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Pheu Thai's rare model employer?

Veera Prateepchaikul Bangkok Post 12.07.2011 09:49
Pheu Thai's rare model employer? - Pheu Thai - opinion - Business - Thailand


As academics and business people bash the Pheu Thai party's populist 300 baht minimum wage policy as unrealistic and certain to induce runaway inflation, one entrepreneur in Khon Kaen has implemented the rate in the expectation his business will thrive as a result.



The proposed, immediate, steep wage hike – 70 percent up on the average nationwide minimum wage of 175 baht – has drawn strong opposition from employers.

But Khon Kaen-based Sueksa Phan Khon Kaen Company has substantially increased the salaries of  staff, with the lowest-ranking employees such as janitors now earning 9,000 baht a month instead of 5,000 baht -  effective as of July 4.

Prasom Prakhunsookjai, the owner of the company, said that the salary rises would cost his company about an additional one million baht per month, which would cut his profit to just 5 to 8 per cent.

 However, he said, he was more than willing to accept this.

The effect from of pay rise was already evident in improved staff  morale and work levels.

"Many staff members who used to just watch or chat among themselves when customers walked in are now approaching customers as soon as they arrive  and are quick to offer service. 

"The sales staff are now very enthusiastic and work harder,” he said.

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