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Global brands may lose cheap labour


Global retailers are facing growing pressure for higher wages in countries from Bangladesh to Cambodia, Vietnam, India and Indonesia.
Global retailers are facing growing pressure for higher wages in countries from Bangladesh to Cambodia, Vietnam, India and Indonesia.

After fleeing China due to its rising labour costs, the companies are now dealing with workers who want to see improvements in their lives.

In Cambodia last week, tens of thousands of workers went on strike in militant demands for more pay.

A mass protest rejected a proposed 20 percent pay increase in the garment industry, which is export-oriented, producing items for the renowned brands Gap, Benetton, Adidas and Puma.

Unions want a base salary of US$93 per month, rather than the minimum wage for garment and footwear staff of US$61 a month.

Only weeks ago Bangladesh’s three million garment workers, who make Western clothes for the world’s lowest industrial wages, spurned an 80 percent pay hike, before going on a rampage, attacking factories and burning cars.

Big News Network.com     Monday 20th September, 2010
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Categories: Business/Markets
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