Kampuchea Manufacturers Jointly Cope With Rising Labor Costs

UN experts call for global brand help Cambodia Manufacturers jointly cope with rising labor costs. It is reported that the minimum wage of workers in Kampuchea has increased by 28% from January 1st to 128 dollars a month.

ILO expects Kampuchea Footwear industry The overall wage level will rise from $183 to $217 a month, and the factory's wage cost will increase by 19%.

At present, the main brands of shoes purchased from Kampuchea include Asics, Nike, Merrell, Dockers, Paul Smith, Adidas and Puma.

"Multi-party cooperation ensures Kampuchea's ready-made garments and footwear The competitiveness of the industry is very necessary. " Maurizio Bussi, director of the International Labour Organization in charge of Thailand, Kampuchea and Laos, calls for global brands to do their duty. Some major buyers have sent a positive signal that they will abide by their commitment to the Kampuchea government.

Since 2012, the minimum wage in Kampuchea has risen from the level of 61 US dollars a month. The price paid by Kampuchea factories is stagnation or even decline.

"Two factors, the operating profit of Kampuchea plant is seriously declining." Malte Luebker, a senior regional salary expert of the International Labour Organization, said: "in theory, factories can cope with wage growth by increasing efficiency and saving energy. But research shows that these inputs are incremental and can only offset a small increase in factory wage costs. "

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The European Sporting Goods Federation (FESI) welcomes the European Parliament's approval of Philippines products' tax-free access to the EU market.

In the middle of December 2014, members of the European Union voted through the European Commission's recommendations to include Philippines in the EU's GSP generalized preferential tariff system.

Prior to this vote, Philippines has benefited from the standard generalized preferential tariff scheme, which gives preferential treatment to exporters in developing countries to reduce or exempt tariffs from entering the EU market. And GSP+, which means a further removal of the total export tariffs of up to 6274 items, is a major blessing for Philippines's economy, FESI said.

Whether or not to grant GSP+ preferential treatment to a country depends on whether the country adheres to international conventions, attaches importance to human rights and labor rights, the environment and good governance.

"The European Parliament today took the right step to extend the GSP+ concession to Philippines, which will create thousands of job opportunities for the country and help it move towards the path of economic growth and development, while consolidating its commitment to the international community. The enhanced trade relations will also promote the European sporting goods industry to obtain high-quality procurement options, enhance the competitiveness of our industry, reduce production costs, in line with the interests of European consumers. FESI Secretary General Alberto Bichi said after the vote of the European Parliament.