Cambodian garment workers are considering strike action after the government voted to raise the monthly minimum wage for the footwear and apparel sector by 9.4 percent to $140, starting next January. A majority representing the government, factories and unions supported an increase to $135 a month, and the government then raised it to $140. The leading unions had been targeting a minimum wage of $160 a month, down from an initial demand of $177. More than 700,000 people are employed in the secotr. Strikes in recent years have been a major concern for the international brands that use Cambodian factories, often attracted by lower labor costs than China. Cambodia faces strong competition from neighboring Vietnam, which last year supplied $31 billion in garments and shoes to the same brands that use Cambodian factories. Vietnam's National Wage Council voted last month a 12.4 percent increase in the national minimum wage, starting next January, by the country's national textile and apparel industry is calling for half the increase because it particularly labor-intensive. In Indonesia, meanwhile, thousands of workers reportedly held demonstrations early last month, calling for an increase in the minimum wage of 22 to 25 percent in 2016.
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