Garment and Footwear Sector Minimum Wage Set to Increase
On 26 September 2016, Managing Director of Sok Xing & Hwang Mr. Sok Lor (in his capacity as Secretary General of the Cambodian Federation of Employers and Business Associations) led the negotiation team of private sector employers in the three-party technical negotiation on minimum wage level for the garment, textile and footwear sectors for the year 2017.
As a basis for the minimum wage review, seven (7) social and economic criteria were discussed. These are comprised of productivity growth, national competitiveness, economic conditions, profitability of sectors, needs of workers and their families, inflation, and costs of living.
The tripartite negotiation – among the Cambodian government through the Ministry of Labor and Vocational Training, private sector employers, and trade unions – has yielded in concrete recommendations, which were forwarded to the plenary meeting of the Labor Advisory Committee for endorsement and approval. As a result, the minimum wage level for the garment, textile and footwear sectors has been set to rise from the current level of US$140 per month to US$153 per month, effective on 01 January 2017.
Joining Mr. Sok Lor in the negotiation team of private sector employers were representatives from the Garment Manufacturers Association in Cambodia and multi-national enterprises, including Minebea, Cambodia Beverage Company (producer of Coca Cola), and Prudential Cambodia.