Monday, 24 November 2008

Export fees to be cut to aid textile sector

The Phnom Penh Post

Written by Nguon Sovan
Monday, 24 November 2008

PRIME Minister Hun Sen last week announced a 10 percent cut in export fees on garments and appealed to workers to stop strikes in order to avoid more turmoil in the already faltering sector.

"I have decided to reduce the export management fees and other charges by 10 percent to relieve pressure on you," Hun Sen said.

The announcement was made Friday during the 14th Government-Private Sector Forum following a request by Van Sou Ieng, president of the Garment Manufacturers Association of Cambodia (GMAC).

GMAC had asked for a cut of 30 percent to assist exporters.

Hun Sen also appealed to workers to stop striking, saying that Vietnam and China are gaining a competitive advantage over Cambodia in terms of productivity.

"I would like to appeal to labour unions that for the time being, it is not the right time for strikes. It is the time to take care of your rice pots," he said, adding that strikes would lead to a drop in orders, the possible closure of factories and rising unemployment."

As of October of 2008, there have been 95 strikes - a 48 percent increase compared to the same period last year," said Nang Sothy, chairman of the forum's industrial relations subcommittee.

Chea Mony, president of the 80,000-member Free Trade Union of Cambodia, said Sunday that workers do not want to stage strikes, but that they had no choice.

"When workers have a dispute with employers, they can not rely on anyone to help, even the Ministry of Labour," he said.

"The government has never cared about workers. For instance, 28 garment factories recently closed and the bosses escaped without paying workers. So, what can [workers] do if they do not stage the strikes?" Chea Mony added.

Tens of thousands of workers have already been laid off as garment orders drop due to decreased demand in the United States, Cambodia's biggest buyer, and elsewhere.

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