Cambodia's economy is totally dependent on the garment industry employing almost half a million workers and accounting for all of the nation’s exports. But of late, the industry is grappling with poverty and low wage issues culminating into strikes where armed security forces opened fire on striking workers in Phnom Penh injuring dozens. According to the data available with International Labour Organization (ILO), the country, last year achieved $5 billion worth of garment exports for the first time. The industry also holds importance not only because of its workers, most of whom are women supporting themselves but also because they send help to their families by transferring part of the wages earned. With the industry suffering from regular strikes and protests, many leading international apparel brands, who source from Camobodia have appealed to the government to resolve the wage issue and maintain peace. 

Growing demand for higher wages 

The situation continues to remain unsolved despite major labour organisations and brands pitching for solution. Brands have been appealed not only to raise a voice but to look into their own purchasing practices and take action to help the country resolve low wages issue. 
 
Since brands tend to offer orders to those factories that provide a product at minimum possible cost, it ultimately results in factories offering low wages to their workers. Statutory minimum wages determined by national government and industry always fall short of workers’ demands. In the case of Cambodia, the government first offered to raise monthly pay from $80 to $95, then to $100. Striking workers, however, insist on minimum wage level of $160. 

As per Asia Floor Wage, which has been campaigning for higher minimum wages across garment-producing countries in Asia, when the country is not able to offer expected or statutory minimum wages that are not high enough, multinational companies sourcing from that particular country must get involved to help the workers as well as country’s economy. 

Brands appeal to authorities 

Companies like American Eagle Outfitters, Gap and Levi Strauss & Co have sent an open letter to Cambodia’s government expressing their concerns over the recent violence. They also called for government, manufacturers and trade unions to develop a regularly-scheduled wage review mechanism. The companies have said that they would continue sourcing from Cambodia and urge for a peaceful resolution to end the unrest. They have expressed strong displeasure over violence, calling for negotiations among stakeholders to peacefully resolve the dispute.

However, the Washington-based International Labour Rights Forum has said that while it is commendable that brands are willing to speak up, further steps must be taken. It has urged brands and retailers to voluntarily pay higher prices for apparel products made in Cambodia, so that the factories are able to pay higher wages to its workers. The organization has also asked them to develop long-term relationships with suppliers instead of hobnobbing across countries looking for factories offering a product at lower rates, so they are able to have control on the offshore working conditions. 

According to Asia Floor Wage, developing countries such as Bangladesh and Cambodia would be able to progress to the next economic level only when the issue of low wages is amicably resolved. And for that, it points out that garment-producing countries must take wage completely out of competition and start competing instead on logistics or raw material supplies. 

www.ilo.org
www.asiafloorwage.org