Cambodian garment workers get wage hike

July 13, 2012 (Cambodia)  

Fibre2fashion News Desk - India 

Pursuant to an agreement reached between the garment manufacturers and union leaders, garment makers across Cambodia have accepted to increase the salaries of their workers by US$ 10 per month.

The increased sum includes payment of US$ 7 towards house rent allowance or transport fees and US$ 3 as attendance bonus for garment workers.

Following the rise, from September 1, 2012, onwards, a garment worker in the Kingdom would be entitled to a minimum salary of US$ 73 plus a US$ 10 attendance bonus.

The agreement was reached under the negotiation of Minister of Labour Vong Sauth, held at the request of Prime Minister Hun Sen, said Nang Sothy, Co-Chair of the Government-Private Working Group on Industrial Relations.

The need for wage negotiation arose after the labour unions warned last month that they would be holding a large-scale protest in August demanding hike in wages.

The garment industry, the biggest foreign exchange earning industry of Cambodia, exported around US$ 4.24 billion worth of products during last year, 25 percent more than its previous year’s exports.