Thursday, March 21, 2013

Garment wage raised to $75

Photo: Asahi Shimbun
21 March 2013
By Shane Worrell and Mom Kunthear
The Phnom Penh Post

GARMENT and footwear workers across the country will be paid a minimum wage of $75 per month – an increase of $14 – beginning in May, according to a document released by the Ministry of Social Affairs this morning.

“The minimum wage will be changed on May 1 and the workers will receive it at the end of May or early in June,” the statement, signed by Minister of Social Affairs Ith Sam Heng, says.

The documents add that the government had been willing to approve an increase to $73, but Prime Minister Hun Sen had intervened and said the figure should instead be $75 plus a $5 health allowance that workers are already paid.

“Prime Minister Hun Sen ordered the employers add $2 for this wage to bring it up to $80,” the statement says. “The Labour Advisory Committee will hold a meeting on March 29 in order to complete this process in accordance with the Labour Law.”

Vong Sovann, deputy secretary-general of the Ministry of Social Affairs’ strike resolution committee, also said Hun Sen had insisted on the additional $2.


“The decision is final and relevant parties will have a meeting next Friday with the Labour Advisory Committee,” he said.

The announcement follows a series of talks in recent weeks between the Garment Manufacturers Association in Cambodia and unions, some of which stood firm on $100 per month in the face of GMAC’s $70 offer.

In the latest such meeting this week, six unions considered pro-government agreed to go as low as $73, but GMAC secretary-general Ken Loo said agreement could only be reached if all 10 union groups in the meeting were unified.

Loo said today that he had only just heard the announcement and was not in a position to comment until he was given more details.

Rong Chhun, president of the Cambodian Confederation of Unions, one of the unions that stood firm on its $100 demand, said he could not accept the $75 figure and would organise a massive strike in response.

“I’ve received information about this already, but I do not welcome this decision at all, because it is a very little amount for workers,” he said

The Kingdom’s billion-dollar industry employs more than 400,000 workers in hundreds of factories and sells most of its exports to the US and Europe.

4 comments:

Anonymous said...

I think at $75 per month will not solve problem for long term. It is a short fix to appease the strike before election. It's only a matter of time the strike will start again. We must find a living wage for people. We are too scare about losing jobs to Burma. We will not lose jobs to Burma. It will take Burma about 3-4 years to catch up with Cambodia; on top of that their productivity still low, so I don't think the producers will move their even though the labor cost is lower than Cambodia. Cambodia should should to build a niche for good working environment.

Anonymous said...

good work government! raising wage is step by step job!

Anonymous said...

Now factory workers' salary is higher than deputy secretary-general of the Ministry of Social Affairs'. Issue: The red tapes are the main culprit that prevents employers from paying the workers more. The futures leaders should find ways to increase the salaries of the staff of the Ministry of Social Affairs first to eliminate red tapes so that overheads for employers will be reduced and channeled to pay workers.

Anonymous said...

Guys FYI for years Hun Sen and the CPP government has been taking $2 from the employer(s) and had not pass to the empoyee(s)...

The money taken is NOT "tax" they are money offer to him for his PERSONAL services...