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Thread: Wage increase begins to bite

  1. #1
    News Ferret
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    Wage increase begins to bite

    Workers laid off in some factories as hike rolls nationwide

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  2. #2
    ประเทศไทยเพื่อน Founding Member Thai Dreamer ผู้เพ้อฝัน Changone's Avatar
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    No business owner in their right mind closes down a business that makes money.
    If these reported factory closures are simply because their margins are so slim that they can become unprofitable over a wage increase alone, it is surely because of weak management.

    Much more likely is the appearance of an opportunity to get even bigger profits by shifting the location of the workforce.

    Have there been any reports of factory owners actually talking to their workers about wages and productivity? Somehow I doubt it.
    And where the hell was Biggles.....?....when you needed him last Saturday....?

  3. #3
    Frequent Flyer kaptainrob's Avatar
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    Quote Originally Posted by Changone View Post
    No business owner in their right mind closes down a business that makes money.
    If these reported factory closures are simply because their margins are so slim that they can become unprofitable over a wage increase alone, it is surely because of weak management.

    Much more likely is the appearance of an opportunity to get even bigger profits by shifting the location of the workforce.

    Have there been any reports of factory owners actually talking to their workers about wages and productivity? Somehow I doubt it.
    "Several employers are now paying their workers according to the amount of work they do instead," he said.
    This quote may refer to some of the big ceramic factories in Lampang. Ceramics are sold locally also exported, so a fairly recession-proof business.

    Many Isaan factories, especially textiles/clothing, have suffered through poor local market conditions (bad harvest year = less spending money) + the massive influx of cheap Chinese clothing which ships in via the Mekong.

    Clothing manufacturers may also employ village out-workers on far less than the minimum wage. Eg: sewing sequins on blouses, per garment @ 80 bt, takes 1 to 2 days, but the whole family assists.
    Cheers, Rob.
    Lifes journey is not to arrive at the grave safely in a well-preserved body, but to skid in sideways totally worn out, shouting: holy s.h.i.t what a ride!

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