Mass strikes in Cambodia last week are set to cost the local textile and garment industry around US$14m, according to the Garment Manufacturers Association of Cambodia (GMAC).
In addition to the financial damage, the strikes could shake confidence in the future and affect orders, it says.
“The losses resulted from the suspension of production, discounts granted to buyers due to delays, expedited shipments by air, as well as damage by strikers,” Ken Loo, secretary general of GMAC, told just-style.
The strikes involved more than half of garment workers from 30 factories in the country, and were led by Ath Thun, president of the Coalition of Cambodian Apparel Workers Democratic Union. It wants to increase the minimum wage for garment workers to $93 per month, from the current rate of $61.
The Cambodian government brought an end to protests by announcing a meeting next week (27 September) to discuss issues including the the minimum wage. GMAC is due to release an official statement on the negotiations, Loo told just-style.
A minimum wage deal in the country had previously been determined on 8 July 2010 by the country’s Labour Advisory Committee.