PHNOM PENH, Cambodia – “We eat simply to outlive,” mentioned Em Phors.
Phors, 30, a garment manufacturing facility employee in Kampong Speu province, 56 kilometers southwest of the capital Phnom Penh, is one in every of lots of of 1000’s preventing for the next minimal wage every year. Her present wage is $240, and she or he’s been working within the business for 13 years.
Regardless of being Cambodia’s largest employer, producing $7 billion in income yearly, garment employees battle to make ends meet on their present wages.
The business can be displaying indicators of post-pandemic restoration, with exports rising by 22% within the first 5 months of 2024 in comparison with the identical interval in 2023.
In response to commerce information, Cambodia generated almost $5 billion in income from exports of clothes, footwear, and journey items throughout this era.
The USA and European Union are main locations for Cambodia’s exports, with the US being its largest single market.
Main attire and footwear corporations, together with Adidas, Levi Strauss, New Steadiness, Puma, Ralph Lauren, Beneath Armour, VF Company, and the American Attire & Footwear Affiliation, supply merchandise from Cambodian factories.
Phors expressed her disappointment with the $2 improve within the minimal wage, bringing it to $206 for 2025. Prime Minister Hun Manet has pledged a further $2, bringing the month-to-month minimal whole to $208.
“I don’t assume this quantity can cowl the employees’ every day bills, contemplating inflation, hire, debt, treatment, residing prices, journey and different requirements,” she mentioned on Thursday, September 19.
“I’m upset as a result of I consider a correct job ought to enable individuals to dwell with dignity. However in actuality, we’re simply surviving. We eat simply sufficient to get by, and after years of labor, we’re left with solely well being issues.”
Phors mentioned that whereas her base wage is $204, with advantages, it reaches $240 monthly. Extra time can improve her earnings to between $270 and $290.
“Even with time beyond regulation, it’s not sufficient. Now we have transportation prices, meals bills, healthcare, members of the family with out social safety and kids’s training. It’s like having 30 days in a month however solely having the ability to afford 20.”
Chhan Chany, 35, has labored on the Yi Da Producer Co., Ltd. manufacturing facility in Kandal province for seven years and believes the minimal wage for 2025 must be $214.
“That is an quantity that employees can settle for. Nevertheless, it nonetheless doesn’t totally meet our wants, as we’ve many duties and bills,” she mentioned.
“Employees’ calls for transcend only a $14 improve. The $2 proposed by the employer representatives shouldn’t be sufficient. Now we have many wants to meet. Presently, all employees are struggling to assist their livelihoods,” Chany added.
“My household, for instance, must earn between $400 and $500 to make ends meet. My wage is simply between $250 and $280, which leaves us in a tough state of affairs.”
‘Requirements of life’
Yang Sophorn, president of the Cambodian Alliance of Commerce Unions (CATU), offered seven standards to assist the argument for a minimal wage improve for employees.
On September 18, Sophorn outlined them, which embrace supporting a household of 4, accounting for a 2.7% inflation fee, masking residing bills of $204, recognizing a 2.3% productiveness improve, acknowledging the nation’s constructive financial outlook and labor market state of affairs, and factoring within the sector’s 2% revenue stage.
Primarily based on these elements, the union is requesting a 7% wage improve, which interprets to a further $14, Sophorn mentioned.
“The minimal wage that employees obtain now can’t meet the price of residing. We demand [this] based mostly on the requirements of life.”
Katta Orn, spokesperson for Cambodia’s Ministry of Labor and Vocational Coaching, mentioned on September 19 that garment employees’ minimal wage has elevated from $40 in 1997 to $204 in 2024. He famous that with extra advantages, employees can earn roughly $250 monthly.
Orn mentioned that Cambodia’s minimal wage negotiations are based on complete financial and social evaluation. He mentioned that Cambodia’s present minimal wage exceeds that of a number of neighboring nations, together with Laos, Myanmar, and Vietnam. Nevertheless, Orn didn’t present particular figures for comparability.
“When you take a look at and examine with nations within the area, similar to Laos, Myanmar, Vietnam, and others similar to Nepal, Sri Lanka and India, Cambodia’s minimal wage is increased than these nations,” Orn mentioned on September 19.
He gave assurances that the minimal wage will proceed to extend yearly to maintain tempo with the rising price of residing.
Kaing Monika, deputy secretary basic of the Textile, Attire, Footwear and Journey Items Affiliation in Cambodia (TAFTAC), mentioned additionally on September 19 that the affiliation has advocated for a cautious minimal wage improve, citing a number of elements.
A considerable improve may deter potential orders shifting from nations experiencing unrest, Monika mentioned.
He added that different sectors, together with tourism and hospitality, nonetheless recovering from current challenges, could possibly be negatively impacted.
“We’re far increased than Myanmar, Laos and India,” he mentioned. He expressed issues concerning the potential non permanent shift of orders from nations experiencing turmoil, highlighting the doable critical ramifications this might have on different sectors that haven’t but totally recovered, notably tourism and hospitality.
Nevertheless, he mentioned that the elevate is cheap, making an allowance for present social and financial elements.
Monika famous the necessity for a stability between a set wage and a market-driven wage, permitting flexibility for employers with various monetary capabilities. Apart from, no nation has a minimal wage increased than its common earnings or gross home product per capita — “Presently, Cambodia’s minimal wage is roughly 30% increased than the typical earnings or GDP per capita.”
Cambodia’s minimal wage for the textile business will improve to $208 in 2025, a rise of $4. – Rappler.com
Prak Chan Thul, Kiripost‘s Editor-in-Chief, is a seasoned journalist with over twenty years of expertise, together with 14 years at Reuters. He’s one in every of Rappler’s #FactsMatter Fellows for 2024.
