Beaches weren’t as full as
normal on Labor Day this year, as people are being a lot more careful with
their money.
Warunya Thongrod &
Manoon Makpol
Labor Day brought more grumbles than smiles from
Pattaya-area workers who say rising food and energy prices are negating the
benefit of an increased minimum wage.
A May Day poll released by Suan Dusit University found
that more than 40 percent of the 1,440 workers polls April 25-30 felt they
were facing greater hardship than a year ago, due to lingering effects of
the country’s devastating flooding and higher consumer prices.
Nearly 61 percent said they were most concerned about
higher prices of goods, water and electricity. Another 29.7% said they were
most worried about having inadequate income.
Mesa Khontham, an employee at Pattaya’s Dusit Thani
Hotel, said she was pleased to see her daily wage rise to 273 baht on April
1, but feels that the 39 baht increase “seems pointless” in the face of
higher prices.
“Electric bills, grocery bills, utilities bills,
traveling costs … I have tried to spend as little as possible, but I think
the government needs to help control price increases,” she said. “If it goes
higher than this, workers will not be able to handle their expenses.”
April prices of food and beverages jumped 4.5 percent,
processed food by 6.7 percent and ready-to-eat meals 8 percent. Raw food,
however, jumped only 2.7 percent.
Overall energy prices rose 4.4 percent annually in April,
down 4 percent from March. Electricity rates, however, jumped 12 percent on
higher demand.
Combined with higher minimum wages, energy price
increases actually are affecting businesses more than consumers.
“The increase in minimum wages since April 1 has affected
the business sector considerably,” said Mrs. Bundarik Kusolwit, president of
the Thai Hotel Association Eastern Chapter. “Every hotel in Pattaya is
affected, but currently cannot recoup the costs as they have signed
contracts for rates.”
The Suan Dusit poll found the public overwhelmingly wants
the government to impose market-distorting price controls, more
budget-busting social-welfare benefits and even higher minimum wages.
Economic analysts, however, say workers don’t understand
that the wage hike put in place last month takes time to ripple through the
economy. Businesses will slowly raise prices over the next half-year to
recover the expense of the higher minimum wage, leading to more inflation
and higher prices down the line.