What can you do with $110 today? You can go to a Nike store and buy this polo. You can also pay the monthly salary of the person who made it in Cambodia. Well, its new salary because there has been a huge increase: until recently the minimum wage was $80, but employers have “kindly” consented to make a gesture towards their employees. Those latters claimed $177, they had a little part of what they asked. Here is an occasion to examine more precisely how textile industry works in Asia, in a context marked by extreme poverty and the fear of a cheaper neighbor workforce.

A tense situation in Cambodia since January

A figure first: 600.000. In Cambodia, a small country between Thailand and Vietnam, there are 600.000 textile workers, out of a 15 million population. In other words 4% of the population (women, children, old…) directly depend from the textile industry. As I've just said, the minmum wage was $80 and is now around 110. But this is still far from the minimum living. According to workers, their salary allow them to survive, not to live, and they've to borrow money if they have to carry on somebody else. Isn't the definition of slavery ?

I earn $100 per month for 10-12 hours of work a day, sometimes more. My rent is $50, water and electricity cost around $30. I've only $20 for the food, clothing, education... Like every worker in Cambodia, I've to borrow to meet the needs of my family.

Hing Chanthan, working at Inditex

Last January, the 3rd, Cambodian workers protested to raise awareness about their precary situation. Guess what was the authorities' answer? They arrested leaders and fired into the crowd, killing 5 persons. How can we explain such a behavior from the Government? The answer is easy: it's afraid. Indeed the government is afraid because garment industry is responsible for 80% of Cambodia's exports, and if salaries increase too much, the country risks to be non competitive in comparison to its neighbors. That's exactly what Hun Sen, the Cambodian Prime Minister, said during the negotiations. This supposedly wise man alleged that a big increase would be bad for the economy because Cambodia wouldn't be competitive anymore. However studies prove that this is not true.

In the garment industry, the cost of the workforce represents only one to three percent of the product price. 3% is for really cheap clothes, sold by companies like Primark, and 1% is for Nike, Ralph Lauren or any other high quality brand. In other words increasing wages is not a vital issue for major garment companies, but it is for their employees. And, according to another study, increasing wages is directly beneficial for the company and that for several reasons:

- It improves employees morale and, as a consequence, their productivity

- It diminishes absenteeism and, of course, strikes movements

- Maybe it's a bit cynical, but it gives a good image of the company, and thus makes it more popular

Talking about companies, what's their attitude about this problematic?

Companies' attitude about decent salaries

A French website, called ethique-sur-étiquette (literally ethical on label), analyzed the companies' communication and what they actually do about the issue of minimum living for employees. Then, companies are classified in 6 categories: careless, not engaged, can do better, on the good way, engaged and silent. I would be boring to write details about each company so I'll just take one example for each. Every details are available here (in French).

1. Silent: Armani, Benetton, Desigual, Levis, Vuitton

These companies do not communicate at all about the issue.

2. Not engaged: Mango, Pimkie, Versace

These companies never took any position about the issue, so there is nothing to complain about, apart precisely this lack of commitment.

3. Engaged: Nobody

This is sad but a revelatory...

4. On the good way: Inditex, Marks & Spencer and Switcher.

Marks & Spencer receives congratulations for its "Plan A" commitment, which consists in paying its employees not with the minimum wage but with the vital one.

5. Can do better: Hugo Boss, Primark, Adidas, Puma, H&M

Since the terrible accident at the Rana Plaza, H&M tries to improve working conditions inside its supplier’s factories. In addition, there has been a wave of wage increases but the minimum living is not still reached.

6. Careless: Asics, Gap, G Star, Nike

Last January, Nike and many other companies (Adidas, Inditex, Primark, Puma...) signed letter to Cambodian prime minister protesting fatal shootings. Unfortunately this action has been the only one Nike took to help its employees in Asia. Officially the American firm supports the idea of minimum living, but nothing has been done to increase wages.

Finally we can observe that some companies can work even though they are cutting back a little on their margins to provide a living wage to their employees. Giving the minimum wages is obviously legal from a juridical perspective, but this is morally wrong and, in the end, counter productive. A work is supposed to allow a person to have a decent life, if it just allows him to survive, I think it's a form of modern slavery. At last, Cambodia, Vietnam, Thailand shouldn't be rival and drive prices down but form a united front to require a comprehensive reassessment of salaries, which should be calculated on the basis of decent conditions of living.

You can follow me on Twitter : @SlaveryFight

Or add me on Facebook : Guillaume Telori

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