Original report from Phnom Penh
02 April 2008
Union workers and garment factory managers agreed in principle Monday to a wage increase, averting a proposed strike at scores of factories.
Unions had threatened to strike if salaries were not increased $5, to $55 per month, in the face of rising prices, but officials said Wednesday they had agreed to a $6 per month raise.
The "allowance" would not be a raise in the minimum wage, but was an extraordinary measure given the current costs of living, officials said.
Workers and management are expected to meet Friday to officially agree to the deal.
"The salary increase to $60 per month from the government to the workers makes me very happy, although it is a small increase compared to the high prices in Cambodia," said Chea Mony, president of the Free Trade Union. "But the increase in salary will reduce the impact of the cost of living."
At least one worker, however, said the increase would be too little in the face of Cambodia's rising prices.
"I think that it's not enough to increase to salary to $6 per month, because right now we receive $50, and if we increase $6 more, this is a small amount," said Man Channa, a garment worker at the PCCS factory. "We cannot compare this with the high prices in Cambodia, and our living conditions still have problems, with water, house fees and food."
Unions had threatened to strike if salaries were not increased $5, to $55 per month, in the face of rising prices, but officials said Wednesday they had agreed to a $6 per month raise.
The "allowance" would not be a raise in the minimum wage, but was an extraordinary measure given the current costs of living, officials said.
Workers and management are expected to meet Friday to officially agree to the deal.
"The salary increase to $60 per month from the government to the workers makes me very happy, although it is a small increase compared to the high prices in Cambodia," said Chea Mony, president of the Free Trade Union. "But the increase in salary will reduce the impact of the cost of living."
At least one worker, however, said the increase would be too little in the face of Cambodia's rising prices.
"I think that it's not enough to increase to salary to $6 per month, because right now we receive $50, and if we increase $6 more, this is a small amount," said Man Channa, a garment worker at the PCCS factory. "We cannot compare this with the high prices in Cambodia, and our living conditions still have problems, with water, house fees and food."
3 comments:
enough already for now, don't overdo it. if it's up to the workers, of course, they want higher and higher salary until no one can afford them, then they'll be out of job. this is why they have law to control unrealistic demand like this. raises can only happen once in a few years and it does have its limit. don't abuse it, people. this is better than nothing for now at least, wait a few more years to ask again. how much do they really ask for? there's got to be a maximum and a minimum amount, and that's it no more and no less. thank you.
You go, mate!
Cambodia is lagging behind in the region in terms of minimum wage increases. Look at Vietnam, last year they raised minimum wage by 25%, in January 2008 they bumped it up another 13%, and will keep raising it to match inflation. Cambodia needs to get over the idea that cheap labor is the only thing that matters. Corruption accounts for over 5% of production costs, increasing skills is lacking etc... Get over it, pay the workers what they deserve, they contribute to 80% of Cambodia's export earning and deserve a fair share. $60/month isn't enough.
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