Monday, September 20, 2010

14 million USD lost by strikes in Cambodia

Cambodian workers strike outside a garment factory in Phnom Penh on September 13. Cambodian union leaders have called off a mass strike by tens of thousands of garment workers demanding higher wages after the government stepped in and arranged talks with manufacturers (AFP/Tang Chhin Sothy)

20/09/2010
Phnom Penh Post

GARMENT worker strikes cost the industry US$14 million last week due to production halts and shipment delays, but lasting damage may have been done to the sector’s reputation, according to the Garment Manufacturers Association in Cambodia.

Losses resulted from the suspension of production, discounts granted to buyers due to delays, expedited shipments by air, as well as damage by strikers, Garment Manufacturers Association in Cambodia (GMAC) secretary general Ken Loo said yesterday.

Estimating the industry lost $14 million during the strike, he said it had also sent the wrong messages to potential investors and buyers.

“There are future consequences from the strike – it may spoil the reputation of garment manufacturing in Cambodia and buyers may stop orders,” he warned.

Employees from an estimated 30 factories walked off the job from Monday to Thursday in an effort to boost the minimum wage up to $93 a month, according to Ken Loo.

At least 10 factories have filed lawsuits against the striking union to ask for compensation for damages, as well as court recommendations for the workers return to work, and to suspend several of the strike masterminds, he said.

Strike leader Ath Thun, president of the Coalition of Cambodian Apparel Workers Democratic Union, said he had heard about the lawsuits launched by factories, but had not received official court notices.

“Our strike was in compliance with Cambodian law,” he said. “We informed relevant authorities more than two months before the strike – we did nothing wrong.

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