Thread by @SabinaLawreniuk

Ten days ago, #Cambodia announced that garment sector minimum wage will rise from $170 to $182/month in 2019 💰

That’s a rise of 7%! 📈 Sounds pretty good, right? 😃

WRONG 👎

Minimum wage analysis 👇

The minimum wage for garment and footwear workers in Cambodia has risen 10 times in 22 years since it was introduced in 1997, the last 8 times in each of the last 8 years.
Yesterday’s increase of 7% adds to a total increase of 355% over 22 years.
Lucky garment workers 🍀?

But as wages rise, the price of food and rent goes up too.
Real wages consider the balance between rising wages and rising costs, comparing what workers can afford relative to previous years.
In real terms, wages have risen much slower – increasing just 44% from 2001 to 2016.

Moreover, the Asia Floor Wage Alliance’s #livingwage research suggests that the 2019 minimum wage still provides less than 65% of what a worker actually needs to support themselves and their family – to cover food, housing, children’s education, health, etc.

One of the main argument for keeping the minimum wage low is competition: factories say if the wage goes up then buyers will look to other countries where wages are cheaper.

And there are plenty 🙄

But despite wage increases over the last few years, the Cambodian garment sector is still booming. Exports went up 16% in the first half of 2018 🤔

Perhaps because prices in Cambodia are still among the lowest in the region…

In fact, although wages are going up, buyers in the US and UK are in paying less and less for goods…

...So is it tough times in the US and UK retail industry negatively impacting Cambodian workers livelihoods?!

Um, not exactly!

While Cambodian workers struggle to get by, the big brands that source from Cambodian are posting record profits.

Like @Gap who made nearly US$6 billion profit in 2017 or @Nike who made US$15 billion 😲

(Charts from ILO publications available here: ilo.org)