The garment industry is the engine for the Cambodian economic growth and absorbed more than 34,000 workers. All Cambodian garment exports go to the US, and Europe. It is because of the global economic slowdown and decrease of international demand for Cambodian-made garments, 28 factories closed and more than 20,000 lost their jobs.
LA garment factory, Malaysian owner, located in Phnom Penh’s Russei Keo district closed its door earlier January 2009, and left more than 1,700 workers jobless and unpaid since December, 2008.
Totaling at least $400,000 needs to settle the debt with workers who demand the factory’s owner to pay two months’ salaries from December 2008 to January 2009- to all workers.
Ann Oudam, chief of factory’s human resource, was quoted by the Cambodia Daily as saying that the factory’s owner gave him and factory’s lawyer legal permission to act on behalf of owner in order to sell the property January 11.
“We are thinking of the worker’s interest, which is why we need to sell the properties by auction first, and then we will consider other liabilities,” said he.
“GMAC’s membership fell to 268 factories, the total number of workers in GMAC-affiliated companies also fell from 340,000 to 320,000,” said Kaing Monika, external affairs manager of the Garment Manufacturers Association in Cambodia, quoted by the Cambodia Daily.
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