Rong Chhun Looks at Wage Cut on 'Hello VOA' while visiting the US

Union Leader Looks at Wage Cut on 'Hello VOA'

Sok Khemara, VOA Khmer
Washington
14/06/2007

Click here to listen Sok Khemara hosts 'Hello VOA' in Khmer
(Real Media Player required)

Rong Chhun, president of the Independent Teacher's Association and a leader in the labor sector, appeared on "Hello VOA" Thursday to examine a new amendment to the labor law that will cut wages for nighttime workers.

Government labor officials say the new amendment will boost job growth in a country whose young workforce is growing. But critics say the amendments were made to appease big business at the expense of small workers.

The $3 billion garment industry is the country's top earner, and the US is the top buyer for good produced in Cambodia. Cambodia has about 350,000 workers in more than 300 factories.

Rong Chhun, who is on a trip to the US to convince buyers to pressure the government on the new amendment, called the reformed law a big loss for workers. It was also not likely to bring more jobs, he said, because investors would rather see a better investment infrastructure with more safeguards and the elimination of corruption. The passed amendment must be signed into law by King Norodom Sihamoni, so it is not too late to stop, he said.

Rong Chhun also urged the government to ensure safety for workers exposed to dangerous chemicals.

After callers despaired there was no solution to the new amendment, Rong Chhun suggested a peaceful demonstration of the masses.

Parliament Approves Controversial Wage Cut [- Unions warn about strike]

Cambodian garment factory workers wait for the ride in front of their factory to go home in Phnom Penh, Cambodia, Friday, June 8, 2007. Cambodian lawmakers approved reduction of night time pay for garment workers Friday, in a labor law amendment the government has deemed necessary for boosting jobs in the industry. (AP Photo/Heng Sinith)

Mean Veasna, VOA Khmer
Original report grom Phnom Penh
08/06/2007

The National Assembly Friday approved an amendment to the labor law that will cut wages of nighttime factory workers, despite a boycott of the vote by opposition lawmakers and previous threats of strike from labor leaders.

The amendment, which proponents say is necessary to keep Cambodia competitive in a global market, will reduce wages for night-shift workers by 70 percent, Labor Minister Vong Soth said. They had been earning twice the daytime wages.

The cut could add as many as 200,000 jobs to Cambodia's top economic earner, Vong Soth said.

Members of the Sam Rainsy Party boycotted the vote.

SRP lawmaker Son Chhay said the amendments catered to industrial bosses, especially garment factory owners, who for years have complained of high wages on the overnight shift, which runs from 10 pm to 5 am.

"We see the loss of additional benefits, and this cannot sustain livelihoods," he said.

President of the Free Trade Union of Workers of the Kingdom of Cambodia, Chea Mony, called the amendment a "knife that kills" workers.

"We see clearly that if the Assembly adopts this law, there will be strikes at the factories," he said.

Cambodia slashes garment factory wages

Cambodia slashes garment factory wages (AFP Photo)

Friday June 8, 2007

"I don't believe that the wage cut for nightshift workers will create tens of thousands of jobs," he said, adding that at some factories workers were already treated "like animals" - SRP MP Son Chhay

PHNOM PENH (AFP) - Cambodia's parliament Friday approved a controversial wage cut for garment factory workers that will reduce nightshift pay by 70 percent.

The amendment to existing labour laws is hoped to encourage companies in the key textile sector to begin staffing their factories in the evening, with the aim of creating as many as 200,000 new jobs, labour minister Vong Soth told lawmakers.

"The amendment ... of the labour law will help to create jobs for youths who are increasing in numbers every year," he said.

"It will be in the interest of society ... it will allow Cambodia to compete in the international market," he added.

Nightshift workers had previously received twice the daily rate, which in Cambodia averages around 50 US dollars a month.

Cambodia's opposition lawmakers reacted angrily to the decision and boycotted the vote.

Parliamentarian Son Chhay said the move would eat into workers' already small incomes.

"I don't believe that the wage cut for nightshift workers will create tens of thousands of jobs," he said, adding that at some factories workers were already treated "like animals".

The kingdom's largest trade union has threatened a nation-wide strike if the salary cut was approved.

Union leader Chea Mony said he would not accept the amendment.

"It will increase poverty," he said, adding that workers would protest the move by stopping work in the factories.

He did not say when the strike would occur.

Cambodia's clothing sector employs 330,000 people, who are mostly young women from the impoverished countryside, working to support their families.

The country's garment exports, which account for 80 percent of foreign exchange, jumped 17 percent to 2.5 billion dollars in 2006.

However, manufacturers warn that labour disputes could damage investment.

The sector has been hit by attacks on labour leaders, including the murders of three union bosses, which has prompted complaints from several international companies doing business in Cambodia.

Cambodia cuts garment factory wages [-Opposition boycott vote]

08/06/2007
Australian Broadcasting Corporation

Cambodia's parliament has approved a controversial wage cut for garment factory workers that will reduce nightshift pay by 70 per cent.

Labour minister, Vong Soth, has told lawmakers it is hoped the amendment to existing labour laws will encourage companies in the key textile sector to begin staffing their factories in the evening, with the aim of creating as many as 200,000 new jobs.

"The amendment ... of the labour law will help to create jobs for youths who are increasing in numbers every year," he said.

"It will be in the interest of society ... it will allow Cambodia to compete in the international market," he added.

Nightshift workers had previously received twice the daily rate, which in Cambodia averages around $US50 a month.

Cambodia's opposition lawmakers reacted angrily to the decision and boycotted the vote.

Cambodia's clothing sector employs 330,000 people, who are mostly young women from the impoverished countryside, working to support their families.

The country's garment exports, which account for 80 per cent of foreign exchange, jumped 17 per cent to $US2.5 billion in 2006.

Cambodia adopts amendments of labor law [- Nightshift wages will be significantly cut]

June 08, 2007

The Cambodian National Assembly here on Friday approved the Amendments of the Labor Law to create more jobs and attract more foreign companies to invest in the kingdom.

Two new articles were adopted to provide 150,000 to 200,000 jobs for the Cambodians, Minister of Vocational Training and Labor Vong Sot told reporters.

The new articles also stipulated that nightshift salary should be 30 percent higher than daytime, he said. The ratio stood at 100 percent before the amendments.

"If we didn't decrease nightshift salary, investors will leave Cambodia for other countries," he said, adding that the country was a member of the World Trade Organization and had to compete with others.

The new articles were expected to provide huge advantage for the kingdom's economic and social development and especially benefit young people in employment and poverty reduction, he said.

Senior National Assembly member Ho Noun told reporters that the new articles aimed to facilitate the kingdom's future industries like oil refinery and cement production, while bearing little impact on employees working at garment factories.

Garment is Cambodia's pillar industry. The kingdom expects to start oil and gas production in the next two years.

Source: Xinhua

Chea Mony on wage cut for nightshift workers

Slain Unionist's Brother on 'Hello VOA'

Sok Khemara, VOA Khmer
Washington
21/05/2007

Click here to listen to Sok Khemara hosting 'Hello VOA' in Khmer
(Real Media Player required)

Chea Mony, leader of the Free Trade Union of the Kingdom of Cambodia, spoke to "Hello VOA" listeners Monday, to discuss a controversial amendment to the labor law.

The amendment would cut wages of nighttime workers, from 200 percent of day-labor rates to 130 percent. But the law would not necessarily bring more investors as promised, Chea Mony said.

Callers to the show shared his concern, threatening to stage demonstrations if the law passed.

Chea Mony said a strong rule of law, curbs on corruption and a better infrastructure would lead to more investment in the sector.

Cambodia’s largest union threatens strike over wage cuts

12 May 2007
Posted at wsws.org

Chea Mony, the president of the Free Trade Union of the Kingdom of Cambodia, warned on May 7 that the union’s 70,000 members would strike if the government went ahead with its proposal to slash the night-time work rate in the garment industry.

Currently the night time wage is set at 200 percent of the day rate. Cambodia’s Prime Minister Hun Sen recently announced he would seek to pass legislation on May 17 to cut night shift pay to 130 percent. This would affect the wages of around 330,000 people in the clothing sector.

Garment manufacturers want to run factories 24 hours a day but claim wages are so high the garments produced are uncompetitive. The government is pushing the pay cut on the grounds it will lead to the creation of more jobs.

Cambodian garment workers currently earn an average of just $US50 a month for day shift work. Even with the night shift rate of $US100, they are still among the lowest paid workers in the region. Garment workers are paid an average of $127 in China, $122 in Vietnam and $164 in Thailand.

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.

Cambodia to amend labor law to reduce nighttime pay for garment workers

Tuesday, May 8, 2007
The Associated Press

PHNOM PENH, Cambodia: Cambodia's Prime Minister Hun Sen said Tuesday his government is pushing ahead with a planned amendment of the labor law to reduce nighttime pay for garment factory workers, who are paid twice as much as those on the day shift.

He said the move is crucial for creating more jobs in an industry, a major hard-currency earner for the impoverished Southeast Asian nation.

The country currently has 300 garment factories that employ 355,000 workers. But only about 10 of the factories run night shifts because the higher pay is a "disincentive," said Ken Loo, secretary-general of Garment Manufacturers Association in Cambodia.

He said lowering nighttime payment will not only create more jobs at the factories but will also increase peripheral economic activities for those operating transport and selling food to the workers at night.

"We've been pushing for this (amendment) for the last seven years, and it's only now that we are making some headway," Loo said. "With the industrialization of the country, we need to embrace the concept of shift."

Under the current law, wage for dayshift garment workers is about US$50 (€37) a month, but the amount is doubled to US$100 (€74) a month for those working at night.

The National Assembly, the country's lower house of parliament, will soon debate and mostly like pass the amendment requested by the government, Hun Sen said. The proposed amendment will allow for an increase of only 30 percent over the daytime payment, he said.

Last year's garment exports from Cambodia were worth about US$2.8 billion (€2 billion), with about 70 percent of the shipments going to retailers in U.S. market, Loo said.

Chea Mony, president of Cambodia's Free Trade Union which has claimed to have 74,000 members, on Tuesday threatened to call a strike against the amendment.

He criticized the government for kowtowing to the garment industry's demand and said the amendment will be disadvantageous for the workers.

"This government has claimed such a move would attract more investment. I do not see it will. Reducing workers' earning is not the factor for luring investors to Cambodia," he said.

The government should instead eradicate corruption, which is scaring investors away, he said.

Work harder, earn less: Only in Cambodia can this happens

National Assembly to Debate Salary Reduction

Chun Sakada, VOA Khmer
Original report from Phnom Penh
07/05/2007

The National Assembly is set to debate an amendment to the labor law that would greatly reduce the night wages of factory workers, in one of the country's most volatile industries.

The amendment seeks to lower the wage from twice the amount of day work to just 30 percent above, potentially sparking widespread reprisals from disgruntled garment workers. The amendment was already approved by a lower committee and will move to the floor for debate.

Chea Mony, leader of the Free Trade Union of Workers of the Kingdom of Cambodia, a large union, warned that if the Assembly adopts the amendment, the union will stage a massive strike. He called the wage reduction amendment "brainless."

Opposition lawmaker Keo Remy said he was against the amendment and would work to stop it.

Cambodia's largest union threatens strike if wages decrease

May 7, 2007
DPA

Phnom Penh - Members of Cambodia's largest and most powerful union will call a national strike if the National Assembly votes to decrease night wages this month, its president said Monday.

Chea Mony, president of the Free Trade Union of Workers of the Kingdom of Cambodia (FTU), warned that the union's members would strike if the National Assembly decides to lower night wages from 200 to 130 per cent of day rates in a vote scheduled for May 17.

'The workers will strike and the union will support them. It is their constitutional right to do so under Chapter 13 of the Cambodian Constitution,' Mony said.

He said the FTU has 70,000 members. Most of these are in the garment industry.

Garment manufacturers have complained that Cambodia's high overheads and wages compared to other garment producing nations could make it a less desirable production base in coming years compared to cheaper countries such as Bangladesh and neighbouring Vietnam.

Cambodia relies heavily on its garment sector, which along with tourism and construction is one of three pillars on which the narrowly based national economy is firmly fixed.

Mony also warned that the issue would become a political hot potato in the lead-up to the 2008 general elections scheduled for next July for the ruling Cambodian People's Party if it used its numbers to force the bill through.

Mony took over as president of the prominent union after his brother and founding president, Chea Vichea, was shot dead in 2004. The union is generally seen as sympathetic to the opposition Sam Rainsy Party.