Trade unions in Cambodia are putting the garment and shoe industries under pressure by demanding unreasonably high wages. Eight opposition-aligned trade unions have called for a garment strike from March 12 to 19 to demand a minimum wage of $160 for workers and the release of 21 detainees who were arrested on January 3 during violent protests. The eight trade unions represent about 2,00,000 of the 6,00,000 workers in more than 900 garment and shoe factories in Cambodia. The garment and shoe industry is the country’s largest foreign exchange earner, generating about $5.53 billion in revenues last year.

The current minimum wages for Cambodian garment workers are US$100 a month, up from UA$80 dollars last year. These wages are higher than those of Laos, Bangladesh, India, Nepal and Myanmar. Although the Labor Advisory Committee had already decided on the new minimum wage by a majority vote, minority and violent unions continue with daily threat of strikes, demonstrations and disruption of the workplace.

Many factories have reported a reduction in orders starting from April this year as buyers now consider Cambodia as a high-risk country. Ultimately it will be Cambodian workers who will be the hardest hit.