Garment industry in Cambodia: towards a thorough revision of social dialogue?
Ka-Set
By Ros Dina and Laurent Le Gouanvic
24-11-2008
Posted by Chea Sophal
Chom Chao (Cambodia), 25/09/2008. Garment workers on their way home after the shift
© John Vink / Magnum
Today in Cambodia, more than 1,000 trade unions coexist within the odd 540 garment factories established in the country. The unions' role is officially to defend workers' fundamental rights, but the de facto reality is quite different: their representatives sometimes use the unions to obtain personal advantages here or reap some money there. The situation was loudly denounced by Nang Sothy, Secretary General of the Cambodia Chamber of Commerce, who, on the occasion of the Government – Private Sector Forum held on Friday 21st November, deplored the degradation of the social climate in 2008. The social model had up until now helped attract western buyers willing to better their reputation, but shaken on the one hand by the pressure of the overall inflation, which ruined workers' buying power, and weakened on the other hand by the first consequences of the world financial crisis, the model may well be endangered, unless new forms of negotiations are elaborated between Cambodian employers and workers, at last.
Inflation, economic crisis and strikes: this is what employers fear the most, a truly explosive mixture of circumstances. They took upon themselves to voice their concern during the 14th Government-Private Sector Forum which gathered representatives of the executive power and entrepreneurs.
Jousting trade unions
The Secretary General of the Cambodia Chamber of Commerce (CCC) and also chairman of the Phnom Penh special economic zone embarked on the criticism of “some unions”, accused of solely serving their own interest at the expense of employers as well as workers. Nang Sothy, who is also the co-chairman of the Industrial Relations Working Group, complained in his speech at the G-PSF that “In some factories, workers are represented by up to ten unions! Their quest for members transformed their role: instead of protecting the interests of workers, they tend to focus more on competing and seeking financial profit.”
According to him, the social climate has kept deteriorating during 2008: the first ten months of the year saw 95 illegal strikes organised in Cambodian textile factories, i.e. a 48% increase compared to the same period last year, Nang Sothy asserted.
“90% of unions corrupt”?
Chea Mony, president of the Free Trade Union of Workers of the Kingdom of Cambodia (FTUWKC) and brother of famous union activist Chea Vichea assassinated in 2004, disagreed with these figures. However, the Union representative confirmed Nang Sothy's analysis of the sometimes deleterious actions of unions in an already shaky context.
“90% of unions are corrupt, either because they resort to blackmailing, or because of their relations with employers and high-ranking political representatives”, the FTUWKC leader declared point blank.
Workers held hostage
“Unions are trying to mobilise workers on strikes and then use them as hostages, and this, in their own interest”, Chea Mony detailed. “These are bad unions who generate strikes in order to blackmail employers into giving them money, and who leave the factory once they have received it.” This situation is not helping Chea Mony's trade union's actions, according to him, as he would like to focus on negotiations rather than on power struggle.
Establishing representation and a new jurisdiction
In order to put an end to the situation and prevent the scores of micro-unions from detracting from the interest of entrepreneurs, the latter, also members of the Industrial Relations Working Group, asked the government to take at least two measures: first, to promote the recognition of both the most representative unions - clearly organised in each factory and sector - and agreements coming out of collective negotiations, while making sure that union federations respect the labour law and legal procedures. Then, to prepare the drafting of a law concerning unions and creating a labour jurisdiction, which would be defined by “properly enforced” binding decisions.
“At the moment, twenty-six union federations are active within the garment industry but only ten of them can be considered as being the most representative out of all”, Nang Sothy observed, thus backing up employers' request to create a special interaction with unions, who represent at least 51% of the workers in a factory today and receive the contributions of at least 33% of their members.
Proliferating micro-unions could be detrimental to big ones
The proposition stating the recognition of big unions by factory and by sector of activity came as good news for Chea Mony and his FTUWKC, the most major union in the textile industry together with the Coalition of Cambodia Apparel Workers Democratic Union (CCAWDU). But the union activist is yet doubtful regarding the authorities' actual will to enforce such measures, even though the Prime Minister declared himself in favour of them in his reply to Nang Sothy on November 21st . “I had already voiced the idea but it hadn't worked out because the representatives of the Ministry of Labour did not support it. It would be a good thing, but I do not think that the government will accept it, because they prefer leaving these small unions to proliferate in order to weaken the FTUWKC”, Chea Mony estimated.
A law regulating trade unions?
For his part, Nang Sothy reckons that the solution will come through law. “It will be difficult if both parties – the union federation and the employer, do not intend to take the responsibility of what they agreed on and signed in their collective agreement. We, in the private sector, believe that work relations must be regulated by law, within a framework where it can be enforced, and which will impose sanctions on those who do not abide the law. The labour law allows the creation of unions but no law regulates the way they should work.”, the Secretary General of the Cambodia Chamber of Commerce remarked.
Nang Sothy also demanded the reinforcement of the mechanisms of negotiations and sanctions, starting with the establishment of a proper labour court, the powers of which would be more extensive than the limited possibilities of the current Arbitration Council, an independent institution gathering representatives of employers and employees, in charge of solving labour disputes and able, in some cases and with both parties' prior agreement, to make binding decisions. “99% of strikes started by unions in Cambodia happen even before the dispute has been mentioned to the Arbitration Council. If the strikes have already started, experience [...] proves that even binding decisions cannot prevent them”, the employer reported.
The authorities' role
Chea Mony estimated that the authorities have their share of responsibility in the stiffening of work relations. “Some employers have been able to invest in Cambodia thanks to certain favours and were not required to leave the usual security deposits. In the event of bankruptcy, they can leave the territory overnight and leave workers high and dry without employment. A lot of last-minute strikes are organised because of the fear of bankruptcy, in order for salaries to be paid before the employer flees”, the union activist explained.
To Nang Sothy, the strengthening of the legal framework must be enforced as soon as possible. But this must also be done with tact and in accordance with the unions themselves, otherwise they could yet again threaten employers with strikes. This resulted in an announcement made by Prime Minister Hun Sen towards union activists and workers on the occasion of the G-PSF. “It is not time to go on strike against factories but rather time to bring home the bacon!”, he declared before calling for an association between “all partners, workers and employers” in order to collaborate and abide the law. To this statement, Chea Mony retorted: “If employers truly abided the law, there would be no need to go on strike. And bad unions would not be able to play with corruption.”
Ka-Set
By Ros Dina and Laurent Le Gouanvic
24-11-2008
Posted by Chea Sophal
Chom Chao (Cambodia), 25/09/2008. Garment workers on their way home after the shift
© John Vink / Magnum
Today in Cambodia, more than 1,000 trade unions coexist within the odd 540 garment factories established in the country. The unions' role is officially to defend workers' fundamental rights, but the de facto reality is quite different: their representatives sometimes use the unions to obtain personal advantages here or reap some money there. The situation was loudly denounced by Nang Sothy, Secretary General of the Cambodia Chamber of Commerce, who, on the occasion of the Government – Private Sector Forum held on Friday 21st November, deplored the degradation of the social climate in 2008. The social model had up until now helped attract western buyers willing to better their reputation, but shaken on the one hand by the pressure of the overall inflation, which ruined workers' buying power, and weakened on the other hand by the first consequences of the world financial crisis, the model may well be endangered, unless new forms of negotiations are elaborated between Cambodian employers and workers, at last.
Inflation, economic crisis and strikes: this is what employers fear the most, a truly explosive mixture of circumstances. They took upon themselves to voice their concern during the 14th Government-Private Sector Forum which gathered representatives of the executive power and entrepreneurs.
Jousting trade unions
The Secretary General of the Cambodia Chamber of Commerce (CCC) and also chairman of the Phnom Penh special economic zone embarked on the criticism of “some unions”, accused of solely serving their own interest at the expense of employers as well as workers. Nang Sothy, who is also the co-chairman of the Industrial Relations Working Group, complained in his speech at the G-PSF that “In some factories, workers are represented by up to ten unions! Their quest for members transformed their role: instead of protecting the interests of workers, they tend to focus more on competing and seeking financial profit.”
According to him, the social climate has kept deteriorating during 2008: the first ten months of the year saw 95 illegal strikes organised in Cambodian textile factories, i.e. a 48% increase compared to the same period last year, Nang Sothy asserted.
“90% of unions corrupt”?
Chea Mony, president of the Free Trade Union of Workers of the Kingdom of Cambodia (FTUWKC) and brother of famous union activist Chea Vichea assassinated in 2004, disagreed with these figures. However, the Union representative confirmed Nang Sothy's analysis of the sometimes deleterious actions of unions in an already shaky context.
“90% of unions are corrupt, either because they resort to blackmailing, or because of their relations with employers and high-ranking political representatives”, the FTUWKC leader declared point blank.
Workers held hostage
“Unions are trying to mobilise workers on strikes and then use them as hostages, and this, in their own interest”, Chea Mony detailed. “These are bad unions who generate strikes in order to blackmail employers into giving them money, and who leave the factory once they have received it.” This situation is not helping Chea Mony's trade union's actions, according to him, as he would like to focus on negotiations rather than on power struggle.
Establishing representation and a new jurisdiction
In order to put an end to the situation and prevent the scores of micro-unions from detracting from the interest of entrepreneurs, the latter, also members of the Industrial Relations Working Group, asked the government to take at least two measures: first, to promote the recognition of both the most representative unions - clearly organised in each factory and sector - and agreements coming out of collective negotiations, while making sure that union federations respect the labour law and legal procedures. Then, to prepare the drafting of a law concerning unions and creating a labour jurisdiction, which would be defined by “properly enforced” binding decisions.
“At the moment, twenty-six union federations are active within the garment industry but only ten of them can be considered as being the most representative out of all”, Nang Sothy observed, thus backing up employers' request to create a special interaction with unions, who represent at least 51% of the workers in a factory today and receive the contributions of at least 33% of their members.
Proliferating micro-unions could be detrimental to big ones
The proposition stating the recognition of big unions by factory and by sector of activity came as good news for Chea Mony and his FTUWKC, the most major union in the textile industry together with the Coalition of Cambodia Apparel Workers Democratic Union (CCAWDU). But the union activist is yet doubtful regarding the authorities' actual will to enforce such measures, even though the Prime Minister declared himself in favour of them in his reply to Nang Sothy on November 21st . “I had already voiced the idea but it hadn't worked out because the representatives of the Ministry of Labour did not support it. It would be a good thing, but I do not think that the government will accept it, because they prefer leaving these small unions to proliferate in order to weaken the FTUWKC”, Chea Mony estimated.
A law regulating trade unions?
For his part, Nang Sothy reckons that the solution will come through law. “It will be difficult if both parties – the union federation and the employer, do not intend to take the responsibility of what they agreed on and signed in their collective agreement. We, in the private sector, believe that work relations must be regulated by law, within a framework where it can be enforced, and which will impose sanctions on those who do not abide the law. The labour law allows the creation of unions but no law regulates the way they should work.”, the Secretary General of the Cambodia Chamber of Commerce remarked.
Nang Sothy also demanded the reinforcement of the mechanisms of negotiations and sanctions, starting with the establishment of a proper labour court, the powers of which would be more extensive than the limited possibilities of the current Arbitration Council, an independent institution gathering representatives of employers and employees, in charge of solving labour disputes and able, in some cases and with both parties' prior agreement, to make binding decisions. “99% of strikes started by unions in Cambodia happen even before the dispute has been mentioned to the Arbitration Council. If the strikes have already started, experience [...] proves that even binding decisions cannot prevent them”, the employer reported.
The authorities' role
Chea Mony estimated that the authorities have their share of responsibility in the stiffening of work relations. “Some employers have been able to invest in Cambodia thanks to certain favours and were not required to leave the usual security deposits. In the event of bankruptcy, they can leave the territory overnight and leave workers high and dry without employment. A lot of last-minute strikes are organised because of the fear of bankruptcy, in order for salaries to be paid before the employer flees”, the union activist explained.
To Nang Sothy, the strengthening of the legal framework must be enforced as soon as possible. But this must also be done with tact and in accordance with the unions themselves, otherwise they could yet again threaten employers with strikes. This resulted in an announcement made by Prime Minister Hun Sen towards union activists and workers on the occasion of the G-PSF. “It is not time to go on strike against factories but rather time to bring home the bacon!”, he declared before calling for an association between “all partners, workers and employers” in order to collaborate and abide the law. To this statement, Chea Mony retorted: “If employers truly abided the law, there would be no need to go on strike. And bad unions would not be able to play with corruption.”
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