Brands ready to incorporate higher wages in Cambodia
28/05/2014
IndustriALL Global Union, together with eight international brands, including H&M, GAP, Puma, Levi’s and Inditex, met with the Deputy Prime Minister Keat Chhon, four senior ministers and other government officials for talks at the Peace Palace in the capital, Phnom Penh, on May 26.
IndustriALL’s general secretary, Jyrki Raina, said: “For the first time, global brands have acknowledged that they are prepared to cost in the price of higher salaries in Cambodia. The ball is now in the court of the government and factory owners to get round the table and agree on a new wage setting mechanism.”
Cambodian garment unions are fighting to increase the minimum wage from $100 to $160 per month.
IndustriALL and brands also called for clear timelines in relation to the new Trade Union law as well as the wage setting mechanism, as the government revealed that new research on the process will be released mid-June.
One major clothing brand revealed that it had cut its sourcing from Cambodia by 50% in the past year due to concerns about political instability and human rights violations in the country.
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