Big brands must act on Cambodia's pay crisis

Big brands must act on Cambodia's pay crisis

The protests of Cambodian garment workers which ended in a fatal clash with police early this month highlight the plight of workers who make a significant contribution to the country's economic success.

The protesters, whose demonstrations bolstered efforts by the opposition Cambodian National Rescue Party to challenge prime minister Hun Sen, were demanding an increase in the minimum wage _ which is now US$95 per month (about 3,100 baht) _ to $160.

The demand of another $65 per month to the wage has been turned down by the Hun Sen government and the Garment Manufacturers Association in Cambodia (GMAC). In 2010, the minimum wage was $50 per month.

Needless to say, the Cambodian government wants to maintain the low wage _ the significant factor that makes Cambodia attractive to investors who supply to leading global fashion brands such as Gap and H&M. Over the past decade, many of the world's fashion labels have shifted their production base for this labour-intensive industry to developing countries. The garment industry is a huge sector that provides jobs to some 30,000 Cambodian workers.

Apart from the meagre income, these workers usually endure poor working conditions. Workplace-related illness has emerged as a significant health issue for Cambodian factory workers. There are reports of workers fainting en masse at some garment factories. One major incident involved a factory in Kampong Speu, where several hundred workers were rushed to hospital after they lost consciousness on the factory premises in 2011.

The frustration over low pay and substandard working conditions has fuelled many recent street protests and strikes in Cambodia. According to the GMAC, there were more than 130 protests last year over low pay and other labour-related issues.

Some labour strikes and demonstrations have ended in violent suppression. The clash on Jan 3 at SL Garment Processing, in which authorities used live ammunition to disperse protesters, killed at least five. There were also many injuries, while more than 30 protesters, including several monks, were thrown into jail for ''inciting violence''. The deadly clash adds negative accounts to Cambodia's rights record which was already dim thanks to tendency of the local authorities to treat the poor with heavy-handedness.

It simply reflects the ugly face of capitalism _ an obsession with minimum cost of production to maximise profits for investors. Garments and footwear are known as Cambodia's largest manufacturing industries, which accounted for $5.07 billion in exports through the first 11 months of last year. The industry continues to grow despite unstable political climate with confrontation between the Hun Sen government and the opposition, which rejected the result of the July 28 election for alleged vote-rigging.

Of course, the manufacturers may argue that they didn't break any laws in handing low pay to their workers. It's the labour law which stipulates the $95 monthly payment. It's not unusual for smaller factories or enterprise to pay less _ somewhere in the range of $60-85 _ to their workers. Only a few manufacturers are generous enough to give more than the rate required by law.

The latest unrest affected the factory's production, with some brands reducing their orders amid uncertainty over the damages. The investors, in order to stick to competitiveness in the vibrant world market, may eventually consider shifting their production base to other poor countries which still embrace unfair labour exploitation.

In fact, the labour situation in the neighbouring country repeats the experience of fellow Thai workers in the '70s, when the country was a still a base for cheap labour. It's much of the same experience of workers in the west and advanced countries in Asia several decades before this. It's the same picture of poor workers versus rich factory owners. Only the setting changes, from the west to poorer regions.

In fact, it was a long struggle until the labour movement in the west became strong, while informed consumers played a big part in creating labour justice in their countries.

In the late 2000s, a news report which linked a Dutch company with child labour in a base country in Asia prompted Dutch consumers to boycott the business until it moved against child exploitation.

In Cambodia, without bargaining power, workers will fight a long road before achieving what they deserve _ a better livelihood.

Who can help them? We are waiting for patrons of those international fashion brand names to have a say _ and take action.

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