Recently, the Cambodian government and the labor union of Cambodia decided not to adjust the minimum wage in 2021. However, Cambodian Prime Minister Hun Sen added 2 US dollars on this basis as usual. As a result, the minimum wage will be adjusted to $192 in 2021.
This year, under the impact of the new crown pneumonia epidemic and the partial cancellation of EU trade preferences, Cambodia's clothing and footwear industry has been seriously affected. Lu Qijian, Secretary General of Cambodian Garment Manufacturers Association, told reporters that up to now, more than 150 factories have been temporarily suspended, affecting as many as 150000 workers. Lu Qijian said that in the current economic downturn, any increase in costs will have an impact on the competitiveness of enterprises.
On the one hand, the unions are not satisfied with the results of the wage negotiations. Aiton, chairman of the Cambodian Labor Federation, said that the wage adjustment was too small to keep up with the inflation rate and could not guarantee workers a decent life. Previously, the salary increase target put forward by the labor side was 202.35 US dollars. "Hundreds of enterprises in our trade union have closed down and the situation has improved slightly, but we are still deeply worried about the future of the garment industry." Said Eaton.
Since the outbreak, in order to reduce the pressure on enterprises, the Cambodian government has successively introduced many trade facilitation measures and provided cash subsidies to the affected families. According to the statistics of the Ministry of Finance and economics of Cambodia, about $78 million in cash subsidies have been given to about 670000 poor families since June 24. In the first seven months of this year, the government's fiscal revenue decreased by about 10.72% over the same period last year, but the expenditure increased by 18.31% in the same period, and the fiscal deficit has increased to 214 million US dollars.