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Report: Making the case for higher wages in the Cambodian garment sector
by AGHub Admin created 2023-09-07T13:39:47+07:00
This report has been commissioned by CNV International as part of their Fair Work Monitor to provide key data on incomes and expenses of workers, which would be useful to understand the economic situation of workers and support stakeholders to respond to the situation.

Takeaways

  1. The findings of this study indicate a further decline in the Cambodian garment sector workers' conditions since the 2022 survey, highlighting a worsening situation.
  2. Despite median take-home salaries being above the statutory minimum and also above the GLWC benchmark, most workers struggle to cover basic expenses, implying a lack of living wages.
  3. While lay-offs due to pandemic-related order cancellations increased worker debt, global economic shocks and insufficient wages have compounded this situation.
  4. The percentage of workers borrowing money to meet expenses has risen in 2023, with workers borrowing money worth a median of 18 months' salary.
  5. About 40% of surveyed workers have taken secondary jobs due to low wages and frequent overtime, revealing financial strain.
  6. A substantial 50%-150% wage increase (based on the gap between the median monthly expenditure and the median debt of the respondents) is required to bridge living cost gaps, and addressing the gender pay gap is vital. Stakeholder cooperation, including employers, government, trade unions, and buyers, is essential for sector recovery and to assure living wages for the Cambodian sector workers.

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