Men ride past a factory that was closed amid the height of the Covid-19 pandemic, in Phnom Penh’s Por Sen Chey district in 2020. Heng Chivoan
From April 1 to September 5 of 2023, the government allocated almost $1.5 million in cash transfers to nearly 35,000 factory workers whose contracts were suspended. Many of the suspended workers have returned to work.
Minister of Labour and Vocational Training Heng Sour told The Post on September 6 that the current work suspension situation is not as serious as it had been at the height of the Covid-19 pandemic, but that the global economic downturm meant that some factories are still dealing with reduced export orders.
He said that as of September 5, most factories and enterprises had resumed production.
“In 2020, most days saw over 100 factories forced to suspend as many as 60,000 workers. Currently, around 30 are closed, affecting slightly more than 10,000 workers,” he added.
He explained that as of September 5, some 35,000 workers had received nearly $1.5 million in cash assistance from the government. The programme was launched on April 1.
He advised people who are currently without work or those who are considering changing employment to contact the National Employment Agency (NEA), which would put them in touch with job opportunities for free.
“The NEA helps workers find jobs for free. They could also enroll at our Technical and Vocational Training Institution and learn new skills for free,” he said.
Ath Thorn, president of the Cambodian Labour Confederation (CLC), lauded the government’s cash assistance system.
However, he said companies which suspended contracts beyond what the law allowed should provide their workers with full salaries and benefits. The labour ministry should inspect any company which announces the suspension of contracts, in order to be certain they are complying with the labour laws.
He also suggested that the government do more to guarantee market share and increased exports to Europe, noting that more domestic jobs would be created if the government could arrange preferential tariff payments through improved foreign relations.
“Boosting exports would create more jobs for workers and reduce the number of suspensions. Many workers are currently suffering, especially those who have debts with microfinance institutes, so more jobs are needed,” he said.
Government spokesman Pen Bona said the government has clear-cut policies on job creation, noting that the Kingdom is still exporting to Europe, as well as the US, despite no longer receiving the same tariff preferences.
He added that the government maintains the stance that it will not exchange national sovereignty for tax preferences with any party. The government will simply strive to ensure the Kingdom’s exports are competitive enough to expand into more markets, as well as existing ones.
“Please don’t mistake the EU’s withdrawal of its Everything But Arms [EBA] preferential trade scheme and the Generalised System of Preferences (GSP) as the causes of factory suspensions. Cambodia continues to export goods to Europe and the US; we just have to pay taxes. We didn’t lose access to those markets,” he explained.
