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Artikel

5 Dez 2023

Autor:
Manoj Mathew, Khmer Times

Cambodia: Workers from 28 garments, footwear & travel goods factories to receive job loss allowance due to factory suspensions amid a decrease in global demand & slowdown in exports

"Workers of 28 GFT factories to get job loss allowance", 5 December 2023

Workers of 28 garments, footwear and travel goods factories whose labour contracts were suspended in September, October and November 2023 will be provided allowance as per the government policy, a notification of the Ministry of Labour and Vocational Training (MLVT) said...

The factories suspended the labour contracts of the workers due to a decrease in global demand and a subsequent slowdown in the exports of GFT goods from the country.

...each worker who lost the job will get $40 dollar a month as an allowance. Factory owners are expected to contribute another $30 as well. The welfare package for those who lost jobs in the sector was announced by the government last March.

MLVT also made it clear that the financial support will continue during the suspension period of their contracts and it attributed the job losses to the current “global economic crisis.”...

It, however, did not specify the number of workers whose contracts were suspended or whether the 28 factories ceased operations fully.

Apart from the prolonged Russia-Ukraine war and subsequent inflationary pressures, the non-renewal of the Generalized System of Preferences (GSP) by the US and the reduction in Everything But Arms (EBA) benefits by the European Union (EU) have also hit the Cambodian GFT exports hard, leading to factory closures and job losses...

According to a recent report of the General Department of Customs and Excise (GDCE), Cambodia exported $8.96 billion worth of GFT goods during the first ten months of the year, a sharp decline from the $10.78 billion the country exported during the same period in 2022...

the earnings from the sector declined mainly due to the worsening international economic situation and the subsequent drop in demand, especially from the US and the European Union (EU)...

...the GFT goods exports declined every month during the year so far except in June when they gained one percent growth relative to June 2022...

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