As night falls in Phonm Penh, thousands of weary workers stream from textile factories, reflecting the abundance of jobs created by the clothing industry’s desire for cheap labor.
However, as the number of international clothes companies tapping into Cambodia’s workforce grows, so does anger at the low wages and tough conditions that come with such employment in the global garment industry.
Twenty-five-year-old Ou Nin looks exhausted as she describes working for a US clothes brand for just above US$5 a day.
Photo: AFP
“They print on T-shirts. The smell is very unpleasant, it is unbearable,” she said while waiting for the truck to take her home.
Overwork, malnutrition and poor ventilation are to blame for staff fainting in factories since 2010, said Moeun Tola, program manager at the Community Legal Education Centre, which provides advocacy for workers.
“It’s often hot inside these factories. Sometimes they inhale toxic substances,” he said, adding that last year, 1,100 workers are known to have lost consciousness at work while a further 30 fainted in a workshop in mid-January.
With bonuses and overtime, workers can earn an average of US$110 a month — a low salary given Cambodia’s cost of living — forcing many to work beyond the legal limit of 60 hours a week.
A series of strikes point to festering discontent — leaving the big global clothes brands and the factories they subcontract to trade accusations over who is driving salaries down.
Protests by workers have also turned ugly. Three women, employees of Puma supplier Kaoway Sports, were wounded when a gunman opened fire on protesters demanding better working conditions at factories in eastern Svay Rieng Province in February last year.
The shooting prompted Puma, Gap and H&M to express their “deep concern” and urge a thorough investigation.
However, discontent lingers on the factory floor where 400,000 of the 650,000 people employed in the industry work for foreign firms.
Soey Eao, who has worked in the industry for five years, lives in a dormitory behind her factory, paying nearly US$20 a month to share a room with three colleagues.
Hundreds of workers co-exist in similar spartan concrete lodgings, without water or electricity.
“With overtime, I can reach US$78 a month. I work 12 hours a day, sometimes seven days in a row to earn more,” Soey Eao said, adding that she sends one-third of her salary to her family. “I’ve already protested for a raise. I cannot even eat well because I’m trying to put money aside, I just buy the minimum to survive.”
Soey Eao is hopefulthat her situation may change with her union pushing to boost the minimum wage from the US$60 a month to about US$100.
Yet while strikes have turned up the heat on factory owners and international brands, she said that many workers still “do not even know they have rights.”
The International Labour Office, which regularly inspects textile mills in the country, has called for a new industrial agreement between the government, factory owners and unions.
“Clearly there is some room for additional payment,” the group’s Jill Tucker said, adding that after Bangladesh, Cambodia is one of the cheapest places to make garments.
Cambodia’s factory owners say the problem is not their fault and blame the profit margins of foreign brands for driving down wages.
“If our wages were comparable to Vietnam, would investors come to Cambodia? No way,” said Ken Loo, secretary-general of the Garment Manufacturers Association in Cambodia.
“They [buyers] are the ones who set the margin, not us,” he said, warning that if Cambodia raises the minimum wage it would “have to be prepared for what comes after,” hinting that companies may choose to relocate.
However, several big brands contacted by media denied they were cutting wages.
Swedish fashion giant H&M, which in October last year was forced to deny accusations that it encouraged “slave-like” wages at a subcontractor’s factory, said it was not directly responsible for the factories producing its garments.
“H&M does not own any factories and therefore does not set or pay factory workers’ wages,” company spokesman Malin Bjorne said, adding that Cambodian factories produce for many brands.
“The employees at a factory are paid the same wages regardless of which brand they are producing garments for — and regardless of what the final price will be in the store,” Bjorne said.
Mercuries Life Insurance Co (三商美邦人壽) shares surged to a seven-month high this week after local media reported that E.Sun Financial Holding Co (玉山金控) had outbid CTBC Financial Holding Co (中信金控) in the financially strained insurer’s ongoing sale process. Shares of the mid-sized life insurer climbed 5.8 percent this week to NT$6.72, extending a nearly 18 percent rally over the past month, as investors bet on the likelihood of an impending takeover. The final round of bidding closed on Thursday, marking a critical step in the 32-year-old insurer’s search for a buyer after years of struggling to meet capital adequacy requirements. Local media reports
AI BOOST: Although Taiwan’s reliance on Chinese rare earth elements is limited, it could face indirect impacts from supply issues and price volatility, an economist said DBS Bank Ltd (星展銀行) has sharply raised its forecast for Taiwan’s economic growth this year to 5.6 percent, citing stronger-than-expected exports and investment linked to artificial intelligence (AI), as it said that the current momentum could peak soon. The acceleration of the global AI race has fueled a surge in Taiwan’s AI-related capital spending and exports of information and communications technology (ICT) products, which have been key drivers of growth this year. “We have revised our GDP forecast for Taiwan upward to 5.6 percent from 4 percent, an upgrade that mainly reflects stronger-than-expected AI-related exports and investment in the third
TECHNOLOGICAL RIVALRY: The artificial intelligence chip competition among multiple players would likely intensify over the next two years, a Quanta official said Quanta Computer Inc (廣達), which makes servers and laptops on a contract basis, yesterday said its shipments of artificial intelligence (AI) servers powered by Nvidia Corp’s GB300 chips have increased steadily since last month, should surpass those of the GB200 models this quarter. The production of GB300 servers has gone much more smoothly than that of the GB200, with shipments projected to increase sharply next month, Quanta executive vice president Mike Yang (楊麒令) said on the sidelines of a technology forum in Taipei. While orders for GB200 servers gradually decrease, the production transition between the two server models has been
ASE Technology Holding Co (日月光投控), the world’s largest integrated circuit (IC) packaging and testing supplier, yesterday announced a strategic collaboration with Analog Devices Inc (ADI), coupled with the signing of a binding memorandum of understanding. Under the agreement, ASE intends to purchase 100 percent shares of Analog Devices Sdn Bhd and acquire its manufacturing facility in Penang, Malaysia, a press release showed. The ADI Penang facility is located in the prime industrial hub of Bayan Lepas, with an area of over 680,000 square feet, it said. In addition, the two sides intend to enter into a long-term supply agreement for ASE to