Monday, January 5, 2015

ILO::ILO presses brands to absorb wage hikes

PHNOM PENH - The International Labour Organisation (ILO) has called on apparel brands which source from Cambodia to absorb some of the cost of implementing the new minimum wage which has recently been set at US$ 128 per month. The ILO claims garment manufacturing factories are now facing the double-whammy of rising staff wages and stagnating apparel export prices and argues that brands should look to reflect the new minimum wage in the form of higher 'Free on Board' or export prices prices for 2015."
The new minimum wage for the approximately half-a-million workers in Cambodia's garment and footwear industry came into effect on 1 January. The ILO estimates that average wages (including bonuses and overtime) in the garment industry are likely to rise from US$ 183 to US$217 per month, while the pay rise is expected to increase factories' wage bills by approximately 18.7 per cent.

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