BSCI Welcomes Minimum Wage Increase for Cambodia's Garment Sector

11-12-2014

The Cambodian Government agreed mid-November to increase the minimum wage for the country's garment sector by 28%, from US$100 to US$128 a month. The decision, which comes on top of legally required benefits such as transportation, accommodation and meal allowances, will take effect as of 1 January 2015. BSCI welcomes this decision, as it represents a positive step to improving conditions for workers. However, this increase is considered not sufficient by labour unions, which battled for US$140. On the other hand, employer representatives claim such a large raise could close factories. The decision comes after almost a year of civil unrest which has led to several fatalities since January 2014 as well as various nationwide strikes by this sector. During this time, the Foreign Trade Association (FTA), which launched BSCI, has sent three letters to the Cambodian government urging for the end of violence and the establishment of a peaceful dialogue to achieve consensus with all involved stakeholders. Furthermore, BSCI participants expect that the factories they source from respect the right of the workers to receive a wage that is sufficient to provide them with a decent living for themselves and their families as well as legal social benefits. BSCI will undertake further follow-up to ensure the government continues to respect human and worker rights, especially as Cambodia is not yet a signatory of the relevant ILO conventions.

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