Higher Minimum Wages Inevitable (The BKK Post)
- From: Blade@xxxxxxxxxx (Deckard)
- Date: Sun, 04 May 2008 18:52:37 GMT
Labourers tempted to return to farms
by Nareerat WIRIYAPONG
A higher minimum wage is seen as necessary for manufacturers to
prevent labourers from migrating back home to take advantage of the
current boom in agricultural goods prices, business leaders say.
The decision to increase minimum wages was unavoidable given the sharp
gains in fuel and food prices that have pushed up the cost of living,
said Pornsil Patcharintanakul, president of the Agriculture and Trade
Committee of the Board of Trade.
The tripartite labour committee yesterday agreed to lift daily minimum
wages nationwide by between two and 11 baht a day to counter an
inflation rate that is now expected to average around 5% for the year.
The minimum wage in Bangkok would be raised to more than 200 baht a
day effective from June 1.
"If the wage was kept unchanged, labourers would not be able to
survive and they possibly would leave factory jobs to go back to do
farming, especially when prices of the agricultural products are very
tempting," Mr Pornsil said.
Crop prices, especially rice for which Thailand is the world's top
exporter, have soared because of high global demand. As well, fuel
crops, such as cassava and palm, are in high demand for the production
of alternative fuels amid record-high oil prices.
Mr Pornsil said the wage increase was unlikely to force manufacturers
to raise the prices of finished goods as demand had remained weak
while market competition was stiff. "Once the minimum rates rise,
wages in general would also be revised up in the next stage," said Mr
Pornsil, whose group represents 50 agriculture and food-related
associations (...)
full text: www.bangkokpost.com/030508_Business/03May2008_biz28.php
_
It's unusual that a crisis has positive effect on poor workers.
Mort
.
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