Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Garment workers face destitution as Covid-19 closes factories
Campaigners call for fashion brands to protect workers in their supply chains globally as coronavirus causes orders to dry up
19 March 2020
[excerpts]
The fashion industry is facing calls to step in and protect the wages of the 40 million garment workers in their supply chains around the world who face destitution as factories close and orders dry up in the wake of the Covid-19 epidemic.

Many factories in garment-producing countries including Bangladesh, Cambodia and Vietnam are already closing due to a shortage of raw materials from China and declining orders from western clothing brands.

Quarantine and self-isolation measures being rapidly imposed by governments across the world are likely to see the wide-scale closure of thousands more factories in the days and week to come.

Campaigners are demanding that brands take responsibility for the millions of workers in their supply chains who are likely to fall into crippling poverty as they lose their jobs and struggle to provide for their families.

The Clean Clothes Campaign, a coalition of campaigning groups, is also calling on brands to ensure that workers who contract the virus are allowed to take sick leave without repercussions from the factories and continue to receive their wages throughout their period of self-isolation.

The situation for garment workers in Cambodia and Myanmar is already dire as local media reports suggest up to 10% of factories in the Yangon region of Myanmar are already closed, with workers not being paid their salaries.

In Cambodia tens of thousands of garment workers could also lose their jobs in the coming weeks if the flow of raw materials into the country does not pick up.

Under Cambodian law, employers must seek government authorisation before suspending workers and pay them 40% of the $190 (£161) monthly minimum wage for up to six months. Yet local campaigners are saying that some factories have already sacked workers without pay. Many workers cannot afford to live on their normal salaries and are therefore in high levels of debt; they are now likely to default on their loans.

Tola Moeun, executive director of the Center for Alliance of Labor and Human Rights said: “Apparel brands have been profiting from the labour of Cambodian workers. These brands now need to step up in this time of crisis.”.
https://www.theguardian.com/global-deve ... -factories
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by Phnom Poon »

that is the role of governments and their taxes and welfare programs

.

monstra mihi bona!
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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GMAC urges buyers to fulfil purchase contracts
06 Apr '20

The Garment Manufacturers Associations in Cambodia (GMAC) has appealed to all buyers that source their goods from its members to work with the association to overcome the COVID-19 crisis. It wrote an open letter to all buyers asking them to fulfil purchase contracts by accepting delivery and paying for goods already produced and currently in production.

“This will save 750,000 jobs and enable factories to pay their workers and ensure the livelihoods of millions of Cambodians,” GMAC said in its letter.

“Our manufactures operate on razor-thin margins and have less ability to shoulder this burden compared to our purchasers, this burden is currently faced by our workers who still need to put food on the table,” Cambodian media reports quoted the letter as saying.
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by SternAAlbifrons »

Not going to happen ^^^ ^^^
The orders will be cancelled
and the workers ain't gonna get their legal entitlements
(by and large)
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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I can see a few wise investors waiting in the background ready to make a ridiculously low bulk offer for things that will not deteriorate with time ,, eg ,, shoes will still be in fashion even 2 or 3 years from now , even if they have been in storage for all that time.
Cambodia,,,, Don't fall in love with her.
Like the spoilt child she is, she will not be happy till she destroys herself from within and breaks your heart.
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Duncan wrote: Mon Apr 06, 2020 5:41 pm I can see a few wise investors waiting in the background ready to make a ridiculously low bulk offer for things that will not deteriorate with time ,, eg ,, shoes will still be in fashion even 2 or 3 years from now , even if they have been in storage for all that time.
And probably a few of those “wise investors” will be the original parties in the contract to supply the items back before the COVID-19 shitstorm hit.
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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New clothes pile up at Cambodian factories. Coronavirus forces U.S. brands to cancel orders
By David PiersonStaff Writer
April 15, 2020
3:56 PM
SINGAPORE — T-shirts, skirts and shorts are piling up at the clothing factories ringing the Cambodian capital of Phnom Penh.

Once destined for American and European stores, the spring and summer collections are casualties of the economic contagion that’s trailed the spread of the coronavirus, resulting last month in the biggest decline in U.S. retail sales on record.

Brands such as Gap and Old Navy can no longer sell the clothing and have canceled orders. That’s left factory owners and workers unpaid in an industry with little financial cushion to endure weeks without business.

“We only get paid when the clothes are delivered,” said Ken Loo, secretary-general of the Garment Manufacturers Assn. in Cambodia. “We have zero income and zero cash flow.

“We could sue them,” Loo said of the buyers refusing to pay, “but I don’t know if we’ll be around to sue.”

The crisis unfolding on the factory floors of the Southeast Asian country is but a snapshot of the economic fallout rippling across the globe. But while unemployment and bankruptcies will undoubtedly inflict pain on developed countries like the United States, where car factories and plane manufacturers have dramatically cut back in recent weeks, they will have an outsize effect on poorer ones like Cambodia.

The garment business employs more than 800,000 people in a country of 16 million. It generates about 40% of Cambodia’s economic output and 80% of its exports. The industry migrated from China to chase lower labor costs and remains a linchpin in the global supply chain for household names including Nike, Target and H&M.

That’s given workers like San Sopha steady employment for two decades. But the mother of two is being furloughed Thursday, her $250 monthly salary reduced to a $70 monthly payment mandated by the government, which is about one-third of minimum wage. That won’t cover the $90 she pays each month for her microfinance loan, a ubiquitous form of debt that an estimated 4 in 5 garment workers access to help make ends meet.
Full article: https://www.latimes.com/world-nation/st ... t-industry
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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77 new factories open in Cambodia in Q1 amid pandemic
25 Apr '20

Seventy seven new factories, including 34 belonging to the garment, footwear and travel goods sectors, opened in Cambodia in the first quarter of this year despite the COVID-19 pandemic, employing 27,909 people, the government recently claimed. Some factories, however, have witnessed a drop in purchase orders now, but will recover after the crisis, it said.

For Cambodia, most of the garment, footwear and travel goods factories still operate as usual because China has constantly supplied raw material despite the pandemic, Heng Sokkung, a secretary of state and spokesman for the ministry of industry, science, technology and innovation, was quoted as saying by a news agency.

According to him, six factories had permanently shut down during the January-March period this year, affecting 6,052 workers.

The garment, footwear, and travel goods industry in the country comprises around 1,100 factories employing 750,000.

A report from the ministry showed that the export of garment, footwear, and travel goods was valued at $9.32 billion in 2019, accounting for over 83 per cent of the country's total industrial product exports.

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https://www.fibre2fashion.com/news/appa ... etails.htm
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

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Garment Export to Drop 50 Percent in Second Trimester
AKP Phnom Penh, April 28, 2020 --
For the second trimester of 2020, Cambodia’s exports of garment and footwear products are expected to drop from 50 to 60 percent due to the impact of COVID-19 crisis.

The update was shared by H.E. Heng Suor, Spokesperson and Secretary of State at the Ministry of Labour and Vocational Training in a recent press conference.

He continued that during the first trimester of this year, the export of that industry was about 80 percent of the same period in 2019.

COVID-19 pandemic started to noticeably hit the European Union and the United States of America – Cambodia’s biggest markets of the products – in February.

From mid to late April, about 10 factories suspended their operation due to Covid-19, harming over 6,000 jobs, while from January to March, a total of about 130 factories halted their operation, affecting 100,000 workers.

However, during such circumstance, the workers are entitled to the subsidies of US$70 each – US$40 from the Royal Government and the rest US$30 from their factory.

By Lim Nary
AKP
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Re: Coronavirus Causes Slowdowns and Shutdowns in Cambodian Factories

Post by phuketrichard »

wait
34 new Garment factories opened in 1st quarter
and exports drop 50-60%
From mid to late April, about 10 factories suspended their operation due to Covid-19, harming over 6,000 jobs, while from January to March, a total of about 130 factories halted their operation, affecting 100,000 workers.
As worldwide orders drop or stop entirely, expect more closures and layoffs coming to the largest employer of locals in the country
In a nation run by swine, all pigs are upward-mobile and the rest of us are fucked until we can put our acts together: not necessarily to win, but mainly to keep from losing completely. HST
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