The 123 of Labour Exploitation

“But it [GDP] is not sufficient and it is not enough because it does not account for externalities. It does not account for the value of some cultural goods. It does not account for the damage that we do to the environment, which is why I believe, personally, that… we need to combine alternative systems that take into account those externalities, those not-accounted-for goods that have no tradeable values and yet that have a very significant value.”

IMF chief Christine Lagarde, 20 February 2014, ABC TV Q&A

“Which is better for a country’s well-being: $10 million spent constructing a jail, or $10 million spent producing a line of smartphones? How about clear-cutting rain forests to produce $10 million in lumber? Or a storm that requires $10 million in repairs?... Using today’s most common shorthand of national welfare, gross domestic product [GDP], all of the above are equal. GDP measures only output, and makes no claims on the quality of that output, let alone on subjective concepts such as social progress or human happiness.”

The editors of Bloomberg View, 30 January 2013, The Bloomberg View

“ អព្ចឹាងហើយបានជាយើងមានភាពវៀងវៃបន្ដិច ក្នុងការបន្លំភែ្នកអ្នកវិនិយោគ នេះខ្ញុំនិយាយដោយត្រង់។​ បើសិនជាយើងសុខចិត្ដឲ្យបងប្អូនចំណាយ១០ដុល្លារ បនែ្ថម រដ្ឋាភិបាលសុខចិត្ដរុញឲ្យដល់១៤០ ប៉ុនែ្ដបែរជា ត្រូវយកពន្ធ​ ឬមួយក៍ត្រូវឲ្យបងប្អូនកម្មករយើងត្រូវចំណាយសុខភាព១០ដុល្លារវិញដដែល ។​ ទី១បងប្អូននៅ សល់ ១២៨ដដែល ហើយទី២តួលេខដែលគេមើលពីក្រៅមក វាទៅជាតួលេខនឹងខ្ពស់ ១៤០ជាង ។​  អព្ចឹាង អ្នកវិនិយោគនឹងគាត់មើលមកឃើញ១៤០ជាង គាត់អាចងាកទៅប្រទេសផ្សេង។  ប៉ុន្ដែផ្ទុយទៅវិញ យើង យក១២៨ តែបូកអាតួលេខដែលបងប្អូនអត់ចំណាយ  អ្នកវិនិយោគគាត់មើលមកថា យី ប្រាក់ឈ្នួលការ យើងដូចជាទាប ប៉ុន្ដែភាពពិត គឺបង ប្អូនយើងអត់មានបាត់បង់ផលប្រយោជន៍ទេ ។​”

ហេងស៊ួរ អ្នកនំាពាក្យក្រសួងការងារនិងបណ្ដុះបណ្ដាលវិជ្ជាជីវ: ១៨វិចិ្ឆកា ២០១៤ ​វិទ្យុ​អាស៊ីសេរី

“People [garment workers] just don’t have enough to eat, and that’s surprising to me for a population with a monthly salary. It is surprising and interesting and disturbing.”

Chief researcher Ian Ramage of Angkor Research and Consulting Ltd on garment workers’ health and productivity, 30 September 2014, The Phnom Penh Post

“At the moment, we follow the free market economy [by not imposing any regulations on rent control].”

Labour Ministry spokesman Heng Suor, 19 November 2014, The Cambodia Daily

“For those who said the government must pay this payment or that payment [minimum wage fixing], it is wrong. That is not how a market economy works… It is impossible to make such a requirement. The requirements of a market economy are based on the enterprise’s profits.”

Premier Hun Sen, 13 March 2013, The Cambodia Daily

Now, it is clear how Hun Sen government comes up with the monthly minimum wage of $123. Heng Sour explains it comes from what he calls a generally accepted principle that a minimum wage should be 110% to 115% of GDP per capita which he says is about $1,230 per annum, or $103 per month for Cambodia. Thus, the initial offer of $123 is rather generous as it amounts to 120% of the GDP per capita. It becomes more generous when Hun Sen throws in another $5, taking it up to 125%. How munificent.

There are, nevertheless, two problems Heng Sour or the government may or may not want to know. First, the GDP they base the minimum on is not designed to be a scorecard of a nation’s economic health and well-being. It is merely a gross tally of products and services bought and sold, without any distinction between transactions that add to well-being, and those that diminish it. Lagarde and the Bloomberg View imply the GDP measures everything except those that make life worthwhile. Hence, the $123 leaves out workers’ welfare, though the extra $5 may go in the right direction, no matter how petty it is.

Second, Heng Sour’s explanation of how $140 would have the same value as $128 to the workers is mind-boggling. He says this is due to a foregone marginal tax liability and extra cost of employment injury insurance premium they would have to pay. However, the tax benefit of having a lower gross income is irrelevant as the tax threshold has already been lifted to $200 per month. There is no tax payable on either $140 or $128.

Contrary to Heng Sour’s claim, the workers do not have to pay the $10 for the insurance, unless the government is planning to turn upside down the current workers insurance scheme. It is the employers, not the workers, who must pay a premium of 0.8% of the employees’ wage for the cover.

Therefore, it is uncertain whether Heng Sour lies to validate the $128 amount, or he simply does not really know how the tax and insurance scheme work. Then, again, he may just be doing the leg work for GMAC to lower the costs for the employers who pay “donations” to all ministries of the Hun Sen government. By securing the $128, rejecting a potential $140 blow-out, the government saves the employers up to a cool $87 million per year. Heng Sour appears to support workers by pretending to pull a fast one on foreign investors. GMAC would know, however, he is just manipulating public opinion to protect the employers’ interest.

Overall, the government policies are either confusing or calculating. They advocate a free market economy concept by refusing to regulate rents, and allowing the domestic oil distributors cartel to freely overcharge consumers at the bowsers. Yet, they fix the minimum wage, which contradicts the concept, but consistent with a moral bankrupt that exploits workers for the benefit of their personal interest groups.

Ung Bun Ang

30xi14

Parthian Shot

“We don’t want to make him [CNRP Parliamentarian Yont Tharo] feel bad because he’s just had a stroke and he’s not very well.”

Sam Rainsy, 27 November 2014, The Cambodia Daily

The CNRP president shows his kind consideration for his parliamentarian colleague Yont Tharo by not directly asking him to stand down in a plan to release another colleague Meach Sovannara from jail. He prefers to discuss the issue openly with the Cambodia Daily.

Yont Tharo responds via the Phnom Penh Post with a big fat “No”, without realising that legally he has no say in the matter.

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Pseng-Pseng is published on the tenth, twentieth, and thirtiest day of every month. Previous issues are archived at pseng-pseng.blogspot.com

Garment Workers Hunger Continues

“The request for donations happens all the time from all ministries - bar none.”

Garment Manufacturers Association of Cambodia (GMAC) secretary-general Ken Loo, 18 October 2014, The Phnom Penh Post

“GMAC just told me it was the corporate social responsibility fund, the sport activity fund. If I join [the Cambodian Country Club], it is a social event, nothing related to economics or this or that. If you have friends you invite for a coffee, you talk – people have the right to talk.”

Director-general for International Trade at the Ministry of Commerce Sok Sopheak, 18 November 2014, The Phnom Penh Post

“When the minimum wage increased from $80 to $100 [last year], the owner of the house increased rent … so I think it will happen again. When the minimum wage was $60, my living conditions were better than now, because at that time, the price of goods was cheap and the rent was only $15.”

Garment worker Ouy Sambunn, 14 November 2014, The Phnom Penh Post

“All the businesses around here are ready to raise the rental price.”

Landlord Im Vathana, 19 November 2014, The Cambodia Daily

“The rent hikes are usually not the result of extra financial burdens for landlords. I think it’s pure profit for the [landlords].”

Economist Srey Chanthy, 14 November 2014, The Phnom Penh Post

It must be hunger that drives garment workers’ tenacity and audacity in their struggle for a living wage after years of producing a kind of profits factory owners find it too embarrassed and awkward to reveal. It is a tug-of-war between hunger and greed.

The workers are underdogs that GMAC and allies prefer they remain so. They face a formidable GMAC that speaks in one voice for all employers. On the workers’ side, there are numerous unions that often differ among themselves in opinions and strategies. Some devalue their labour with a misconception that the employers are doing them a favour by giving them jobs, without realising the factories are there for the employers’ maximum profits, not jobs. They bow to constant threats of factory closures although the closures are often followed by new openings as part of a scheme to avoid paying workers’ seniority entitlements.

They face a government that colludes with GMAC. It has bred a mentality that encourages its senior officials and ministries to go begging GMAC for donations. They all find it easier to deny impropriety and conflict of interest associated with donations than not begging.

In return, GMAC enjoys immense influence. It is a single organisation; yet, in the government’s Labour Advisory Committee (LAC) it has as many votes as the number of different unions in the Committee. LAC, which may be an endearing alternative abbreviation of “lackey”, consists of fourteen government officials, seven factory representatives who are GMAC members, and seven representatives of various unions, two of which side with the government and GMAC.

And surprise, surprise… To determine a new minimum wage, sixteen LAC members vote for the government-sponsored $123 figure, i.e. all the fourteen government officials plus two union representatives. Seven members vote for the GMAC proposed $110; it does not take a genius to deduce who those seven are. Two members vote for the union demand of $140. The remaining three do not vote; perhaps, they have no appetite for the farce.

However, while the voting that arrives at the $123 minimum wage is nonsense, it is somehow incomplete. Then enters Premier Hun Sen with an extra $5 to ensure the whole process is a complete nonsense. It is uncertain how he gets to the amount, though.

Anyway, the new minimum wage of $128 will set the factories’ profit back up to about 3.6% of the total revenue. While every dollar counts, the increase is unlikely to bring the industry down to its knees. A likely GMAC reaction is to pay the beggars more to get them to work harder in stalling or minimising future increases.

Obviously, the new minimum is still too far off from the level that a LAC research indicates the workers need for a decent living. Hence, the workers must go hungry a bit longer – maybe much longer if their landlords increase rents and utilities to match a retail oil price that remains unchanged, despite Brent crude oil price drop of 30% in the past five months.

Ung Bun Ang

20xi14

Parthian Shot

“Your language is rough, but your ‘piss’ may be sweet.”

MP Chheang Vun describes attributes of a caller to a radio talk back program in which Chheang Vun is a special guest, RFA, 16 November 2014 

  

CPP to Trump CNRP

“បច្ចុប្បន្ននេះ គិតចាប់ ពីឆ្នាំ២០១៤ គឺ ជាឱកាស ចុងក្រោយ សម្រាប់ ឲ្យខ្មែរ រួបរួមគ្នា ជាធ្លុងមួយ កុំឲ្យ បរទេស បានលេស ឬបានឱកាស លេបត្របាក់ ទឹកដីយើង តទៅទៀត, ហើយ នៅទីបញ្ចប់ គេ នឹងសម្លាប់ ជាតិយើង តែម្តង។  ដូច្នេះ ខ្មែរ ត្រូវ រួបរួមគ្នា ដើម្បី ការពារ ប្រទេសជាតិយើង ឲ្យនៅគង់វង្ស។”

សម រង្ស៊ី  Sam Rainsy Facebook, 9 August, 2014

“អញ្ចឹងក្នុងកាល:ទេស: ក្នុងស្មារតីបង្រួបបង្រួមជាតិក្រោមព្រះរាជកិច្ចដឹកនំារបស់សម្ដេចតាករុណា ដល់ពេលនោះយើងគិតថា យើងត្រូវតែបើកទូលាយឲ្យបងប្អូនទំាងអស់ យើងអត់មានទៅគិតអំពីបញ្ហាអីទេ ។ ប៉ុន្ដែពីនោះមកដល់ឥឡូវ២០ឆ្នាំហើយ  ខ្លួនខ្ញុំផ្ទាល់បានស្រាវជ្រាវថ្មីៗនេះឃើញថាទាក់ទងដល់បញ្ហាសញ្ជាតិ ពីរនេះ...។”

ព្រុំ សុខា តំណាង​ក្រុម​ដឹកនាំ​ការចរចា​តំណាង​អោយ​គណបក្ស​ប្រជាជនកម្ពុជា វិទ្យុ​អាស៊ីសេរី​ ថ្ងៃ​ច័ន្ទ ទី០៣ ខែ​វិច្ឆិកា ឆ្នាំ​២០១៤

“បញ្ជីថ្មីនេះមិនមែនមានន័យថា ត្រូវចុះឈ្មោះដាក់ជាថ្មីទេ អានេះជាជំរើសមួយ ។ គណបក្សប្រជាជន ឬក្រុមការងារគណបក្សមិនមែនបដិសេធថាមិនឲ្យធ្វើបញ្ជីថ្មីទេ។​ បើធ្វើទាន់ធ្វើ ប៉ុន្ដែបើធ្វើមិនទាន់ ប្រហែលជាយើងត្រូវយកអាចាស់ ហើយយើងរង់ចំាថា ខាងមុខទៀតគឺយើងត្រូវ ផ្អែកលើស្អីមួយ ។ ឧទាហរណ៏ថា បញ្ជីមួយរួមអាចជឿទុកចិត្ដបាន តាមពាក្យបច្ចេកទេសគេថា មានលេខកូដតែមួយសំរាប់ មនុស្សម្នាក់ ក្នុងប្រទេសទូទៅ តែតាមខ្ញុំគិតមើលទៅតាមទិដ្ឋភាពបច្ចេកទេស ទិដ្ឋភាពរដ្ឋបាល

បើធ្វើតាមកិច្ចការនោះ [លេខកូដតែមួយ] ប្រហែលជាត្រូវការពេលវេលា៥ឆ្នាំទៅ១០ឆ្នាំ ធ្វើបានអាហ្នឹង។”

ព្រុំ សុខា តំណាង​ក្រុម​ដឹកនាំ​ការចរចា​តំណាង​អោយ​គណបក្ស​ប្រជាជនកម្ពុជា វិទ្យុ​អាស៊ីសេរី​ ថ្ងៃ​ច័ន្ទ ទី០៣ ខែ​វិច្ឆិកា ឆ្នាំ​២០១៤

It seems with what the CNRP calls the last chance for national unity, the party is playing a coin tossing game under CPP rules that “Head, CPP wins; Tail, CNRP loses”.

In his RFA interview, Prum Sokha insists on at least two conditions for a reformed NEC:  a single Khmer citizenship for those occupying top positions, and retention of the current voters register.

Prum Sokha argues the single citizenship requirement makes Cambodia the same as some 60 countries in the world. It is uncertain why he quotes the number of the countries; if he implies this is large and Cambodia should follow suit, then he forgets that there are 196 nations on earth. And 60 of them hardly make a majority – not that Cambodia has to necessarily follow what other country does.

Prum Sokha says the CPP accepted the dual citizenship for the UNTAC 1993 elections due to its consideration for national unity at the time. This is no longer the case. Thus, while the national unity honeymoon is over for the CPP, the CNRP has just caught on.

Nevertheless, Prum Sokha claims – but does not explain how – the single citizenship would make the new NEC independent. He forgets the current NEC top executives are holders of a single citizenship, and their conducts have been a core problem for protracted election disputes. If Prum Sokha contends the NEC has been impartial all along, why then the CPP agrees to the reform? Perhaps the agreement is signed in bad faith.

Furthermore, if a single citizenship guaranteed independence, then many of the Khmer leaders would have more than one. They have a long track record of inviting neighbouring aliens to come secure power for themselves. Single citizenship Hun Sen is the latest of such leaders who bring national independence into doubt.

The other spanner that the CPP throws into the works is the voters register. Prum Sokha is adamant that whether NEC is reformed or not, the current voters register will stay.

He sounds sensible when claiming the register that has missed 1.2 million voters needs revising and improving. This claim means little, however, when he argues that had the missing voters turned up to vote, the outcomes would have been the same. He is so confident about the outcomes as if they are pre-determined.

He says a system that produces a trustworthy register would take from 5 to 10 years. That explains why the current NEC keeps on carrying out an annual register updating, costing a cool $2 million, ignoring calls to stop and let the new NEC oversee a fresh one.

Hence, unless Prum Sokha is lying, the CNRP’s national unity brings the party to two clear choices: either accepting a new NEC with a single citizenship condition and the existing voters register that comes with pre-determined outcomes, or letting the current NEC continue with the existing register with pre-determined outcomes.

Other choices would require further concessions from CNRP. But does it have any more concessions CPP needs or wants?

Ung Bun Ang

10xi14

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Hun Sen and His Concrete Jungle

“Phnom Penh will not be a problem [being flooded].”

Premier Hun Sen, 15 September 2000, The Cambodia Daily

“Phnom Penh can’t be flooded. Don’t worry, because lakes in the river system that absorb overflow water are not full to capacity.”

Former Phnom Penh Governor Chea Sophara, 25 July 2000, The Cambodia Daily

“The problem comes from the actual cost that would come with mitigating the damage [by the filling of Boeng Kak]. By the time you’ve considered the level of mitigation that’s required, it would probably make the development unfeasible… There would need to be considerable drainage canals up through the Russei Keo district, and the size of those channels would need to be significant.”

Ben Caddis of BMT WBM (mechanical, water, and maritime engineering consulting firm in Brisbane, Australia), 14 March 2009, The Cambodia Daily

«តាមពិត ខ្ញុំមិនឯកភាពគំនិតថា មកដោយសារយើងលុបបឹង បានលិច ។ មិនមែនទេ ខ្ញុំអត់គិតថាអ៊ីចឹង តែខ្ញុំគិតថា ចំនួនទឹកភ្លៀង និងភាពស្រុតរបស់លូក្នុងក្រុងភ្នំពេញ វាមិនស្រុតខ្លាំងទេ ស្រុតតែបន្តិចទេ ដោយសារយើងមិនបានធ្វើលូរំដោះទឹកភ្លៀងនេះ បានវាលិច ។»

រដ្ឋមន្ត្រី​ក្រសួង​បរិស្ថាន លោក សាយ សំ​អាល់ ថ្ងៃពុធ ទី២៣កក្កដា ២០១៤​ VOD Hot News

“សាលា​រាជធានី​ភ្នំពេញ​បាន​ធ្វើ​ការសិក្សា​លើ​បញ្ហា​នេះ​ [ប្លង់​គោល​នៃ​រាជធានី​ភ្នំពេញ​សម្រាប់​ការ​អនុវត្ត​រហូត​ដល់​ឆ្នាំ​២០៣៥] និង​បាន​បញ្ជូន​ទៅ​កាន់​ក្រសួង​ដែនដី​ នគររូបនីយកម្ម​និង​សំណង់រួច​ហើយ។​ ប្លង់គោល​នេះនឹង​ត្រូវ​អនុម័ត​ដោយ​រាជរដ្ឋា​ភិបាល​ទើប​មាន​សុពល​ភាព​សម្រាប់​យក​ទៅ​អនុវត្តន៍​បាន។”

លោកស៊ីន បូរ៉ាមី ​នាយក​ទីចាត់ការ​រៀបចំ​ក្រុងភ្នំពេញ  ១៣ ខែ តុលា ឆ្នាំ ២០១៤ វីអូអេ

“Prime Minister Hun Sen rejects all of the plans that have been designed. When I ask him why, his answer is simple: ‘To sell the land’.”

Retired architect and urban planner Vann Molyvann, 31 December 2013, Next City

It is somehow impressive the Hun Sen’s vision for concrete buildings in Phnom Penh has come to fruition so spectacularly, making GDP worshippers grin from ear to ear. They may be blind though to what behind the numbers, which reveals far less flattering pictures of urban planning and control, or lack thereof.

Team Hun Sen is adamant Phnom Penh cannot, and will not, be flooded. They are partially right – it is the monsoon rainfalls that have flooded the city so far, not river water, not yet.

First, the city will continue to be flooded with rainwater until there is some serious investment in the sewerage infrastructure and management. A UNDP forecast projects an increase in a one-day rainfall of up to 54 mm, and a five-day rain up to 84 mm. If the projection is reliable, the city’s sewerage system designed more than 60 years ago to take a mere 30 mm of water will continue to fail.

Second, major indicators point to an inevitable flood with river water. Chea Sophara inadvertently offers a clue why and how lakes in and around Phnom Penh save the city from river floods. According to Vann Molyvann, those lakes were purposefully left in the 60s development to collect floodwater. Director of Phnom Penh Public Works and Transport Sam Piseth, upon being prompted, admits the recent flood is due to lake fillings. An independent report by BMT WBM predicts that peak flood levels in Russei Keo will rise as much as 40 cm because of the Boeng Kak development, and that the frequency of floods is also to increase.

Anyhow, the lakes that could save the city, notably Boeng Pong Peay, Boeng Tumpun, Boeng Payap, and Boeng Kak, are no longer there. They have been filled, and made available for rapid residential and commercial development and speculations. The environment minister may want to explain where excessive river water and all year round sewerage wastes that those lakes used to absorb will now go.

As Hun Sen’s “land sale” policy drives the construction boom, he sees no reason to enforce any master plan that would only hinder the development. Developers enjoy a free reign, motivated solely by the thrill of making maximum profits, no matter how often factory floors and ceilings collapse. No wonder a further $2.5 billion worth of concrete buildings is in the pipeline, thanks to Hun Sen who acts as if he owns the lakes or earns huge commissions from land sales. He has successfully developed a concrete jungle with anything goes.

Anyway, city floods – whether from the river or rainfalls – will not unduly impact the skyscrapers’ occupants who live a privileged life above the flood water. Still, to make up for the rush construction job without considering building and safety standards, the concrete jungle may come with parachutes for a practical escape route. Fire engines and water-cannon trucks (acquired for quelling street protests) do not have long enough ladders and hoses for towering inferno. It is a concrete jungle out there.

Ung Bun Ang

01xi14

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Pseng-Pseng is published on the first, tenth, and twentieth day of every month. Previous issues are archived at pseng-pseng.blogspot.com