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Thursday 13 November 2014

Cambodian manufacturers group dissatisfied with 28 pct wage rise for garment sector


PHNOM PENH (Xinhua) -- The Garment Manufacturers Association in Cambodia (GMAC) has expressed regrets for the Cambodian government's decision to increase the monthly minimum wage for the garment sector to 128 U.S. dollars for 2015, up 28 percent from the current 100 U.S. dollars.

"GMAC expresses deep regrets for the government's unilateral decision to raise the monthly minimum wage to 128 U.S. dollars from January 2015," GMAC said in a statement posted on its website Thursday.

It said the government's decision has kicked out the results of the tripartite working group that has selected two figures, 110 U. S. dollars and 121 U.S. dollars, for a final decision.

"The steep rise in wage will seriously affect the survival of many factories, especially those with poor financial stability and weak purchase order," it said.

According to GMAC, besides the basic wage of 128 U.S. dollars, workers have received other fringe benefits such as a transport and housing allowance of 7 U.S. dollars and a regular attendance bonus of 10 U.S. dollars.

"In total, a worker has received a monthly minimum wage of 145 U.S. dollars. This amount is the same as the minimum wage in the Vietnam's most expensive zone and nearly twice higher than current rates in Bangladesh and Myanmar," it said.

"With 27 days as annual public holidays in combination with high expense on electricity, transportation and informal pay as well as shortage of raw materials and workers' low productivity, Cambodia's garment and footwear sector will definitely lose competitive abilities and attraction to new investors," GMAC said.

The manufacturers group called on the government to lay out policies to support the sector so as to ease difficulties for factories when the new wage comes into effect and urged trade unions to avoid creating further troubles through outlawed protests.

Nang Sothy, co-chair of the Government-Private Working Group on Industrial Relations, which represents the manufacturers, said Wednesday that up to 50 factories will be closed under the new minimum wage and at least 50,000 workers will lose their jobs.

However, he said the manufacturers will comply with the government's decision.

Labor Minister Ith Samheng acknowledged Wednesday that the new wage is higher than current rates in Vietnam, Myanmar and Bangladesh, but it will contribute to improving Cambodian workers' well-being.

The garment and footwear sector, the kingdom's largest foreign currency earner, comprises 960 factories with some 620,000 workers, according to the ministry of labor.

The sector exported products in equivalent to 4.44 billion U.S. dollars in the first nine months of this year, representing up to 76 percent of the country's total export.

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