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Wage increase makes garment workers poorer
26
Nov '10
Following the recent minimum wage increase, landlords of the garment factories and the transport providers raised their prices high which severely affected the garment workers in Phnom Penh.

Since October 1, when the new minimum wage came into effect, a number of negative reports for this increase came from workers. Keeping the increasing cost of living in mind, the union of workers had said, at the beginning of the negotiations, that a US $5 increase in wages is not enough.

This minimum wage was raised to a total of $61 every month, which earlier was $50 with a mandatory $6 cost-of-living allowance. With this wage, the workers now have to budget more carefully.

However, the landlords and industry representatives stated that everybody along with the garment workers got affected due to the increasing living cost.

Garment Manufacturers Association in Cambodia stated that house rent as well as transport charges are governed by market forces and that the landowners as well as transport providers have the right to fix their prices according to the changes in the market forces.

Fibre2fashion News Desk-India

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