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wowpow
July 21st, 2006, 04:59
Minimum wage goes up in 35 provinces _ by 1-7 baht - Politically motivated, employers grumble - Bangkok Post - PENCHAN CHAROENSUTHIPAN

Increases in the minimum wage of between one and seven baht a day have been approved for 35 provinces, not including Bangkok and its hinterland, in a decision viewed by employers as politically motivated. Labour permanent secretary Somchai Wongsawat said the Central Wage Committee, which he chairs, agreed to the increases yesterday, effective on Aug 1. The remaining 41 provinces, including Bangkok, would not benefit from the increase. Wages in these provinces had been adjusted at the end of last year and would not be reviewed until October.

Workers in Ratchaburi province will get the maximum increase, from 147 baht a day to 154 baht. Prachin Buri is the only province to get a five-baht increase, from 147 baht to 152 baht. Phitsanulok and Kamphaeng Phet get an extra four baht, from 143 baht to 147 baht.

The minimum wage in 14 provinces goes up three baht _ Kalasin, Udon Thani, Nakhon Ratchasima, Chaiyaphum, Buri Ram, Khon Kaen, Chainat, Ayutthaya, Lop Buri, Prachuap Khiri Khan, Phetchaburi, Trat, Suphan Buri and Phuket.

Twelve provinces get an extra two baht _ Phrae, Nan, Phetchabun, Nakhon Sawan, Uthai Thani, Amnat Charoen, Surin, Yasothon, Rayong, Nakhon Si Thammarat, Ubon Ratchathani and Songkhla.

In five provinces workers get only one baht a day extra _ Loei, Phichit, Nakhon Phanom, Nong Bua Lamphu and Sa Kaeo.

Sources said the Ratchaburi wage panel proposed the seven-baht rise as the province had a labour shortage. Many workers had moved to Bangkok and surrounding provinces which offered better money.

The increases follow a recent decision by the caretaker cabinet to increase salaries of state employees with monthly incomes below 7,000 baht to 7,000 baht. An employer member of the tripartite wage panel said the hike was politically motivated. Employers had sent a letter asking the wage committee to review the decision because the increase would be a financial burden on them, but it was ignored. ''The wage increase has become a tool for politicians to gain votes,'' he said.

The tripartite panel comprises representatives from employers, state authorities and employees.

Wilaiwan sae Tia, chair of the Thai Labour Solidarity Committee, said the wage increase for 35 provinces was unfair to other provinces as all workers had been hit by the rising fuel prices and higher costs of living. The wage must be increased in all provinces, she said. She criticised the Labour Ministry, which she said focused on doing things to support the government's populist policies. At the same time it ignored the problems affecting workers.

Bangkok Post

It seems very curious to have 71 provinces many of which have different minimum wages.

July 21st, 2006, 20:12
Certainly puts into perspective what our favourite boys earn.

Smiles
July 21st, 2006, 20:35
" ... It seems very curious to have 71 provinces many of which have different minimum wages.... "
Why strange? In the USA the minimum wage is set by individual states ( see: http://www.dol.gov/esa/minwage/america.htm ). Same thing in Canada ... each Province sets their own minimum ( see: http://canadaonline.about.com/library/bl/blminwage.htm ).

The main difference in Thailand (as I read the article) is that provincial wage rates are set by the central government. It's all got to do with what specific powers are relegated to central, provincial, and district governments by the constitution. ( Though ~ in Thailand ~ it wouldn't surprise me if there wasn't a bit of "TiT" going on as well :blackeye: )


Cheers ....

Bob
July 22nd, 2006, 02:32
There is a federal minimum in the US which applies to all states but the individual states are free to make it higher (and 17 of the states have elected to do that).

There is some logic to having different minimum wage laws in different areas as the actual cost of living varies quite a bit. Same logic would seem to apply to Thailand (e.g., housing costs in Bangkok versus Chiangrai).

July 22nd, 2006, 12:01
The other thinking behind the differences province-to-province is that lower minimum wages in the less-developed provinces might encourage more businesses/factories to set up there.

July 22nd, 2006, 13:00
In most countires where they have a decent minimum wage set it does not seem to result in more unemployment as the naysayers would have you believe. In fact the opposite seems to happen for some reason.