Minimum wage increase pledge sparks hotel industry crisis

Photo courtesy of The Nation

Prime Minister Srettha Thavisin’s promise to increase the minimum wage to 400 baht by October 1 has set off alarms in the private sectorparticularly among hoteliers.

Concerns abound as businesses foresee a hefty 15 to 20% surge in costs across goods and services, presenting a formidable hurdle for the hospitality sector.

The impending wage revision marks the third adjustment this year alone. The initial increase, rolled out on January 1, nudged the minimum wage to an average range of 330 to 370 baht per day, contingent on provincial variations.

Subsequently, a second increment, implemented on April 13, elevated daily wages to 400 baht exclusively in 4-star and above hotels across ten tourist provinces. This increment applied to hotels boasting a workforce of at least 50 individuals.

However, the proposal has encountered fierce opposition, with 76 chambers of commerce and 54 trade associations voicing dissent, citing apprehensions regarding potential detrimental effects on commercial enterprises.

Presently, Thailand’s hotel industry employs approximately 461,000 individuals, already bracing for the upcoming wage surge. Establishments in renowned tourist hotspots such as Phuket and Hua Hin have pre-emptively embraced the wage hike since April.

Perajit Binsomprasong, aka Peter, a seasoned hospitality industry veteran, sheds light on the current salary landscape within hotels, asserting that wages typically range from moderate to high. He elucidated that the basic wage for hotel personnel typically commences at 12,000 baht monthly, coupled with a yearly increment.

When factoring in service charge shares, averaging around 12,000 baht monthly, overall salaries soar to nearly 25,000 baht per month, substantially exceeding Thailand’s average monthly income of 14,315.37 baht.

Nonetheless, Perajit cautioned that the proposed wage hike to 400 baht would engender a 15% upswing in hotel expenses, potentially triggering a ripple effect on consumer goods prices. This, he noted, could force smaller hotels into resorting to cost-cutting measures, potentially burdening existing staff with additional responsibilities.

While the government envisions businesses aiding in reskilling and upskilling initiatives, craftsmen underscored the logistical challenges posed by the existing 48-hour workweek, advocating for labor law revisions to trim working hours to 40 per week.

Furthermore, Thienprasit Chaiyapatranun, president of the Thai Hotels Association (THA), echoed concerns about the broader economic ramifications, particularly in provinces with scant incomes and diminished tourism demand, reported The Nation.

The THA president appreciatively envisioned scenarios of staff layoffs and resignations amid increased duties, warning of a bleak outlook for third-tier provinces.

ORIGINAL STORY: Thai govt’s minimum wage hike to 400 baht faces opposition

The government’s recent announcement of an impending nationwide minimum wage hike to 400 baht per day in October has provoked strong opposition from a member of the tripartite wage committee. The committee member in question, Atthayuth Leeyavanich, who represents employers, criticized the premature disclosure of the wage increase, asserting that it had not yet been discussed or approved by the committee.

Atthayuth expressed confusion over the origins of the wage hike proposal, stating that the committee had only agreed to conduct a study on profession-based adjustment at its April 14 meeting. Atthayuth further suggested that Labor Minister Pipat Ratchakitprakarn, who publicized the increase on International Labor Day (May 1), may have been misinformed.

“At the April 14 meeting, the committee agreed to conduct a study on a profession-based adjustment.”

The last wage increase, which only impacted tourism-related businesses and four-star hotels in 10 select provinces, underwent rigorous study before receiving approval, Atthayuth added.

“As for the profession-based adjustment, we need a study first and the committee will meet on May 14 to discuss the scope of the study and how long it will take.”

Atthayuth also highlighted that any changes to the daily minimum wage must abide by Section 87 of the Labor Protection Act. If the proposed rate complies with this law, the committee is prepared to support it.

Wage increase

Another wage committee member representing employees, Weerasuk Kaewboonpun, corroborated Atthayuth’s account, stating that the April 17 meeting did not entertain any proposal to increase the daily minimum wage to 400 baht (US$11).

“The PM criticized the two-baht increase as unacceptable because it couldn’t buy half an egg. But I asked him why the government didn’t try to lower egg prices. The goods’ prices are tied to the wage.”

Weerasuk further implied that the wage increase was simply an election promise and that the labor minister’s announcement could not exert pressure on the tripartite wage committee. He revealed that provincial committees were tasked with gathering information for the next wage hike and submitting it for review before October.

A Labor Ministry insider disclosed that businesses and trade associations are arranging a meeting with the labor minister to voice their opposition to the new wage hike, not to discuss it. They are even considering taking the matter to the Administrative Court if the government persists with the wage increase.

Meanwhile, Prime Minister Srettha Thavisin stands firm on the government’s policy to raise the daily minimum wage and commends the labor minister for his endeavours. The business community, however, remains against the plan, reported Bangkok Post.

They argue that wage adjustments should be based on worker’s skills and only be implemented in businesses and provinces that are ready to pay higher wages. They also harbor concerns about potential job losses if the wage increase imposes excessive stress on employers.

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BC wildfire evacuees say they are being asked to leave hotel

BC wildfire evacuees say they are being asked to leave hotel

Evacuees of a wildfire burning in northeast BC say they are being asked to leave their hotel rooms to make way for existing reservations.

Nearly 4,700 people from Fort Nelson and the nearby Fort Nelson First Nation were ordered to leave their homes Friday as the Parker Lake wildfire moved toward the community, with Fort St. John — a 390-kilometre drive to the south — having the nearest emergency center.

Mackenzie Spenrath was one of the first to arrive at the support center.

“I was No. 17 in line,” he said.

He and his partner were given a voucher to stay at a local hotel until May 21, he says, but staff asked if they could leave Tuesday morning in order to make way for another reservation.

“I was able to get them to extend our stay until the 17th,” he said Tuesday. “But I know from Facebook and just hearing other people in the lobby, they’ve kicked other people out of this hotel today.”

In an emailed response, the Coast Hotel in Fort St. John, where Spenrath is staying, confirmed they had a work crew arriving in the city that put them over capacity.

“As a responsible business, we have to keep our promises towards them,” the statement reads.

“We had to move out a few evacuees in order to make way for those reservations. But we were and we are still trying our best to accommodate all the evacuees who are facing a tough time in their lives.”

A long line of people outside in a parking lot
Evacuees line up to re-register for accommodation and support at the Fort St. John emergency reception center on Tuesday. (CBC News)

“We value your understanding in this matter and we are trying our best to help all the evacuees in this unfortunate situation.”

Spenrath says he understands there may be workers or travelers who booked rooms in advance but he wonders if they are aware they are displacing people who have been forced from their homes.

“Because if I were in that situation, I wouldn’t be taking a hotel room from an evacuee,” he said.

“Especially if you still have a safe house to return to, which we don’t.”

Hotels stretched thin

In its email, the Coast Fort St. John said it understood the “frustration” and “concern” expressed by guests asked to leave, a message echoed by other hotels in the city.

The Northern Grand Ramada, where evacuees say they have also been asked to leave, says it has tried to be upfront about the fact it may not be able to provide rooms indefinitely.

A playground with slides and cartoon animals is blanketed by smoke.
A playground in the community of Charlie Lake, 10 kilometers northeast of Fort St. John, was blanketed by smoke on Saturday, the day evacuees headed to the community to escape a wildfire near Fort Nelson. (Yvette Brend/CBC)

“We have been in touch and clear with [emergency support services] and in-house guests … that our availability would be limited due to existing reservations, and we may not be able to extend all stays,” the hotel’s general manager said in an email.

“Many of our existing reservations include those for helicopter pilots, BC wildfire firefighters, and BC Hydro workers in the region to assist with the wildfire situation.

“We completely understand that this is a stressful situation and are sorry that we were not able to accommodate everyone. We take pride in being a safe haven for the Fort Nelson evacuees and pray that everyone stays safe.”

Pomeroy Lodging said it has not had to ask anyone to leave at this point, and that it has been reaching out to other guests with reservations to see if they can change travel plans in order to accommodate evacuees, although some evacuees say they have been warned they may not be able to extend their stay beyond existing reservations.

The province’s emergency management ministry, which is responsible for providing support for evacuees, said while some people may need to change hotels due to previous bookings, staff are working to ensure everyone has a place to stay.

In an email, the ministry said it has set up an additional 400-room accommodation for evacuees in Sunset Prairie, 60 kilometers by road from Fort St. John.

Fort St. John ‘really, really full’: councillor

Evacuees in need of support are being encouraged to register online at ess.gov.bc.ca or at emergency reception centers in Fort St. John, Dawson Creek, Chetwynd and Prince George in order to receive vouchers for food and lodging.

The majority are choosing Fort St. John as the closest location to Fort Nelson, and that is driving the city’s hotel and motel rooms to near capacity, a local leader said.

“We’re getting right to the point where it’s capacity, our hotels are getting really, really full,” Fort St. John Coun. Jim Lequiere said on CBC’s Radio West on Monday.

The city is encouraging people to register elsewhere, where there are more rooms available, if they have the means to do so.

Long lines continue to snake through the North Peace Arena in Fort St. John for both new evacuees and those who have to re-register in order to renew their accommodation and meal vouchers, which expire after 72 hours.

Radio West11:20Emergency Support Services in Fort St. John has processed more than 1,400 people who have been evacuated from Fort Nelson because of wildfire

Emergency Support Services in Fort St. John has processed more than 1,400 people who have been evacuated from Fort Nelson because of wildfire

That includes those who first arrived on Friday, including Spenrath who says he currently holds ticket 1,398.

In community Facebook groups, people in line regularly post updates on whose number is being called for those who cannot spend the day waiting.

The province says the renewed vouchers will last for seven days in order to decrease the need for people to return.

Lequiere said around 20 to 40 staff and 40 volunteers are working around the clock to process evacuees.

“To have this many evacuees, basically in two days, it’s just a credit to our staff and volunteers,” he said.

He added that the community, located around 290 kilometers northeast of Prince George, has stepped up, with businesses providing donations and community members opening up their homes — and their backyards and farms for pets.

A woman in a parking lot.
Tammy Bremner says the community of Fort St. John has been welcoming and supportive to hundreds of wildfire evacuees, like him, who have been forced from their homes. (CBC News)

Fort Nelson resident Tammy Bremner was among hundreds lined up outside the Fort St. John evacuation center to re-register on Tuesday.

“It’s definitely frustrating for a lot of people in line who have been kicked out of their hotel,” said Bremner. “It’s become a first come, first served.”

Through tears, Bremner said people in Fort St. John has been helpful and welcoming to evacuees.

“We all really appreciate it, taking in the livestock, taking in people, offering your homes and just being there to support the community,” said Bremner.

“Fort St. John has always been No. 1 for that.”


Help for evacuees

Evacuees seeking help, including for meal and shelter vouchers, should register online at ess.gov.bc.ca or at the following emergency reception centres:

  • Fort St. John: North Peace Arena (9805-96 Ave.) Evacuees without accommodation in Fort St. John is being asked to travel to another community, if they are able.
  • Sunset Prairie: The province has set up single dorm-style rooms (no pets or alcohol) with private bedrooms and support staff at Sunset Prairie Industry Camp (4591 Braden Road).
  • Dawson Creek: Sudeten Hall, Walter Wright Pioneer Village (1901 Alaska Hwy.)
  • Chetwynd: City Hall (5400 Hospital Rd.)
  • Prince George: Exhibition Grounds near the CN Center (41 Keller St.)

Prince George has set up a permanent emergency reception center at the latter location to serve as the base for the city’s summer emergency response.

Evacuees who need help seeking support can contact Service BC at 1-800-387-4258.

A mental health support line for evacuees is available at 310-6789 (no area code).

For more news updates, find the latest wildfire news and stories from CBC British Columbia.

Pune: Out of 89 Unauthorized Rooftop Hotels, Only Nine Face Legal Action

Pune: Notices were sent to 76 of the 89 unauthorized rooftop hotels in Pune city. Of these, action was taken against 53 hotels. Six hotel owners have removed the unauthorized construction on their own. Seven hotels have ceased use. Seven hotel owners have secured a stay on the proceedings. The nine hotels have been booked under Section 52 of the Maharashtra Regional and Town Planning Act.

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In different parts of the city, the hotel business is being done by setting up sheds on the terraces of buildings, as well as in common spaces. This creates a parking problem on the roads of the area, and the hotels remain open until late at night, causing inconvenience to the residents of the area. There are frequent complaints from citizens about parking and noise pollution. Taking cognizance of this, the PMC had started taking action against rooftop hotels.

After a builder’s son drove a speeding car in front of the Bowler Pub in Kalyaninagar which resulted in the deaths of two people, the PMC has ordered an inspection of illegal constructions in pubs, hotels, and restaurants and has sent a team to inspect the Bowler Pub.

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