Phnom Penh: Cambodian unions have exposed the political intentions of the Asia Floor Wage Alliance behind the $250 minimum wage demand in Cambodia, arguing that the campaign may not only focus on improving workers’ livelihoods but also have other benefits related to attracting investment in the region, while some countries with lower wages than Cambodia are not encouraged to campaign for wage increases.
Sam Soeun, president of the National Union of Cambodian Labor, said that the Asia Floor Wage Alliance’s support for the $250 minimum wage demand may have an ulterior motive because pushing for higher wage increases could discourage new investors from investing in Cambodia, while existing investors may consider withdrawing due to rising production costs, especially wage costs.
Mr. Sam Soeun stated: “The promotion and support for the demand for a minimum wage of $250.66 clearly reflects that this organization is not working independently, transparently, and professionally.”
He said that this organization is encouraging a small number of unions to walk away from the tripartite mechanism of the National Minimum Wage Council and not using the seven criteria of the Minimum Wage Law as the basis for setting the minimum wage for Cambodia.
Mr. Sam Soeun stated that some unions that followed the path of Asia Floor Wage only used research on the living expenses of a worker who has to support an entire family and dependent parents. He said that such calculations make the cost requirements high, while the Cambodian minimum wage by law is based on the principle that one worker supports another.
For his part, Mr. Un Dara, president of the Cambodian Workers’ Union, said that the support of some unions and international organizations for the $250 wage demand in Cambodia should be carefully examined because setting wages too high, regardless of the country’s competitiveness, could affect the preservation of factories and the creation of new jobs.
Mr. Un Dara stated that: “Improving workers’ livelihoods must be done with preserving jobs and attracting investment, not just looking at the wage amount alone.” “What we need to ask some of the organizations that are struggling is what concrete measures are in place to ensure orders and secure sustainable employment for our workers.”
He said wage demands should be based on real data and consider the cost of living, labor productivity, employer capacity, economic conditions, and regional competitiveness to ensure that wage increases can benefit workers without jeopardizing existing jobs and new investment in Cambodia.
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