The Cambodian government has increased the minimum wage for the garment and footwear sector by $6, to $200, far below the $19 increase proposed by unions.
The Candlelight Party is supporting unions’ requests to increase the minimum wage to $215, and proposed the wage increase to $300 by 2024.
Ahead of minimum wage negotiations on Tuesday, union leaders say they are still aiming for a $21 increase for garment workers, though employers are lobbying for no increase in part due to regional competition.
A new study called for a tripling of the garment sector’s minimum wage to $588 a month, which one GMAC representative characterized as a “crazy” proposal.
The new wage was voted on after four rounds of weekly negotiations between unions, which initially suggested a $22 raise; employers, which wanted to see the minimum wage cut by $4; and the Labor Ministry.
Tuesday’s meeting, held by video conference, was the first of four weekly sessions planned for the tripartite negotiations, according to a document signed by the Labor Minister Ith Samheng.
The garment sector’s minimum wage will be increased to $192 starting next year, even as hundreds of factories have suspended operations and an estimated 150,000 workers lost their jobs.
Garment factory workers will receive a minimum wage of $190 a month from January 1, 2020, an increase of $8, the Labor Ministry announced on Friday.
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