Written by Sam Rith
The Phnom Penh Post
With the global economic crisis taking its toll on Cambodian garment exports, the sector may face factory closures and mass layoffs
THOUSANDS of garment workers in Cambodia could be laid off in coming months if global markets, particularly the United States, continue to fall into deepening economic crisis, labour leaders and garment industry officials said Monday.
Chuon Momthol, president of the Cambodian Union Federation (CUF), a government-aligned union, said as many as 35 garment factories could be shuttered in November or December if dire international market conditions to not improve.
"So far, at least 20,000 workers have been laid off," he said, adding that the 35 factories facing closure employ between 1,000 and 5,000 workers each.
Van Sou Ieng, chairman of the Garment Manufacturers Association of Cambodia, said 30 factories have been closed this year.
"They closed because there were no purchase orders," he said.
"Our factories this year have only been operating at about 70 percent capacity."
He added that there was no indication that the situation for garment makers would improve in the near-term.
"Next year, the garment sector will face greater shortfalls in orders, particularly from buyers in the United States," he said.
Cambodia's nearly 500 garment factories employ about 350,000 workers nationwide, with most coming from the country's rural provinces, the CUF's Chuon Momthol said, adding that September saw the start of a critical downturn in the garment sector.
But Chea Mony, president of the Free Trade Union of Workers, said the garment sector would be unaffected by the economic slump.
"Factory closures were caused by the pullout of some investors who had been in Cambodia for 10 or 20 years but who have moved on to avoid legal conflicts over labour issues with the workers," he said.
THOUSANDS of garment workers in Cambodia could be laid off in coming months if global markets, particularly the United States, continue to fall into deepening economic crisis, labour leaders and garment industry officials said Monday.
Chuon Momthol, president of the Cambodian Union Federation (CUF), a government-aligned union, said as many as 35 garment factories could be shuttered in November or December if dire international market conditions to not improve.
"So far, at least 20,000 workers have been laid off," he said, adding that the 35 factories facing closure employ between 1,000 and 5,000 workers each.
Van Sou Ieng, chairman of the Garment Manufacturers Association of Cambodia, said 30 factories have been closed this year.
"They closed because there were no purchase orders," he said.
"Our factories this year have only been operating at about 70 percent capacity."
He added that there was no indication that the situation for garment makers would improve in the near-term.
"Next year, the garment sector will face greater shortfalls in orders, particularly from buyers in the United States," he said.
Cambodia's nearly 500 garment factories employ about 350,000 workers nationwide, with most coming from the country's rural provinces, the CUF's Chuon Momthol said, adding that September saw the start of a critical downturn in the garment sector.
But Chea Mony, president of the Free Trade Union of Workers, said the garment sector would be unaffected by the economic slump.
"Factory closures were caused by the pullout of some investors who had been in Cambodia for 10 or 20 years but who have moved on to avoid legal conflicts over labour issues with the workers," he said.
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Paramilitary trooper killed in drive-by shooting in Pattani
Pattani - A paramilitary trooper was fatally shot in this southern border province Monday.
Police said Sahoh Doloh, 44, was shot by a pillion rider while riding his motorcycle to work at the Mayoh district office at 12:30 pm.
The attack happened on a highway in Santisuk villae in Tambon Kohchan of Mayoh district.
He was shot three times on his body and died on the way to the Mayoh Hospital.
Gunman shot at soldier, wife at a Yala market
Yala -- A gunman pretending to be a vegetable vendor at a morning market shot and injured a soldier and his wife who were selling produce at a fresh market in Yala's Muang district on Tuesday.
Police, quoting eye witnesses, said the gunman blended into the crowd of merchants at the crack of dawn and walked up to Sgt. Chaiyos Komonthree, 54, who was helping his wife at their vegetable stand at the time of the attack.
Police said Chaiyos' wife, Jinada, 45, charged at the gunman who attacked her husband but was shot before she could reach him. The two were rushed to nearby hospital.
The gunman, believed to be about 16-17 years old, also made off with Chaiyos's .38 handgun, police said. Chaiyos was attached to Sirindhorn army camp in Yala.
Yes, Cambodians now feel the hard hit of the global financial crisis.
But that will be still fine to them. They just lost the chance to go out for drunk and prostitutes.
It is also a challenge for Cambodian people and the government.
To weather this crisis, I would suggest that the government should take measure to reevaluate the country's competitive advantages. We can not only rely on the cheap labors, but we should also thinking to promote our unique and hamonous culture and social stability by introducing tougher law enforcement. This could not only to keep the country more efficient but also provide a safer environment that will encourage the foreign business to keep their proceeds for further investment instead of forwarding their profit elsewhere.
That's what happened when you go on strike for every little crap.
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