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Pay hike imminent for Cambodian garment workers
28 Nov '11
2 min read
A pay hike seems to be imminent for those employed in the garment industry of Cambodia, after a statement was issued on the same by Prime Minister Hun Sen.
As stated by Prime Minister Hun Sen, around 400,000 garment and footwear industry workers in the country would benefit from a wage hike of five USD since January 2012, while the factories employing these workers would become eligible for a two-year tax break.
Addressing a public and private sector forum, the Prime Minister said the increase in wages from US$ 61 to US$ 66 is intended to help the workers stay healthy.
The Prime Minister said the decision was taken after a round of talks between the Labour Minister Vong Sauth and the employers, where the Minister lobbied for increasing the wages of workers to ensure that they can remain healthy.
However, the factory owners gave a conditional acceptance for this, stating that they would hike the wages only if the Government shelves the proposed one percent tax imposition on their profits from 2013 to 2015.
The Prime Minister said that he had directed the Minister of Finance and Economy Keat Chhon to inform all the factory owners that the Government would hold back the one percent tax levy till 2015, but in return they should also agree to hike the wages of the workers by five USD from January 2012.
Meanwhile, Chairman of the Garment Manufacturers Association of Cambodia GMAC), Van Sou leng, said the factory owners would have to bear an extra cost to uphold the Government's decision of paying extra five USD to all the workers per month, and they would have to endure a loss in profits.
He further stated that while the Government sought of the employers to pay higher sum to workers to help them stay healthy, the factory owners also backed the decision as it would provide instant satisfaction to workers, thus refraining them from going on strikes and inspiring them to respect law.
As stated by Prime Minister Hun Sen, around 400,000 garment and footwear industry workers in the country would benefit from a wage hike of five USD since January 2012, while the factories employing these workers would become eligible for a two-year tax break.
Addressing a public and private sector forum, the Prime Minister said the increase in wages from US$ 61 to US$ 66 is intended to help the workers stay healthy.
The Prime Minister said the decision was taken after a round of talks between the Labour Minister Vong Sauth and the employers, where the Minister lobbied for increasing the wages of workers to ensure that they can remain healthy.
However, the factory owners gave a conditional acceptance for this, stating that they would hike the wages only if the Government shelves the proposed one percent tax imposition on their profits from 2013 to 2015.
The Prime Minister said that he had directed the Minister of Finance and Economy Keat Chhon to inform all the factory owners that the Government would hold back the one percent tax levy till 2015, but in return they should also agree to hike the wages of the workers by five USD from January 2012.
Meanwhile, Chairman of the Garment Manufacturers Association of Cambodia GMAC), Van Sou leng, said the factory owners would have to bear an extra cost to uphold the Government's decision of paying extra five USD to all the workers per month, and they would have to endure a loss in profits.
He further stated that while the Government sought of the employers to pay higher sum to workers to help them stay healthy, the factory owners also backed the decision as it would provide instant satisfaction to workers, thus refraining them from going on strikes and inspiring them to respect law.
Fibre2fashion News Desk - India
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