ASSESSMENTS
Cambodia: Labor Unrest Amid Political Uncertainty
Jan 2, 2014 | 11:33 GMT
(Nicolas Axelrod/Getty Images)
Summary
Cambodia's textile and garment industry, a linchpin of the country's emerging economy, faces an uncertain future. Violent protests calling for higher wages rose in 2013, but now aggrieved garment industry workers have joined forces with anti-government protesters, who have denounced the electoral victory of Prime Minster Hun Sen since July. Though their goals differ, both groups hope to advance their causes through continued demonstrations.
Though Cambodia has seen plenty of large-scale strikes from garment workers before, the current unrest is complicated by the country's tenuous political situation, with the opposition slowly gaining momentum and increasing the pressure on the long-ruling Cambodian People's Party. The loose affiliation between the opposition party and garment industry workers, along with the growing strength of opposition-affiliated trade unions, will force the ruling party to reconcile its political viability and the country's economic vitality. And as the political impasse persists, the garment industry may fall victim to a fierce competition in which sustained economic disruptions threaten Phnom Penh's ability to guarantee its competitive advantage to foreign investors.
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