PHUKET: Phuket needed to increase the basic daily wage level to 300 baht not because of Government policy but because of inflation, a labor leader said today.
Wijid Dasandhat, President of the Phuket Hotels and Services Union, was speaking after meeting with Phuket Governor Tri Augkaradacha, business leaders, employee representatives and labor leaders at Provincial Hall in Phuket City.
Governor Tri told the meeting that Phuket's application to lift the minimmum wage from 221 baht - the highest in Thailand - to 300 baht would need to be approved by Bangkok first.
Phuket and six other provinces, mostly around Bangkok, are to pioneer the new 300 baht wage level from January 1.
The new Pheu Thai-led government aims to standardise the minimum wage across the country.
Each province previously had its own level, varying from 159 baht in the province where prices were lowest, to 221 baht on Phuket.
Some tourism leaders are concerned that a large rise in the basic daily wage is likely to lead to pressures on prices generally, putting at risk Phuket's competitiveness in the region.
Wijid Dasandhat, President of the Phuket Hotels and Services Union, was speaking after meeting with Phuket Governor Tri Augkaradacha, business leaders, employee representatives and labor leaders at Provincial Hall in Phuket City.
Governor Tri told the meeting that Phuket's application to lift the minimmum wage from 221 baht - the highest in Thailand - to 300 baht would need to be approved by Bangkok first.
Phuket and six other provinces, mostly around Bangkok, are to pioneer the new 300 baht wage level from January 1.
The new Pheu Thai-led government aims to standardise the minimum wage across the country.
Each province previously had its own level, varying from 159 baht in the province where prices were lowest, to 221 baht on Phuket.
Some tourism leaders are concerned that a large rise in the basic daily wage is likely to lead to pressures on prices generally, putting at risk Phuket's competitiveness in the region.
Quite obviously, it's inadvisable to have the same minimum wage of 300 baht across the whole of Thailand. My girlfriend, who is from Udon Thani, reliably informs me that it's quite possible to rent a decent room for 1,000 baht a month and eat a full meal for 20 baht (5 baht for rice, 15 baht for a meat and veg plate) in her province. Even a fairly nice, large house can be had for 1 or 2 million baht in Issan, according to her. I would challenge you to find food or accommodation at those prices in Phuket. She also told me many people are happy to work for 150 baht a day in Udon and can survive reasonably well on that. I can't see employers in Issan agreeing to double wages overnight if this law is introduced. A huge amount of cheating will be going on. Those who agree to pay 300 baht a day to their employees will be at a massive disadvantage compared to those who cheat. How will this law ever be enforced? In so many cases, I can only see this resulting in a doubling of prices charged to the customer if wages are in some cases doubled. Companies won't want to take a cut in their profits due to having to pay higher salaries!
Posted by Sam Sungga on September 27, 2011 23:52