Garment factories flag money issues as workers go without pay

Cambodia’s garment and footwear factories say they might not be able to continue paying workers even reduced wages beyond this year’s Khmer New Year, as foreign orders for clothing dry up amid the global coronavirus crisis.

Garment Manufacturers Association in Cambodia deputy secretary general Kaing Monika said that owners of factories with suspended production had complied with Prime Minister Hun Sen’s directive to continue paying workers 40 percent of the $190 monthly minimum wage but may soon struggle to stay solvent.

Under the directive, the government said it would pay the furloughed workers an additional 20 percent of the minimum wage to help mitigate a looming crisis for the hundreds of thousands employed in Cambodia’s biggest export sector.

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