The Ministry of Labour since the economic crisis unfolded a year back, made a dramatic announcement by admitting that 130 garment factories had shut down since the last three quarters, due to a decline in demand from its key markets.
According to the report, 77 garment factories closed down, resulting in the loss of 30,683 jobs in the first nine months, while 53 suspended operations, causing a further 30,617 workers to go without work in the same period.
But there is also good news. In the same period, 40 new clothing factories opened their doors, creating 9,605 job opportunities. The report also states that those who have suspended operations will open as soon as the economic climate improves.
The Business Development Manager at the Garment Manufacturers Association of Cambodia (GMAC), Kaing Monika said that only those units have managed to survive which have big brands as their customers and the rest have gone under.
The President of the Coalition of Cambodian Apparel Workers Democratic Unions (CCAWDU) mentioned that a few apparel manufacturing units had closed briefly and reopened to take advantage of a five-year tax holiday for new garment units.
He also alleged that in this doing this, they escaped from the responsibility of paying severance packages and re-hired the same workers at new contracts and also said that under Cambodian laws these companies should have first declared bankruptcy.
Fibre2fashion News Desk - India
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