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Cambodia faces decline in export orders

The Garment Manufacturers Association of Cambodia says that at least 15 factories have removed workers, due to a lack of job orders. Union leaders on the other hand are demanding higher minimum wages. Cambodia’s manufacturing industry is one of the largest employment generator providing jobs to around 600,000 people. However, issues like low wages have been leading to strikes and conflict among workers, who have to deal with the rise in cost of living. More wage negotiations are expected to take place later this month.

Union leaders have announced they plan to negotiate for higher minimum wage than demanded earlier. Unions had been pushing for a minimum monthly wage of $177, up from $128, but now they will seek $207 per month.

The industry started suffering after labour disputes hit in 2013, with workers’ agitation leading to large-scale strikes around the country for increase in wages. Some of the demonstrations were led to riot like situation. To ease tension, the government increased monthly minimum wage from $61 to $80 in 2013, to $100 last year, and to $128 in January. After adding other benefits like housing assistance, transportation and other allowances, a worker’s minimum earnings reach to more than $150.

www.gmac-cambodia.org

 
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