Production Instability In Kampuchea Garment Factories Can Not Guarantee The Supply Of Goods.

Successive strikes by garment workers have led to instability in garment production and disruptions in supply. This has led WAL-MART, H&M and other international garment buyers to reduce orders.

Many factories in Kampuchea claim that in the next few months, orders are inadequate, factories are running short and equipment is idle.

At the same time, workers kept demanding salary increases and threatened to strike again.

If the same large-scale strike happened last year, it would be fatal to the garment industry in Kampuchea.

This phenomenon aggravated the Kampuchea garment production association (GMAC).

Prospects for development.

According to the report in September 17th, half of the 247 member enterprises of the Kampuchea garment production association were unable to get enough orders, and in the next few months, they will face inadequate work and production equipment will be idle.

About 160 garment factories claimed that the total number of orders decreased by 40% on average, and 1/4 of the garment factories were forced to close some production lines or stop operating part of the production equipment.

Garment buyers have lost confidence because the production of garments factories in Kampuchea is unstable and can not guarantee the continuity of the supply of goods.

The reason for the instability is workers' strike.

Buyers who reduce orders are mainly WAL-MART, H&M, Levi Strauss and Adidas, as well as other small buyers.

The heads of clothing purchasing enterprises such as H&M and Levi Strauss did not comment on the production status of the orders when interviewed, but they all agreed that Kampuchea should ensure the stability of the garment industry and respect the rights of workers.

The major brands are very concerned about the current dynamics of Kampuchea's clothing industry, and are anxious about the stability of supply or the interruption of production.

Workers have been squeezed seriously, their rights are not guaranteed, and strikes have been suppressed. These phenomena make it difficult for major brands to place orders easily.

At present, the most heated issue is the minimum wage standard in the clothing industry.

There may be a nationwide strike due to the failure to meet the demands of union pay increase.

It is reported that at the end of last year there was a strike against the minimum wage, and the workers were crushed by force and at least 5 demonstrators died.

In recent days, the Union called for a minimum wage of $100 a month to $177.

But the Kampuchea Apparel Manufacturers Association says the minimum wage that the industry can provide is $110, which can no longer be raised.

Moreover, the higher the minimum wage is, the harder it is for the production enterprises to operate in Kampuchea.

There is another reason for the decline in orders. The Ministry of labor said the order decline was not related to the minimum wage standard and the economic development, but because of the improper handling of the strike last year, resulting in many contradictions that could not be resolved.

These contradictions have not been solved so that buyers are worried.

In any case, orders for the second half of this year have been decreasing since the workers' strike in January.

If there is another large-scale strike like last year, it will undoubtedly be fatal to Kampuchea's clothing industry.