Ahead of a projected increase in the minimum wage of garment workers, Cambodia’s garment manufacturers called for higher productivity in the sector. However, given the industry’s shaky labour relations, some unions questioned their commitment to enhance efficiency.
The Garment Manufacturers Association (GMAC) in Cambodia called for ‘a renewed focus on productivity’, and urged buyers to increase their prices for Cambodian goods, following the announcement this month that 2016’s wage would rise to $140 from the current $128.
Ken Loo, Secretary General, GMAC stated that wages comprise of a massive portion of a factory’s operating costs. Now, they need to see all parties, including the buyers, and focus on improving productivity to help offset rising costs and keep factories economically viable.
Loo also praised the negotiations process to set up the minimum wage, though he criticises the four trade unions that walked out for violating internal rules. His statement, though, did not mention any specific policies to raise productivity.
Coalition of Cambodian Apparel Workers’ President, Ath Thorn, welcomed the move to increase productivity, although he said that if did not improve conditions, output won’t change. He felt that employers need to have skilful management, stop discriminating against workers and also stop using short-term contracts. Besides, Thorn said, employer were hardly interested in upgrading outdated machinery or broad skill straining.
However, Loo mentioned that employers were not holding back productivity; workers though, were resisting small changes too, such as moving someone to a different section of the production line, he added. Loo further said that other policies to raise productivity should be left to individual factories, though the GMAC is building a garment training centre slated to open in September 2016.
www.gmac-cambodia.org