Both sides recently met during the second round of negotiations for the new minimum wage for the sector for next year.

Trade unions said their demand is based on the rising cost of living due to inflation and the cost of daily expenses. The unions think the interest rates on loans from Cambodian banks are low now, and therefore, investors should have access to cheap capital, while the employers point out that their investors mostly borrow money from banks abroad where the interest rates may be higher, he added.

The discussions took place at the Ministry of Labour and Vocational Training, where representatives from both labour unions and employers presented their initial proposals for wage adjustments.

“It is an opening figure from both sides. And I believe that these figures will grow closer together at the next meeting and the government will do everything possible to bring each side closer to the other. As of the latest meeting, both sides still did not agree, but we will abide by the minimum wage law and we will vote at the last meeting on September 26 to get our final figure,” Minister of Labour Heng Sour was quoted by domestic media outlets as saying at a press conference following the meeting.

Market competitiveness and logistics costs are two areas where workers and employers do not seem to agree with each other, Sour added.

Fibre2Fashion News Desk (DS)