International Retailers Reduce Clothing Purchases From Kampuchea

Here world Clothing and shoes Xiaobian of the web is introducing international retailers to reduce clothing purchases from Kampuchea.

Recently, WAL-MART, H&M and other international garment buyers said that because of the successive strikes of garment workers in Kampuchea, the garment production was unstable and the supply was interrupted. They decided to reduce orders from now on. Subsequently, many factories in Kampuchea claimed that in the next few months, due to insufficient orders, factories would be underemployed and equipment idle. At the same time, workers in the country continue to ask for higher wages. If they are not satisfied, there will be a possibility of another strike. Industry insiders say that if another strike strikes again last year, it will cause a fatal blow to the clothing industry in Kampuchea.

The fuse leading to the reduction of orders is the lowest wage standard of the clothing industry in Kampuchea. The union requires a minimum wage of $177 a month from $100 a month. However, the Kampuchea Garment Manufacturers Association says that the minimum wage that the industry can provide is $110, which can not be further improved, which is based on the consideration of the survival of Kampuchea's manufacturing enterprises. Workers may go on strike again because the demands for union pay increase are not satisfied.

In this regard, Kampuchea clothing The production association (GMAC) said that the failure of wage mediation and the intensification of contradictions are very unfavorable to the development prospects of the garment industry in the country. It is reported that half of the 247 member companies of the association can not get enough orders and will be underemployed in the next few months. About 160 garment factories claimed that the total number of orders fell by 40% on average, and 1/4's clothing factories were forced to shut down some production lines or stop operating part of their production facilities.

International Garment buyers have lost confidence because the production of garments factories in Kampuchea is unstable and can not guarantee the continuity of the supply of goods. At present, the purchasers who have reduced orders are mainly WAL-MART, H&M, Levi's and Adidas, and some other small buyers.

The major brands are very concerned about the current dynamics of Kampuchea's clothing industry, and are anxious about the stability of supply or the interruption of production. Workers have been squeezed seriously, their rights are not guaranteed, and strikes have been suppressed. These phenomena make it difficult for major brands to place orders easily.