New Straits Times
THE livelihoods of up to 3,000 workers could be affected, as 10 factories have filed for temporary suspension. This followed the drying up of supplies from China due to the Covid-19 outbreak.
According to the Phnom Penh Post, Labour Ministry spokes-man Heng Sour said the worst was yet to come.
He said as many as 200 factories and enterprises could run out of raw materials.
“The worst-case scenario is that 160,000 workers will be affected.”
Sour said the ministry had devised a scheme that guaranteed suspended workers would receive at least 60 per cent of the minimum wage.
“Per the scheme, employers are required to pay suspended workers 40 per cent of the minimum wage, with the remaining 20 per cent shouldered by the government. The ministry has also prepared training to help suspended workers access new employment opportunities.”
He said the government was making all efforts to restore relations with buyers, factories and other governments.
“We are working to end the shortage of raw materials as quickly as possible, including negotiating with China for priority over their supply of raw materials.”
He said the production standstill in China was affecting supply chains around the world, particularly in Asia and pointed out that many factories in South Korea were also suspending operations due to a shortage of raw materials.
Sour hoped that Cambodia would be first in line once raw material supply chains were restored.
Labour Confederation president Ath Thorn lauded the government’s strategy to deal with laid-off workers but questioned whether enough had been done to protect their livelihoods.
“I think the scheme will support workers, but only in the short term. What would happen if the shortages last longer than expected?
“We cannot expect factories to continue paying 40 per cent of the minimum wage indefinitely if they are not open. I want to see more concrete policies to help the workers,” Thorn said.
There are 14,060 ministry-registered enterprises, collectively employing over 1.43 million people. Around 1,200 of those enterprises are garment factories.