Cambodian Panel Votes to Delay Wage Increase Until 2015

The Cambodian government, owners of garment factories and some unions decided Monday to hold off until 2015 on raising the minimum wage for workers, an issue that sparked strikes prompting a deadly government crackdown in January.

The decision was made at the 28-member Labor Advisory Committee (LAC)—which consists of the three groups—but at least one large union in the group slammed the move, saying it could fuel labor unrest.  

“After a discussion, the committee has decided to schedule Jan. 1, 2015 as the day that a new minimum wage will go into effect for garment and shoe workers,” a statement from the tripartite group said.

The committee also decided to begin debate on the new minimum wage for garment and shoe workers in July, with unions and the Garment Manufacturers Association of Cambodia (GMAC)—which represents factory owners—discussing the issue separately before meeting bilaterally in August.

In September, the two sides will meet together with the Ministry of Labor to discuss wages and in October the LAC will decide on the new standard before it goes into effect at the start of 2015, the statement said.

Minister of Labor Ith Sam Heng said that the decision reflected the interests of all participants in the wage talks.

“Each party defended their interests,” he told RFA’s Khmer Service.

“The discussion was tense at some points, but easy at others. This is normal during a discussion.”

However, Ath Thon, head of the Coalition of Cambodia Apparel Worker Democratic Union (CCAWDU), the country’s largest independent union, told RFA’s Khmer Service that the LAC should not delay its process of adopting a new wage minimum until next year, given recent labor unrest.

“We want to hold discussions and end the problem within this year,” he said, adding that his organization had voted against the decision to hold off on wages increases this year.

Labor unrest

Garment workers have been at the forefront of protests for higher wages and have faced several crackdowns by Cambodian authorities.

At least four civilians were killed in early January when police opened fire on striking textile factory workers who were calling for U.S. $160 a month, despite the government raising the minimum wage to U.S. $100 from $80 late last year.

Twenty-five workers and activists arrested in the crackdown were convicted last month of instigating violence during the garment worker protests and given between one and four-and-a-half years in prison, but their jail sentences were suspended and the group was set free amid international scrutiny.

In addition to asking for raises, workers have also taken to the streets to call for a monthly transportation allowance of up to U.S. $15 and other payments and bonuses, including U.S. $15 dollars for lunch.

GMAC representatives failed to turn up for tripartite LAC talks scheduled in April aimed at breaking an impasse in wage negotiations.

Key industry

Around a half million people work in Cambodia’s garment industry, which earns some U.S. $4.6 billion a year producing goods for Western clothing firms, but workers often work long shifts for little pay, trade unions complain.
It is the country's biggest employer and key export earner.

In May, 30 global brands—including H&M, Puma, Gap and Levi’s—and unions urged the government to bring to justice those who shot at the demonstrators in the January crackdown and to refrain from meeting peaceful worker movements with violence.

Levi’s said recently that it had cut sourcing from Cambodia to reduce supply chain risk and ensure delivery.

Vietnamese ship rammed by five Chinese vessels

On Saturday night, the 951 vessel docked in Da Nang to repair the damage caused by Chinese ships on June 23.   The left side of the vessel was seriously damaged by a Chinese ship. A hole caused by a Chinese ship.   The largest hole on the left edge, 25cm wide and nearly 1m long.   A damaged room in the vessel.   The ship is repaired by workers of the X50 Shipyard.   The damaged ventilation door.   The right side was alsodamaged.   The repair is expected to last for one week.   Recently, many ships of the Vietnam Coast Guard and Vietnam Fishery Surveillance were rammed byChinese vessels near China’s oil rig, which is illegally deployed in Vietnam’s exclusive economic zone and continental shelf.

PM reiterates Vietnam’s resolve to defend

Prime Minister Nguyen Tan Dung made the statement at a regular cabinet meeting in Hanoi on June 30 with all local leaders from across the country in attendance.

The meeting reviewed socio-economic performance in the first half of this year and discussed measures to manage the national economy and ensure security and defence in the rest of the year, especially following the illegal placement by China of its oil rig Haiyang Shiyou-981 in Vietnam’s waters in blatant disregard of international law.

In his speech, the Government leader once again denounced China’s legal actions which have seriously violated Vietnam’s sovereignty, sovereign rights and jurisdiction, threatening peace, stability and security in the region and adversely affecting the Vietnam-China friendship.

In this particular context, PM Dung called on the government along with local leaders to maximize their efforts in struggling and safeguarding the sovereignty of national waters.

“It is imperative to maintain a peaceful and stable environment, security and order to boost socio-economic development and successfully implement the targets and major tasks outlined since early this year.” Dung said.

He also suggested cabinet members and local leaders raise their sense of responsibility and contribute practical opinions to issue a Government Resolution with proper and efficient guidance measures in line with the real situation.

Concerning socio-economic development tasks in the six-month period, Planning and Investment Minister Bui Quang Vinh highlighted the efforts made by ministries, sectors, and localities in carrying out the National Assembly's Resolution No. 01 and the government resolution which have achieved positive results with controlled Inflation, slight increases in the consumer price index (CPI), stable market prices and assured demand -supply of goods.

Compared to last December, June’s CPI saw the lowest increase against the same period in 13 years.

Lower interest rates and stable exchange rates helped iron out snags in business operations and boost exports. Exports maintained high growth and the nation continues to enjoy a trade surplus.

Meanwhile, the State budget revenue was higher than last year’s same period. In terms of economic growth, the second quarter GDP growth rate was higher than that of the first one and is estimated to reach 5.18% in the first half, much higher than the growth rate of two years ago.

During the two-day meetings, cabinet members and local leaders will dilate on restructuring State-owned enterprises (SoEs) over the past six months, orientations for the use of revenues from restructuring and equitization of SoEs.

They will also hear reports and propose solutions for the East Sea situation and debate other important issues.

Boeung Kak land deal not yet sealed

The Singapore-listed developer that entered into a purchase agreement for 1.3 hectares of land at Boeung Kak lake – the site where thousands of families have been evicted to make room for development – has said the deal still needs legal approval before the sale can be completed.

The company, HLH, announced via a June 20 statement on the Singapore stock exchange that its subsidiary, D’Lotus Development, bought the land at Boeung Kak in Daun Penh district for $14.9 million from local developer Shukaku.

D’Lotus has already paid a 10 per cent deposit for the land, the statement says.

Executive deputy chairman and CEO Johnny Ong Bee Huat said Thursday that his firm was guided by international property giant Knight Frank, which had brokered the deal. But the agreement was still subject to due diligence, and HLH lawyers were currently looking in to the legal terms of the land purchase.

“I did not specifically choose Boueng Kak lake. We were introduced by the property agency; they recommended it to us and we just got introduced [to Shukaku],” Huat said.

“But we cannot be investing in any land [with] conflict or any sort of problem like that. We told our lawyer, you need to do all the due diligence, and [then] the court is doing the court order, and make sure the land is acceptable to invest in. Then we can enter.”

Knight Frank confirmed on Thursday that it was involved in the property sale, but declined to comment further, citing a client confidentiality agreement.

In 2007, the government agreed to a 99-year lease worth $79 million with Lao Meng Khin, a ruling Cambodian People’s Party senator and owner of Shukaku Inc, to develop 133 hectares at Boeung Kak. Not long after, the company began filling the lake with sand and residents were forced to leave. Many still contest the compensation offered with protests still ongoing today. Rights groups say that more than 4,000 families have been affected by the development.

In 2011, the World Bank suspended lending to Cambodia until the land disputes at the lake were resolved. Not long after, the government issued a sub-decree granting 12.44 hectares to families with legal ownership remaining at the development. There are still more than 40 families waiting for land titles, rights groups said last week.

Since HLH’s announcement to buy a piece of Boeung Kak, NGOs have questioned the legal right of a freehold purchase on government leased land, particularly if the original lease was contingent on Shukaku developing the land.

HLH CEO Huat also said last week that the specific location of the plot had yet to be defined and that it was common practice in Cambodia to check the legal status of the land after the deal had been brokered, and the security had been paid.

But Ros Monin, president of the National Arbitration Center, a body that works to resolve commercial disputes more efficiently, on Thursday cautioned that companies should complete a risk assessment prior to entering in to an agreement and before committing any deposit.

“To do due diligence, it is an individual’s commitment and is not required by law,” Monin said. “But it is more common that an investment company will want to do due diligence to check if the land is controversial or is really the possession of the one who is selling the land to them. If not, they might end up buying a controversial plot and find themselves paying for the court to settle the case.”

Monin added that not pre-defining the location also puts the agreement at risk.

“It is very unusual for a standard company to enter a land purchase agreement without knowing the exact location of the land. The purchase agreement can be taken as invalid since the subject matter of the agreement is not clear.”

Doth he protest too much?

Amid the gleaming interiors and high-end shops of Phnom Penh’s newly opened Aeon mall, Prime Minister Hun Sen yesterday saw something beyond the obvious leap forward for the Kingdom’s retail sector – the potential for chaos.

As he officially inaugurated the shopping centre at a ceremony attended by Japanese Foreign Minister Fumio Kishida, the premier said that if Cambodia did not have peace and stability, foreign investment like that behind the mall would vanish.

Japan’s Aeon Group has invested more than $200 million in the project, which is providing jobs to more than 2,500 Cambodians. Hun Sen warned that strikes for higher wages would paralyse business.

“Please, all youths, try to work hard for the success of the mall. If Aeon does not make profits, the mall bosses will not increase your salaries. There is no need to protest to destroy the mall,” he said. “Don’t become good at protesting or create any protests that will make Aeon shut down.”

In an apparent reference to the opposition Cambodia National Rescue Party, which the premier has previously accused of inciting garment workers to protest earlier this year, Hun Sen said that anyone who wanted to create instability in Cambodia was “a criminal”.

“Will anyone go to shop at Aeon Mall if the country is war-torn or when there is anarchy on the streets of the capital? There will be no one. Only peace and national reconciliation as well as political stability are the factors that serve the development of the country.”

Employees wait at the end of an aisle for customers during the inauguration of Aeon Mall in Phnom Penh yesterday. Hong Menea

The premier also used his distinguished Japanese guest, here on a three-day visit, to drive home the point about the consequences of losing foreign investment.

“Don’t play such things. If Mr Kishida returns back home, he will not die. But our 2,500 employees will die from losing their jobs. That’s the way it is,” he said.

Although the mall may not immediately spring to mind as a likely place of protest, the premier’s speech could end up as a self-fulfilling prophecy, said opposition party whip Son Chhay.

“By mentioning this, it’s like he is inviting people to protest at the mall. It’s very stupid to do,” he said.“The prime minister should understand that he is not running a communist state.

“Cambodia is supposed to be a liberal democratic country, and in a democratic countryfreedom of expression must be recognised.”

Ath Thorn, head of the Cambodian Labour Confederation, which represents a number of unions, also was quick to take umbrage with the premier’s warning.

“Staff working at Aeon are workers, so they have every right to nonviolently strike and protest based on the law if their bosses violate or exploit their benefits,” he said.

Thorn added that unionists would soon visit the mall to educate staff about their rights.

A store saleswoman at the mall who requested anonymity said she was receiving $120 a month and a $20 gasoline allowance on a probationary contract. She said workers were earning an additional $1 for each overtime hour worked.

“It’s too early to say anything about the working conditions, but it’s OK at present,” she said.

Social and political analyst Kem Ley said that by raising the issue of protests at the mall opening, the premier was making it clear the government is still scared of a protest movement taking off in the Kingdom.

“He’s scared. Why? Because many people right now [are willing to protest], not just land rights activists or factory workers but a new movement from all corners of society,” he said.

After almost 800,000 Occupy Central 'votes,' Hong Kong readies for massive protest

July 1, 2014, the 17th anniversary of Hong Kong's return to Chinese rule, is set to be a hot, possibly stormy day.But the suffocating weather won't stop pro-democracy Hong Kongers -- possibly hundreds of thousands of them -- from filling the streets, beginning at 3 p.m today. Activists are openly challenging China's vision for the city's political future, and they believe the public is on their side.In a recent unofficial referendum organized by pro-democracy activist group Occupy Central with Love and Peace (OCLP), 787,767 Hong Kongers voted in support of free elections for the city's next leader.READ MORE: Hong Kong's 'referendum' -- What you should knowThe almost-800,000 figure represents about 22% of registered voters in Hong Kong, out of a total of 3.5 million registered voters, according to government figures. Before the vote began ten days ago, organizers were hoping around 100,000 people would participate.

Benny Tai, a co-organiser of OCLP, said Hong Kongers were "using this opportunity to at least show Beijing how determined we are for universal suffrage."Hong Kong's former second-highest-ranked official, Anson Chan, echoed the sentiment in an interview with CNN on Monday."Whatever Beijing says in public now I think it can hardly afford to ignore the voices of 780,000 people."But the Chinese government's reaction was decidedly more frosty, with the government declaring the poll "illegal" and its results "invalid" even before the ballots were counted.Rimsky Yuen, Hong Kong's Secretary for Justice, has previously said there is no legal basis for the vote.

Yuen, as well a number of other, pro-establishment voices, declined to speak to CNN.
A recent Chinese state media editorial said the poll was a "farce." Searches for the referendum have also been heavily censored on the Chinese internet.Showdown over democracyThe city's pro-democracy camp wants fully democratic elections for the city's next leader, while China insists it will only allow elections in which it gets to approve the nominees. Specifically, Beijing says it will only allow candidates who "love China."The Occupy Central referendum outlined three plans to reform the upcoming election. All three plans proposed that candidates be nominated publicly, regardless of whether the candidates have Beijing's blessing.42% of participants picked a proposal by the Alliance for True Democracy, which said candidates for Hong Kong's chief executive should be nominated by the public, and conditions such as requiring candidates to "love China" should not be allowed.

Another question asked if Hong Kong's legislature should veto any nomination process that did not meet "international standards." This was overwhelmingly approved in the referendum.
The high numbers are a sign that Hong Kongers are not about to back down, said Tai.
"We have an offer and we have a baseline, and this is the thing we will give to the (Hong Kong government)," he told CNN. "I think a responsible government must respond to that. I cannot see any reason for refusing to meet with us."
But if negotiations fail, and no progress is made through legal means, then the group is prepared to disrupt the city to make their statement heard. As a final strategy, Tai says his group may marshal 10,000 people to sit and peacefully block traffic in downtown Hong Kong as a way to pressure Beijing into allowing Hong Kong to exercise "genuine universal suffrage."
"We will only resort to the civil disobedience action as our last resort," said Tai. "Only after exhausting all the legal means and still fail to achieve our goals will we resort to civil disobedience."
Grassroots support
The city is politicized like at no other time in its recent past. While the July 1st anniversary of the handover has always brought demonstrators out onto Hong Kong's hot, crowded streets, often numbering over 100,000, this year protests are expected to be super-sized.
Many Hong Kongers are enraged after the recent publication of a white paper by the Chinese government which declares Beijing's "comprehensive jurisdiction" over Hong Kong.
READ MORE: Alarm in Hong Kong at Chinese white paper affirming Beijing control
Chan said the white paper violates the "one country, two systems" principle enshrined in Hong Kong's constitutional Basic Law, which lets the city maintain high autonomy despite being a part of China.
The white paper "makes it quite clear that whatever autonomy we enjoy is for the central government to give and to take away at its pleasure," she said. "I think this has caused real concern."
The inflammatory document came days after 100,000 people showed up to an annual candlelit vigil for the victims of the 1989 Tiananmen Square crackdown.
"(The white paper) has spectacularly backfired, it's made people even more angry," Chan said.
What's next?
The situation in Hong Kong is volatile. Some activists fear a crackdown on freedoms by the Chinese central government, and others look nervously to the possibility of unrest at tomorrow's mass protest.
Michael DeGolyer, Director of the Hong Kong Transition Project, an independent organization that monitors governance in the territory, said the future is incredibly difficult to assess because no one is totally sure what China's officials are thinking.
"We're in a situation where we have a new regime in power and much more volatile circumstances, and we have groups that are much more separatist, challenging the legitimacy of the central government altogether," he said.
"In these circumstances, it is extremely difficult to tell what the central government intends and what they're thinking and how they'll react."
But despite the uncertainty, Hong Kong's democracy supporters remain hopeful.
"I do not think Beijing has made up its mind on universal suffrage, so let's see what happens in the months ahead," said Chan.
"The government stance has a little bit softened in the last few days. There's a chance there," said Tai. "After (the July 1 protest), we may be able to see whether there's any change in the stance of the Chinese government."