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A general strike broke out again in Cambodia. How difficult is it to invest and open a factory in Cambodia?


Release time:

2019-01-03

On the morning of December 26, 2018, more than 1000 workers went on strike in a factory in Lango District, Phnom Penh, Cambodia, in order to ask the boss for subsidies, otherwise they would not go to work.

On the morning of December 26, 2018, more than 1000 workers went on strike in a factory in Lango District, Phnom Penh, Cambodia, in order to ask the boss for subsidies, otherwise they would not go to work.

Some people said that many of them have been working here for 3 to 5 years, some even more than 10 years, but the factory owner has not given them a subsidy, so they collectively went on strike and protest. At present, the relevant officials of the Ministry of Labor are mediating the matter.

  

 

At about 9: 00 on December 27, 2018, a factory in Mianzhi District of Phnom Penh also went on strike by nearly 2000 people. It is reported that more than 200 men have been on strike for three consecutive days in order to demand seniority wages from the employers.

  

 

According to reports, many workers sat on the side of the road, while others stood outside the factory in protest. According to the pictures at the scene, some people even sat on the ground holding the heads of Prime Minister Hun Sen and his wife. The scene was very spectacular. Some people say that if the matter is not resolved, they will take the matter to Prime Minister Hun Sen.

  

 

According to the workers, their strike is to demand that employers pay them 5% of each person's seniority wage for 2016-2018 and maintain the original wage level and other benefits.

Some workers said that according to the latest labor law issued by the government this year, the factory must pay a certain length of service wage to the workers every six months. After many negotiations with the factory, the workers have not got satisfactory results. "We hope that the factory will settle all the length of service wages for us"

After the incident, the authorities intervened in the matter and cooperated with both parties to find a solution. After negotiation, the factory agreed to pay 5% of the workers' seniority wages from January 10, 2019. The strike lasted until about 2 p.m.

  

In June 2018, King Sihamoni signed the Labor Law Amendment Act. Article 89 of the amendment stipulates that the employer must pay the worker a seniority wage, I .e. 15 days' salary per year, and pay it semi-annually, I .e. a seniority wage equivalent to 7.5 days' salary in June and the remaining seniority wage equivalent to 7.5 days' salary in December.

Xiao Bian has lost count of how many workers' strikes have taken place this year. This is the n th time. It will be 2019 in a few days. The workers have got their wish, but the boss is going to cry......

"The boss is very difficult. The boss is really more difficult in Cambodia. How difficult is it?"

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The basic salary of workers increased to $182, which will be officially implemented on January 1, 2019.

In October this year, Cambodia concluded the tripartite negotiations. The Ministry of Labor officially announced a base salary of $177 for 2019. Prime Minister Hun Sen increased the base salary of $5 on this basis, and the base salary of workers officially rose to $182 for 2019.

   

Today, Prime Minister Hun Sen emphasized in his condolences to the workers that in a few days, the workers will be able to get a minimum wage of about $182, but this still cannot meet the needs of the workers.

Earlier, Prime Minister Hun Sen also stated that the minimum wage for workers will be raised every year and is expected to increase to at least $250 by 2023.

From January 1 onwards, factory owners must pay wages twice a month.

Prime Minister Hun Sen previously announced in a meeting with 15,000 workers at the "No. 5 drainage channel" in Mianzhi District that the government will implement a half-month salary system from January 2019, and factories across the country must pay workers every two weeks.

  

Someone said: "The implementation of a half-month salary system will cause workers to easily spend all their money". Some garment and shoe factories have called on the government to simplify the fortnightly payroll system to reduce the administrative burden on manufacturers. Manufacturers said that the implementation of a half-month salary system will inevitably increase the administrative workload and will also impose a burden on the manufacturers' cash flow.

Threat of EU tariff withdrawal

The EU announced on October 5 this year that it would start the process of withdrawing the EBA preferential tariff treatment (except arms) between Cambodia and Myanmar, which means that Cambodia may lose its trade preferential status (everything except arms) provided by the EU.

  

In 2017, Cambodia's exports to the EU totaled US $5.7 billion billion, and all exports received preferential tariff treatment. Without this treatment, Cambodia would have to pay more than 0.5 billion in taxes to the EU market. In this way, Cambodia's advantage will disappear and the bosses will be forced to leave.

In addition, the Cambodian Minister of Foreign Affairs and International Cooperation will attend the Asia-Europe Meeting next month, when he will hold talks with the EU Director-General, hoping that Cambodia can continue to receive EBA tariff treatment, which has become an urgent problem for Cambodia.

Workers fainted and strikes were frequent.

For most people, the incident of Cambodian workers fainting is no longer a new thing, and the reasons for workers fainting are often very strange. The workers themselves are in poor physical condition. They can faint when they smell gasoline and chicken excrement. They can faint when they hear the sound of sirens and car tires exploding. Even when they hear others talking loudly, they can be frightened. There are also various fancy serial fainting. It's strange that the boss is not "dizzy!

It is worth mentioning that in Cambodia, workers faint in factories not only have to bear medical expenses, but also face legal proceedings if a large number of workers faint while working in their enterprises. When the workers strike, the factory still requires the boss to pay wages. If the goods cannot be delivered to the ordering company within the expected period, the factory will have to compensate the ordering company for the losses. The factory will suffer huge losses.