FACTORS PROMOTING ENTERPRISE LEVEL UNION - …ijecm.co.uk/wp-content/uploads/2016/08/4838.pdf · Development and the birth of trade unions in Cambodia may be broken up into three

International Journal of Economics, Commerce and Management United Kingdom Vol. IV, Issue 8, August 2016

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FACTORS PROMOTING ENTERPRISE LEVEL

UNION - MANAGEMENT PARTNERSHIP IN

THE GARMENT INDUSTRY OF CAMBODIA

Shirley Samuel Gurunathan Joseph

IIC University of Technology, Cambodia

[email protected]

Leow Chee Seng

IIC University of Technology, Cambodia

[email protected]

Abstract

This concept paper presents the problem statement and literature review for a study titled

“Factors promoting enterprise level union-management partnership in the garment industry of

Cambodia”. It looks at the purpose for study and the literature available to propose partnership

relationships between the enterprise union and management in the garment industry to

significantly improve the existing adversarial relationship between the union and management.

This concept paper discusses the importance of partnership between union and management in

the garment industry of Cambodia especially with the implementation of the Law on Unions of

Enterprise in 2016.

Keywords: Employee Voice, Engagement Culture, Garment Industry, Learning, Legislation,

Organizational Structure, Role of Manager, Trust, Union-Management Partnership

INTRODUCTION

Development and the birth of trade unions in Cambodia may be broken up into three important

intervals. Between 1979 and 1990, Cambodia was under a centrally-planned political-economic

system, with state-controlled unions. Following the failure of the centrally-planned system,

arrived the first stage of unions organising in a market economy. During this time, the 1993

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Constitution and the 1997 Labour Law were enacted creating the legal landscape for unions

organizing to boom. The third period, 1997 to the present time, union organising continued and

intensified with management of enterprises resisting unionism. This period was also

characterised by alignments, realignments and divisions between and within the leading union

organisations.

In the garment industry of Cambodia, where unionisation is estimated at 60%, the

effectiveness of having so many unions is questionable, leaves many unions weak, under–

funded, competing with one another and subject to corruption and political interference (Arnold,

2013). According to Nuan and Serrano (2010), unions and employers in Cambodia often do not

have the knowledge or tools to engage in dialogue and dispute prevention measures including

collective bargaining. They also mentioned that employers have complained about multiple

competing unions and strikes while unions voiced out their concerns over low wages, anti-union

discrimination, and abuse of short-term contracts.

Furthermore International Labour Organization perceives the Law on Unions of

Enterprise violates the ILO convention on collective bargaining and opens the door for

authorities to abuse the law (Mom & Sean, 2014). With the implementation of the Law on

Unions of Enterprise in Cambodia in 2016, both unions and management must find the best way

to enhance cooperation between each other to foster good union-management relations in the

event this law stifles the freedom of association among workers in Cambodia.

Problem Statement

The intense union avoidance by employers due to unions motivating workers to become

organised and join the union by pushing for increase in wages, job security, improvement in

working conditions, improvements in safety and health standards and channel to voice

grievances is a common feature among garment factory employers in Cambodia. Employers are

also requested for ―cooperation fees‖ by unions in order to reduce demands made by their

members or to get the unionised workers to cooperate with the management. Employers are

also faced by inappropriate pressure through reports released by Workers Right Movement and

Non-Governmental Organizations (NGO) accusing them of violating workers freedom of

association. Such reports may induce boycott from International consumers from buying

garments produced in Cambodia.

There is on-going labour unrest in the garment factories due to demands for higher

wages and benefits made by unions. Table 1 and 2 and Figure 1 and 2 shows the number of

strikes and man days lost reported by the Garment Manufacturers Association of Cambodia

(GMAC) which clearly shows the on-going labour unrest in the garment industry of Cambodia.

International Journal of Economics, Commerce and Management, United Kingdom


Table 1: Number of Strikes Reported by GMAC Members

Number of Strikes in Cambodia (Reported by GMAC members)

Jan Feb Mar April May Jun July Aug Sept Oct Nov Dec Total Change Percentage

2003 3 3 4 10 4 10 3 5 2 2 8 1 55

2004 4 6 13 8 9 12 14 5 3 3 2 5 84 29 52.7%

2005 6 4 6 6 7 7 4 6 7 5 4 4 66 -18 -21.4%

2006 4 8 6 6 13 8 13 7 6 8 2 5 86 20 30.3%

2007 10 7 3 6 3 7 12 6 6 4 10 6 80 -6 -7.0%

2008 4 6 26 14 5 4 7 13 10 6 7 3 105 25 31.3%

2009 3 4 5 2 4 11 9 6 6 2 3 3 58 -47 -44.8%

2010 2 4 5 0 1 1 15 5 5 0 5 2 45 -13 -22.4%

2011 5 4 4 1 0 3 1 5 2 3 2 4 34 -11 -24.4%

2012 7 16 9 10 14 12 13 11 10 7 4 8 121 87 255.9%

2013 11 13 16 8 11 14 10 9 14 15 10 16 147 26 21.5%

2014 8 4 11 15 4 10 4 9 13 8 8 14 108 -39 -26.5%

2015 18 11 11 6 11 10 12 6 5 3 4 19 118 10 9.26%

2016 5

Source: www.gmac-cambodia.org/strike/

Figure 1: Number of Strikes in Cambodia (Reported by GMAC Members)

Table 2: Lost Man Days (Reported by GMAC Members)


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Table 2. Lost Man Days

Lost Man Days (Reported by GMAC members)

Jan Feb Mar April May Jun July Aug Sept Oct Nov Dec Total Change Percentage

2003 7,315 3,660 12,550 11,176 8,040 51,424 2,621 6,857 12,600 683 13,071 287 130,284

2004 12,054 7,024 8,139 7,299 12,030 11,579 20,680 20,325 1,295 1,862 1,880 2,945 107,112 -23,172 -17.8%

2005 5,190 1,281 4,847 7,100 2,785 7,835 2,425 4,607 5,947 3,370 4,420 2,612 52,419 -54,693 -51.1%

2006 6,611 39,730 16,928 31,563 86,724 49,184 24,387 21,074 16,376 31,622 6,184 13,330 343,713 291,294 555.7%

2007 36,246 18,320 12,816 13,934 10,207 11,154 27,979 14,960 52,320 33,148 38,848 24,210 294,142 -49,571 -14.4%

2008 17,450 25,826 43,181 33,427 21,450 10,438 17,665 35,359 39,958 18,673 36,125 4,844 304,396 10,254 3.5%

2009 33,450 24,605 13,881 5,378 26,138 69,713 15,644 22,363 53,822 1,751 29,083 18,138 313,966 9,570 3.1%

2010 27,300 26,392 13,542 0 1,200 8,000 68,852 21,026 22,033 0 7,959 5,900 202,204 -111,762 -35.6%

2011 4,238 27,280 7,780 2,200 0 19,224 3,000 20,360 8,400 30,600 5,580 10851 139,513 -62,691 -31.0%

2012 26,071 76,382 19,452 20,662 122,520 62,179 56,288 88,173 38,200 14,140 9,130 9,630 542,827 403,314 289.1%

2013 58,580 52,860 85,655 31,404 87,267

107,553 25,413 88,704 112,125 91,600 84,485 62,881 888,527 345,700 63.7%

2014 32,362 4,753 82,660 115,750 24,255 34312 22630 58030 15050 90400 10722 36020 526,944 -361583 -40.6%

2015 18,

080 21400 17253.5 11940 37541 77550 109304 11370 7066 3073 10713 138540 452,364 -74,581

-

14.1534015

2016 16709


Figure 2: Lost Man Days (Reported by GMAC Members)




Poor government enforcement during labour unrest also contributes to the frequency of the

labour unrest in the garment factories in Cambodia. Due to the ongoing demands for higher

wages and benefits by the unions, it is becoming harder for Cambodia to compete with low-

wage countries such as Vietnam, Myanmar, Bangladesh and Laos.

In Yarrington, Townsend, and Brown (2007) findings, managers and unions agreed that

the nature of relationships changed due to government legislation and factors such as trust,

communication, employee voice, respecting rules, professional credibility and role of managers

play an important role in developing good union-management partnership relations. For the

purpose of this study, other factors which are engagement culture and organizational structure

have been included in this study besides the factors mentioned by Yarrington et al. (2007)to

examine its importance in developing union-management partnership relations in garment

factories of Cambodia.

Need of the Study

The purpose of this study is to find ways to avoid adversarial relationship between enterprise

union and management and promote a harmonious relationship through partnerships between

enterprise union and management in the Garment Industry of Cambodia. Factors such as trust,

employee voice, role of managers, organizational structure, legislation, learning and

engagement culture has to be researched to understand its role in promoting partnerships

between union and management to foster beneficial union-management relationship in the in

the Garment Industry of Cambodia.

Garment factories and enterprise level unions in Cambodia are constantly reported in

the press for various violations of labour laws and freedom of association as well as violence

towards workers and managers. Management is seen as trying to intimidate and threaten

workers seeking to form unions and assert their labour rights and cases of union

representatives and leaders being terminated as a result of their union activities still happen as

a means of union avoidance by the management.

Union leaders are known for working for their own interested and ―secretly‖ ask for

cooperation fees from the management to settle disputes. Many union leaders have no intention

to resolve disputes amicably but rather prefer to ―stretch‖ the problems further just to show their

members that they are able to ―distract‖ the management from their daily activities and be

bogged with disputes resolving activities

Furthermore unions accuse the factories of using short term fixed duration contracts as a

union-busting technique to prevent the workers from unionizing. Unions perceive that fixed

duration contract workers are in fear of being fired if they involve themselves in union activities.

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The minimum wage for regular workers increased from USD45 in 1997 to USD61 in 2010, an

increase of USD16 for the past 13 years which amounts to USD1.23 per year (Sophal, 2011).

Again in May 2013 the minimum wage was increased to USD80, February 2014 to USD100 and

January 2015 to USD128 (Sophal, 2011).

The minimum wage is once again increased to USD140 effective January 1st, 2016 but

the unions are demanding that the minimum wage should be USD207 and keep on demanding

that the minimu wage should be adjusted according to the cost of living. It is becoming harder

for Cambodia to compete with low-wage countries such as Vietnam, Myanmar, Bangladesh and

Laos (Dara, 2015).

Research Questions

This study is guided by the following seven research questions:

Does trust promote enterprise level union-management partnership in the Garment Industry

of Cambodia?

Does employee voice promote enterprise level union-management partnership in the

Garment Industry of Cambodia?

Does the role of managers promote enterprise level union-management partnership in the


Does organizational structure promote enterprise level union-management partnership in

the Garment Industry of Cambodia?

Does legislation promote enterprise level union-management partnership in the Garment

Industry of Cambodia?

Does learning promote enterprise level union-management partnership in the Garment

Industry of Cambodia?

Does engagement culture promote enterprise level union-management partnership in the


How do Unions and Management Benefit from Partnership?

Cooperation and change are more difficult to bring about in union setting. The institutional

relations between labour and management, the long history of conflict and mistrust,

management‘s continual need to reduce costs and maintain and enhance productivity, the

unions‘ role in protecting the job security and earnings of its members, combine to make

organizational changes more difficult. In spite of this, there is a rich history of union-

management cooperation (Schuster & Weidman, 2006). Companies and unions have



developed pragmatic solutions to significant problems affecting the workplace when traditional

power strategies such strikes, picketing, boycotts, and exercise of management rights were

ineffective (Schuster, 1984). Based on the problem statement of this study the following issues

are discussed.

Union Avoidance by the Management

According to Ozley (1998), management avoids union through union busting and hardball

tactics. In union busting tactics, management tries to get unionised employees to de-certify

their union. Ozley warns that this is extremely difficult and legally risky and may result in the

loss of ―good will‖ towards the company. The advantage of this tactic is that management can

―create and live in a hostile environment for a long time‖. Another tactic mentioned by Ozley is

the hardball tactic. He explains that management rejects any demands or suggestions made by

the union, decides on its own solutions to problems and uses pressure, coercion and persuasive

arguments right to arbitration stage.

Reasons for Labour Unrest and Unions Taking an Adversary Stand towards Management

Research conducted by Ahmed, Raihan, and Islam (2003) in Bangladesh show that the lack of

minimum facility and safety at work, sub-standard living conditions, deferred payment of wages

and benefits, international conspiracy and coercive role of the law enforcing agency, too much

dependency on buyers, pressures from the workers and local terrorists, use of workers by

others and rumors, un-fulfillment of education demands of their children, distorted minded

workers, political instability of the country, too much workload, lack of promotion opportunity,

insufficient wages to survive etc., are the primary source of labour unrest. They conclude that

the policy makers of Bangladesh should design policies that minimize the labour problems and

uncertainties in the garment sector by taking into considerations the causes mentioned above.

Reasons Dispute Resolution Channels are not Effective and Constantly Being Frustrated

by the Unions or Management

According to a research conducted by Robinson and Freidman (1995), union representatives

underestimate management‘s concern for harmful acts against workers, or management‘s

sincere wish to negotiate in good faith within the financial constraints, and were generally highly

suspicious of management motives and intentions towards workers. They also conclude that

managers saw union representatives as unreasonable, and under estimate union capabilities

and unwillingness to accept extenuating circumstances and that negotiations will be significantly

improved if such misconstrues can be tackled and debunked prior or during negotiations.

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Impact of Legislation

In his book, Willman (1998), the Conservative government in the United Kingdom sought to

tame what they saw as the excessive power of trade unions. Willman explained that new

legislation regulating the rights, responsibilities, and internal government processes of unions

was central to this search; in 1980, 1984, 1988, and 1993, Acts of Parliament detailed measure

which unions perceived as typically unacceptable and disruptive. Yet, resistance to regulations,

especially following the miners' strike in 1984-85, failed to prove effective and British unions had

to come to terms with a new legal context due to their activities.

Furthermore the new Law on Union of Enterprise in Cambodia is perceived by labour

groups, human rights advocates, and opposition politicians as a move by the government to

weaken the workers‘ movement in Cambodia by the following ways: First, the scope of the law

excludes informal workers, civil servants, teachers, and domestic workers. A separate law is

required to provide legal protection for these workers, raising questions about the motivations

for this lack of inclusiveness. Second, the inclusion of age, residency and literacy requirements

for prospective union leaders can be read as restrictions on the right of workers. Third, labour

groups have decried the financial reporting requirement as being overly burdensome. Lastly,

there are also predictably provisions that would make strike action difficult, if not altogether

impossible. All these issues combine to undermine workers‘ right to free association in

Cambodia.

Corrupt Practices among Union and Management

According to Arnold (2013), the rapid increase of unions and federations correlates with the rise

of unions as businesses. Running a union can be profitable, as corrupt unions can seek

kickbacks from employers as a means to raise extra money in other ways.

Creating Effective Partnerships between Union and Management Relationship

Partnership is a way to move adversarial industrial relations to problem‐solving outcomes

among unions, managers and workers (Guest and Peccei, 2001, Martinez Lucio and Stuart,

2004; Dietz, 2004; Roche and Geary, 2006). According to Ratnam (2006), two-way

communication, facilitates cooperation, information sharing, and transparent management are

prerequisites for developing a problem-solving approach, mutual trust and understanding,

shared values, beliefs and objectives are essential to facilitate cooperation between union and

management. Hence, there exists a need to orient, train and prepare managers about their

duties, to consult and communicate, and seek co-operation with workers and unions. Ratnam

goes on to say that workers and unions should be unaware of their rights and duties, and roles

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and obligations concerning accessibility to information and show demonstrated interest and

readiness to participate with the spirit of co-operation in joint consultation.

Effective union-management management teams have mutually understood goals, clear

roles and responsibilities, efficient operating procedures, constructive personal relationships and

an ability to resolve conflict in a timely manner (Grant & Clarkson, 2001). They go on to say that

ideal partnerships are able to conduct effective meetings, identify and solve problems, give and

receive information and are able to make decisions and evaluate progress. Studies conducted

by Meyer (2013) supported that unions, when coupled with good employee relations, facilitate

the adoption of high performance work practices and consequently have a positive impact on on

organizational competitiveness.

A survey conducted by Asuyama and Neou (2010), found that labour disputes and

labour union problems seems to have improved due to the increased dialogue between labour

unions and other stakeholders. Soon (2013) study shows that partnership ideology has a

positive relationship for the union and decision making process and which reinforces the

partnership debate of mutual gains that balance actor interest has been dominant in the

literature.

RELATED THEORIES

The evolution of the trade unions has been interpreted in different ways by different authorities.

Their views are expressed in the form of ideologies, approaches, theories, etc. The purpose of

such approaches and theories has been to explain the basic motivating factors behind union

growth and bargaining policies. Unions engage in a wide variety of functions, ranging from

organisation of works to maintaining and protecting their rights. The following theories of labour

movements were as follows:

Marxian Class Struggle Theory / Revolutionary Theory

Webb‘s Theory of Industrial Democracy

Cole‘s Theory of Industrial Unionism

Hoxie‘s Theory of Business Union

Tannenbaum‘s Anti-Technology Theory

Common‘s Pragmatic Approach Theory

Perlman‘s Theory of scarcity consciousness

Kerr and Associates Protest Theory

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THEORETICAL FRAMEWORK

A number of studies have been conducted on various aspects of the variables used to build the

Analytical Model in this study.

Trust and Union-Management Partnership

Daud and Tumin (2013) say that trade union must be able to build trust among members

especially during early stage of formation. Membership rate will increase if employees trust the

union. A study conducted by Finnerty (2008) concludes that trust is the foundation for building a

more cooperative and collaborative relationship between management and the union. According

to Reina and Reina (2010) "When we break agreements with others, we disempower the

relationship and compromise the trust between us. They express that if we repeatedly fail to

honor our agreements, we decrease the capacity for trust in our relationships". Labour disputes,

imposed collective agreements, wage cuts and contracting out result in a cycle of distrust.

Employee Voice and Union-Management Partnership

A research conducted by Bennet (2010) investigated HRM practitioners and union

representative experiences of employee voice initiatives at work. Marchington (2005) model of

engagement can be used as a conceptual framework for evaluation. Marchington

conceptualizes the following four essential facets of participation which would be the degree of

engagement signifies the extent to which workers or their representatives are able to influence

management decision-making. A study conducted by Buttigieg, Deery, and Iverson (2014)

indicates that members having a higher union satisfaction especially when they perceive that

their leaders to be highly responsive to their needs and concern, are more willing to express

voice.

According to Fitzpatrick (1998), unionised staff tends to be better informed and

managers see unions as a way of building commitment to business plans. An additional benefit

comes from having an alternative feedback channel. Internal communications managers are

well versed in the need to collect reactions, views and concerns from staff. However, when

there is only one channel for collecting feedback, there will always be suspicions about the

quality of information being gathered. Trade union representatives can be seen as independent

voices in the workplace, challenging both the rumours of their peers and the messages of the

management. Although managers may not welcome being questioned on matters such as

business strategy or tactics, they should be aware that an even handed representative will add

powerful support when it is appropriate.



Neil and Robinson (2012), conducted a survey which showed that nurses‘ level of

disengagement and management agreed to a significant culture shift away from ―adversarial

management‖ versus ―union positioning‖ was needed which lead to running workshops, one of

the agreed key principles to ensure effective partnership was to communicate openly, honestly

and respectfully, question when they don‘t know and not to assume; seek to understand all

perspectives; value each other and be non-judgmental; and stand for equality.

Role of Manager and Union-Management Partnership

McGuire, Mc. Guire and Sanderson (2013), studied the evolution of a line manager‘s roles and

responsibilities and the relationships line managers have fostered with HR functions and trade

unions. The role that trade unions lay in the workplace in UK has changed dramatically in

recent years. Trade unions traditionally used an adversarial approach, which was against the

interest of management. However, in an era of declining unionization rates, trade unions have

progressively moved towards partnership working, providing employers and managers with a

wide range of information services through networking, marketing and advisory services.

Moreover, trade union interest are focusing more and more on a balanced work-life balance,

employee empowerment and matters related to managerial and employee conduct and

behavior. It is becoming more evident that trade unions have become allies with line managers

to legitimize organizational change and voicing employee concerns and anxieties to senior

management in the organization. Their findings reveal that when there is a transference of HR

responsibilities to line managers of HR activities including selection and recruitment, grievance

and discipline, absence management and individuals development, line managers reported a

shift of working relationship from an adversarial way of a more two way cooperative relationship.

Based on Yarington, Townsend, and Brown (2007) findings, when an individual is seen to be an

experienced IR professional the advantages are two folds. Primarily, it seems that they are far

more prone to benefit from their own experiences and seen more positively by their fellow

practitioners.

According to Grandz (2009), ―leaders must have a vision and that effective leaders are

good at understanding the wide variety of physical, economic, psycho-social, and emotional

needs that people have, and in their ability to tailor a ―vision‖ so that it promises to satisfy unmet

needs‖.

Organizational Structure and Union-Management Partnership

Based on OECD LEED forum on partnerships and local governance, to become efficient, a

partnership needs to have recognizable and autonomous structure to bring about its identity

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(Michael, 2006). The structure must have stability and permanence together with flexibility, with

a specific amount of autonomy, i.e. independent from political influence. It is also important to

review lines of communication to ensure that all partners are kept informed and involved.

Partnership enjoys social and political approval and partners acknowledge the

practicalities of the political tasks and show determination with a strong sense of ownership

feeling. Deals are based on identifiable duties, shared privileges and obligations, and therefore

are signed by all relevant partners. The partnership takes an inclusive approach whereby

pertinent actors are involved in planning and setup). Robust commitment the partners from

each is seen in the fact that all partner enterprises are equally represented and, where feasible,

represented by experienced people who can impact within their organization due to their

influence.

Legislation and Union-Management Partnership

According to Doherty (2008), traditionally, trade unions in UK and Ireland have maintained the

role of representing employees, but declining union participation has meant that ―union only

voice‖ is now the way in only a minority organizations and thus, it may be argued that where

organizations have few, or no, voice and involvement arrangement in place, and where trade

union membership is not an option, employees are in a weak position to advance their case in

the absence of any legal right. Equally, employers may take all opportunity to avoid involving

employees in their organizations in the absence of any legal requirements to (Teague, 2004).

A report to the Solidarity Center, compiled by Schurman and Eaton (2013), mentions

that another major collaboration between the international community and the local labour

community in Cambodia was the birth of the new Law on Union of Enterprise. It contains

specific language for the inclusion of all workers to have the ability to form a union and not just

associations, regardless of formal status. The associations for workers excluded from the

current labour law will be able to act as unions under the proposed Law on Unions of Enterprise.

Learning and Union-Management Partnership

The research conducted by Tony (2014) suggests that successful union-management learning

partnerships can also have an optimistic effect on handling conflict in those organisations with

the following practical implications. There are consequences for management in recognising the

"additional value" that through partnership learning initiatives with their unions brings in terms of

additionally ―both pre-empting and resolving individual and collective disputes in the workplace‖.

Stroud and Fairbrother (2008) explain that trade unions in the European Steel Industry attempt

to introduce workplace learning initiatives on different levels, in various ways and for a range of



reasons, primarily through bargaining processes, partnership and forms of social dialogue.

There are of course doubts and concerns about the nature of this engagement. Based on

different range of possibilities, from the comprehensive "partnership" based provision in

Germany, to the reliance on voluntarism and learning-by-doing procedures evident elsewhere,

in practice the learning based on partnership relationships between union and management

remains limited. For unions to open up this domain of activity, they need to look to the broad

concerns and needs of their members, as well as looking to their own organisational structure

and policy objectives.

Some unions remain apprehensive towards social partnership initiatives, viewing them to

be an "emasculation of trade union purpose" and weakening employees' positions, and the

collective bargaining process is claimed by some to result in a distortion of learning processes

and opportunities so as to be almost meaningless (Rainbird, Sutherland, Edward, Holly &

Munro, 2000).

Engagement Culture and Union-Management Partnership

According to Macdonald (1997), the growing decentralization of IR caused by the requirement

for establishments to become more versatile, productive and competitive to face globalization

requirements means that authorities should delegate more responsibility and power to

supervisors and workers at the industry and enterprise level allow them to resolve problems in

their own workplace.

According to Sophal (2013), there are ongoing efforts in Cambodia to change the

regulatory framework with the view to smoothing labour relations. The main intention is to

introduce a rule of ―most representative union‖ so that ―collective bargaining‖ per factory would

be implemented.

According to Fletcher and Fang (2006), a vital component in successful partnering is the

need for executives to understand the effect of culture on the relationships they create along

with the networks they form. That is especially the situation with dealings in Asia as evidenced

by the increase in research during the last decade into the role of relationships and networks in

business activities in Asian countries. The reasons why networks have a tendency to be more

crucial in business activities in Asia are due to the following: greater political unrest in many

Asian countries; the dynamics of racial tensions; the lack of rule of law; and in some instances

the nature of the political system and its developments. The formation of networks of

relationships has been used as an approach to overcoming business risks due to the above

factors.

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Tu (2010) describes that different countries have different cultures, so there's a need to

comprehend the effects of cultures and international communications. Despite the zeal for

increased economic exchange, lots of people have found that cultural differences have

interfered with their capability to progressively conduct business because of the lack of

comprehension of the cultural differences. To overcome this, common organizational culture

can help with the coordination of an international partnership arrangement, and senior

managers need to possess knowledge of the national ethnic value characteristics of the people

concerned.

Due to cultural differences among workers, trade union leaders and management, which

also include language barriers, many strikes due occur. According to Sophal (2013), in most

factories, even lower level management is foreign rather than Cambodian, which is perceived to

contribute to poor communications. Frequent strikes are the least in part also attribute to poor

management. Reportedly, many factory managers have been unable to establish a

communication initiatives to tackle issues before they spill over into strikes.

The Proposed Conceptual Model

Based on the literature review and variables discussed above, the following analytical model

(Figure 3) will be tested to investigate the factors that promote enterprise level union-

management partnership in the garment industry of Cambodia.

Figure 3: Analytical Model: Factors Promoting Enterprise Level Union-Management Partnership

in the Garment Industry of Cambodia

Adopted from Joseph, S. (2015)



CONCLUSION

The literature review in this chapter shows that partnership between union and management is

used in many countries around the world to improve union-management relations. Partnership

between union and management also has many other benefits besides improving working

relationships in organizations. This study looks at ways to instill partnership relationship

between the unions and management in enterprises in garment factories of Cambodia in order

to move away from the current adversary relationships between union and management. As

discussed in the earlier chapters, the pressures of competition in a market economy will

eventually impel and compel unions and management to cooperate with each other. Unions

should work for the well-being of their enterprise in the hope of safeguarding their members‘

jobs, incomes, and other benefits. Unions and management may accommodate each other‘s

demands when the going is good: if capacity to pay is not a constraint, persuasion is possible.

But in difficult times, unions find it difficult to cooperate with management because it usually

entails shedding some of the benefits and safeguards and making sacrifices through termination

of employees‘ contracts. Due to the power-dynamics in union-management relations, ―aspiring

together and achieving together‖ is not so common in Cambodia. As a means to achieve a win-

win position for both union and management, this study aims to emphasize the importance of

partnership as a strategy to foster beneficial union-management relations in garment factories of

Cambodia.

According to a Policy Brief by the Cambodian Center for Human Rights (Tola, 2014),

there is continued room for improvement in the garment industry and in the implementation of

the legal framework to adhere to human rights standards in commercial enterprises that would

result in economic growth, as stability in the private sector would likely increase and investment

in Cambodia would become attractive. One of the recommendations suggested to the garments

factories was to establish effective operational-level mechanisms for employees, either

individually or through unions, to bring grievances to the attention of their employers; these

mechanisms should be based on engagement and dialogue with the employees. The other

recommendation suggested to the unions was to improve communication and coordination

mechanism, so as to reduce redundant or contradictory complaints.

Schappe (1997), proposes partnership as a model that regards cooperative relationships

between union and management. He explains that the unions and management fundamental

traditional roles are changed so that both organizations become jointly responsible for running

of the organization and attending to the welfare of the employees by implementing various

mechanism of cooperation such as quality of work life groups, joint problem-solving groups, self-

managed work teams but most importantly leaders must have the right skills.

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FACTORS PROMOTING ENTERPRISE LEVEL UNION - …ijecm.co.uk/wp-content/uploads/2016/08/4838.pdf · Development and the birth of trade unions in Cambodia may be broken up into three