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Cambodia's union agree on wage reduction

Union representatives in Cambodia agreed to lower demands for wage hike in exchange for concessions from manufacturers, during ongoing negotiations over a new minimum wage for the garment sector. Concessions from the Garment Manufacturers’ Association in Cambodia (GMAC), though, were not forthcoming, according to those present in the meeting of Labor Advisory Committee. The GMAC stuck to an offer of a 3.5 per cent raise to the current monthly minimum wage of $128. Among themselves, unions agreed that they would seek $168, which is a significant reduction from the $207 that some were hoping for.

Mann Senghak, an adviser to the Free Trade Un¬ion said that they had decided to moderate their demand but also asked employers to raise their offer. He said that unions had agreed to reduce (their demand) from a 31.74 per cent (raise) to a 27.8 per cent (raise), so that it’s $163.58. He added that this would clear the way for workers to raise their offer.

However, he said, employers did not raise their figure at the table discussion, while they raised the issue of productivity and competition in the market, and maintained their stance of 3.5 percent. Senghak said if employers did not meet the unions’ concession with a higher figure, the unions would revert to their demand for $168.

 
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