Cambodia's workers unions are demanding higher wages, which, according to the country’s Garment Manufacturers Association (GMAC) is creating problems for the industry and may lead to a decline in buyers, factories and jobs. US companies are potential buyers, led by the American Chamber of Commerce. GMAC said that Walmart, Target, and New Balance, recently visited the country, where they raised concerns about labour’s demands to form unions easily under a new law currently being drafted. Labour leaders, meanwhile said that they would continue demanding higher wages as workers struggle to earn a livelihood under the current $128 per month minimum wage. They would also continue to demand changes to the union law, they added. Ken Loo, GMAC’s secretary-general, though says the law will create ‘chaos’ if it is drafted according to unions’ demands.

However, unions have fought to prevent the drafting of a law written to help factories, and it has been changed in parts after several meetings with the Ministry of Labour. For example, a provision barring union leaders with criminal records has been struck down. Also, now, 10 workers in a factory must support a union for its formation rather than 25 per cent of workers. Besides, the mandatory age for union membership has been lowered to 18 from 25. However, unions must still file financial reports for their members, and send a copy to the Ministry of Labour.

Loo, while talking about the consequences of the unions’ demands told VOA Khmer that their demands for higher wages may ultimately drive factories away, which means good’s price would increase and they could go to other countries that are cheaper than Cambodia.