Photo: John Vink

Cambodia Ignores Minimum Wage Research

Women's Wear Daily | 15 Jan. 2014

 

PHNOM PENH, Cambodia — A government-commissioned task force has found that the average Cambodian government worker spends $157 to $177 on basic necessities each month, prompting unions to push for a minimum wage of $160, union leaders said at a press conference Wednesday morning.

Formed in August 2013, the task force comprised of union members, manufacturers and government officials, and its purpose was to find out what a decent minimum wage was for garment workers, who make up the largest workforce in the country.

A survey of workers at about 100 factories around Phnom Penh revealed that the average worker spends more than $150 each month, according to data released Wednesday. Following this information, 18 union leaders, including those that were aligned with the government, signed a petition on Dec. 18 requesting for the minimum wage to be raised from $80 a month to $160.

RELATED CONTENT: Labor Groups Pressure Companies Over Cambodia >>

“These findings were based on research and documents that was done by the committee and based on data from the Ministry of Planning,”said Rong Chhun, the president of the Cambodian Confederation of Union.“With an amount between $157 and $177, this will allow a worker to have a decent living.”

Yet the government ignored these findings, and on Dec. 24, announced that the new monthly minimum wage would be $95. This decision caused outcry among unions and workers who mobilized themselves into a nationwide strike to protest for $160. A week later, the government revised the wage to $100, a move that did not placate workers. This prompted an industry shutdown, which cost manufacturers more than $200 million in losses.

On Jan. 4, the demonstration descended into violence when armed security forces opened fire on rioting workers in a Phnom Penh industrial park. At least four workers were killed, and more than 30 were hospitalized with bullet wounds. Since then, the government has banned any public gathering or protests in Phnom Penh, while more than 20 workers were arrested.

“The union leaders and workers have been very disappointed with the government,” Chhun said.

According to local media reports, thousands of workers from four different factories have gone back on strike this week to protest the factories' decision not pay any wages to workers who participated in the nationwide strikes. The Ministry of Labor had advised employers to pay their workers to avoid strife, but not all of them followed suit.

The seven other union leaders present during the press conference also expressed anger and confusion over the government's refusal to accept the research it commissioned and its “unilateral” decision on an amount deemed insufficient.

“The [$95 and $100] increase was not made based on any research. Because of this, workers are not satisfied and this is just not acceptable,”Morm Nhim, president of the National Independent Federation of Textile Union in Cambodia, said, adding that the government's subsequent imprisonment of more than 20 workers has threatened their freedom of expression and association.

Union leaders were also angered by the fact that wage negotiations have stalled. Mann Senghak, secretary general of Free Trade Union, said that the new minimum wage committee that was formed after the“barbarous shooting”is only going to tread on similar territory.

“The government just creates and creates and creates new working groups and committees but none of the recommendations are ever accepted,”Senghak said. “Our stance is that we insist for the government to hold an immediate negotiation so that we can come up with a new minimum wage.”

Nang Sothy, the vice chairman of the Labor Advisory Council — a government body that decides on the wage raise — defended his committee's initial amount of $95, and said the research done by the task force did not stipulate that those amounts should be the minimum wage.

“There was no report about that [the minimum wage],”he said.“The report is only on the demands of the living [of a worker].”

“When you are willing to increase more than Vietnam, do you think [investors] will continue to invest in Cambodia, where the electricity costs are high, where there are so many holidays, where there's corruption, where there are protests?,” Sothy continued.

He added that employers actually called only for a $10 increase and the government opted for $15.

Prak Chanthoeun, director-general of Labor Conflict committee within the Ministry of Labor, echoed Sothy's fears about losing investors, and added that overtime hours would bring a worker about $150 a month with the higher minimum wage.

“If we raise the salaries too much, investors will not come to Cambodia anymore,” Chanthoeun said. “Some workers in other factories could get $200 a month. This new minimum wages does not mean that workers can get only $100.”

Currently, 38-year-old Seang Souphea, a seamstress at a bra factory, takes home about $140 a month after working overtime daily as well as holidays.

But the mother of two said excessive overtime means that she never spends any time with her children and her greatest fear is falling ill and missing work.

“If I do not work overtime everyday, I will not have enough money to spend on my children's livelihoods or their schools,” Souphea said, adding that she also pays for her 70-year-old mother's health expenses. “If I had $160 a month, I'd feel a release.”