Wage hike 'won't cripple businesses'

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Wage hike 'won't cripple businesses'

Kittiratt vows steps to ease firms' burden

Published: 4 Jan 2013 at 00.00
Newspaper section: News

The government's blanket enforcement of the 300-baht daily minimum wage will bolster businesses rather than cripple them, Finance Minister Kittiratt Na-Ranong says.

He said, however, measures to ease impacts from the policy will be tabled before the cabinet next week.

Mr Kittiratt, who is also deputy prime minister, made the remarks after meeting representatives from nine economic ministries and agencies to assess the world and local economic situation at Government House Thursday.

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DonAleman
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Discussion 36 : 05 Jan 2013 at 16.4536
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I believe Discussion 1 said it all, in a nutshell. Progress always sacrifices the small for the big, the weak for the strong, the incompetent for the competent. Progress will never work any other way but,also always, all of us know of that small shop on the corner and the lady with the 6 Am chicken cart who knock the socks off the big guys because he/she knows what we want and how to deliver quality,quantity, economy, and service in one package. Each 7-11, Family Mart, McDonalds, etc., though part of a giant is in reality a small, individually owned/operated business who,often with limited offerings and higher prices show handsome profits !
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brilliant
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Discussion 35 : 04 Jan 2013 at 21.3135
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What people are forgetting, and it's unfortunate, is that most foreign companies are here for the low wages. They wouldn't be here otherwise. Fact. Many will just move. Not saying it's right or wrong, but it's the truth.
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jacksprat
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Discussion 34 : 04 Jan 2013 at 15.3934
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@Geoffo - The AEC will indeed include the free movement of labour across borders. However, there will be standards to be met - e.g. medical personnel, engineers etc must meet certain minimums. As to ordinary workers, who know?
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spiceman
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Discussion 33 : 04 Jan 2013 at 14.2233
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Khun DonAleman #25, a healthy market should consist of many employers and many employees, competing for businesses and jobs respectively. A market with only few employers is called Oligopoly. Oligopolistic firms usually enjoy producer's surplus, resulting in higher than otherwise, free market price for the goods and services. This minimum wage law will wipe out a number of businesses, leaving the surviving ones with greater manipulating power to drive up prices. Finally, if minimum wage law is working so well, can you explain why Greece, Spain, and the US, all have fabulous minimum wage law, are going bankrupting?
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bkk-farang
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Discussion 32 : 04 Jan 2013 at 14.2132
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@DonAleman #25, you write: “the mentioned co. shuts down because of it, they were operating on to thin a margin of profit long before the minimum wage came along”
I agree with you but it seems like a thin profit margin is what lots of commenters in this forum want. Because if the company would make a healthy profit then these people would complain why the company does not give all that profit to their (low wage) employees.
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cpkinnally
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Discussion 31 : 04 Jan 2013 at 13.5731
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No one will ever really pay the minimum, not even the government that implemented the wage hike. I work for the government and all the Thais who work with em are receiving the hike but they won't receive any bonuses, which is the exact cost of the wage hike over a year. In reality, nothing has changed.
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djay
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Discussion 30 : 04 Jan 2013 at 13.5530
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"it has helped boost the public's purchasing power, Mr Kittiratt said.". That's good, since in another BP article it was reported that veggie prices have pretty much doubled since the wage increase. They will need the extra money!
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davidh
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Discussion 29 : 04 Jan 2013 at 13.1929
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It should be understood that the Thai Government has impose the minimum wage policy through agreement with its regional trading partners and in particular with ASEAN to achieve a level playing field in employment costs and product prices.

It was inevitable, Asian Countries, sooner or later would have to move away from their sweat shop and over manned economies addressing issues of quality and efficiency.

This has already started in large retail stores, namely Tesco lotus with its Enterprise Wide I.T System and the Automotive Industry with the move to Robotics. Now it's time for SMEs to change.
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CMfarang
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Discussion 28 : 04 Jan 2013 at 13.0528
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I am sure many businesses will claw back the increase and more by charging for benefits on the job.
In other news, wage hike increases veggie prices, so food dish prices will have to increase.
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ikgsm
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Discussion 27 : 04 Jan 2013 at 12.5627
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A ThaiChinese owner of a big factory and jeans brand asked me which place is the best to move-Cambodia or Vietnam or Laos !!!!!got my point ?
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Wage hike 'won't cripple businesses' | Bangkok Post: news