BREAKING: Minimum wage set at $153 for 2017

Officials attend a meeting earlier today at the Ministry of Labour in Phnom Penh where the new garment industry minimum wage was set at $153. Hong Menea

Thu, 29 September 2016

Ananth Baliga and Lay Samean

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After three months of negotiations, next year’s minimum wage for the Kingdom’s garment sector was set today at $153 a month, far short of unions’ demands for $171.

The 28-member Labour Advisory Council (LAC) met this afternoon to select one of the three figures –employers’ $147 offer, the government’s recommendation of $148 and unions’ request for $171 – put forth after the tripartite negotiations ended yesterday.

The council ultimately settled on the $148 proposal, which was then given a $5 boost by Prime Minister Hun Sen.

Unions’ previously unified front failed to hold in yesterday’s LAC vote, with only two independent unions backing the $171 demand. The other twenty-two members – including five pro-government unions – voted for government’s proposed $148. Four government members were absent and therefore did not cast votes.

“We hope the garment workers are happy and will accept this wage, even though this is not 100 percent of what they wanted,” said Labour Minister Ith Samheng.

This is the third year that Hun Sen has intervened and added $5 to the LAC’s recommendation, with ministry spokesman Heng Sour saying the government had the right to decide the final wage taking into account the social wellbeing of workers.

Cambodian Labour Confederation’s president Ath Thorn said he was far from satisfied at the $153 figure, which was considerably below their wage request.

“We are also very disappointed with some union representatives who did not vote with us but with the government,” he said.

Whether unions would consider the options of protests, Thorn said that would be determined by workers’ reaction to today’s announcement.

Van Sou Ieng, chairman of the Garment Manufacturers Association in Cambodia, said the roughly 9 percent increase in the wage was “on the high side, but acceptable”.

“This is a big increase as compared to the inflation figure for the last year,” he said. “But one has to accept the needs of our colleague [workers] to have a better life.”

He said the garment market has been “tough” the last two years and that workers needed to take calls for increased productivity “to heart” when making their wage demands.