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Consensus eludes minimum wage negotiations in Cambodia
07
Oct '15
The Labour Advisory Committee (LAC) consisting of representatives from Cambodian government, trade unions, and employers has failed to arrive at a consensus on the new minimum wage rate in 2016 for the garment sector, as per Cambodian media reports.

At a meeting of the LAC held this week, the employers offered an increased rate of $132.80 per month, a raise of 3.75 per cent on the current minimum wage rate of $128, while the trade unions agreed to decrease from their proposed rate of $207 per month, which they were demanding few weeks back, to $163 after much negotiation.

Last month, a group of independent unions in Cambodia decided to push for minimum wage of $207 per month based on an independent study done by DC Research, a Cambodian firm, and was supported by US based Solidarity Center. The figure denotes the cost of living of a Cambodian garment worker.

The unions are expected to decrease their negotiation rate provided employers offer to increase more. On the other hand employers feel that an increase in wage will slowdown the Cambodian garment industry, which is known for its lower margins.

The garment industry is one of the largest foreign exchange earners for Cambodia, employing more than 700,000 people, majority of whom are women. The Cambodian garment exports in the first quarter of 2015 increased by 7.9 per cent in comparison to 2014. (HO)

 

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