Annual Conference Addresses Garment Woes

By Kong Sothanarith, VOA Khmer
Original report from Phnom Penh
14 December 2009

Cambodia lost nearly 100 factories and 40,000 jobs last year in the wake of the global financial crisis, a government official said Monday, though some other factories have since opened and put more people to work.

“The ministry noticed that from January through November 2009, garment and shoe factories, in total 93, have been closed,” Om Mean, undersecretary of state for the Ministry of Employment, told an annual conference for garment workers on Monday. More than 38,000 were originally put out of work by the closures, he said.

However, he estimated that job losses were now around 30,000, thanks to newly opened smaller factories replacing the larger, shuttered operations.

World Bank officials warn that the garment sector job losses will contribute to an increase in poverty, from 1 percent to 3 percent.

‘This is a grave impact,” said Qi Mao Fan, World Bank’s Cambodia director. “So investors and workers must ensure the standard of work and competitiveness.”

Sok Lao, executive director of the Arbitration Council Foundation, said garment factories could be saved by increased commitment of government institutions, investors and workers to cooperate.

The garment sector is Cambodia ’s top export earner, reaching $2 billion in 2008. Om Mean said Monday the country now has 516 factories and nearly 360,000 workers.

To improve the sector, the government must settle questions faced by investors, said Ath Thun, president of the Coalition of Cambodian Apparel Workers’ Democrat Union. Those include high prices for water and electricity, poor infrastructure, corruption and low worker capacity, he said.

Workforce Abuse Jeopardizes US Trade Status: Union

Uncle Sam WARNS you!

By Taing Sarada, VOA Khmer
Original report from Washington
26 November 2009

If the government continues to ignore labor violations and fails to address working conditions, it risks its special trade access to lucrative US markets, a leading labor leader said in Washington last week.

Marking the 10-year anniversary of a preferential Cambodia-US trade agreement in Washington, Art Thorn, president of the Cambodian Labor Confederation, said unfair practices and poor working conditions will continue without the intervention of the international community.

“They exploit the workforce, and the employers fire factory union leaders or violate workers’ rights when the law isn’t well enforced,” he said at the World Bank’s International Finance Corporation.

“I think what has happened will continue to happen if the government and donor countries such as America do not help,” he said. “Our union is trying to work hard to solve the issues, but in reality our power is very limited. And if the leader of the country doesn’t help, then it will be impossible for us to do it alone.”

Cambodia’s economy is heavily dependent on the garment sector, a major earner of foreign currency, but observers warn that abusive practices and a lack of worker rights could drive buyers away.

The Freed Trade Union of Workers of the Kingdom of Cambodia, the country’s largest union, has warned that factory employers regularly violate labor codes, denying time off and maternity leave, paying salaries irregularly or even declaring bankruptcy and failing to pay workers when they strike. Union leaders say they are routinely discriminated against in their efforts to organize workers.

However, Cambodian trade officials say they have a strong labor law they try to enforce, and they have worked in recent years to brand Cambodian garments under fair practices.

In an interview with VOA Khmer on a trip to Washington last week, Commerce Minister Cham Prasidh said the law is well written and to international standards. His ministry sends monitors to factories often, he said.

“Honestly, we respect our labor rights more than any other countries,” he said. “We have a good law, but sometimes we also have some slow practices and a lack of enforcement.”

Trina Tocco, a member of the International Labor Rights Forum, based in Washington, told VOA Khmer that if Cambodia does not focus on the rights of workers, they will face abuses in the workplace.

John Ritchotte, a specialist in labor relations at the International Labour Organization, based in Bangkok, told VOA Khmer the labor law may need updated.

“The Cambodian labor law is now 10 years old, and like any law it needs to be adjusted and adapted to the change of circumstances,” he said at the IFC in Washington. “And now that there is a growing economy, a more diverse economy, they need to adapt the law to that reality.”

Garment sector riding rough seas

(Photo: DR, Cambodge Soir Hebdo)

20 Jan 2009
By Ky Soklim
Cambodge Soir Hebdo
Translated from Khmer by Luc Sâr
Click here to read the article in French

Factory closures, financial problems, these are some of the concerns faced the GMAC boss.

The President Garment Manufacturers Association of Cambodia (GMAC) is worried, Van Sou Ieng told unions and government representatives during a crisis summit held on Tuesday 20 January.

In 2008, textile exports rose only by 1 to 2% as opposed to 10 to 15% in the years before, and 25,000 factory workers were fired from their jobs.

The beginning of 2009 does not look rosy either. “During the first trimester of 2009, we will surely see a drop in production and other factories will be closing,” Van Sou Ieng predicted.

The culprit? “Buyers are no longer buying, and orders are less than before,” he indicated. Furthermore, buyers also demand a lowering of the cost by about 10% as well. They asked to maintain a credit line for their purchases and this situation leads to a cash flow problem for factories.

Should there be an interruption of orders between April and May, Van Sou Ieng estimated that 50 to 60,000 additional workers will be laid off.