Minimum Wage-LIVING WAGE- PART 9: 20150525-20150914

* A living wage = a human right:

Working alongside garment workers, trade unions, consumers and campaigners we are calling for those working in the garment industry to be paid a wage they can live on.

A major industry
The garment industry is a major employer across the world – in Asia for example over 15 million people are employed by the industry.  With global brands making millions in profits every year this booming industry has come to rely on, and exploit, the cheap labour of millions of garment workers whose wages fall far short of a living wage.

The right to a living wage: A living wage should be earned  in a standard working week (no more than 48 hours) and allow a garment worker to be able to buy food for herself and her family, pay the rent, pay for healthcare, clothing, transportation and education and have a small amount of savings for when something unexpected happens.

The lack of a living wage means many garment workers are forced to work long hours to earn overtime or bonuses and cannot risk taking refusing work due to unsafe working conditions or taking time off due to ill health.   The low wages mean that workers often have to rely on loans just to make ends meet and have no savings to use if they find themselves out of work.

Clean Clothes Campaign believes that in order for a living wage to become a reality brands and retailers must take concrete steps to ensure they are paying a living wage in the countries they source from, and national governments must ensure that minimum wages are set at a level that allow people to live with dignity.

read more.

* The Asia Floor Wage Alliance (AFWA):

The Asia Floor Wage Alliance (AFWA) is an international alliance of trade unions and labour rights activist who are working together to demand garment workers are paid a living wage.

As an alliance led by unions in the key garment producing countries in the region, the Asia Floor Wage Alliance represents the concerns and needs of the workers themselves.  Central to their demands is a call for a living wage to be paid to all garment workers, this led to the development of the Asia
Floor Wage calculation, as a  way to calculate a living wage for payment across Asia.
read more. & read more.

* A living wage is a human right, for all men and women, all around the world:

08:07:46 local time CAMBODIA

* Independent Unions Raise Minimum Wage Demand:

A group of independent unions say they will push for a new monthly minimum wage of $207 for garment workers when three-way negotiations with the government and factories begin in earnest next week.

The number comes from an in-dependent study that a group of labor rights groups commissioned last month to find out how much the country’s 700,000 garment workers were spending, in order to help unions decide how significant a raise to the current minimum wage of $128 to ask for. On Friday, DC Research came back with a preliminary median figure—the middle number among the 745 workers it surveyed—of $207.50.

William Conklin, country director of the U.S.-based Solidarity Center, which helped support the research, said $207.50 would not necessarily be the figure that all of the unions—some of which are aligned with the government—would ultimately agree to put forward in the coming negotiations.
The talks start next Monday.
(…)

Ath Thorn, who leads the largest independent union in the country, said he and a handful of like-minded union leaders had already decided to make $207.50 their starting position.

“We will use this number to negotiate with the factories, because we cannot use just any number without grounds,” he said. “This number is the basic living cost; if we wanted the workers to live with dignity, it would be even higher than this.”

Union leader Yang Sophorn said she also supported the figure and that about seven unions had agreed to push for $207.50 so far.
read more.

20150907

07:37:46 local time BURMA/MYANMAR

* Myanmar emphasis on productivity:

Manufacturers in Myanmar have been told to shift their focus to productivity, following the government’s approval of the country first minimum wage last week, said industry players.

Aung Thein, vice chairman of the Myanmar Industries Association (MIA) and managing director of Nibban Electronics, said in an exclusive interview that Myanmar was still competitive in comparison with other countries in Southeast Asia.”But the competitive advantage may amount to nothing if productivity is very low. For example, in the textile and garment industry, if a Bangladesh worker can produce 10 casual outfits per day while a Myanmar worker can produce only five, it is impossible to pay very high [salaries] in Myanmar.
If workers want more money, they should try to improve their skills and increase productivity,” he said.
(…)
According to the law, the minimum wage will be reviewed every two years. It does not apply for enterprises employing fewer than 15 workers.Despite the move, Myanmar’s wage remains the lowest in the region.The minimum wage is US$250 (Bt9,000) a month in Thailand, $128 in Cambodia and $110 in Laos.Last week, Vietnam’s National Wage Council approved a 12.4-per-cent increase in minimum wage for 2016, with it set to rise from $107 to $156. Zaw Min Win, vice president of the Union of Myanmar Federation of Chamber of Commerce and Industry, does not see the minimum wage as a problem.
read more.

20150905

07:37:46 local time BURMA/MYANMAR

* Garment Factories Downsize in Response to Minimum Wage:

At least one factory has shut down, and several others have reduced their workforces and cut allowances, following the government’s adoption of a minimum wage.

Ahead of the introduction of a 3,600 kyats (US$2.80) minimum wage, which took effect on Sept. 1, the Sabel Pwint Garment Factory in Rangoon’s Hlaing Tharyar Industrial Zone closed its doors. It is believed the company provided termination payments to all of its 237 employees.

They submitted an application for closure on Aug. 26,” said an official from the Ministry of Labor, Employment and Social Security, who requested anonymity. “It said it would cease operations on Aug. 31 and compensate all employees according to the law. Employees have so far not filed complaints.”

Before the minimum wage was finalized, following two years of discussions, some garment factories based in Hlaing Tharyar cut their workforces in anticipation of the changes. At least 97 employees of the Shwe Hsan Yi canvas bag factory were made redundant in July, while the Asia Rose garment factory laid off 190 workers.
read more.

* Thousands out of work as minimum wage kicks off:

September 1 was a dark day for some 200 employees turning up to work at their garment factory in Hlaing Tharyar Industrial Zone. Instead of earning their first day of the newly implemented K3600 minimum wage, they learned their factory had shut and they were all suddenly out of work amidst an industry-wide gutting of staff.

More than 1000 factory workers have lost their job in the wake of the new minimum wage, according to the Ministry of Labour. Just one factory has so far closed however.

U Maung Maung Hlaing, head of the Labour Laws Inspection Department in Hlaing Tharyar township, said the Jasmine Pwint factory shuttered on August 31, the day before the national minimum wage took effect. The factory has not provided an official reason for closing. U Maung Maung Hlaing said repeated requests for information from the factory’s owners have gone unanswered.

A total of K200 million of compensation was divvied between the 237 former workers, but job prospects are in short supply as the garment sector undergoes an industry-wide purge to accommodate the new salary floor.
read more.

20150904

08:07:46 local time VIET NAM

* Workers want price control along with wage increase:

Workers in the southern Binh Duong Province urged the government to implement price control measures to ensure that the next year minimum wage increase would significantly improve their lives.

The province is one of the country’s largest industrial hubs.

The National Wages Council voted in support of a 12.4 per cent minimum wage increase yesterday, after VGCL, which represented the labour force, and VCCI, which represented the business sector, could not reach a consensus.

With the increase in minimum wages, the monthly wages of millions of workers in the country will increase by VND250,000 to VND400,000 (US$11-$17.5) next year, as compared to this year.

Not all of them, however, were entirely convinced that the wage increase would be as effective if living expenses such as rent and food were allowed to rise freely.

“Measures must be taken to control everyday expenses, especially rent and food, as wage increases alone will not improve workers’ living standards,” Le Thi Bich Hoa, a worker from the Viet Huong 1 Industrial Zone, said.

There were approximately 550,000 workers living in more than 182,000 rented apartments in the province, the Binh Duong Labour Federation said.
read more. & to read.

* Do you think that one can survive in cities with only $155 a month? :

Next week: Is living in Viet Nam really that cheap?

A proposal to increase the minimum wage of workers starting next year has been submitted to the Prime Minister for approval. Workers of private companies and organisations living in big cities like Ha Noi, Hai Phong and HCM City have a minimum wage of VND3.5 million (US$155) a month.

Lawmakers who proposed this said that this wage was enough for the workers to be able to live on in cities.

Do you agree with this? Do you think that one can survive in cities with only $155 a month? If you are an expat, do you find living in Viet Nam comfortable with the money you earn? Is the living standard in Viet Nam’s cities considered “cheap” compared to other neighbouring developing countries? Is it good value for money?
read more.

* Regional minimum wage to rise 12.4% next year:

The regional minimum wage in 2016 will be raised by 12.4% as approved at the third meeting of the National Salary Council on September 3. 

• Regional minimum wage increase remains undecided
• Minimum wage to go up 17%

The increase level for Region 1 is VND400,000 (US$17.8) while the respective figures for Region 2, 3 and 4 are VND350,000 (US$15.6), VND300,000 (US$13.3), and VND250,000 (US$11.1). The expected minimum wages will be VND3.5 million (US$155.6), VND3.1 million (US$136.4), VND2.7 million (US$118.8), and VND2.4 million (US$105.6), respectively.

Regionally-based monthly minimum wages vary in four different regions based on four separate benchmarks determined by living standards in each area.
read more.

06:37:46 local time INDIA

* Trade unions eyed Rs 15,000 per month minimum wage as national baseline:

One of the key issues on which the negotiations between the government and the 10 central trade unions that had called for a general strike on Wednesday broke down was that of minimum wages.

A labour ministry document circulated amongst the trade unions days before the strike, argued that by current norms, prices and calorific needs, Rs.6330 per month is the monthly wage adequate for an unskilled worker with a wife and two small children.

The trade unions and various other federations that represent 15 cr workers had demanded Rs.15,000 per month minimum wage as a national level floor wage. Striking a generous posture, the government modestly increased its proposal to Rs.7098 per month.
read more.

20150903

08:07:46 local time VIET NAM

* Vietnam’s regional minimum wages may rise 12.4% next year:

The Vietnam National Wage Council has arrived at a consensus that the regional minimum wages in 2016 should be 12.4 percent higher than the current rates.

At 12:30 pm on Thursday, after nearly five hours of debate, the council conducted a poll on the increase rate and 92 percent of the members voted for a 12.4 percent rise, Chairman Pham Minh Huan said.

This is the third meeting to have been held in Hanoi by the council to work out solutions to the issue.
read more. & read more. & read more. & read more.

* Labor unions unhappy as mediators solve wage dispute with 12 pct increase:

The National Wage Council on Thursday decided to increase the minimum wage for Vietnamese workers by 12.4 percent next year, ending months of dispute between labor and business associations.

Under the proposal, still pending government approval, the new minimum wage for 2016 will range between VND2.5-3.5 million (US$111-156) a month depending on regions.

The National Wage Council, which comprises 15 members representing the national labor force, employers and the labor ministry, made its decision after the Vietnam General Confederation of Labor and the Vietnam Chamber of Commerce and Industry (VCCI), which represents thousands of employers in the country, failed to reach an agreement.
read more.

* Meeting to seek consensus on minimum wage today:

If an agreement on the minimum wage increase between the labour and business groups is not reached today, the Prime Minister may have to decide the matter.

After two meetings during which a consensus could not be reached, the Viet Nam General Confederation of Labour (VGCL) and the Viet Nam Chamber of Commerce and Industry will meet today to try and reach a final decision.
read more.

09:07:46 local time INDONESIA

* Thousands of workers rally for new wage in Indonesia:

Around 35,000 workers took to the streets of Jakarta on 1 September to demand a new minimum wage for 2016 and improved labour laws. Indonesia’s main trade union centres, KSPI, KSPSI, and KSBSI are asking that the government increase their efforts to protect the interests of the people.

Indonesia is experiencing a period of slower economic growth, with around 26,000 workers having already lost their jobs this year.
With a large part of the Indonesian population already living just above the poverty line, unions are demanding that the central government guarantee the availability of jobs, as well as the basic rights of workers.
read more.

20150902

07:37:46 local time BURMA/MYANMAR

* Some factories consider lay-off after new minimum wage set:

After the government set the basic wage at Ks 3,600 (US$3) per day, some factories have considered redundancy, reports say.

Myo Aung, the permanent secretary of labour ministry, said that the officials are in talks with the factory owners to know the reason behind the possible redundancy.

“We’re trying to know what makes the factory owners to consider so – whether they really find difficulty with the new minimum wage,” said Myo Aung.

The committee from the labour ministry set the minimum wage which is, by any comparison, the lowest daily rate in the world on June 29. The Korean and Chinese business owners threatened they would shut down the factories and refused to pay Ks 3,600 a day.

Some local factory owners from the garment and commodity sectors also gave thumbs-down to new salary rate.
read more. & to read.

09:07:46 local time INDONESIA

* Workers Demand Protection Against Impact of Slowdown:

The thousands of workers rallying in Central Jakarta on Tuesday primarily wanted to get the message across that they need higher wages and better protection against the impacts of Indonesia’s economic slowdown, labor activists said.

Three labor groups organized Tuesday’s protest march from the Hotel Indonesia traffic circle to the State Palace: the Confederation of Indonesian Workers Unions (KSPSI), the Indonesian Trade Union Confederation (KSPI) and the Indonesian Prosperous Labor Union Confederation (KSBSI).

Andi Gani Nenawea, who heads the KSPSI, said workers’ lives had been badly impacted by the fluctuating prices of staple food prices and, overall, by the slowing economy.

“We demand the government issue policies that side with the workers. For a long time the government has sided with business. We want the government to take real action to save the economy,” Andi said in his speech addressing the crowd on Tuesday.
read more.

* Indonesian Employers Resist Workers’ Calls for Higher Wages:

An Indonesian employers association labelled workers’ demands for steep annual wage hikes as “unrealistic” on Tuesday, and warned there could be more layoffs at companies struggling amid a slowdown in Southeast Asia’s largest economy.

Labor-intensive sectors like manufacturing and mining have shed thousands of jobs in recent months as economic growth in the second quarter slowed to its weakest pace in six years.

“The economy is slowing and companies all over the country are already either closing down or cutting jobs,” said Hariyadi Sukamdani, head of the Indonesian Employers Association.

“And this could get worse if the annual wage increase is too high,” he said, adding that firms in the association had cut 50,000 jobs since January.
read more.

06:37:46 local time INDIA

* Trade unions in NCR prepare to join nationwide strike today:

Unions have demanded right to collective bargaining and raising minimum wages to Rs 15,000. Express

Trade unions across the industrial pockets of the National Capital Region (NCR) on Tuesday held meetings, raised slogans and went on marches in support of the strike called by trade unions across the country on Wednesday.

The unions have called a nationwide strike, demanding right to collective bargaining, raising minimum wages to Rs 15,000 and rolling back changes — both proposed and effected — to labour laws that adversely affect workers.

“We gave the call for the September 2 strike across the country for raising two issues primarily — one, the drastic changes made and proposed to labour laws and, second, to mobilise the country’s largely contractual and unorganised (around 96 per cent) labour force towards collective bargaining in the backdrop of the global slowdown and price rise,” said Sitaram Yechury, CPM General Secretary.
read more.

20150831-0901

07:37:46 local time BURMA/MYANMAR

* Garment industry responds to minimum wage law:

Myanmar has for the first time set a national minimum wage following two years of embittered negotiations that saw garment factory owners threaten to close if the wage was set too high the Andalou Agency reported on 31 August.

Employers will have to pay at least 3,600 Kyats, roughly $2.80, to workers for an eight-hour day from 1 September.

Factory owners have responded to the new law, announced in state media over the weekend, by laying off workers, Ko Nay Linn Aung of the All Myanmar Workers Union Network told the Myanmar Times.
read more.

* Burma sets US$2.80 minimum wage:

Burma has set a minimum wage of 3,600 kyat ($2.80) for an eight-hour work day, a move likely to boost investment in the fast-growing country’s garment industry.

The decision on a minimum wage, which follows two years of often acrimonious debate between garment factory owners and labor unions, was announced on Saturday.

Burma’s government has targeted garments for rapid growth, and Saturday’s statement may help spur this, as it gives clarity on the law and labor costs to global apparel brands buying clothes from Burma.
read more.

06:37:46 local time SRI LANKA

* Unions confident of wage hike legislation:

Labour unions were positive that the new UNP-led regime would bring about legislation to grant the Rs. 2500 pay hike for private sector workers with retrospective effect from May 2015 in addition to other demands.

Free Trade Zones and General Services Employees Union General Secretary Anton Marcus told the Business Times that they were confident the government would bring in the required legislation and ensure that in future it would be the government’s prerogative to increase salaries and not market forces as was the current situation.

Draft legislation on the new proposed wage hike and other demands was expected to be tabled in the next Parliament after it meets on September 1,
Mr. Marcus said adding that this would be taken up after the Labour Advisory Council meets with the appointment of the new minister.
read more.

08:07:46 local time VIET NAM

Council fails to agree on wages:

An increase in the regional minimum wage in 2016 has not yet been finalised because of differences over the margin of increase of the wage.

At a meeting of the National Salary Council, held in Ha Noi last Wednesday, the Viet Nam General Confederation of Labour (VGCL), which represented employees, and the Viet Nam Chamber of Commerce and Industry (VCCI), which represented employers, failed to reach any agreement.

The monthly minimum wage varies across the four regions based on the cost of living and location.

Depreciation
The VGCL proposed a 16 to 17 per cent hike or between VND350,000 to VND550,000 (US$16-$25), while the VCCI asked for about seven per cent rise or VND150,000 to VND220,000 ($6.8-$10).

Mai Duc Chinh, vice-chairman of VGCL, said the adjusted rate was being made to offset currency depreciation and would be based on current socio-economic conditions and the demand for meeting the basic living costs of workers and their families.

A minimum wage hike of 15 to 16% would meet 89% of minimum acceptable living costs, Chinh said.
read more.

08:07:46 local time CAMBODIA

* Garment Factories Vote to Freeze Minimum Wage:

A majority of members of the Garment Manufacturers Association in Cambodia (GMAC), which represents the country’s more than 500 exporting garment factories, have voted against any raise to their workers’ minimum wage next year.

The association’s survey of its members follows a 28-percent hike to the garment sector’s minimum wage in January to $128 per month, and comes amid negotiations between the factories, unions and government officials to set the wage for 2016. A final decision by the Labor Ministry is expected in October.

GMAC deputy secretary-general Kaing Monika said the association surveyed its members on Sunday and gave them three options to choose from: no raise, a raise of between $1 and $5, and a raise of between $6 and $10.
He said 63 per- cent voted for no raise, while 26 percent were in favor of an increase of $1 to $5.
(…)

The garment sector’s many unions have yet to coalesce around a single figure, though a small group of the most vocal of them has tentatively agreed to push for $177—the upper limit of what a 2013 government study concluded the average garment worker needed at the time to make a living.

Some unions and labor rights groups have commissioned a new study and expect the results next month.
(…)

But the unions have taken heart from a recent report by the International Labor Organization suggesting that Cambodia’s garment factories have managed to absorb this year’s 28-percent raise and continue to see a rise in exports.

Mr. Thorn said he did not believe GMAC’s latest dire warnings any more than he did last year and that unions might start staging protests over the minimum wage like they did in 2014 if the factories and government insist on a wage freeze.
read more.

Wage levels in China have increased steadily over the last decade; driven by rapid economic growth and declining population growth.

Fewer young people are entering the workforce and those that do have higher expectations. Workers have become better organized and employers in many sectors have been forced to pay higher wages in order to recruit and retain staff.

There has been near double digit growth in the national average annual wage for urban employees since 2004, according to China’s National Bureau of Statistics, with the average wage reaching 56,339 yuan in 2014 (around US$9,000). See chart above. By 2012, many commentators had already declared the end of cheap labour in China.

However, these headlines and the official statistics mask huge disparities between different industries, geographic regions, urban and rural areas, as well as between senior managers and ordinary workers.
The minimum wage in China has never been a living wage, and employees on the minimum wage usually have to rely on excessive overtime and production bonuses just to get by.
Moreover, as economic growth has slowed in recent years, more and more businesses are defaulting on wage payments in a blatant violation of the Labour Law.

Key legal provisions on working hours and wages

• The standard workweek in China is 40 hours (eight hours per day, five days per week).
• The 1994 Labour Law stipulates that overtime shall be paid for any work exceeding standard working hours and that overtime shall not exceed three hours a day or 36 hours per month (Article 41).
• Overtime pay should not be less than 150 percent of an employee’s wages during normal working days; 200 percent on rest days, and 300 percent on national holidays, such as the Lunar New Year (Article 44).
• Wages shall be paid in legal tender to the workers in person on a monthly basis. No deduction of wages for personal gain may be made from wages due to workers. The payment of wages may not be delayed without reason (Article 50).
• An employer shall pay wages to workers during their statutory holidays, marriage or funeral leave (Article 51).

The minimum wage

Article 48 of the Labour Law stipulates that the statutory minimum wage should be set at a level sufficient to support the daily needs of employees.
It was not until March 2004 however, when the then Ministry of Labour and Social Security implemented its Minimum Wage Regulations, that guidelines were put in place to establish a comprehensive framework for calculating and adjusting the minimum wage.
read more.

20150725

09:07:46 local time PHILIPPINES

* TUCP to Noy: Raise minimium salary of workers:

Labor group Trade Union Congress of the Philippines-Nagkaisa (TUCP-Nagkaisa) said President Benigno Aquino III has a little to help an estimated P24.4 million poor workers whose income still cannot cope with the cost of basic goods and services.

 

TUCP Nagkaisa spokesperson Alan Tanjusay said he is baffled why the government remains reluctant to raise the wages of poor working people amid results of government’s Philippine Statistics Authority (PSA) survey, showing big disparity between family income and barest expenditures.

The poverty threshold set by the National Economic and Development Authority (NEDA) for 2014 was at P8,778 a month for a family of five to survive. However, in the first semester of 2014, average incomes of poor families were short by 27 percent of the poverty threshold.
read more.

06:37:46 local time INDIA

* Unions’ demand for wage hike may not be met:

Earlier in July, the Ministry revised the national floor-level daily wage from Rs. 137 to Rs. 160.

The Union government is unlikely to accept the demand of labour unions that the minimum national monthly wage rate for formal and informal sector jobs be raised to Rs. 15,000.

The Centre could peg this rate somewhere between Rs. 7,500 and Rs. 8,000 from the current Rs. 4,500, Union Labour Minister Bandaru Dattatreya told The Hindu in an interview on Friday.

Earlier in July, the Ministry revised the national floor-level daily wage from Rs. 137 to Rs. 160.

“It may not be feasible to hike the floor level to Rs. 15,000 … We are examining it and will take the final decision on the rate under the Minimum Wages Act, in consultation with colleagues including Union Finance Minister Arun Jaitley,” Mr. Dattatreya said.

An increase in the wage rate is among the 12 that the labour unions have put up before the Ministry during its consultations aimed at building a consensus on the labour reforms agenda of the government.
With talks remaining inconclusive on most of these demands, the unions have called a nation-wide strike for September 12.
read more.

20150721-23

08:07:46 local time VIET NAM

* Arguments continue over minimum wage and basic needs:

Government agencies cannot agree on a minimum wage, and continue to argue about whether the current minimum wage can cover the basic needs of workers.

The National Assembly has assigned the government to implement a wage reform program under which the minimum wage will be raised step by step to a level high enough to cover basic needs.

The Vietnam Labor Federation suggested an intensive program implementation method with a 20-30 percent increase per annum, so as to reach the goal by 2018.

Meanwhile, business owners do not support the proposal.

“We think it is necessary to reconsider the criteria for ‘minimum living standard’,” said Nguyen Xuan Duong, chair of the Hung Yen Garment JSC.
read more.

07:37:46 local time BURMA/MYANMAR

* High-profile foreign brands back minimum wage for all:

Big-name clothing brands sourcing from Myanmar have waded into the minimum wage debate, urging its implementation even as their own suppliers dispute the proposed salary and request an exemption from the law.

At the end of June, the government moved to implement the 2013 Minimum Wage Law by proposing K3600 a day (around US$3).
The figure was a compromise between the K2500 proposed by factories and unions’ request for K4000.

Factory owners unanimously voted against the proposed amount, claiming it would cripple the industry and discourage foreign investment.
Around 90 factories even threatened to close and leave 200,000 workers jobless if the wage was imposed.

Gap, H&M and Adidas have all endorsed the government’s efforts to impose the country’s first-ever nationwide minimum wage, however.
They have also criticised the garment sector’s calls to be excluded from the minimum wage, warning it would do more to disrupt foreign investment than raising salaries.

“We advise that the government set a uniform level across all industries. If the garment industry wage levels are lower than other industries, it will not be able to attract and retain a skilled labour force, which it needs to develop and grow into a thriving economic driver,” Swedish clothing giant H&M said in a statement.

H&M did not respond to request for comment about whether it considers the suggested K3600 minimum reasonable.
However, last week, a labour organisation that counts H&M – as well as GAP, Primark and Marks & Spencer – among its members also discouraged allowing Myanmar’s garment sector to deviate from the proposed amount.
read more.

* Swedish retailer express concern over wage implementation:

Swedish clothing retailer H&M has expressed concern about delays to implement a minimum wage in Myanmar according to a statement from the company on 20 July.

The company says in the statement that it,‘welcomes the efforts of the Myanmar Government to enact the Minimum Wage Law; however, we are concerned that it has not been implemented in the past two years since its enactment.
In setting a minimum wage level, we advise that the Government set a uniform level across all industries in compliance with the ILO C.131 Minimum Wage Fixing Convention.
If the garment industry wage levels are lower than other industries, it will not be able to attract and retain a skilled labour force, which it needs to develop and grow into a thriving economic driver.

The minimum wage should be reconsidered through an annual review mechanism, which is inclusive of key stakeholders, and is aimed at laying the foundation for a vibrant tripartite industrial relations and wage level negotiations process based on transparency, inclusiveness, and peaceful negotiation.’’
read more. & read more.

* In Myanmar, Garment Factories That Source Popular Brand-Name Clothing Retailers Aim To Defeat A 40-Cent Hourly Minimum Wage:

Factories in Myanmar that supply major Western clothing companies are fighting a government proposal to set the country’s first-ever minimum wage at roughly $3.25 a day.

At the same time, the brands themselves — Gap Inc. and H&M Hennes & Mauritz AB among others — have declined to say where they stand on the proposed rate, which amounts to 40 cents an hour.

The ongoing debate, pitting the government against a burgeoning export-driven garment-manufacturing sector, sheds light on the spectacular competitive pressures that define the global apparel industry.
It also exposes a clear divide between the views of on-the-ground suppliers and the public assurances of brands they serve.

In the last few years, top Western clothing retailers such as Gap, H&M, Marks and Spencer Group PLC and Primark Stores Ltd. have signed contracts with more than a dozen garment factories in Myanmar, the former British colony also known as Burma.

The country emerged from decades of military dictatorship in 2011 and major U.S. and European sanctions shortly thereafter.
It now offers some of the cheapest labor costs on the planet combined with easy access to Asian markets — both attractive features for corporations looking to source low-cost, ready-made garments for export.
read more.

20150719

08:07:46 local time VIET NAM

* VCCI Chairman speaks about minimum wage hike plan:

Chairman of the Vietnam Chamber of Commerce and Industry Vu Tien Loc spoke to Thoi Bao Kinh Te (Vietnam Economic Times) about plans to increase the minimum wage in 2016.

* What do you think about minimum wage levels?

The adjustment of minimum wage is very important to both employers and employees, and plays an important role in the country’s current economic growth.

Adjusting the minimum wage should be done if it can ensure two factors are met: raising incomes and improving living conditions for workers, as well as maintaining companies’ competitiveness and sustainable development of the economy.
read more.

* Agencies still unable to solve minimum-wage issue:

Every year, the Ministry of Labor, War Invalids and Social Affairs (MOLISA) and relevant agencies discuss the minimum wage increase, but both businesses and workers have not seen benefits.

In late July, the National Wage Council, comprising representatives from MOLISA, the Vietnam Chamber of Commerce and Industry (VCCI) and the Vietnam Labor Federation, will convene a meeting to discuss the adjustment of minimum wages for 2016, before a report will be submitted to the government in October.

Chu Van An, deputy general director of Minh Phu Seafood Group, complained that the rapid minimum wage increases in recent years have seriously affected the seafood exporters’ competitiveness.

An said Minh Phu’s 15,000 workers now can receive pay of VND5-5.3 million a month, which is nearly double the required minimum wage.

Therefore, the minimum wage increase will not bring any benefits to workers and businesses, while it will do harm because it will push essential goods’ prices up by 20-30 percent.

Meanwhile, the minimum wage increase will make businesses suffer, because they will have to pay more for insurance premiums and other expenses.

In 2015, as the minimum wage has increased by 15 percent over 2014, the total expenses Minh Phu pays for social, healthcare and unemployment insurance premiums has risen by 35 percent.

Truong Van Cam from the Vietnam Textile and Apparel Association (Vitas) noted that since 2010, fees relating to laborers increased once every two years.

And if the regional minimum wage increases again, this will be far beyond enterprises’ capacity.
read more.

 

20150717

08:07:46 local time VIET NAM

* Minimum wage to go up 17%:

The Viet Nam General Confederation of Labour has submitted plans to increase the minimum wage by 16-17 per cent in 2016 to the National Salary Council. — Photo International Labour Organisation

The Viet Nam General Confederation of Labour (VGLC) has submitted plans to increase the minimum wage by 16-17 per cent in 2016 to the National Salary Council.

If the plan is approved, each minimum wage level for all four of the country’s wage zones will increase from VND350,000 to VND550,000 (US$16-25).

“To put forth the increase proposal, VGLC performed studies and took into account economic forecasts, like a five per cent increase in the Consumer Price Index, 6.5 per cent economic growth and 3-3.5 per cent rise in social labour productivity,” said VGLC Vice Chairman Mai Duc Chinh.

The proposed monthly minimum wages are VND3.65 million ($168) for Zone 1, a VND550,000 ($25) hike; VND3.2 million ($145) for Zone 2; VND2.8 million ($127) for Zone 3; and VND2.5 million ($113) for Zone 4.
read more. & read more. & read more.

07:37:46 local time BURMA/MYANMAR

* Minimum Wage Gathers Support From Abroad:

International labor groups and multinational companies this week urged the government and recalcitrant garment manufacturers in Burma to accept a daily minimum wage of 3,600 kyats (US$3.20), a proposal put forward by the National Minimum Wage Committee late last month.

The US-based Fair Labor Association (FLA), a coalition of labor rights groups around the world and 17 affiliated companies, including global apparel provider Adidas Group and shoe manufacturer New Balance, sent a letter to the Ministry of Labor this week urging garment factory owners in Burma to drop their demand that the industry be exempted from the pay regulation.

The statement advised the Ministry of Labor not to heed warnings made by trade associations that a minimum wage for Burma’s garment workers of 3,600 kyats would discourage international investment, and that rather “brands committed to paying living wages in their supply chain would be encouraged to source from Myanmar, rather than deterred.”

“Our concern is that any exemption negotiated for the garment industry would lead to hundreds of thousands of garment workers not having a wage that meets their basic needs,” the letter reads.
Another organization promoting labor rights internationally, the Ethical Trading Initiative, added its voice to those supporting the nationwide application of the minimum wage on Wednesday.
read more.

20150716

10:07:46 local time NORTH KOREA

* S. Korea, DPRK meet in Kaesong to discuss wage issue:

Delegates of South Korea and the Democratic People’s Republic of Korea (DPRK) met Thursday in the DPRK’s border town of Kaesong to discuss issues, including a wage hike for DPRK workers hired at the namesake factory park.

Five South Korean delegates crossed the inter-Korean land border to the Kaesong industrial zone, kicking off the first talks with DPRK counterparts in more than a year, according to Seoul’s Unification Ministry. The talks began at about 10 a.m. (0100 GMT).

After a five-month hiatus in operation of the factory park, Seoul and Pyongyang agreed in August 2013 to launch the joint management committee for the Kaesong industrial complex and hold the committee meeting regularly.
(…)
During the meeting, the two sides are expected to discuss the wage hike issue. Seoul and Pyongyang have been in deadlock on the wage hike for DPRK workers in Kaesong.
(…)
Under the revision, the DPRK raised minimum wages for workers in Kaesong from $70.35 to $74, topping the growth ceiling of 5 percent agreed upon by an inter-Korean agreement.
read more. & read more.

07:37:46 local time BURMA/MYANMAR

* Minimum wage plan prompts hundreds of complaints:

Workers protest against the proposed K3600 minimum wage in Yangon on July 12. (Aung Myin Ye Zaw/The Myanmar Times)

The deadline for objections over the government-proposed minimum wage elapsed this week with an outpouring of complaints, according to the Yangon Region Committee on the Minimum Wage.

After 18 months of negotiation punctuated by strikes and protests, the government on June 29 proposed a K3600-a-day minimum wage and opened a 14-day window for lodging any complaints over the amount.

More than 200 factories from the Shwe Pyi Thar and Hlaing Thar Yar industrial zones, as well as 21 labour unions, submitted objections to the amount. Employers, largely from foreign-owned garment factories, suggested the minimum wage would be unsustainably high and will force them to close down.

Unions harangued the government from the opposite end of the spectrum, holding out for the K4000-a-day wage they have been lobbying for since the beginning of the year.
read more.

20150716 * Global brands laud minimum wage proposal:

Dozens of major global brands have thrown their weight behind Myanmar’s proposed minimum wage, calling for guaranteed pay rates as a means of promoting investment in the country’s garment industry and lifting the living standards of its workers the Global New Light of Myanmar reported on 16 July.

Both the Ethical Trading Initiative and the Fair Labour Association, comprising companies sourcing from, or considering investing in, Myanmar, expressed their support for the minimum wage in letters to the Union Minister for Labour, Employment and Social Security and the Chair of the National Committee on the Minimum Wage.

The Fair Labour Association counts sportswear giant Adidas and outdoor clothing manufacturer Patagonia among its members, while the Ethical Trading Initiative includes international retail heavyweights Tesco, H&M and Gap Inc.
read more. & read more.

20150716 * International brands support minimum wage, say watchdogs:

Two international labour watchdogs simultaneously released statements on Wednesday, pledging support for the Burmese government’s proposed minimum wage of 3,600 kyat (US$3) per day.

The Ethical Trading Initiative (ETI) and the Fair Labor Association (FLA) claim to have the backing of 17 major international manufacturers, including sportswear giant Adidas, clothing retailer Gap Inc, as well as Tesco, H&M and Patagonia.

In separate letters to Burma’s Ministry of Labour, the ETI and FLA urged the government to resist a request for an exemption to the minimum wage from the country’s garment manufacturers.

“FLA affiliates commit to a standard of fair compensation that is incompatible with the proposal to exempt garment workers from the country-wide minimum wage,” said Jason Judd, FLA’s vice president of programs.
read more.

20150713

07:37:46 local time BURMA/MYANMAR

* Protesting workers demand K4000 wage:

Over 200 workers from 15 different factories at the Hlaing Tharyar industrial zone demonstrated yesterday in favour of a K4000 minimum wage, up K400 from the government-backed amount already rejected by factory owners as too expensive.

The National Committee on the Minimum Wage – which includes ministries, employers and labour organisations – proposed last month to set the daily standard at K3600 (US$3.20), a figure which provoked the predictable string of criticism from both factory workers and bosses. Union leaders pressed for a higher amount, while employers complained the figure would shutter their business and undermine the industry.

Yesterday, the deadline to lodge objections to the proposed minimum wage, factory workers queued into lines at 7am for a government-approved march against the proposed minimum wage. Some held signs and shouted slogans in favour of the K4000 (US$3.50) minimum.

“I have already sent my objection to the National Committee,” Ko Aung Aung, a demonstrator from YES candy factory told The Myanmar Times.
He said his current earnings, K45,000 per month plus a bedroom and daily meal provided by the factory, are not enough to cover his basic expenditures such as transportation, a cell phone and clothes.

While the workers were permitted by the township administration to protest, they were told they could not use two banners brought along: “Do not recognize K3600 as the minimum wage” and “the campaign [for K4000] must be achieved”.

“I have no idea why the administration denied us those banners,” said U They, a lawyer and leader of the All Myanmar Workers Union Network, adding that their point was made without the prohibited signs.
read more.

* Protesters demand Ks4,000 wage:

Some 500 factory workers staged a protest in favour of a Ks4,000 minimum wage in Hlaingthaya Township, Yangon Region.

The officially sanctioned protest started at Meekhwet Market and marched towards Hlaingthaya government offices.

“We demand more than Ks3,600 a day. We want Ks4,000. We have submitted a petition to Parliament. The employers said they would not change the previous pay. The protesters urged workers not to be afraid,” protester Hla Hla said.

“We know the suffering of workers. The minimum is not enough for us. The prices of commodities are going up day by day. We want the government to consider the situation of workers. We want a minimum wage of Ks4,000,” said Cho Cho San, a sweet factory worker.

The national parliamentary minimum wage committee fixed the level at Ks3,600 a day on June 29.
to read.

* Workers protest for higher minimum wage in Yangon:

Photo: Thet Ko/Mizzim

Over two hundred workers rallied in Yangon Sunday for a higher minimum wage despite a warning by factory owners that the demand might put them out of business according to an Associated Press report on 12 July.

The workers were protesting in a northern suburb of the city demanding the daily minimum wage of 4,000 kyat ($3.54) instead of the 3,600 kyat ($3.18) proposed by the National Minimum Wage Committee last month following negotiations between the government, employers, and employees.
read more.

20150712

07:37:46 local time BURMA/MYANMAR

* Garment industry bosses urged to adopt proposed minimum wage on trial basis:

The government has suggested that both employers and employees agree to the adoption of a proposed minimum wage on a trial basis in an attempt to break the deadlock between both sides over the issue.
Union Minister for Labour, Employment and Social Security U Aye Myint told reporters on Sunday that the proposed minimum wage of K 3,600 per day set by a national-level body is a suitable rate given the current situation of the country, saying the law allows both sides to amend the wage in the future if it does not work well.

Myanmar garment factory owners on 2 July unanimously voted against the minimum wage of K3,600 for an eight-hour day and pledged to send their objections to the National Minimum Wage Committee  within two weeks.
read more.

* Myanmar workers demonstrate for higher wage:

Some 250 workers shout slogans during a protest asking for a minimum wage of 4,000 kyat (120 baht) a day, in Yangon on Sunday. (AFP photo)

Several hundred workers in Myanmar have staged a peaceful demonstration to demand that a new daily minimum wage be set higher than proposed.

The factory workers protesting Sunday in a northern suburb of Yangon, the country’s largest city, want the daily minimum wage to be set at 4,000 kyat (120 baht) rather than the 3,600 kyat proposed by the National Minimum Wage Committee last month following negotiations between the government, employers and employees.

The current daily minimum wage is 3,000 kyat.

Factory owners say a wage hike will affect their ability to operate, and some Chinese and Korean-owned garment factories have threatened to shut down if it is implemented.
to read.

* Industrial zone workers in Myanmar stage demonstration for higher wages:

Hundreds of workers in Hlaingtharya Industrial Zone in Myanmar’s Yangon staged demonstration Sunday in demand of designating higher minimum daily wages as 4,000 kyats (about 3.62 U.S. dollars).

Myanmar’s National Minimum Wage Committee proposed on June 29 a negotiable minimum 8-hour daily wage of 3,600 kyats (about 3.27 U. S. dollars) for all workers in the country after conclusion of one year’s coordination between the government, employers and labor representatives.

The committee comprising ministerial representatives, employers and labor organizations also invited feedback from the public on its recommended minimum daily wage for workers, setting a deadline for July 13 for the feedback submission to be further forwarded to the parliament for final adoption.

While up to five workers’ federations and one trade union agreed on the government-set rate, Myanmar’s garment entrepreneurs objected the proposed rate which is to be raised from 2,500 kyats offered, arguing that if the government rate is finally adopted, then their factories will be forced to close down in September.
read more.

20150711

07:37:46 local time BURMA/MYANMAR

* Manufacturers asks for government mediation regarding minimum wage:

Business owners from the garment and manufacturing industries have asked for government meditation between the Labor Ministry, the manufacturers and the workers in regards to a minimum wage at a meeting held on 10th July at the Garment Manufacturers Association.

The meeting, which barred the entry of all news media, was specifically organized by the Garment Manufacturers Association and attended only by manufacturers to further discuss the current situation, according to SoeHtun, a business owner and a member of the association.

“We, the business owners, feel that the government should also get involved in the equation, instead of just dialogues between the workers and us.
For example, how will the government subsidize us if we agree on the Ks 3600 minimum wage deal?

How about Tax Holidays or will they support SMEs more?
What about reducing costs of transporting goods such as reducing the toll fee for Bayintnaung bridge or even free of charge?
If compromises can be reached, there will no longer be any need for the workers and the business owners to clash.
The employees will be happy while the employers will also be happy since they will be getting back something in return” said SoeHtun.
read more.

20150709-10

08:07:46 local time VIET NAM

* Minimum wages likely to grow 10% next year:

The average minimum wage by region is projected to rise by just over 10% in 2016 thanks to projections of low inflation and lingering challenges for enterprises, according to the chairman of the Vietnam Chamber of Commerce and Industry (VCCI).

Vu Tien Loc told reporters about the projection of regional minimum wage rises on the sidelines of a dialogue on labor and wage policies in Hanoi last Friday. The event was organized by the Ministry of Labor, Invalids and Social Affairs and VCCI.

Loc said Vietnam’s economy has been back to high growth this year but labor productivity has not improved and many enterprises are still struggling with difficulties.
So, employers want an average salary rise of just over 10% for 2016, the same as in 2015.

Deputy Minister of Labor, Invalids and Social Affairs Pham Manh Huan, chairman of the National Wage Council, said many participants at the dialogue agreed that the minimum wage by region should not spike strongly due to slow improvements in labor productivity and the low consumer price index.

“Increases of minimum wages by region will help improve the living standards of workers but push up production costs. We should carefully calculate wage rises next year as social insurance premiums are up,” Huan said.

He added next year enterprises will have to pay additional fees for female employees and labor safety and hygiene.
Employers must bear all these fees.  

Loc said regional minimum wage adjustments are an important yet sensitive issue for both the employer and the employee and will impact on the country’s economic growth.
read more.

09:07:46 local time INDONESIA

* ILO Warns Indonesia to Invest in Skilled Labor or Lose Out:

‘Indonesian workers are among the lowest-paid in the world’

Indonesia must strengthen its labor institutions and invest in skills development, the International Labor Organization said in a report released on Thursday, with officials warning that the country should boost skill levels if it wants to benefit from regional economic integration.

In its latest Labor and Social Trends in Indonesia Report, the United Nations agency also says Indonesia should find new engines for growth as it faces economic slowdown.

“The institutions in the Indonesian labor market area are underdeveloped,” said Robert Kyloh, the ILO’s senior specialist for multilateral cooperation. “Indonesia has now reached a level of development where we should be trying to expand these institutions, like the labor inspection system, collective bargaining, and labor courts.”

The report, which focused on the theme of strengthening competitiveness and productivity through decent work, found that Indonesia’s labor market continued to expand over the 2014-15 period, with employment growing and unemployment remaining low despite highly fluid market conditions.

Estimates from August 2014 found that 121.9 million Indonesians were part of the national labor force, just over 48 percent of Indonesia’s total population of 252.7 million.

Minimum wage, or less
Wages remain a crucial issue in the Indonesian labor market, as the number of Indonesians in wage-earning jobs increased to 38 percent of the entire employed population, a significant rise from past years.

“Wage-earning employment and the wages earned during that time, have become very important factors for the Indonesian economy,” said Emma Allen, economist with ILO’s Jakarta office and author of the Labor and Social Trends report.
“As the share of people in wage employment increases, wages will begin to play a very critical role.”
read more.

07:37:46 local time BURMA/MYANMAR

* Unravelling the minimum wage:

A dozen young women sit on the curb outside a garment factory in Hlaing Tharyar township, holding brightly coloured umbrellas as shelter from the midday sun.

They are hoping to be allowed inside so they can apply for a job. Some already have work nearby, but they have heard the United Knitting Company is offering a relatively high rate for unskilled workers of K90,000 per month, and are hoping to switch.

The standard monthly pay for a semi-skilled garment factory worker in Yangon is K95,000, including a base wage of roughly K40,000, a bonus of around the same value, an award and several payments made at the discretion of the factory owner, according to U Thet Hnin Aung, secretary of the Tai Yi Basic Labour Organisation and a member of the Myanmar Trade Unions Federation.

“They usually pay the bonus, but there is no security. If we’re absent for one day, they can take some of these payments away,” he said.

This is likely to change at the end of next month, when a national tripartite body will finalise details of Myanmar’s first minimum wage.
On June 29, the National Minimum Wage Committee announced a provisional base wage of K3600 per day, and opened a two-month window for comment.

Since then, factory workers and owners have fervently debated this figure, with owners saying they will pay no more than K2500 and workers saying they will agree to a minimum of K4000.
Businesspeople from China and South Korea have threatened to shut their factories in Yangon if the K3600 wage is enacted, saying that costs are already high due to low productivity and poor infrastructure.

For the workers, inflation and unstable commodity prices mean they may not be able to survive on less.

On the current wage, many workers in Yangon are forced to live outside factory walls in structures built from bamboo and plastic sheeting.
Some live beside large pools of stagnant water – breeding grounds for dengue-carrying mosquitoes. Healthcare options are limited and expensive.
read more.

06:37:46 local time INDIA

* ‘Labour conference will deliberate on minimum wages’:

Union Minister for Labour Bandaru Dattatreya on Tuesday stated that the trade unions’ demand to fix minimum wages at Rs.15,000 per month would be discussed at length at the 46{+t}{+h}session of Indian Labour Conference (ILC) to be held at Delhi on July 20 and 21.

He told reporters that the meet would discuss minimum wages and other important issues as part of the two-day deliberations.
State Labour Ministers, representatives of the central trade unions, employers and Union Government officials would attend the meeting, he stated.

The demand of trade unions to fix minimum wages at Rs.15,000 per month would figure prominently at the meet, Mr Dattatreya said, adding that social security of workers and implementation of labour laws would be debated at length.

He further stated that 989 employment exchanges across the country were being upgraded and modernised as National Career Counselling Centres.

Known as “Labour Parliament” of the country, the ILC will also discuss labour law reforms proposed by the Centre, including the Industrial Disputes Act.
to read.

* Minimum Wages Hiked for Scheduled Workers:

Minister for Labour and Employment Bandaru Dattatreya has announced a hike in floor level minimum wages for all the scheduled workers in the country from Rs 137 to Rs 160 because the skilled, semi-skilled and unskilled workers from across states have different minimum wages and were often a subject of dispute.

After a two-year stagnation when the minimum wage stayed pegged at Rs 137, this new rule is effective from July 1.
But it appears that for the minimum wage slab to be really effective across all the various job categories — be it repairing parts or making matches — several reforms are needed.
It seems labour reforms are the need of the hour, given the Labour Ministry’s supposed good news.
(…)
The minimum wage implementation, which he opines is already sub-par in the state, could worsen in the light of a loophole in the Child Labour Act amendment which allows children to be a part of these home-based industries like making matches and beedi.
read more.

20150708

07:37:46 local time BURMA/MYANMAR

* Govt planning for flight of businesses from the country in response to minimum wage:

“The Myanmar government will not be able to stop business owners from leaving the country in response to the proposed minimum daily wage for labourers set at Ks 3,600 (just over US$3), but the Ministry of Labour, Employment and Social Security will do its best to respond to problems that might rise if these people leave,” said Yangon Region National Minimum Wage Committee chairperson Zaw Aye Maung on July 7.

He also serves as Minister Labour, Employment and Social Security. National Minimum Wage Committee approved a minimum wage of Ks 450 per hour on June 29 – one of the lowest minimum wages in the world.

Although Minimum Wage Law was enacted in 2013, many protests have taken place since then that have prevented the law from being implemented.
Following the committees decision on June 29, disputes erupted between employers and employees, particularly in the garment industry.
read more.

06:37:46 local time INDIA

* Fix minimum wages to Rs.15,000: CITU:

B. Mallesh of Industrial Committee, the Centre for India Trade Unions (CITU) has demanded the State government to fix Rs. 15,000 as minimum wage for the workers in industries.

Led by CITU, a large number of workers held dharna in front of the Deputy Commissioner of Labour (DCL) office in the district headquarters on Tuesday.

“There are 1,315 industries spread across the district and many industries are not implementing minimum wages. Some companies force workers to work for more than 12 hours,” he alleged.
He warned that a huge dharna would be held at the Commissionarate on July 10.
to read.

20150707

08:07:46 local time VIET NAM

* Vietnam mulls lowest minimum-wage bump in 3 years:

Laborers work at a garment factory in Sai Dong, outside Hanoi, Vietnam, July 1, 2015. Vietnam’s economic growth could rise to 6.5 percent in 2015, beyond the 6.2 percent target, thanks to a solid manufacturing sector, the Finance Ministry said last week, citing a government think tank. Photo: Reuters

Vietnam looks to raise its minimum monthly salary by just above 10 percent next year, the lowest level since 2013, a move that apparently bows to the growing pressure of the corporate sector.

Under a government decree that took effect early this year, Vietnam raised the wage floor to VND2.15-3.1 million (US$101.4-$146.2), or 15 percent, depending on the location.

The government also approved a minimum-wage hike of around 15 percent in 2014.
But at a recent dialogue on wage polices, Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry (VCCI), told the press that his organization proposed an increase of “above 10 percent” to offset the recent currency depreciation and make sure that the salary raise is in line with the current labor productivity.

If the wage hike outpaces productivity, it would affect the operations of businesses and eventually have a bearing on economic growth, he said.
read more. & read more.

08:07:46 local time THAILAND

* ‘Bt300 wage only good for family of 2’:

A family of three may not be able to rise above poverty on just the Bt300 minimum daily wage, a research director on labour development at the Thailand Development Research Institute said yesterday.

An analysis of the Thai poverty level found that families of three in 61 provinces. The people earning the Bt300 wage and having a family of three in municipal areas were living below the poverty line, while those outside municipal areas could support families of three better.In reality, sole income-earners in a family had to do overtime or a sideline job on weekends or have their spouse do a part-time job, he said.
read more.

07:37:46 local time BURMA/MYANMAR

* Minimum wage tug-of-war goes on:

A second trade union has spoken out about the proposal for a 3,600-kyat (US$3.60) minimum wage in Burma, this time the All-Myanmar Network of Trade Unions, which has rejected the offer and called on workers to be prepared to take to the streets in protest.

Trade union leader Hla Hla said on Tuesday that workers’ groups must not back down from their initial demand of 4,000 kyat as a minimum daily wage.

Representatives of garment factories, however, say they cannot afford to pay more than 2,500 kyat as a daily wage for factory workers, and have threatened to close down operations if such salary conditions are enforced.

Speaking as a representative of the All-Myanmar Network of Trade Unions, Hla Hla said, “Nothing will happen to us if they [foreign and domestic garment firms] close down. I would like to remind fellow workers that the operators can’t just pack up and leave just because they cannot pay us the proposed minimum wage. There are regulations that require them to provide severance payments to their workers. If they refuse to do so, we’ll pursue legal channels to get what they owe us.”
read more.

* Garment manufactures oppose minimum wage increase:

Myanmar’s garment manufacturers have signalled their opposition to a proposed national minimum wage of just over US$3 (S$4.05) per day, claiming the increase it represents could force some factories in the vital economic sector to close Asiaone Business reported on 6 July.

The apparel industry’s resistance to paying the proposed daily minimum wage drew a sharp rebuke from local labour groups, as well as the International Trade Union Confederation (ITUC).
“The new minimum wage will still leave workers and their dependents just above the global severe poverty line of US$1.25 per person, and many will still struggle to make ends meet,” said ITUC General Secretary Sharan Burrow according to the report.
read more.

06:37:46 local time INDIA

* Centre levels the field, hikes national minimum wage floor to Rs. 160/day:

But trade unionscry foul, say many States are paying higher amount

To ensure uniform minimum wages across the country, the Centre has hiked the national floor level from Rs. 137/day to Rs. 160/day with effect from July 1.
Trade unions, however, said the move does not “make sense” as many States, such as Kerala, are already paying a much higher amount.

Meanwhile, Labour Minister Bandaru Dattatreya has written to all the Chief Ministers urging them to take necessary steps to ensure that minimum wage rates of all scheduled employments are not below the national floor of Rs. 160/day, a Labour Ministry statement said on Tuesday.
read more.

* Government Hikes Minimum Wage to Rs. 160 a Day:

After a gap of two years, the government today hiked the minimum wage for workers by Rs. 23 to Rs. 160 a day.

The increased wages will be applicable from July 1.

In a statement, Minister of State for Labour and Employment Bandaru Dattatraya said the decision to revise upwards the National Floor Level Minimum Wage (NFLMW) has been taken in view of the increase in retail inflation for industrial workers.

“National Floor Level Minimum Wage has been revised upwards from the existing Rs. 137 to Rs. 160 per day with effect from July 1, 2015,” the release said.
read more.

* National Floor Level Minimum Wage Enhanced From Rs.137 To Rs.160 Per Day W.E.F. 01.07.2015:

National Floor Level Minimum Wage (NFLMU) has been revised upwards from existing Rs. 137/- to Rs. 160/-per day w.e.f. 01.07.2015.

In a letter written to all the Chief Ministers and LGs today, Shri Bandaru Dattatraya, the Minister of State(IC) for Labour and Employment has urged to take necessary steps for fixation/revision of the minimum rates of wages in respect of all scheduled employments in State/UT not below the NFLMW of Rs. 160/- per day w.e.f. 01.07.2015.

The Minister has also emphasized to ensure implementation of various provisions of the Minimum Wages Act, 1948 so that the objective of ensuring Minimum Wages to workers is fulfilled.

While reviewing the movement of CPI-IW during April 2014 to March 2015 over the period April 2012 to March 2013, it was observed that the average CPI-IW has risen from 215.17 to 250.83, he said.
Accordingly, the NFLMW has been revised upwards from existing Rs. 137/- to Rs. 160/-per day w.e.f. 01.07.2015.

In order to have a uniform wage structure and to reduce the disparity in minimum wages across the country, National Floor Level Minimum Wage (NFLMU) is fixed which also requires to be revised from time to time on the basis of rise in Consumer Price Index for Industrial Workers (CPI-IW).
The NFLMU was last revised from Rs. 115/- to Rs. 137/- per day with effect from 01.07.2013.
to read.

20150706

07:37:46 local time BURMA/MYANMAR

* Myanmar trade organization urges employers to make concession over wage issue:

The Confederation of Trade Union of Myanmar (CTUM) has urged factory employers to make concession over the workers’ minimum wage issue, suggesting them to take economic opportunities over the next two to three years into consideration in determining the wage, an official report said Monday.

Calling on factory employers to cooperate with the workers to boost productivity instead of disputing the proposed minimum wage, the CTUM suggested that the move would help them adapt to the country’s changing situation in the years ahead.

Five Myanmar workers’ federations in Yangon last Friday agreed on the government’s recent designation of minimum daily wages, denying to accept further negotiations on the issue.

The workers’ federations called for the formation of a socio- economic committee comprising representatives from the government, employers and employees to seek settlement of the issue.
read more.

* Trade union backs 3,600-kyat minimum wage:

The Confederation of Trade Unions of Myanmar (CTUM) has thrown its support behind a government-led proposal for a minimum wage in Burma of 3,600 kyat (US$3.60) a day.

In a press release on Sunday, the CTUM said that it welcomed the proposal submitted last week by the National Committee for Minimum Wage (NCMW), recommending to the Ministry of Labour a minimum national daily wage of 3,600 kyat for an eight-hour working day.

“We also agree with the fact that the minimum wage will apply nationwide regardless of the different sectors,” it said.

The NCMW proposal followed two years of negotiations, culminating in a workshop in Rangoon last week involving garment factories’ representatives, workers groups, employers’ associations and government officials.
read more.

* Wage war heats up:

Workers are up in arms for a pay hike, but higher wages may hurt investment climate

Low wages in Myanmar, now among the lowest in Asean, have been mentioned as the primary advantage for companies planning to locate their manufacturing plants in the country.

Many companies have taken advantage of the situation.
The number of foreign-owned factories has been on the rise, despite the existence of major challenges, such as poor infrastructure throughout Myanmar.

According to data provided by the Directorate of Investment and Company Administration (DICA), 407 companies have invested a total of US$4.42 billion in the manufacturing sector, or 9.56 per cent of combined foreign investment in the country, as of May this year.

This amount reflects a 17.55 per cent increase from the $3.76 billion in investment in the manufacturing sector at the end of 2014. In terms of the number of investors, the figure rose by 13 per cent from 360.

More companies have committed to pour more investment into the sector, as the total number of foreign companies with permission at the end of May stayed at 497.
Together, they promised a combined investment of $5.65 billion, which would account for 10 per cent of the total foreign investment permitted.
read more.

20150704

07:37:46 local time BURMA/MYANMAR

* Labour organizations: don’t view Myanmar workers as slaves:

As well as setting a minimum wage of Ks.3600 (U.S $ 3.2) per day, other benefits obtained by workers are needed in order need to see Myanmar workers as human beings instead of being seen as slaves, according to labour organizations at a news briefing on July 3.

The minimum wage for garment factory workers is less than the lowest minimum wage of government staff, and workers are demanding other benefits such as transportation fees, living expenses, and to get the opportunity to train while working.
They have also asked for Ks.10000 per year.
If the government agrees to their demands, they will also agree to the government’s proposal of Ks. 3600, according to press brief made on July 3.

The press brief was held at the headquarters of Myanmar Workers Union in Insein, Yangon.
It was attended by representatives from five federations, the Myanmar Farmers’ Agriculture and Production Federation, Myanmar Workers’ Union, Myanmar’s Teacher’s Federation, Myanmar Seafarer Federation, and the Network for Migrant Workers.

“According to surveys made in Yangon and the rest of Myanmar, various options such as Ks. 5600, Ks. 6000, Ks. 7000 and Ks. 8500 per day were put forward. But, these five workers’ federations have to choose the most suitable and the most feasible amount of Ks. 500 per hour for 8 hours per day (i.e.: Ks.4000) were set,” said the Chairman of Myanmar Workers’ Union, Aung Lin.
read more.

20150704 * Myanmar workers nod on minimum daily wage:

Five Myanmar workers’  federations in Yangon on Friday agreed on the government’s recent designation of minimum daily wages as a final stage of negotiation, saying that there will be no further negotiation on the issue.

In its announcement over their stance on the issue, the five workers’ federations stressed the need to form a socio-economic committee comprising representatives from the government, employers and employees.

The five workers’ federations include Agriculture and Farmer Federation of Myanmar (AFFM), Myanmar Trade Union Federation (MTUF) , Myanmar Teachers’ Federation (MTF), Myanmar Maritime Workers’ Federation (MMWF) and Migrant Worker Rights Network (MWRN).

On June 29,  the government decided to designate 3,600 kyats ( about 3.27 U.S. dollars) as the proposed minimum daily wage for all workers in the country after conclusion of one year’s coordination between the government, employers and labor representatives.
However, Myanmar’s garment entrepreneurs on Thursday objected the proposed minimum rate, saying that the issue will be submitted to the regional authorities for further action.
to read.

20150703

08:07:46 local time CAMBODIA

* High minimum wage hurts competitiveness:

Dear Editor,

I refer to the letter from Sam Rainsy, minority leader of the National Assembly published on June 29.

Excellency Sam Rainsy noted that “it would be only fair and socially responsible to recognise that,
in terms of living standard, Cambodian workers still have a long way to catch up with their
counterparts in many countries, especially Vietnam”.

This comment was made with reference to my statement in an earlier article that the current minimum
wage in the garment and footwear sector in Cambodia is already high and that demands for $177 per
month are unreasonable and will hurt the sector’s global competitiveness.

My comments referred to the economic realities of the wage demands, while his remarks focused on the
social aspect.

Ideally, we would like to pay our employees more and continue to receive orders from the buyers.
(…)
Ken Loo
Secretary-general
GMAC
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07:37:46 local time BURMA/MYANMAR

* 200,000 jobs at stake as garment factories threaten closures:

The Myanmar Garment Manufacturers Association (MGMA) has threatened to close down factories if the proposed 3,600 kyat (US$3.60) per day minimum wage is approved by the Burmese government.

Representatives of Chinese- and South Korean-owned garment factories at an MGMA meeting on Thursday said they would shut down their businesses by September if the minimum wage proposed earlier this week by the National Committee for Minimum Wage (NCMW) were adopted.

Participants at the meeting unanimously objected to the NCMW’s 3,600-kyat-per-day recommendation, saying it would be unaffordable.

Speaking to DVB on Friday, MGMA Secretary Khin Khin Nwe said, “We already promised to honour a minimum wage of 2,500 kyat. My point is that everyone wants to give their employees higher pay.
It’s not for a lack of generosity, but simply because it is not affordable for us [manufacturers and factory owners].”

MGMA claims to represent about 300 firms, mostly garment factories, which employ upwards of 200,000 workers.
In a news release on its website on Tuesday, the owners association reacted to what it noted would be a “colossal” increase in pay.
read more.

* Garment manufacturers threaten to close factories if minimum wage implemented:

Several Chinese and South Korean garment manufacturers have threatened to shut down their factories and leave the country if the Myanmar government institutes a minimum daily wage of Ks 3,600 (just over US$3).

They manufacturers announced these conditions during a meeting of the Myanmar Garment Manufacturers Association (MGMA) in Yangon yesterday.

Sandar, the managing director of the Myanmar Apparel Co Ltd and Pearl Garment and local representative for a Chinese investment group, was the first to threaten to close her factory in response to the new minimum wage.

Won Ho Seo, chairperson of the Korean Garment Manufacturers Association, said Korean manufacturers would also close their factories following the Chinese, citing the likelihood of labour protests as the reason.

After the meeting, the Chinese Investors Association issued a statement in opposition to the proposed minimum wage.
read more.

* Garment Industry Rejects Minimum Wage Proposal:

Garment manufacturers in Rangoon announced that they will push back against a minimum wage proposed by the Burmese government, claiming they cannot afford to pay laborers the 3,600 kyats (US$3.24) per eight-hour day recommended by an expert committee.

More than 150 members of the Myanmar Garment Manufacturers Association (MGMA) convened on Thursday to discuss the proposal, which was announced earlier this week by Burma’s National Minimum Wage Committee.

Following two years of research and analysis, the committee settled on the number based on  recommendations by both unions and employers against escalating commodity prices in Burma’s emerging market.

Once approved, the wage would apply to all sectors with the exception of small and family-owned businesses employing less than 15 people.

The committee’s memo, published in state media, invited individuals and organizations to submit appeals and recommendations within two weeks, after which a stakeholder meeting will be held before a wage is officially enacted.
read more.

* Myanmar: Employers Must Accept Minimum Wage:

Trade unions have reacted angrily to threats by Myanmar manufacturing companies, backed by Korean and Chinese business interests, to close around 100 factories if a minimum wage is introduced.

The government has announced a minimum wage of US$3.20 per day following a year of consultations between unions, government and employers.

Sharan Burrow, ITUC General Secretary, said “The new minimum wage will still leave workers and their dependents just above the global severe poverty line of US$1.25 per person, and many will still struggle to make ends meet.

Now, just like the American Chamber of Commerce’s global campaign to undermine minimum wages and decent work, some companies in Myanmar are trying to stop workers getting even that basic level of income in order to survive.
read more.

* Labour unions, employers to fight minimum wage proposal:

In a strictly temporary marriage of convenience, both labour and some employer representatives are criticising the government’s announcement last week that the minimum wage should be K3600 (about US$3.20) for an eight-hour day.

Labour says it is not enough. Management says it’s too much.

The Myanmar Trade Unions Federation (MTUF) has been compiling letters of complaint ever since the government’s June 29 announcement of the minimum wage, which was set following a two-day meeting in Yangon between stakeholders.

Two months of consultation over the figure will be held before the issue goes to parliament for a final decision.

“We will submit complaints from all over the country in time for the deadline,” said U Tun Wai, vice chair of the MTUF.

Labour sources said within three days of the announcement more than 200 complaints were collected from workers saying the daily minimum should be set at K4000.

“Even K4000 would not be enough,” said U Tun Wai, adding that the minimum should be based on civil-service pay rates.
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* Garment factories vote against proposed minimum wage:

Myanmar garment factory owners on Thursday unanimously voted against a proposed minimum wage set at K3,600 for an eight-hour day, promising to send their objections to the National Minimum Wage Committee within two weeks.

The vote was done by more than 200 businessmen from 145 garment factories attending a meeting at the Union of Myanmar Federation of Chambers of Commerce and Industry, at which they discussed the challenges they face in meeting the proposed minimum wage, which was announced by the government on 29 June.
There are about 300 garment factories in Myanmar.

Garment industry bosses had offered a wage of K2,500 during the 22-23 June negotiation between the employers and employees, but the two sides could not reach an agreement during the talks sponsored by the government.

The employers cannot agree to the proposed minimum wage because the garment cutting, measuring and packaging industry does not depend on working hours but rather on productivity, said Daw Khaing Khaing Nwe, secretary of the Myanmar Garment Manufactures Association.
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20150702

09:07:46 local time PHILIPPINES

* Reg X workers get P12 wage hike:

The Regional Wage and Productivity Board of Region 10 has approved a P12 daily wage increase for all private sector minimum workers in the Northern Mindanao effective July 3, according to Labor Secretary Rosalinda Baldoz.

“This is the 18th  wage increase in Region 10 since R.A. 6727, or The Wage Rationalization Act, became a law on 9 June 1989,” Baldoz said.

Board chairman Raymundo Agravante said the minimum wage in the region was raised to P318 for workers in the non-agriculture sector and to P306 for workers in the agricultural sector under Category I, which covers the cities of Cagayan de Oro and Iligan and the municipalities of Tagoloan, Villanueva, and Jasaan, Misamis Oriental.
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07:37:46 local time BURMA/MYANMAR

* Myanmar unions win first minimum wage:

Three years after unions were made legal in Myanmar, their fight for a minimum wage delivered a victory on 29 June.

The country’s first-ever minimum wage of 3,600 kyatts per day is equal to US$3.2.

The union demand had been 4,000 kyatts per day, while employers lobbied for 2,500 kyatts. Government’s proposal of 3,600 has been accepted by the unions and will be signed into law following a two-month period for comments.

The figure is based on an eight-hour working day and has national coverage. While final clarification is needed on workers’ entitlement to paid leave, the new minimum wage is higher than the US$68 monthly wage of Bangladesh.

Employers are still lobbying for the right not to pay workers for Sundays.
The minimum wage will be applicable for workplaces with at least 15 employees. The union demand had been for the wage to apply to workplaces with 5 employees, and that demand will remain in the evaluation of the minimum wage after 12 months.
read more.

20150701

08:07:46 local time THAILAND

* Private sector poll finds opposition to hike in minimum wage next year:

The daily minimum wage of Bt300 should be maintained next year, while any future changes should be determined on a provincial basis, according to a significant body of opinion in the private sector.

A survey by the Thai Chamber of Commerce and the Board of Trade of Thailand found that others also favoured that the determination of the minimum wage should be based on business categories and the standard of labour skills, as well as being in line with the market mechanism.

Moreover, the government should conduct a comprehensive study of the impacts of the current Bt300 wage on the economy and labour productivity, chamber vice chairman Bhumindr Harinsuit said yesterday.

The chamber offered these views based on its survey of 218 business operators nationwide from June 1 to 20, in which opinions were sought on the setting of the daily minimum wage for 2016.
The survey was jointly conducted with the University of the Thai Chamber of Commerce.
read more.

20150630

09:07:46 local time CHINA

* Wage growth for China’s lowest-paid workers continues to lag behind:

Wage growth for China’s lowest-paid workers continued to slow in the first half of this year with less than a third of the 32 regions with the authority to set their own minimum wage levels announcing an increase.

According to data collected by CLB from official media and government sources, as of 1 July, only ten provinces and municipalities had increased the minimum wage, the most significant region being Guangdong, where a 19 percent increase on average went into effect on 1 May.

However Guangdong’s increase came a full two years after its previous increase in 2013. Photo below shows a recruitment poster for a Guangzhou restaurant where cleaners can earn around 2,500 yuan per month.
read more.

08:07:46 local time THAILAND

* Ministry hints at wage hike, firms seek delay:

The Labour Ministry has sent a signal a minimum-wage increase is possible next year after receiving proposals from provincial wage committees.

“There’s no question 300 baht [a day] has become the minimum. But when to increase the wage, where it will apply and by how much will be later finalised by the central wage committee in August,” said Labour Ministry permanent secretary Nakorn Silpa-archa on Tuesday.

“From what we heard from operators, 90% of them said the rate should not be raised now,” he said.

“Everything will be clear in August. The new minimum rate need not take effect on Jan 1. In fact, if it’s raised, operators will be informed two months in advance.”
(…)
Meanwhile, labour groups insist the minimum wage be raised to 360 baht a day nationwide.
read more.

07:37:46 local time BURMA/MYANMAR

* 3,600 Kyat Daily Minimum Wage Proposed for All Sectors:

Burma’s National Minimum Wage Committee proposed on Monday that the country’s minimum wage be set at 3,600 kyats (US$3.24) for an eight-hour day.

Organizations and individuals will have a two-week window to submit feedback on the proposal before the wage can be enacted.

If approved, the proposed wage—which amounts to less that 50 cents per hour—will be applied across all sectors nationwide, with the exception of certain small and family businesses.

After the feedback window closes, state- and division-level wage committee members will review public input and submit it to the national committee within 30 days.

The national wage committee will then convene with government, industry and labor force stakeholders to reach a final decision within 60 days of Monday’s announcement.
Once the wage is approved by the committee and the Union government, the Minimum Wage Law, approved in early 2013, will immediately take effect.
The amount will be assessed and adjusted at least once within its first two years.
read more.& read more.

20150628-29

09:07:46 local time PHILIPPINES

* Workers to receive daily wage increase in Region 10:

The Regional Wage and Productivity Board (RTWPB) of Region 10 has approved a wage order mandating a P12 daily wage increase for all private sector minimum wage earners in the Northern Mindanao, which will take effect on July 3.

RTWPB chairperson Raymundo G. Agravante said in his report the new wage order, Wage Order RX-18, raises the minimum wage in the region to P318 for workers in the non-agriculture sector and to P306 for workers in the agricultural sector under the Category I, which covers the cities of Cagayan de Oro and Iligan and the municipalities of Tagoloan, Villanueva, and Jasaan, Misamis Oriental.

It also ups the minimum wage rate to P313 for workers in the non-agriculture sector and P301 for workers in the agricultural sector under Category II, which covers the cities of Malaybalay, Valencia, Gingoog, El Salvador, and Ozamiz and the municipalities of Maramag, Quezon, and Manolo Fortich.

In Category III, the new minimum wage rate of P308 applies for workers in the non-agricultural sector and P296 for the agricultural sector in the cities of Oroquieta and Tangub and the municipalities of Lugait, Opol, and Mambajao. Included in this category are all the establishments employing ten workers or less.

For other areas not covered by the three categories, hence falling under Category IV, establishments shall now pay a new minimum wage rate of P303 to workers in the non-agricultural sector and P291 to workers in the agricultural sector.
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08:07:46 local time CAMBODIA

* Employers need to sacrifice too:

Dear Editor,

The Phnom Penh Post article titled Unions agree to push for $177 wage at meet published on June 23 reflects a debate on what should be the appropriate level of the legal minimum wage in Cambodia today.

Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia, was quoted as saying about the unions’ target that “$177 per month is unreasonable, and much higher than other competing garment manufacturing countries”.

He reportedly added that “current levels are [already] high, and we are not competitive with current levels”.

In reaction to the above assertions by the employers’ representative, I would like to make two remarks.

• Firstly, with regard to the current salaries of Cambodian workers compared with those of their counterparts in other countries, it would be more appropriate to compare real salaries and not nominal salaries.
(…)
Sam Rainsy
Minority leader
Former finance minister
—
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07:37:46 local time BURMA/MYANMAR

* Minimum wage likely to be set at $2.86-$3.58:

The country’s minimum wage will be declared by the end of this month, likely to be set in a range of Ks3,200-Ks4,000 per day or approximately US$2.86-$3.58.

“The minimum wage will be between Ks3,200 and Ks4,000 because it must not be lower than the Asean standard and must not exceed it,” said Labour Minister Aye Myint after the meeting of the Union Committee for Minimum Wage on June 24.

A source said that various figures were proposed at the meeting.

The lowest figure was Ks2,500. Most of the attendees voted for the Ks3,600 rate.
“There is one more step to go before we officially declare it.
Even the agreed-upon amount was the result of intense discussions as it is now greater than the amount set by business owners.
We still have to consider whether overtime wage, which were previously double the wage amount, should be set as 1.5 times the minimum wage.
The amount we settled upon was the result of efforts to please all parties,” said Permanent Secretary of Labour Myo Aung.

The most affected sector is likely garment factories.
In February, workers at garment factories in Shwepyithar Industrial Zone staged protest.
Earning less than Ks100,000 per month at present, they demanded an increase of Ks30,000 in line with the higher cost of living.
A hike in civil servants’ salaries took effect in April. Civil servants with the lowest pay of Ks75,000 a month will get Ks120,000. Those who receive the highest pay of Ks250,000 will get Ks500,000.
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06:37:46 local time INDIA

* CITU warns of prolonged struggle on workers’ plight:

The Centre of Indian Trade Unions (CITU), affiliated to Communist Party of India (Marxist), on Sunday warned the government of a prolonged struggle if the governments at the State and the Centre do not shun anti-worker policies.

The trade union leaders gave a call to the worker community to be prepared to fight for their rights in the future.

CITU leaders were addressing a public meeting at Adilabad town after their Karmika Porubata bus yatra reached here in the afternoon.
They had earlier addressed similar rallies in Mancherial, Kagaznagar and Utnoor and will be crossing over to Nizamabad in the night.

CITU State general secretary M. Saibabu accused the governments of pursuing anti-worker policies.
He demanded a minimum wage of Rs. 15,000 to workers.
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20150626

08:07:46 local time THAILAND

* PM brushes aside wage rise demand:

Take country’s needs into account, he says

Workers rallied to demand a rise in the minimum wage and price controls on basic goods, but Prime Minister Prayut Chan-o-cha waved away the demands as unrealistic. (Post Today photo)

Prime Minister Prayut Chan-o-cha brushed aside labour networks’ calls to raise the minimum daily wage to 360 baht, saying the country’s needs should also be taken into account.

He was speaking Thursday after a meeting with the Policy Committee on the Special Economic Development Zone.

Earlier, labour groups led by Wilaiwan Sae Tia, president of the Thai Labour Solidarity Committee (TLSC), gathered at the Royal Plaza to press their demands, and later proceeded to Government House to submit the wage rise petition to the prime minister.

Gen Prayut said he wanted labour networks to understand the country’s situation rather than put pressure on him for a wage rise, or urge workers to stage protests.
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20150626 * Prayut rules out increase in daily minimum wage:

Prime Minister General Prayut Chan-o-cha affirmed yesterday that the daily minimum wage would not be hiked, as doing so it would require a large budget.

Earlier yesterday, 150 labour activists led by the Thai Labour Solidarity Committee and the State Enterprise Labour Relations Committee submitted a demand for the daily minimum wage to be increased from Bt300 to Bt360 to the prime minister, who is also chief of the National Council for Peace and Order.They also opposed the idea of wage payment by regions, saying it could cause inequity and workers migrating to higher-paying areas. Kamol Suksomboon, an adviser a PM’s Office minister, accepted their letter on behalf of Prayut.
to read.

07:37:46 local time BURMA/MYANMAR

* Proposed K3600 minimum wage draws mixed response from workers, employers:

Garment workers and small businesses have given a mixed reaction to a proposal to set the national minimum daily wage at K3600 (US$3.20), with employers saying they will continue to campaign against it.

The National Committee on the Minimum Wage – which includes ministries, employers and labour organisations – thrashed out a long-awaited agreement on June 24, settling on K3600 a day, according to participants, although the figure has not yet been officially announced.

All sides have two months to respond to the proposal before the issue goes to parliament, which first passed a law calling for a minimum wage in 2013.

The garment sector was one of the areas where debate was fiercest, with employers calling for a minimum wage as low as K2500 while workers demanded K4000.
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20150625

08:07:46 local time THAILAND

* Activists rally Thursday for 20% wage hike:

Minimum pay fails to keep up with inflation

Labour groups are demanding a 20% hike in minimum wages for blue-collar workers to be applied nationwide, and today plan to march to Government House to submit a statement to Prime Minister Prayut Chan-o-cha, according to the Thai Labour Solidarity Committee.

The 300-baht minimum daily wage has been in place for almost three years, during which time the costs of living have soared, said the committee’s president, Wilaiwan Sae Tia.

Labour groups, who have asked the Ministry of Labour to raise the daily minimum wage from 300 to 360 baht, will gather at the Royal Plaza at 9.30am to reaffirm their call. They will then proceed to Government House to present the statement to the premier.

The 300-baht wage minimum, which was enacted during the Yingluck Shinawatra administration, was unprecedented in Thailand.
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20150625 * Labour umbrella group calls for minimum daily wage increase to Bt360:

Some 150 labour activists led by the Thai Labour Solidarity Committee and the State Enterprise Labour Relations Committee Thursday submitted their demand for a daily minimum wage increase to the prime minister and chief of the National Council for Peace and Order.

They called for an increase from Bt300 to Bt360. Kamol Suksomboon, an advisor the a PM’s Office minister, came out to take up their letter on behalf the prime minister.
to read.

07:37:46 local time BURMA/MYANMAR

* National minimum wage proposal agreed at K3600:

Workers sew garments at a factory in Yangon. (Aung Htay Hlaing/The Myanmar Times)

A national committee yesterday proposed a nationwide minimum daily wage of K3600 (US$3.20) for all workers at the conclusion of a year of often heated debate between the government, employers and labour representatives.

A union representative and a Kayin State labour ministry official, both members of the national minimum wage committee, disclosed the figure to The Myanmar Times on the final day of a closed-door meeting in Yangon that appeared to deal a blow in particular to the garment industry.

Minister for Labour and committee chair U Aye Myint declined to confirm the amount.
He told The Myanmar Times that the minimum wage might be set between K3200 and K4000 and that the exact figure would be officially announced over the next days.

“It is sure that the minimum wage cannot be less than K3000, even if we can’t say how much it is fixed exactly at this moment,” he told a press conference after the meeting.
read more.

See more in Part 8

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