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Cambodia• 13 million people• 260 000 workers• 80% of Cambodia’s exports• 230 factories• 70% owned by Chinese speakers• 70% exports to US• Per capita income is US$27 per month• Average garment wage = US$72 per month• Directly supporting 1 million people• 30 – 50% salary sent home to family
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Objective
• Increased firm level compliance with Cambodian and international labour law
= better working conditions for workers
= reduce poverty= win:win:win:win
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Background• 1999 US Cambodian Trade Agreement• Quota access for compliance• Possible 18% increase • ILO executing agency to monitor and
report• Project January 2001• USDOL funding, GMAC, Govt• Govt links export license to registration
with the project
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Role of unions
• Members of PAC• Mainstreaming social dialogue• Monitoring• Training• Resources• Direct support
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Monitoring
• 6 teams • unannounced visits• Agreed checklist over 500 items• interviews management, workers
and unions• Falsification checking
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Monitoring reports
• 15 synthesis reports • Each factory given a report • Buyers can request reports• Monitoring plus• Factories named• independent, transparent and
credible
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Key aspects of the labour law
• Handout – see fact sheet about the industry
• Discussion point – how does this compare to factories in your country?
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Supplementary research
• Harassment• Personal security• Health and OSH• Breastfeeding• Dispute resolution
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World Bank Survey of Buyers on Labour Standards• #1 for deciding to source from a country• Cambodia #1 compared to competitors• 60% - labour standards equal or more
important that price, quality and lead times
• 86% - moderate to critical importance to consumers in the future
• ILO monitoring highly credible• See fact sheet
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Post quota
• See fact sheet• Still early days• Buyers consolidating• Price, quality, lead times and
compliance
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Role of unions
• Training reference group• Joint training• Offer separate support to unions• Tri-partite delivery in some training• Mainstream social dialogue
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All Better Factories Cambodia training is:
• Usually joint management and union
• Adult-centered • Action-based• Conducted in a safe and supportive
environment• Multi-lingual (depending on target
group)
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Modular• 20 factories• 7 modules (Globalization, Workplace
Cooperation, Quality, OSH, Productivity, HR and continuous improvement)
• PICC• Factory action plans• 2 plus one training• Document
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Single issues
• Modules offered separately• Working time• Induction training skills• First aid• Sexual harassment
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Factory Based Training
• Targeted to young women with low literacy
• Soap opera style• Supported by comic books• Tri-partite delivery• Show on TV
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Discussion point
• Positives and negatives of joint management/union training
• Does training mean changed behavior?
Pairs and report back
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Industry Post MFA Strategy
• Market niche of good labour standards• Reduce corruption• Trade facilitation• Improve business environment• Improve quality and productivity• Improve skill levels• Increase Khmer management expertise
Labour standards is not enough
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Project strategy
• Refocusing to providing info to international buyers to inform sourcing decisions
• Increased emphasis on remediation• Reducing duplication of monitoring• Building business case• Self sufficient national organization
by 2009
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Industry…
What matters is:• Price• Quality• Lead times• Compliance with labour standards• Innovation and whole service
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Context
• Improving working conditions key to pro-poor development
• CSR and monitoring will grow• Monitoring is not enough• Must support freedom to organize
and collectively bargain
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Buyers
• Engagement of buyers is critical• Not all buyers are the same• Important leverage point• Quality of buyer audits and
engagement varies• Risks involved
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Progam design• Independent, credible and transparent• Strong government and buyer support • Use local staff• Mainstream social dialogue• Incentives and enforcement• National or geographical approach• Tri-partite approach• Reduce duplication of monitoring• Engage with buyers and other stakeholders• Emphasis on training and improvement• Consider language
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Challenges• Claiming too much• Monitor up to the factory gate• Corruption• Good governance and rule of law• Lack of tolerance of opposition• Freedom of press• Union corruption and division