Cambodia

The Garment Manufacturers Association of Cambodia says that a last-minute decision by the government to delay a vote on the new minimum wage would hurt the relationship between factories and workers and also scar buyers’ confidence in the country. The government’s Labor Advisory Committee was initially scheduled to vote on the measure on October 3, but surprisingly delayed the vote until November in order to give enough time for discussion. Workers’ groups are asking for a US$77 increase in the wage while factories are pushing for only US$10. (Cambodia Daily)

Cambodian government officials say that excessive import tariffs from the United States are putting downward pressure on wages in the garment industry. Officials say that Cambodia pays over 10% of their total export revenue from the United States toward tariffs, even though the rates to other destinations like Europe are much lower. Leaders say that if the U.S. lowered tariffs, growth in the garment industry would increase significantly. (Phnom Penh Post)

Cambodia’s Ministry of Planning says that workers in the Phnom Penh area making less than US$120 per month are living below the poverty line. The news comes as Cambodian government officials prepare to vote on a minimum wage increase next month. Factory representatives say that they can only afford to pay just above the minimum wage while workers’ representatives say that the minimum wage should be increased significantly because garments account for so much of Cambodia’s exports. (Phnom Penh Post)