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Cambodian employers and worker representatives failed to reach an agreement on the 2027 minimum wage, with employers maintaining their $210 rate and workers pushing for $225, setting the stage for a final tripartite vote to determine the figure on September 30, according to Labor Minister Heng Sour.
Sour said that employers maintained their proposed rate of $210, along with a $2.50 transportation allowance that was added in March. However, most of the workers’ representatives continued to press for a $225 minimum wage.
The meeting this Wednesday would begin at 9 a.m. “We see two different figures, and those are the figures that will be put to a vote on the 30th,” Sour said.
He said wage negotiations should not be viewed simply as a demand for a significantly higher wage; the process should also consider competitiveness of the industry, preserving as many jobs as possible for workers and addressing workers’ needs.
“Although the two sides have different positions, they share the same goal of easing the burden on workers, but differ somewhat in how to achieve it,” Sour said.
Earlier today, the Independent Trade Union Federation and four other unions asked the government to add an $8 transportation or accommodation allowance to the existing $7 allowance in the minimum wage negotiations.
Sour said some unions believe higher wages would help workers, while others favor creating more jobs for workers’ family members to ease financial burdens while maintaining competitiveness and jobs for young people.
The government is also looking at easing living costs by reducing fuel taxes and helping workers in rented rooms access affordable public water and electricity services, as well as additional health protection, he said.
Noy, 36, a former worker at Le Crown Shoe factory, which closed last year, said she changed jobs after working in the factory sector because she felt that her 11 years of employment there provided her with little protection when it shut down. She said she only received her final salary and a small compensation.
Noy said the $210 basic wage is too low for workers who face high daily living expenses, bank debt repayments, water and electricity bills and other costs.
“For me, I think $210 is too little. Most people like me are usually in debt. So when factories close and reopen, it is very difficult to accept,” she said.
However, Noy acknowledged that the factory sector provides significant employment opportunities for people who do not want to migrate for work. She said the problem is the lack of job security with factories opening and shutting while wages remain relatively low.
Apart from advocacy for higher wages, a new campaign calling for higher wages threatens factory closures. It claims that higher wages would increase costs for factory owners at a time when economic conditions are “unfavorable for wage increases”.
Yang Sophorn, president of the Cambodian Alliance of Trade Unions, told CamboJA News that increasing wages is an important strategy to attract and retain workers in Cambodia.
“Although there are concerns that investors may move their capital to countries with lower wages, those countries may not necessarily have a sufficient workforce to meet the demand,” Sophorn said.
She said current wages cannot keep up with inflation and rising market prices, making it increasingly difficult for workers to meet their daily living expenses.
“The $250.66 figure proposed by workers is a reasonable level for workers to meet daily needs. It is not an excessive demand,” Sophorn said.
