Thursday, May 10, 2007

CAMBODIA: Garment workers threaten strike over wages cut

10/05/2007
Radio Australia
Australian Broadcasting Corporation


A plan by the Cambodian government to update the country's labour law is being applauded by employers but condemned by a major union. The changes are likely to affect the clothing industry first by cutting the wages for night shift workers. The union is threatening a nationwide strike.

Presenter - Karon Snowdon Speaker - Ken Loo, secretary general of the Garment Manufacturers Association of Cambodia; Chea Mony, secretary of the Free Trade Union of Cambodia

SNOWDON: Cambodia's Prime Minister Hun Sen has made a promise.

He says he can reduce poverty and create tens of thousands of new jobs in Cambodia's major industry with a simple change to the labour law.

All it needs is for workers in the garment industry to take a pay cut.

The current labour law allows employees who work night shifts to get paid double the rate for a day shift.

The new law would cut this by 70 per cent.

Ken Loo is the secretary general of the employers group, the Garment Manufacturers Association.

He says the ten year old labour law is outdated and needs to change.

LOO: Many companies are reluctant to start the night shift because of the exorbitant penalty rates.

SNOWDON: If this new labour law does go through do you expect there'll be renewed foreign investor interest in Cambodia?

LOO: Definitely because for starters we would be able to start to attract a lot of the related industries, industries that we call the upstream and downstream industries. Not only in the garment industry but in other industries.

SNOWDON: Cambodia's garment making factories are the backbone of its economy, earning export income of more than US$2bn a year and employing over 300,000 people.

Ken Loo says only about 10,000 are now employed by factories working at night because night time rates make the cost too high.

Minimum daytime rates are guaranteed at US$50 a month.

Most workers are women who support families often in far-flung impoverished rural areas.

The head of the Free Trade Union, Chea Mony, says they find it hard to make ends meet even now.

He says - speaking through an interpreter on a poor phone line - that a survey of his members found their cost of living to be about US$57 a month.

MONY: The amendment will be very bad effect and it's not a good idea that the government try to reduce poverty [in this way].

SNOWDON: Union secretary Chea Mony says the workforce will strike nationally if the amendment goes through the parliament.

Manufacturing representative Ken Loo says he also wants the new labour law to go further and include amendments to curtail union power.

LOO: We need changes relating to the control and the behaviour of unions and what constitutes you know legal union activity.

SNOWDON: Unions don't only have wages and conditions to contend with.

Violence against members and especially organisers has been on the rise in recent years with three union leaders murdered, sparking calls for an international investigation.

Chea Mony, whose Free Trade Union is associated with the opposition party of Sam Rainsy, blames pro-government forces for the violence.

MONY: The reason is the workers don't like the government and the government wants to win the election. So, this is the reason they try and attack our union leaders.

SNOWDON: Such claims are dismissed as fanciful by Ken Loo.

LOO: But rather it relates to the general level of security in Cambodia.

10 comments:

Anonymous said...

It is a funny strategy to cut wage to attract more investors. If Cambodian government amends law for Cambodian workers work for free without salary then more and more investors will come.

Anonymous said...

Hun Sen's full employment strategy: draft the young men, enslave the young women.

Anonymous said...

We must stop all evil's laws that
hindered Cambodia from growing
and move foward with the rest of
the world.

Anonymous said...

I support the reduction of the night shift minimum wage to 130% of the minimum wage.

See people got it all wrong, this is a minimum wage--that means wages should be higher than this. The main force of the wage determine by the aggregate supply and the aggregate demand. If the union wants to demand, they should demand the minimum wage not the percentage of night shift. If the minimum wage increase, then people will have choice, if the job market is open, then the workers can demand higher wage.

Anonymous said...

Hun Sen needs to give back some money he and his wife stole from Cambodia. How many banks Hun sen and his wife have? His wife has a few under different names, and some under Bun Sam Heang. Those multi billion dollars they stole can feed the whole country for at least 20 years. Why cut from these very poor people?

Anonymous said...

Wrong, it is Ah Sam Rainsy who
stole billions from the Khmer
people. Plus, he got good
connection with the banking
industry for that.

Anonymous said...

THis is a first time I have ever seen an elected government has organised this kind of laws to destroy their workers living right. Except Pol Pot, this is a No 2 in the world Areak Prey

Anonymous said...

Wrong, the government is not
organizing any new laws, they are
adjusting laws that hindered the
country from growing.

Anonymous said...

What is good for AH KEN LOO and it is good enough for AH HUN SEN!!

When Cambodian people earn less is better for Cambodia? Shaking my head!!!If the fucken business have their way they will slave all Cambodian people including women and children!!!

What nationality is AH KEN LOO anyway???What the fuck does this motherfucker want from dirt poor Cambodian people anyway??

Anonymous said...

Yeah, and who are they going to
sell their products to, each other?
Do you think, 1000 people or so
can make you billionaire, stupid?