggies (Chula, Thammasat, Mahidol, maybe Chiang Mai) will be amazingly fluent. In some of the others, forget it. The private universities are really a mixed bag. Assumption is all right and maybe a few others. But a degree from them may not be recognised in the US or UK, and with good reason. The standards at some are ridiculously low.
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franklin
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Discussion 22 : 30 Mar 2012 at 14.2822
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Say, “Thank you, Peaue Thai". Just wait until the tablet fiasco begins. This is a good teaching lesson for the students. It teaches students both young and older to put very little credence or thrust in what the government promises.
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Eric
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Discussion 21 : 30 Mar 2012 at 14.2721
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It's just a case of companies being practical and pragmatic. Why do they want to hire a graduate and pay more if a non grad can do the same work with the same efficiency and effectiveness. However through my experience, graduates after the extra 4 years have a better mental capacity to think, initiate, communicate and made decision. These grads also learn things faster and better equipped with IT abilities. So if you need a staff that goes beyond acting just on your command, you need a graduate. Hiring a diploma is just penny wise pound foolish and loss on productivity.
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mphilips
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Discussion 20 : 30 Mar 2012 at 14.0320
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I wonder how many of these companies would be more than willing to hire a graduate from a country outside of Thailand for a salary of 15,000 baht.
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