Cambodia: Union Disagreement Emerges Over Minimum Wage Negotiation Criteria

Major Cambodian labor unions have asserted that upcoming minimum wage negotiations for 2027 must be based on seven technical criteria and actual economic conditions, rather than emotional appeals or political populism. This stance comes in response to calls from some unions, identifying as independent, urging workers to demand a monthly wage increase to $250. Sam Soeun, President of the Cambodian Confederation of Unions (CCU), stated that minimum wage negotiations are a process requiring careful consideration of the economic and social situation, as well as the capacity of the production sector. He emphasized the need to adhere to the seven technical criteria, established as principles by international organizations for negotiations with stakeholders. Soeun further explained that setting wage figures should not be based on high emotional demands, political competition between unions, or populism. Instead, it requires a reasonable balance between the livelihood of workers, the economic situation, and the production capacity of employers to ensure sustainable wage increases. "The negotiation of wages is not about who demands higher, the higher demand is better," Soeun said. "Please stop deceiving workers with these demands. I want to see specific calculations or research reports from those demanding up to $250. I ask them to publicly present this report, based on what evidence and from what sources they collected their information." Meanwhile, Aun Dara, President of the Cambodian Labor Union Federation (CLUF), stated that minimum wage negotiations should be conducted with responsibility and based on the common interests of workers, employers, and the national economy as a whole. He criticized some politicians and unions for using these issues for their narrow political interests. Dara stressed that any wage demand must have a clear basis and be explainable through economic and social data. Demands made without considering the actual situation can create high expectations among workers but may not be achievable in actual negotiations. "We support wage increases for workers, but the increase must be based on technical criteria and the actual economic situation. Unions should provide responsible information to workers and should not create expectations by demanding high figures without a clear basis," Dara commented. The National Minimum Wage Council, during its fourth mandate (2025-2026), commenced its meeting on September 1, 2026, to discuss and determine the minimum wage for workers in the textile, garment, footwear, and travel goods and bags sectors for 2027. The council has been holding subsequent meetings with relevant parties to negotiate the minimum wage for 2027.