Is The Wage Advantage Of Cambodian Textile Workers Still In Southeast Asia

On September 3, 2020, Cambodia held a meeting in the Ministry of labor to determine the minimum wage for the textile, clothing and footwear industries in 2021. Several unions said they would ask the Minimum Wage Commission of the Ministry of labor to raise the basic wage of workers by $11.59.

The meeting was presided over by Mr. ith Sam Heng, Minister of labor and vocational training. The meeting was presided over by Mr. Yi Senxing, Minister of labor and vocational training, and attended by representatives of the three parties of the government.

So far, the minimum wage for Cambodian workers in 2020 is $190 a month.

In May this year, trade unions including the Cambodian Labor Union (CLC), the Cambodian garment workers' Democratic Union (c.cawdu) and the Cambodian Federation of tourism and service workers jointly wrote to the government, asking the government to ensure that employees on leave can still receive 60% of their wages during the outbreak.

At the same time, the letter also recommended that the government increase the minimum wage for garment workers from $190 to $250, and introduce fixed wages for workers in the construction, tourism and transportation industries as well as hotel services.

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At the last meeting held on the morning of September 20, 2019, the salary vote released after the vote was $187, plus the $3 increase decided by Cambodian Prime Minister Hun Sen, finally determined that the minimum wage for clothing and footwear workers in 2020 was $190.

* the $195 figure won 8 out of 51 votes

* the figure of $187 received 43 out of 51 votes

* the figure of $186 received 0 out of 51 votes.

According to the announcement of the labor department, the minimum wage of $190 will be implemented from January 1, 2020.

Since 2013, the royal government of Cambodia has implemented a pay rise policy for clothing and footwear workers every year.

In 2013, it was increased by 19 USD from US $61 to US $80

In 2014, it was adjusted to $100, up 20 USD

In 2015, it was adjusted to 128 US dollars, up 28 USD

In 2016, the price was increased by 12 USD to 140 US dollars

In 2017, it was adjusted to 153 US dollars, up 13 USD

In 2018, it was $170, up 17 USD

In 2019, it was $182, up 12 USD

In 2020, it will be 190 US dollars, up 8 USD

The minimum wage for clothing and footwear workers will increase by $8 in 2020.

In 2020, the base salary will be raised by $8. If a factory employs 2000 workers, the factory will spend $16000 more each month from next year, and the annual cost will increase by at least $192000. If the workers have overtime, the cost will be higher, because the overtime pay is 1.5 or 2 times of the basic hourly salary.

According to the Cambodian China Daily, Cambodia's 2021 textile, clothing and footwear minimum wage negotiation was held at the headquarters of the Ministry of labor on September 3. The trade union representing the labor side, the Cambodian garment manufacturers' meeting representing the management side and the Ministry of labor of the government will jointly discuss the negotiation. On September 2, the trade union representing workers in the garment industry announced that it would demand an increase of US $11.59, or 6.1%, in the minimum wage of textile, clothing and footwear manufacturers in 2021.

Bao Xinan, chairman of the workers' movement Union, said that we have set an expectation of $11.59 and are ready to negotiate with the management with that figure. However, it is not known what kind of salary changes will take place in the subsequent negotiations. Trade union chairman Anton also said the figures set by the Union were based on three main factors: annual inflation rate of 2.8%, factory productivity increase of 2%, and management profit margin of 1.3%. The total percentage was 6.1%.

A spokesman for the Ministry of labor, hingso, said there would be no interference during the talks and the Ministry had taken effective preventive measures. According to the real economic situation, the minimum wage of workers may drop slightly in 2021.