On September 13, the business club reported that over 80,000 garment workers in Cambodia had planned a one-week strike due to ongoing wage disputes, causing a one-sixth reduction in production across national garment factories. The union announced this on Friday, highlighting the growing tensions between labor and management.
This large-scale action is expected to impact the operations of 80 factories starting from Monday. The protest is a response to the recent agreement between the Cambodian government and the textile industry, which sets the minimum monthly wage for apparel and footwear workers at $61. Workers argue this amount is far below what is needed to cover basic living expenses such as food, housing, and transportation.
Duan, president of the Cambodian Labor Union, stated that the current minimum wage fails to meet essential needs. The union has called for an increase to $93 per month for the 345,000 workers in the sector, emphasizing the urgent need for fair compensation.
Manufacturers have raised concerns that the strike could lead to significant production losses and a drop in orders from international buyers, potentially damaging Cambodia’s reputation as a reliable manufacturing hub. Ken Loo, secretary general of the Cambodian Apparel Manufacturers Association, warned that the union's actions are not in line with the law and could harm the industry's image.
Ken Loo dismissed the $93-per-month wage proposal, calling it unrealistic. He said the Cambodian Garment Manufacturers Association will advise companies facing disruptions to seek legal action, arguing that the strike is illegal and demanding that workers return to work within 48 hours.
The new minimum wage was approved in July and is set to take effect in October across the country’s 470 garment factories.
With a population of 14 million, more than 30% of the workforce depends on the garment industry for their livelihood, and many families survive on less than 50 cents per day. This makes the sector a crucial pillar of Cambodia’s economy.
Last year, the industry suffered due to the global financial crisis, with exports dropping to $2.69 billion from $3.1 billion in 2008. However, early this year, garment exports showed a positive trend, rising by 13.4% in the first seven months to reach $1.63 billion, according to the Cambodian Ministry of Commerce.
As the situation continues to unfold, both workers and factory owners are under pressure to find a resolution that balances economic stability with fair treatment for employees.
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