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Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment wage cut

Garment wage cut

| Publication date 15 June 2007 | 07:00 ICT

Garment wage cut

The National Assembly passed a controversial law reducing the nightshift pay for

garment workers by 70 percent. Labor minister Vong Soth said the reduction was to

encourage companies to staff their factories at night and increase the competitiveness

of the industry. Soth said the reduction could create about 200,000 new jobs, local

media reported. Previously, night-workers received 200 percent more than day-rates.

The law reduces this to 130 percent. Union leader Chea Mony warned the salary cut

could lead to strikes. The garment sector is crucial to Cambodia's economic growth

and will face stiffening competition from China and Vietnam in 2008.

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