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This week I note with interest an article in the Cambodia Herald, by William E. Todd, U.S. Ambassador to Cambodia. In it he talks about the various roles trade unions play in sustaining democracies and creating prosperity and how, recently, unions have played a key part during negotiations over minimum wage changes in Cambodia. He cites examples of US companies making headway on labour rights issues that feature in the ETI Base Code, as well as those operating more general CSR initiatives, and points out that trade unions are often the only institutions that can give workers in companies that neglect their labour rights, a voice.
He says, "A third topic that is likely to come up on Deputy Assistant Secretary Busby’s visit is labor rights...In particular...the important role that trade unions can play as a means for people to learn about transparency, governance, and accountability.
An effective trade union does not focus solely on the economic interests of its worker members; it also serves as a key democratic organization that stresses the importance of voting, regular assembly, access to information, and other processes that reflect the value of each member’s opinion. While free and fair elections are the first critical step for democracy, trade unions are one of the institutions that help to insure the long-term sustainability of democracies. Across the world, it is no coincidence that countries with a free and active trade union movement are more democratic, more transparent, and more prosperous. Here in Cambodia, many are discussing the impact of trade unions in the country’s development. In light of conversations with a number of labor experts during my recent reverse trade mission to the United States, I would like to take some time to reflect on the positive role trade unions can play in addressing a variety of issues that are important to Cambodia’s workforce.
Much of the discussion on trade unions in Cambodia relates to the garment sector. According to the Ministry of Industry and Handicraft, about 700,000 Cambodians currently work in the 1,200 garment businesses located throughout the country, with women representing 90 percent of these employees. The garment industry has been a key vehicle for economic growth, becoming the primary means for attracting foreign investment and creating opportunities for many Cambodians to supplement their family incomes. Providing such opportunities, however, is only a half measure if laborers are subjected to poor conditions or are treated unfairly.
With the large number of garment workers in the country, trade unions play a crucial role by representing the interests of laborers, promoting safer working environments, and negotiating for employees’ benefits. Along with supporting workers in disputes with management, Cambodian unions also help with social services, financial assistance, and medical support. In the past, I have highlighted examples of companies that value strong corporate social responsibility practices in Cambodia, such as General Electric’s contributions to schools and medical training; Tiffany & Co. providing free medical care for its workers; and Pactics offering its employees fair wages, reasonable working hours, safe and clean working conditions, and even subsidies for motorbike helmets for a safe commute. However, there are reports of some companies in Cambodia that are not as committed to improving labor standards for their employees. This is another reason why trade unions matter, as they are often the only institutions that can give a voice to neglected workers.
Most recently, trade unions have represented workers’ concerns in the negotiations on the minimum wage in Cambodia’s garment industry. As many of us know, the minimum wage is a contentious issue in Cambodia, as witnessed during the mass demonstrations and violent clashes that occurred in January 2014. Partnerships between trade unions, the government, the private sector, and civil society were essential contributors to the increase of the minimum wage from $60 to $128 last year. With the rising cost of living that has come with Cambodia’s economic growth, many workers are pushing for an additional wage increase. As such, it is vital that trade unions continue to collaborate with various stakeholders to come up with a fair, equitable, and transparent solution to the minimum wage issue. In future negotiations, I encourage all sides to remain committed to peaceful and respectful dialogue, using assistance from the International Labor Organization (ILO) and other experts to make decisions that are based on data and in the best interests of all parties.
Another key issue is the Law on Unions of Enterprises, the pending trade union law that has been in the works since 2011. In the past, trade unions have been a part of consultations on the draft law, providing valuable insight to government officials. However, despite a number of revisions, several trade unions and civil society groups are still concerned that the final version of the law will not take into account any of the recommendations given, thereby limiting the rights of unions and Cambodian workers. It is more important than ever to pay attention to the concerns of trade unions, factory owners, and civil society, as any action that restricts rather than empowers in my opinion does not serve the best interests of the Cambodian people.
The road accident that took the lives of 19 people in Svay Rieng Province last week was a sad reminder of the need to protect workers in Cambodia. As many people have noted, trade unions could help reduce the number of garment workers killed and injured during their daily commute by working with factories to provide safer transportation options. Beyond Cambodia’s borders, trade unions can also play a role in protecting migrant workers against labor trafficking. Despite the high visibility given to the fight against sex trafficking, the overwhelming majority of Cambodian trafficking victims are trafficked for labor purposes. The desire for a better life has led to approximately 140,000 Cambodians working legally in Thailand and anywhere from 400,000 to 500,000 more working there illegally. These workers are at an increased risk of being trafficked due to greater use of illegitimate labor brokers and payment of higher fees to gain entry to Thailand, leading to a greater likelihood of debt bondage. As trade unions continue to grow across the region, they can help identify and offer support to trafficking victims."