Listen to the audio version of this article (generated by AI).
Hundreds of garment workers in Kampong Speu province went on strike from Tuesday, demanding improved benefits, including higher transportation and meal allowances, as rising fuel costs strain their daily expenses.
Gasoline and diesel prices have climbed to 5,500 riel ($1.38) and 6,550 riel ($1.64) per liter across Cambodia, according to the Ministry of Commerce, amid a global energy crunch linked to the U.S.-Israeli war with Iran.
About 400 workers at J Star Garment in Kampong Speu blocked National Road 3 on Tuesday before dispersing in the evening following intervention by the Labor Ministry, it said. Workers said they were demanding higher transportation and meal stipends, as well as an additional 2,000 riel ($0.50) for overtime pay.
J Star Garment did not immediately respond to an email request for comment.
While many have returned to work, several workers and unionists told CamboJA News they would continue striking.
Labor Ministry spokesperson Sun Mesa said the dispute had been resolved, adding that factory owners agreed to raise workers’ pay by $3, effective immediately. He also said 37 worker dispute cases recorded between January and February had been resolved, a figure that contrasts with complaints from unions that many cases drag on for years.
But Heam Samon, a worker who said she joined the strike on Tuesday, said demands for increased benefits to offset rising living costs remain unmet.
“The driver has asked to increase the fee [usually $10] by $3 because fuel prices are high,” she said, referring to transport providers who take workers to the factory.
“The $8 transportation stipend is not enough to cover commuting costs,” Samon said, adding that the factory’s $1 increase in transportation stipends and $2 monthly attendance bonus, bringing the total to $12, does not meet workers’ needs.
She said about 70% of workers remained on strike.
Kong Atith, president of the Coalition of Cambodian Apparel Workers Democratic Unions, said rising transport fees have affected workers’ attendance, which is tied to bonus payments.
“We are working to resolve the problem today,” he said, declining to comment further.
Ek Sophoeun, a bus driver who transports garment workers, said rising fuel prices are affecting his business and he is considering increasing fees.
“I am thinking of raising the price to 10,000 riel ($2.50) per worker because of higher fuel costs,” he said.
He currently charges workers in Kampong Cham province, who travel farther than those in Kampong Speu, 65,000 riel ($16.25) per month.
Sophoeun said he previously used about 300 liters of diesel per month, costing more than $250, but expects expenses to double following the recent price surge.
Yang Sophorn, president of the Cambodian Alliance of Trade Unions, called on the government, particularly the Labor Ministry, to address the issue, warning the garment and textile sector could face knock-on effects.
Kaing Monika, deputy secretary-general of the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), said the fuel cost surge has significantly increased costs for both factories and workers.
“Logistics companies have already informed our factory members of the cost increase, especially trucking cost,” he said, also acknowledging that transport fares for workers have also risen.
“[…] Factories are facing pressure. Higher cost means thinner profit margin. It’s too early to assess the overall competitiveness against other countries, pending policy intervention from their respective governments,” Monika said.
