"Buyers urged to pay up as 200,000 face layoffs", 05 May 2020

The Garment Manufacturers Association in Cambodia (GMAC) said 180 factories have suspended operations and another 60 will do so soon, with some 200,000 workers bearing the brunt…

Hence, it urged buyers to honour payment terms for goods that had been received or are still being shipped amid the Covid-19 pandemic.

Some buyers, it said, had made commitments on payments since its appeal early last month, but the situation has become worse, especially for Cambodia’s garment sector, as the pandemic paralyses global trade and economies.

“We understand the difficulty that buyers are facing, but we strongly appeal to all of you to honour your payments for goods already received and or in transit to you.

“Cambodian manufacturers are already suffering from many cancellations and no new orders and cannot withstand any defaults in payment,” it said…

With the factory suspensions, lay-offs, it said, will affect not only the workers but also their families who depend on them to sustain their livelihoods.

Ministry of Labour and Vocational Training spokesperson Heng Suor declined to comment, referring reporters to GMAC.

Cambodian Labour Confederation president Ath Thorn said the Kingdom’s garment sector could face a crisis if buyers default on payments. He said while no new orders have been placed due to the pandemic, factories still have to pay workers’ wages every month.

He said that could eventually lead to workers protesting for a solution… Thorn called on the government to provide incentives to the factories in the meantime. “The government should exempt the factories from some obligations because it can help workers…,” he said…