Showing posts with label Minimum salary for garment factory workers. Show all posts
Showing posts with label Minimum salary for garment factory workers. Show all posts

Wednesday, September 22, 2010

Minister of Labour to be questioned by SRP MP Son Chhay at National Assembly on Minimum wage and others


In response to SRP MP Son Chhay’s request to question Vong Soth, the minister of Labor and Vocational Training, the National Assembly’s Permanent Committee agreed to this request. The questioning will take place on a Thursday of October 2010. MP Son Chhay is asked to send over his questions to Vong Soth.

Sunday, July 25, 2010

Union Workers Gather to Demand for Better Minimum Wage: Joint Statement

ADHOC – CCHR – CLEC – LICADHO

Union Workers Gather to Demand for Better Minimum Wage

Media Statement

July 25, 2010

We, the undersigned organizations, would like to salute the courage and determination of union members from the Cambodian Labour Confederation (CLC) and Cambodian National Confederation (CNC) who took part in a peaceful rally in front of the National Assembly on the morning of July 25, 2010, despite initial restrictions by Phnom Penh authorities. Between 3,500 and 4,500 union members gathered to demand a minimum wage increase that would meet minimum standards of living.

We also welcome the late change of mind by the Phnom Penh police this morning to tolerate this peaceful assembly of workers.

However, we believe that the authorities never should have decided to ban this peaceful rally, as they did initially. On July 21, the Municipality explicitly forbade the gathering on the grounds that it would: i) affect public order, ii) threaten public safety, and iii) cause damage to public property. Two days later, the Ministry of Interior joined the Municipality in banning the gathering. These types of groundless excuses are often used to curb the freedom of assembly and expression of Cambodian citizens, which are enshrined in the Cambodian Constitution and therefore should be respected by the authorities.

“This ban by the Municipality and the Ministry of Interior arises in the general context of a worrying crackdown on freedom of expression”, says CCHR Executive Director Ou Virak. “Why is the Government preventing ordinary Cambodians from voicing important issues that directly affect their lives?”

Furthermore, we condemn the attempted restrictions on freedom of movement and assembly by police and military police officers. Hundreds of armed officers were deployed at the main entrances to Phnom Penh and at the designated rally sites. From 6:30AM to 8:45AM, police stopped cars, motorbikes and tuk tuks carrying workers, who were left to stand on the side of the street. After over an hour of negotiations with the authorities, the workers were finally allowed to walk to the rally.

“The actions by the authorities early this morning were meant to intimidate and threaten workers, so that they would not take part in this peaceful assembly”, says ADHOC Monitoring Coordinator Chan Soveth.

“This morning’s gathering was a clear message by workers that the current minimum wage is simply not acceptable”, says CLEC Executive Director Yeng Virak. “An independent study commissioned by CLEC showed that a minimum of US$75 per month is required for workers to meet minimum living standards.”

We call for the Cambodian government to:
  • Instruct all authorities to respect the rights of all Cambodians to assemble and express their opinions in a peaceful manner;
  • Swiftly create an truly open and transparent process in which the minimum wage is reviewed so that it meets minimum standards of living for all workers;
  • Ensure that no union members suffer negative repercussions – including intimidation, spurious legal charges and unjust dismissals - from having joined in leading this morning’s peaceful rally.
For more information, please contact:
  • CLEC Executive Director Yeng Virak, 012 801 235
  • ADHOC Monitoring Coordinator Chan Soveth, 016 937 591
  • CCHR Executive Director Ou Virak, 012 404 051
  • LICADHO Monitoring Supervisor Am Sam Ath, 012 327 770

Monday, July 12, 2010

Union leader approves rise in workers minimum wage

July 12, 2010
Fibre2Fashion

Chea Mony, labour leader made an announcement that he had withdrawn his plans for a three-day strike, against the newly approved rise in the apparel sector’s minimum wage.

During a meeting of its 125 labourers of the Free Trade Union of Workers of the Kingdom of Cambodia, Mony, the Union’s President made the announcement that, the planned strike, which was to commence from Tuesday, will not take place.

Last week, Mony had rejected Labour Advisory Committee’s decision to implement the hit of an amount of $11 in the minimum wage, a rise that a few union leaders considered to be insufficient to meet with the worker’s requirements. However, on Sunday, Mony informed that, he found the raise sufficient.

More over, Mony also added that, although he agreed upon the government’s decision on minimum wage, he would continue to push the employers for additional discounts such as pay adjustments for senior workers who are not able to directly benefit from the increment in the minimum wage, and an assessment of the LAC’s decision to freeze the minimum wage negotiations until 2014.

In addition, Mony has also urged major industry employer’s group, Garment Manufacturers Association of Cambodia (GMAC), to discuss FTU’s concerns, and has threatened to demonstrate a strike if no meeting is granted to him.

As per Ken Loo, Secretary General of GMAC, they would listen out to the union’s stance, but the decision of additional adjustments for minimum wage will only be made by the government.

Minimum wage decision to ignite apparels workers protests

July 12, 2010
Fibre2Fashion

Labour authorities have voted to increase the per month minimum wages for apparel workers by US $11. This figure is way too less, as compared to what a few major unions were demanding, thereby, giving fresh signs of a probable strike on a large scale, next week.

Last week, during a meet between the Labour Advisory Committee, a group of officials, factory representatives and union leaders voted to raise the minimum wages by $5. They also sanctioned a plan to join the current $6 cost of living supplement in to the basic wage, hence, increasing the minimum wage from $50 per month to $61.

However, the new wage is likely to be implemented from October and will remain in existence till 2014. Both the government and the labourers and unions have agreed upon the same, informed Labour Minister, Vong Soth.

But there were also a few union leaders, who demanded minimum salary in the range of $70 - $93. For instance, Chea Mony, Head of the Free Trade Union of Workers of the Kingdom of Cambodia, had warned to demonstrate a three-day strike, commencing from July 13, if his demand of $70 was not decided upon by government officials. Post last week’s decision of $61, Mony affirmed his decision of going for a strike.

According to Soth, if the minimum wage is increased beyond a certain limit, Cambodia might turn in to an unattractive destination for apparel industry investors. The same was supported by GMAC Chairman, Van Sou Ieng, that we the minimum wage is increased beyond $61 then investors might withhold their investing plans in the country.

Chea Mony decides to cancel the strike

Chea Mony, President of the FTUWKC

Monday 12 July 2010
Everyday.com.kh
Translated from Khmer by Socheata

Chea Mony, President of the Free Trade Union of Workers in the Kingdom of Cambodia (FTUWKC), said on Sunday that his union had abandoned the plan to hold a strike to protest against the garment worker’s wages. In a meeting with 125 worker representatives from the FTUWKC, Chea Mony decided to abandon the plan to hold a 3-day strike that would have started tomorrow. On Sunday, Chea Mony said: “I will not hold the 3-day strike… because I agree with the government’s decision to approve a raise of the minimum salary for the workers. My workers can accept this wage also.” Nevertheless, Chea Mony declared that he will continue to push for additional concessions from the garment factory owners, as well as having them revisit the salary for ancient workers who are not benefiting directly from this minimum salary, and revisit the decision by the labor council to stop the discussions on minimum wages until 2014.

Thursday, July 08, 2010

Cambodia govt, unions agree to 9% rise in garment wages

PHNOM PENH, July 8 (Reuters) - Cambodia's government and several unions agreed on Thursday to a 9-percent minimum wage rise for garment workers but the industry's biggest unions said their demands were not met and a strike was still possible.

Garment workers have threatened a nationwide strike in Cambodia, where minimum wages are among the world's lowest, if pay levels fail to rise sharply in an industry vital to the impoverished country's nascent economic recovery.

Labor Minister Vong Sauth said wages would rise from $56 a month to $61 from Oct. 1 under a new four-year agreement that would be strictly enforced.

Chea Mony, president of the Free Trade Union (FTU), which had demanded a $70 minimum monthly wage and organised a strike for July 13-15, told Reuters those who voted did not represent the majority of workers. He had not been invited to the talks.

"We were not included to provide opinions," he said, adding he wanted to see more details of the agreement before deciding whether to go ahead with a strike.

His union was one of two in the industry -- Cambodia's third-biggest earner behind agriculture and tourism -- that did not vote on Thursday.

Ath Thorn, president of Coalition of Cambodian Apparel Workers Democratic Union, which represents about 40,000 workers and had sought a $93 monthly wage, told reporters he would ask his members if they agreed with the new wage.

"If they don't agree with this, we will strike. A $5 wage increase is not the demand of the workers," he said.

Five largely pro-government unions backed the pay increase, which was in-line with a June 25 government recommendation to the Garment Manufacturer's Association in Cambodia (GMAC), which represents 230 factories employing about 200,000 people.

The workers currently receive $50 a month plus a $6 living allowance bonus.

Van Sou Ieng, the chairman of the GMAC, said the unions' demands were not justified and that workers could afford living expenses in Cambodia, where annual inflation averaged about five percent last year.

Cambodia's garment industry shed almost 30,000 jobs in 2009 after a drop in sales to the United States and Europe.

GMAC data showed the country exported garments, textiles and shoes to the value of $2.3 billion last year, down from $2.9 billion in 2008. More than half go to the United States.

Tuesday, June 29, 2010

Resolving a minimum wage [-Chea Mony re-elected at FTU]

Monday, 28 June 2010
Meas Sokchea and Irwin Loy
The Phnom Penh Post


Government recommends a $5 per month increase for garment workers

THE government has recommended a US$5 boost to the monthly minimum wage for garment-sector workers – an amount that falls far short of demands from some union leaders.

Officials with the Labour Advisory Committee are planning to meet with union representatives and factory owners on July 8 to discuss issues including the contentious minimum wage, according to a press release issued Friday by the Ministry of Social Affairs and the Ministry of Labour.

“The meeting will discuss an agenda including the minimum salary increase for workers in garment and shoe factories,” the statement said. “The government allows an increase in the minimum salary of $5, and another $6 as a living supplement to the basic salary.”

The current minimum wage for full-time garment workers is $50. Workers already receive a mandatory $6 cost-of-living allowance on top of that.

The press release stated that probationary workers currently earning a minimum salary of $45 a month would receive a similar boost in salary.

Unions and garment factory owners in 2006 agreed to discuss changes to the minimum wage by the end of this year, but there has been no consensus on a suitable increase.

Major unions have proposed wages of $70 and $93; employers have not publicly disclosed how much they are willing to pay.

Chea Mony, president of the Free Trade Union of Workers of the Kingdom of Cambodia (FTU), which demanded an increase to $70 a month, said the government’s recommendation doesn’t meet workers’ needs.

“The Ministry of Labour has done this again and again. Workers have a minimum wage of $50 and a $6 bonus already. So [the recommendation] is different than what we demanded,” he said.

Chea Mony threatened earlier this month to stage a three-day strike in mid-July if the union’s demands were not met. On Sunday, he said that plan was still in place.

“If [employers] do not have a “If [employers] do not have a resolution for workers ... workers will hold a strike,” he said.

Other union leaders contacted Sunday had differing reactions to the government’s minimum wage recommendation.

Ath Thun, president of the Coalition of Cambodian Apparel Workers Democratic Unions (CCAWDU), said a $5 increase would not conform to today’s economic realities.

“Five dollars is not enough,” said Ath Thun, who questioned why the government had issued its recommendation before unions and factory owners had even sat down to discuss the issue face to face.

Labour Ministry officials could not be reached Sunday.

But Chuon Momthol, president of the pro-Cambodian People’s Party Cambodian Union Federation (CUF), said he was satisfied with the government’s recommendation.

Ken Loo, secretary general of the Garment Manufacturers Association in Cambodia, said his organisation had not been officially informed about the government’s decision.

“We will support the recommendation of the government even though it may not be ideal for the industry at this point to have such a revision,” Loo said.

Moeun Tola, head of the labour programme at the Community Legal Education Centre, noted that many unions had been asking for a more significant boost to the minimum wage, and that his own organisation had, in response to research commissioned last year, recommended that the minimum wage be raised to $71.99 a month.

As part of a study produced in September, researchers interviewed 300 garment workers, and concluded that they would need at least $71.99 a month to pay for basic needs such as food and shelter as well as remittances.

“They spend a lot of money on food, on medicine, on clothing, on rent and so on. Based on this, the minimum wage should be $71.99 a month,” Moeun Tola said. “If it is less than this, workers cannot survive.”

He warned that garment workers will shift to better-paying, but more dangerous professions in the entertainment industry if they see little improvement in their salaries.

New term for FTU head

Also Sunday, Chea Mony was granted a new three-year term as president of the FTU, despite having announced in May that he would step down because of health and personal reasons. He vowed Sunday to continue demanding higher salaries for his union’s members.

Wednesday, March 18, 2009

Minimum living standard wages should be between $87 to $113 per month

17 March 2009
By Ky Soklim
Cambodge Soir Hebdo
Translated from French by Tola Ek
Click here to read the article in French


This estimate was provided by economists from the Cambodia Institute of Development Study (CIDS) based on a salary survey in the garment sector. This result could lead to demands to be made by workers who are not keen estimate their own needs on this issue.

The results of the CIDS survey, which was published on 16 March, indicate that the average salary amounts to only $67 per month, and that these average wages would increase to $79 with overtime work. “According to our study, the minimum salary should be between $87, at the low end, and $117 at the high end,” the survey authors indicated.

According to the survey, a factory worker spends $57 per month for personal needs, $15 for her family, and she would save $7. The survey, which was conducted between December 2008 and January 2009, is based on a sample of 350 factory workers, 91% of whom are women.

However, due to the current financial and economic crisis, the ministry of Commerce and the GMAC indicated that more than 50,000 garment workers lost their jobs.