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Article

1 Nov 2017

Author:
Robin Spiess, The Phnom Penh Post

Cambodia: Brands support higher minimum wages for garment industry; smaller companies fear profit loss

"Garment sector torn over wage hike", 2 November 2017

… While some of the largest apparel giants sourcing from Cambodia have shown widespread support for the wage increase, smaller companies lament the anticipated loss of profitability and all businesses fear increased political tensions...

Ulrika Isaksson, press officer for Swedish company H&M, said that the brand welcomed the new law, claiming the company is in favour of higher minimum wages to support garment workers…

Rebecca Maund, senior brand and corporate public relations manager of British retailer Debenhams, responded similarly.

“Debenhams is working with a number of global brands, retailers and trade unions to help achieve living wages for workers in Cambodia,” she said…

Eric Tavernier, CEO of French-based textile firm We Group Ltd, admitted the increase in the minimum wage has made him question continuing operations in Cambodia…

A joint global statement from the Clean Clothes Campaign, Workers Rights Consortium (WRC) and International Labor Rights Forum released last month pleaded with Western apparel giants sourcing from the Kingdom to take a stance against the recent political crackdown…

Jessica Champagne, the WRC deputy director for field operations and strategy, said that she had already been in touch with several businesses,…

While ETI’s Executive Director Peter McAllister said he believes overall political stability is important for investment in Cambodia,…

“We’re deeply concerned by the ongoing political situation in Cambodia,” said Gap Inc representative Laura Wilkinson.

Katrin Ehrenberg, communication specialist for global apparel company C&A, said that the political climate could force the brand to source elsewhere…