PM HE Warns of Unrest in Garment Sector Over Seniority Pay Demands
11 January 2019

PHNOM PENH — Prime Minister HE has warned of factory closures and further unrest as garment workers continue to protest over unpaid annual seniority bonuses.

Speaking at a meeting with thousands of garment workers in Takeo province on Wednesday, HE said the demands of the workers were unrealistic.

“Let me ask you, do we need to leave the factories to go bankrupt by collecting all the capital to provide the workers with a one-time payment and close down the factories afterward? Please consider this,” he said.

He added that factory owners had not previously paid out the annual bonus unless there were redundancies.

“In the past three or four years, there was never any provision of annual seniority bonuses unless there were layoffs,” he said, asking the workers where the demands for the bonuses had come from.

He warned workers that continuing to press for the bonuses could lead to the closure of two-thirds of garment factories in the country, without providing evidence to support the claim.

He also cautioned unions who were encouraging workers to demand the seniority pay, saying such a move was illegal. Factory owners will be required by law to pay seniority bonuses twice a year from 2019.
https://www.voacambodia.com/a/pm-hun-se ... 37432.html

The seniority pay is something I fail to understand. In fact it is not based on seniority at all and you only need to have been in service 1 month at the time of payment to receive your first 'seniority' payment. What makes it worse is that it is back dated to 2012, so the past economic basis of a business is changed and the cost has to be incurred by the future business in addition to the new payment, so for the next 6 years factories have to carry a 'double load' of seniority bonus as they pay the current amount due as well as the backdated payments.

For our company it is 15 days a year (non garment) which when you equate that to working days (52 x 5 - 28 national holidays - 18 personal days = 214) is about a 7% increase in labor cost with no additional benefit. To make it worse the seniority covers ALL payments to an employee, so if they work overtime their seniority payment increases, if they get a higher performance rating and hence a higher bonus, their seniority payment increases. All of this with no perceivable benefit to the business

I was told that for garment factories it is 30 days instead of 15 which I can imagine will be crippling and would be a tipping point for some to move out

Cambodia's future appears to be unraveling fast.

New masters in SVille bringing their boats in, bleak outlook for garment workers/factories - welcome to 2019.

I fear for the country that I fell in love with.

Element6 wrote: ↑Fri Jan 11, 2019 9:07 am The seniority pay is something I fail to understand. In fact it is not based on seniority at all and you only need to have been in service 1 month at the time of payment to receive your first 'seniority' payment. What makes it worse is that it is back dated to 2012, so the past economic basis of a business is changed and the cost has to be incurred by the future business in addition to the new payment, so for the next 6 years factories have to carry a 'double load' of seniority bonus as they pay the current amount due as well as the backdated payments.

For our company it is 15 days a year (non garment) which when you equate that to working days (52 x 5 - 28 national holidays - 18 personal days = 214) is about a 7% increase in labor cost with no additional benefit. To make it worse the seniority covers ALL payments to an employee, so if they work overtime their seniority payment increases, if they get a higher performance rating and hence a higher bonus, their seniority payment increases. All of this with no perceivable benefit to the business

I was told that for garment factories it is 30 days instead of 15 which I can imagine will be crippling and would be a tipping point for some to move out

You make it sound like Garment factory work and payments are so good that government employees will soon be demanding the same pay and conditions.
How long would someone have to work in a gov department before they were entitled to a extra star/stripe and wage increase.

Joker Poker wrote: ↑Fri Jan 11, 2019 9:17 am Cambodia's future appears to be unraveling fast.

New masters in SVille bringing their boats in, bleak outlook for garment workers/factories - welcome to 2019.

I fear for the country that I fell in love with.

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.

HE is no fool.
He is a hard worker whatever else people may say about him.

I fear he has a very difficult task to manage the Chinese presence now.

I do wonder what cards he feels are left in his hand to play, having already used his Chinese ace?

Moreover, can they pull the plug on him? There may have been many fair-weather friends, but after you've used them all, who is left - Western - no.

frank lee bent wrote: ↑Fri Jan 11, 2019 9:29 am HE is no fool.
He is a hard worker whatever else people may say about him.

I fear he has a very difficult task to manage the Chinese presence now.

HE is no fool when it comes to looking after his and his families welfare but by allowing the Chinese access to so much has not benefited his country or his countrymen (except his rich land owning colleagues)

As for these meetings with workers etc he holds they are a captive audience as they must attend and plus the bonus of a 5k-10k riel payment each is a large tv audience.
Does the CPP pay or is it from the government coffers?

Arget wrote: ↑Fri Jan 11, 2019 11:43 am

frank lee bent wrote: ↑Fri Jan 11, 2019 9:29 am HE is no fool.
He is a hard worker whatever else people may say about him.

I fear he has a very difficult task to manage the Chinese presence now.

HE is no fool when it comes to looking after his and his families welfare but by allowing the Chinese access to so much has not benefited his country or his countrymen (except his rich land owning colleagues)

As for these meetings with workers etc he holds they are a captive audience as they must attend and plus the bonus of a 5k-10k riel payment each is a large tv audience.
Does the CPP pay or is it from the government coffers?

What makes you think he would not pay for it himself from his own salary.

Duncan wrote: ↑Fri Jan 11, 2019 12:01 pm

Arget wrote: ↑Fri Jan 11, 2019 11:43 am

frank lee bent wrote: ↑Fri Jan 11, 2019 9:29 am HE is no fool.
He is a hard worker whatever else people may say about him.

I fear he has a very difficult task to manage the Chinese presence now.

HE is no fool when it comes to looking after his and his families welfare but by allowing the Chinese access to so much has not benefited his country or his countrymen (except his rich land owning colleagues)

As for these meetings with workers etc he holds they are a captive audience as they must attend and plus the bonus of a 5k-10k riel payment each is a large tv audience.
Does the CPP pay or is it from the government coffers?

What makes you think he would not pay for it himself from his own salary.

About eight years ago the Big Man visited the Northeast to celebrate the start of the construction of the new road. After the main meeting in town it turned out there was another meeting at the 'Phnom Swai', to the surprise of the Big Man. About 300 people were waiting for the Big Man, and nobody arranged 10.000r for them. The provincial governor received to order to cough up enough 10.000r notes, not the Big Man.