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Article

24 Jun 2020

Author:
Shaun Turton, Nikkei Asian Review

Cambodia: Unions & labour groups condemn GMAC proposal for temporary suspension of minimum wage during COVID-19

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"Cambodia garment factories call for wage cuts as pandemic bites", 23 June 2020

 A group representing garment factories in Cambodia is urging the government to suspend the minimum wage to help the sector face "desperate times" in the wake of the coronavirus pandemic...

More than 250 factories employing some 130,000 workers have suspended operations.

With more layoffs expected, the Garment Manufacturing Association in Cambodia proposed temporarily suspending the sector's monthly minimum wage of $190. GMAC secretary-general Ken Loo said that with no new orders on the horizon employers needed "flexibility" to appeal to brands and avoid closure. "Seeing that wages constitute almost up to 70% of local costs ... we really need to sit down and think about how we become more competitive overnight,"...

Yang Sophorn, president of the Cambodian Alliance of Trade Unions, said GMAC's proposal was an "excuse" to avoid engaging in serious wage negotiations. The government, she said, needed to do more to support workers. "I understand that employers are facing difficulty during the crisis. But for workers, it's even worse; they'll die first before the employer,"...

Worker rights advocate Kun Tharo said he saw GMAC's proposal as a tactic deployed ahead of upcoming negotiations to determine next year's raise. He said the government's priority should be providing "adequate social support" to workers.

"People are not getting paid, they are not getting their entitlements," said Tharo... Currently, suspended garment workers are eligible for a $70 monthly payment, which is comprised of a $40 government stipend and a $30 contribution from employers....