upload.openaid.se€¦ · Web viewRecognising the problem, the Arbitration Council Foundation (ACF) utilises the funding support by Swedish International Development Cooperation

2014 - 4th Quarter Report

Promoting an effective labour market governance environment for private sector and social development through the provision of a well-functioning

and credible labour dispute arbitration system

Prepared by: The Arbitration Council Foundation 20 April 2015

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KINGDOM OF CAMBODIANATIONAL RELIGION KING

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THE ARBITRATION COUNCIL FOUNDATION

ABBREVIATIONS AND ACRONYMS

AA Arbitral AwardAC Arbitration CouncilACF Arbitration Council FoundationACILS American Center for International Labor SolidarityADR Alternative Dispute ResolutionAP Arbitral PanelAWP Annual Work PlanBFC Better Factories CambodiaC.CAWDU Coalition of Cambodian Apparel Workers' Democratic UnionCAMFEBA Cambodian Federation of Employers and Business AssociationsCBA Collective Bargaining AgreementCDRI Cambodia Development Resource InstituteCLUF Cambodian Labour Union FederationDFAT Australia’s Department of Foreign Affairs and Trade DFGG Demand for Good GovernanceEIC Economic Institute of CambodiaEoI Expression of InterestFGD Focus Group DiscussionFM Financial ManagementGMAC Garment Manufacturers Association of CambodiaIDA International Development AssociationILO International Labour OrganizationILDR Individual Labour Dispute ResolutionLDR Labour Dispute ResolutionLSD Legal Services DepartmentLSF Levi Strauss FoundationM&E Monitoring and EvaluationMEF Ministry of Economy and FinanceMoLVT Ministry of Labour and Vocational TrainingMoU Memorandum of UnderstandingNGO Non-Governmental OrganisationNSAC Non-State Actor ComponentPIP Project Implementation PlanPSA Public Service AnnouncementRFP Request for ProposalRGC Royal Government of CambodiaRMM Risk Management MatrixRULE Royal University of Law and EconomicsSAC Secretariat of the Arbitration CouncilSAG Stakeholder Advisory GroupSDC Swiss Development Cooperation (Cambodia)Sida Swedish International Development Cooperation AgencySSS Single Source Selection TAF The Asia FoundationToR Terms of ReferenceWB World BankWMC Women’s Media Centre of Cambodia

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TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS..................................................................................2

TABLE OF CONTENS...........................................................................................................3

i Project Introduction....................................................................................................4

ii Executive Summary.....................................................................................................4

iii Key Activities Progress and Outputs.........................................................................6

1 Component 1: Labour Dispute Resolution................................................................6

1.1 Resolution of labour disputes.........................................................................................6

1.2 Capacity building of arbitrators and staff......................................................................7

1.3 Expansion of Arbitration Council services....................................................................8

2 Component 2: Partnership and Stakeholder Outreach and Training....................8

2.1 Support to outreach activities.........................................................................................8

2.2 Establishing and maintaining partnerships....................................................................9

2.3 Dissessmination of publications and other information...............................................10

2.4 Media relations and promotion....................................................................................10

2.5 Stakeholders training...................................................................................................11

3 Component 3: Institutional Integrity and Sustainability.......................................12

3.1 Selection/recruitment of arbitrators.............................................................................12

3.2 Arbitration Council governance...................................................................................12

3.3 Sustainability................................................................................................................12

4 Component 4: General Operation and Project Management................................13

iv Financial and Expenditure Status............................................................................13

v Challenges and Issues................................................................................................14

vi Conclusions.................................................................................................................15

ANNEXES..............................................................................................................................15

Annex 1: Updated Logical Framework....................................................................................16

Annex 2: Project Implementation Plan (PIP) with status update.............................................20

Annex 3: Updated Risk Management Matrix .........................................................................28

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i. Project IntroductionLabour disputes in Cambodia have been volatile. These disputes, often resulting in strikes, demonstrations and even violence, affect the industrial relations climate, labour market governance as well as jeopardize social development. While labour disputes are common in countries on the process of economic transition, there has been an overall increasing trend of industrial action (strikes and lock-outs) in Cambodia and recent years have seen high levels of disputes and strike activities.

Recognising the problem, the Arbitration Council Foundation (ACF) utilises the funding support by Swedish International Development Cooperation Agency (Sida), Australia’s Department of Foreign Affairs and Trade (DFAT) and others (collectively, the “Donors”) to implement a project to promote an effective labour market governance environment. The overall goal of the project is to contribute to an effective labour market governance environment for private sector and social development by enhancing the extent to which a well-functioning labour arbitration system builds workers’ and employers’ confidence that labour disputes will be resolved effectively and fairly. Under this project, the Arbitration Council proposes to reach the goal by (1) providing effective labour dispute resolution services in which workers and employers, and the public have confidence, (2) raising awareness about the AC and promote dispute resolution skills of workers and employers through increased capacity building and partnerships and stakeholder outreach activities, and (3) maintaining and promoting institutional integrity and sustainability of the AC.

As background, the AC has over a decade’s experience in helping enterprises of all economic sectors to resolve their collective labour disputes. These disputes involve trade unions and enterprises concerning all or part of the workforce. The AC is a public body with statutory responsibilities stipulated in Cambodia’s Labour Law and is a primarily contributor to effective industrial relations and labour governance in Cambodia.

The AC’s work is supported and facilitated by the ACF, a local Cambodian NGO providing technical, managerial and financial assistance to the AC. The ACF supports and facilitates the work of the AC by providing legal assistance on arbitral cases, supporting arbitrator professional development, conducting stakeholder outreach and training programs and raising funds and managing the institutional development of the AC.

ii. Executive Summary

This report is submitted to the Donors highlighting project implementation progress by ACF. The report covers activities of the ACF over a period of three months, from 1 October to 31 December 2014.

Overall Performance: During the reporting period, ACF delivered on its commitments indicated in the three -month activities plan submitted to the Donors. Most planned activities have been achieved substantially and the actual expenditure was equivalent to 109% of the work and budget plan proposed for the last three-month period in 2014. In addition, some activities from the 2015 Annual Work Plan (AWP) were also rescheduled from the plan in 2015 to implement during the last quarter 2014. For example, the planned industrial relations fact-finding mission and exchange of the ACF and MoLVT funded by Swiss Agency for Development and Cooperation (SDC) to the Fair Work Commission (FWC) in Melbourne, Australia, a new radio program funded by Gap Inc. to raise awareness and capacity of garment workers and employers on prevention and resolution of labour disputes, and training programs for workers and employers funded by Levi Strauss Foundation (LSF).

This executive summary highlights the key achievements of each component that ACF accomplished in support of the AC during the first three months of the project.

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Component 1: Labour Dispute Resolution

Resolving labour dispute resolution cases: Resolving collective labour disputes between employers and workers is the core function and statutory mandate of the Arbitration Council. During the reporting period, ACF continued facilitating and supporting the AC. Between October and December 2014, 86 cases were handled by the AC, involving 48,172 workers. On average, the AC received 28.7 cases per month, which is a slight improvement from the 2014 target indicator of about 27.9 cases per month1. Broken down, there were 34 cases registered in October, 26 in November and 26 in December.

Of the total cases handled, 48 cases resolved through issuing arbitral awards, 16 cases were closed and 22 cases were settled through agreements or complaint withdrawals. Of the resolved cases through decision rendered by the AC, 52% (or 25/48) were binding arbitral awards, a slight increase from the 51% target indicator (See Annex 3: % of arbitration decisions that are binding).

Assessment of implementation and compliance with the AC decisions for 86 arbitral awards issued during the reporting period is pending. Based on the case follow up guideline, the AC gives 60 calendar days before making a follow-up call to parties to assess compliance with the AC awards. Resolution rates for these arbitral awards will be given in the next quarter2.

Institutional and staff capacity building: ACF progressed institutional and staff capacity building in support of the AC. ACF also delivered a series of training sessions and consultations with all ACF staff members to develop, understand and improve the ‘Arbitration Council Foundation Child Protection Policy’. This policy reflects key values of the institution and enhances institutional integrity. The policy was adopted at a Special All Staff Meeting in December 2014 and the policy took effect on and from 1 January 2015.

Expansion of Arbitration Council Services: Although the AC aimed to increase its services in scale and scope through mobile hearing teams, the teams are formed to serve demand in the provinces depending on the nature of the disputes or at the request of the concerned parties. During the reporting period, the AC saw no case proceeding at the provincial level.

Component 2: Partnership and Stakeholder Outreach and Training

ACF continued to collaborate with its strategic partners, including MoLVT, and employer and worker representatives to raise awareness of the AC and labour dispute resolution process. The ACF facilitates communications with its stakeholders particularly through consultation on the extension of the Memorandum of Understanding on Improving Industrial Relations in the Garment Industry (MoU). ACF maintained its role as a facilitator for the renewal of MoU relations between the industrial relation stakeholders of the garment and footwear industry, as well as maintaining its role as the key entity responsible for monitoring compliance with the MoU.

Furthermore, during the reporting period, ACF and AC representatives visited the Fair Work Commission (FWC) in Melbourne, Australia. During this intensive visit, the delegation, comprised of ACF management representatives, AC representatives and MoLVT, participated in technical consultation and expressed possibility for further cooperation and partnership building with the FWC.

1 Logical Framework, indicator 1, “number of labour dispute cases handled by Arbitration Council” targeted indicator for 2014 is 335 cases (or 27.9 cases per month)2 Cases belong to the 4th quarter were not yet included because ACF gives parties a grace period before contacting the parties to assess compliance with the arbitral award. ACF conducts case follow-up through phone calls to relevant disputant parties after 60-90 calendar days of the award issuance date (or at the end of each quarter).

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Component 3: Institutional Integrity and Sustainability

Selection/Recruitment of arbitrators: There no demand at this time.

Arbitration Council governance: ACF organized an ACF Board of Directors meeting in December; a Regular Arbitrator Meeting (RAM) in October, and the Annual Arbitrators’ Retreat in December to discussed issues pertaining to the governance of the AC/F, and achievements and challenges of the AC, such as ACF’s performance under the Project, various approaches for continued improvement of AC dispute resolution services (AC Services), goals and progress on sustainability, and strategic partnerships with various state institutions and civil society organizations.

ACF formed a Working Group called ‘Full Bench’ consisting of nine arbitrators, supported by ACF Legal Service Department and Secretariat of the Arbitration Council (SAC) staff, to address the issue of conflicting arbitral awards on the implementation of the attendance bonus. In early October this group met formally for the first time and progress on an ‘internal guideline’ followed.

Financial Sustainability: Implementation of Financial Sustainability has seen some progress. ACF has begun to diversify funding, with substantial financial contributions from Sida and DFAT, as well as grants from the Swiss Agency for Development and Cooperation (SDC), Gap Inc., and Levis Strauss Foundation. New funding applications have been submitted to other sources, including the USAID Civil Society APS.

Component 4: General Operations and Project Management

The ACF is tasked with providing managerial, technical and financial support to the Arbitration Council. The ACF continued supporting Arbitration Council operations under the Project. This component includes salary and benefits of certain staff, general overhead costs, and costs associated with monitoring and evaluation of the project.

iii. Key Activities Progress and Outputs

Component 1: Labour Dispute Resolution

1.1 Resolution of labour disputes

Resolving collective labour disputes is the core function and statutory mandate of the Arbitration Council. The AC continued its responsibility for hearing collective disputes between workers and employers referred by the MoLVT. The continuing functioning of this activity includes ongoing support by a wide range of legal and administrative services.

Between October and December 2014, there were 86 cases registered with the AC, involving 48,172 workers. On average, the AC received 28.7 cases per month, which is a slight increase from the 2014 target indicator of 27.9 cases per month in the logical framework table of the proposal. As a breakdown, there were 34 cases registered in October, 26 in November and 26 in December.

Of the total number of cases handled: 32 cases were resolved through issuing arbitral awards; 21 cases were settled through agreements or complaint withdrawals; 14 cases were closed; and the remaining 19 cases are still in progress and will be forwarded to the first quarter of 2015.

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October November December05

10152025303540 34

26 26

Number of cases registered at AC dur-ing fourth quarter 2014

In all of these cases, the AC processed them in an efficient and effective manner, within the statutory time limit of 15 days or by an extended timeline agreed to by the parties. In cases where arbitral awards were issued, the awards were also published on the AC website and slated for publication in the annual Compilation of AC’s Arbitral Awards and Orders.

1.2 Capacity building of arbitrators and staff

During this reporting period, Arbitrators of the AC, ACF staff and SAC officials received training aimed at improving the quality of the AC’s services. In particular, the focus has been on strengthening its professional capacity to support sustainable and credible services of labour conciliation and arbitration. Aspects of the capacity building program are highlighted as below:

Exchange visit to the Australian Fair Work Commission: ACF organised a bilateral industrial relations exchange and fact-finding mission to Australia for five days, on 21-26 November 2014, between representatives of the two countries’ state institutions responsible for labour dispute resolution. The Cambodian delegation comprised of representatives from ACF (Mr. Men Nimmith, Acting Executive Director, Ms. Chum Charya, Director of Legal Support Department), and a representative from AC (Arbitrator Mar Samborana). The counterpart from MoLVT included the Minister, Chief of Cabinet/Director General of Finance and Admin, Director General of Labour, and Deputy Director General.

The purpose of the Bilateral Mission is to provide the Cambodian delegation with the opportunity to hear of the Australian industrial system generally and of the jurisdiction and work of the Fair Work Commission in particular. The delegation exchanged experiences and information on advancing social dialogue and strengthening labour market governance and industrial relations in the two jurisdictions.

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Cambodian delegations participated in presentation of Australia’s Fair Work Commission

Such missions also provided a valuable tool for the Arbitration Council and MoLVT, not only understanding the credible Australian Fair Work Commission, but it provided opportunity to lay the groundwork for collaboration on the development of the National Industrial Relations Conference jointly organised by the MoLVT and ACF, and to strengthen partnerships and continued dialogue on national policy matters in Cambodia post-Mission. (Please also see other information under 2.2 Establishing and maintaining partnerships)

Development and Adoption of ACF Child Protection Policy: on 11 December 2014, ACF staff members approved and adopted a new Arbitration Council Foundation Child Protection Policy at a Special All Staff Meeting on 11 December 2014 (the policy took effect on and from 1 January 2015). Consultation on the development and drafting of the policy was held with staff throughout August, September, October and November. Staff participated in each consultation session to discuss and finalize the substance of the draft Child Protection Policy. The main objective of each session was to ensure that the ACF officers were able to comprehend the reasons, intent and application of the policy to their work and at the same time have the opportunity to provide recommendations and input to make a policy relevant to the ACF organization. Issues raised during these sessions also raised staff awareness and capacity in identifying and managing situations covered by the policy. The sessions were led by ACF Industrial Relations / Legal Adviser, Ms. Heidi Holzknecht, on the basis that the development and adoption of the policy was approved by ACF Executive management – particularly responding to the requirements for fund recipients of the Australian Department of Foreign Affairs and Trade (DFAT).

1.3 Expansion of Arbitration Council Service:

Mobile hearing: Arbitration Council provides a mobile hearing service upon demand. Mobile hearings were not requested or required of the AC during the reporting period.

Study on resolution of individual dispute: There was no activity during the reporting period. As planned, this study expects to be implemented during third quarter of 2015.

Study on the examination of the cause of strike: The TOR has been developed and consulted with management team. The project will be executed during first and second quarter 2015.

Fee-based mediation service: Under the transition from DFGG funding to funding by the Donors; ACF management have approved delay of the mediation service launch from mid-2015 to mid-2016. A financial structure to receive, hold and accept the fees generated by the service is still to be developed; as is the intensive training of mediators that is planned prior to the service launch.


In order to promote an effective labour market governance environment for private sector and social development, ACF has established and maintained partnerships in order to expand the awareness of AC to its key stakeholders such as the MoLVT, employers, unions, ILO and other relevant organizations through component 3: partnerships and stakeholder outreach and training

2.1 Support to outreach activities

Under project work plan, ACF aims to have a high level of cooperation between stakeholders, including the tripartite partners – workers, employers and MoLVT – as well

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as human rights and other international and civil society organizations to stable industrial relations and enable a credible labour arbitration system. During the reporting period, ACF provided support to key industrial actors through consultation on the extension of the Memorandum of Understanding on Improving Industrial Relations in the Garment Industry (MoU).

On 11 November 2014, ACF representatives including Mr. Men Nimmith (Acting Executive Director), Ms. Chum Charya (Director of the Legal Services Department), Ms. Ann Vireak (Manager of Training and Communication) and Mr. Srey Sokmeth (Training and Communication Officer) met with Garment MoU’s signatories to the Garment MoU in order to seek for an agreement from the signatories to insert a clause of ‘enforcement mechanism’ in the upcoming Garment Sector MoU (between GMAC and major union federations/confederations. In-principle, parties to MoU have agreed to insert a clause of ‘enforcement mechanism/strengthening’ into the MoU.It is also noted that, as a general principle, the AC itself largely abstains from associating too closely with specific party-aligned stakeholders, as this could affect the real and perceived independence and neutrality of the AC. It is for this reason that, where appropriate, alternative ways of conducting outreach is pursued through non-state actors (e.g., through ILO programmes, the ACILS Solidarity Center, CAMFEBA/GMAC, Community Legal Education Center (CLEC) etc.), rather than offered by the AC directly. Most frequently, outreach activities of this nature are conducted by ACF staff who are removed from the decision-making of the AC. It is also noted that regardless of which actor is carrying out the outreach and training activities, the AC and the ACF remain involved in the delivery of such activities to answer technical questions regarding labour arbitration process.

2.2 Establishing and maintaining partnerships

The AC’s activities under this module were aimed at establishing and maintaining partnerships with its three key partners (Trade Unions, Employers and Government), as well as with other relevant organizations and institutions, in order to strengthen the AC and the ACF. In the fourth quarter of 2014, ACF worked successfully with its strategic partners, employer and worker representatives, in order to collaborate on pursuing common goals and raising awareness of the AC and sharing information with one another.

Seeking partnership with Australia’s Fair Work Commission: In the fourth week of November 2014, under funding support from SDC, a delegation comprising His Excellency Ith Sam Heng, Minister of Labour and Vocational Training, his Chief of Cabinet, Director General of Labour and a Deputy Director General, Mr. Men Nimmith, Acting Executive Director of the Arbitration Council Foundation (ACF), Mr. Mar Samborana, Arbitrator (AC), and Ms. Chum Charya, Director of the Legal Services Department (ACF) paid a visit to the Fair Work Commission in Melbourne, Australia. During this few-day intensive visit, the delegation participated in technical consultation with the Fair Work Commissioners, Administrators, and Registrars.

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The delegation found this fact-finding mission very beneficial. At the end of the meeting, a request was made for a future and more formal cooperation between Cambodia and the FWC to be established through a memorandum of understanding (MoU). MoLVT, FWC, and ACF agreed to establish two separate MoUs respectively; i.e., one between MoLVT and FWC, and another between ACF and FWC. The MoUs aim to strengthen partnerships and continued dialogue on policy and technical matters in Cambodia for years to come. The Cambodian delegation requested technical support be provided by Commissioner Michael Gay, International Advisory Board member to the ACF, to Cambodia for the capacity building of the Cambodian Ministry of Labour’s officials and the overall growth of the AC.

The trip also provided an opportunity for both the MoLVT/ACF and FWC to discuss a possible visit of the Honorable Justice Iain Ross, President of FWC, Commissioner Gay, and his colleagues to Cambodia on the occasion of Cambodia’s National Industrial Relations Conference. ACF, MoLVT and the FWC have been in contact for further planning and preparation for the conference to be held on 16 June 2015.

Signing Ceremony for Agreement on Core Support to ACF with SIDA: On 14 November 2014, ACF held a signing ceremony to mark the commencement date of a funding partnership between Sweden and the ACF. Under the Agreement, Sweden will fund the ACF with a total of 8.4 million Swedish Krona, equivalent to US$1.2 million between October 2014 and December 2016 support the continuity of the Arbitration Council.

Launch of the ’European Development Cooperation Strategy for Cambodia 2014-2018’: On 20 November 2014, European development partners launched their cooperation strategy for Cambodia, indicating that a combined 1.4 billion EUR (nearly 1.8 billion USD) was committed by partners over 2014 – 2018. While a portion of these funds are already committed to certain projects – such as Sweden’s commitment to the ACF over 2014 to 2016 – about three quarters are tagged as ‘new commitments’ and will become available under different partner’s development programs over the coming years. ACF attended as both a current and potential future development partner.

2.3 Dissemination of publication and other information

The AC’s objective for this component is to produce, publish and disseminate arbitral awards and other relevant information in order to raise stakeholder awareness and ensure transparency. During the reporting period ACF disseminated publications and other information through the following channels:

Quarterly Newsletter: ACF continues to publish quarterly newsletters in both hard and soft copy and distribute to both external and internal stakeholders including ILO-BFC, ILO, GMAC, buyers, factory owners, union leaders, law students, ACILS, law firm, donors. In fourth quarter 2014 500 hard copies of the newsletter were ordered from the printing house and subsequently delivered them to all the entities as mentioned above.

Upgrading the Arbitration Council database: The database development project progressed slowly during this reporting period: The database NGO has called the ACF

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to conduct a meeting to examine what the outstanding items to be completed. The outstanding issues identified by the working group are reserved as the agendas for the discussions. Throughout the development process, the database working group of the ACF has been reviewing and testing the errors and provided a series of feedback to the developer to reinforce the quality of its deliverables. In addition to upgrading the current database system, the working group has proposed three supplement modules to be integrated into the system. These supplemented modules have been concluded, including library management, training and publication modules. Outstanding issues with the main database remain and ACF is reviewing to ensure completion of the project.

2.4 Media relations and promotion

Media relations is a key part of the AC’s communications strategy and therefore of its activities for outreach and awareness raising. Through careful and strategic use of the media, the Arbitration Council is able to promote itself to a wider audience through a radio program, a dynamic website and social networking platforms such as Facebook and Twitter. The report updates several activities status as follow:

Interactive Radio Program ’Good Employer & Good Worker’: Under fund support by Gap Inc, ACF commissioned the Women’s Media Center (WMC) to run a radio program to build capacity of workers and employers in preventing and resolving labour disputes in their own workplaces. The radio program also aims to raise awareness of, and encourage appropriate use of, labour dispute resolution services. During the reporting period, there were 15 live shows were produced and broadcast which meets the planned output from the project proposal. The production team at Women’s Media Center also produced 15 pre-show promotions to promote the program 3-4 days prior to each live broadcast. The promotions were also posted as images on Facebook to encourage listeners to participate or ask questions.

The dissemination of publication was made both in print via mail and electronically via email, through the AC website and social networking platforms such as Facebook. ACF also disseminated this information by working closely with both local printing houses and broadcasting media. On the Arbitration Council facebook page in particular, the number of Facebook page ‘likes’ or regular viewership rose by more than 800 just over 3 months, from 2,365 ‘likes’ on 1 October 2014 to 3,230 ‘likes’ by end of December 2014.

2.5 Stakeholder training

Stakeholder training sessions are currently organized by the ACF, while the training itself is generally conducted by arbitrators, the legal staff of the ACF and staff of the SAC. Since the Arbitration Council and its supporting bodies have been conducting stakeholder training since 2003, there is already a range of training materials which have been prepared and tested.

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ACF Radio Promotional Leaflet

Training ’Workplace Dispute Prevention and Resolution’ for employers and workers: During the last quarter of 2014, under the funding support of the Levi Strauss Foundation (LSF), ACF commenced delivery of a series of training programs which consists of three topics on workplace dispute prevention and resolution, including: ‘understanding employment relationships, ‘workplace cooperation mechanisms’, and ‘communication for negotiation’. The training program design is based on the understanding of the nature of disputes between parties coming to the AC over the past 10 years, and coming from the fundamental belief that labour disputes are best addressed and resolved at the enterprise level if at all possible. Under the program, ACF trainers expect to provide this three-part training to 16 factories over 2 years, reaching an expected total of approximately 320 representatives of workers and employers, selected from garment sector enterprises, including those supplying to Levi Strauss & Co., as well as other factories. The three part training program is delivered one topic per month – the first and second factories in the program commenced training in November & December

Training on skills to present the case at AC hearing: On Monday 13 October 2014, the ACF was invited to conduct training on the topic “the techniques in presenting the case in the arbitration”, which was a part of the Paralegal Training organized by the CLEC. This training is intended to share the knowledge of how to effectively the parties can prepare themselves to present their claims during the hearing. Interestingly, the participants are from the workers who are actively involved in union’s activities, and worker delegates. The training was conducted by Mrs. Chum Charya, the director of the Legal Service Department at ACF.

Component 3: Institutional Integrity and Sustainability

3.1 Selection / recruitment of arbitrators

No recruitment of arbitrators occurred during this reporting period.

3.2 Arbitration Council governance

Annual Retreat: On 12-14 December 2014, AC, SAC, and ACF organized the annual AC retreat to Preah Sihanouk province. The purpose of the retreat is primarily to update the AC community on the key implementation results, budget expenditure of the previous year (2014) and plan for the coming year (2015), identify actions to strengthen internal relations among the three functions of the AC community; and to formulate an action plan to improve communication and labour dispute resolution services for the next year. There were a total of 35 participants in attendance, thirteen arbitrators, twenty ACF staff members, and two SAC staff.

Regular Arbitrator Meeting (RAM): On 04 October 2014, ACF organized a Special RAM meeting with the purpose to hear all oral submissions of arguments on the contradictory decisions in regard to attendance bonus. The meeting was to provide opportunity for all Arbitrators to present their positions and reasons. There were 24 staff members and arbitrators in attendance.

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35th Board of Directors Meeting: Organized at Malis Restaurant on 26 December 2014 to discuss upcoming activities, update the Board on the progress of project implementation and approve the annual work and budget plan for 2015.

Arbitrator Working Groups: consisting of nine arbitrators, supported by ACF Legal Service Department and Secretariat of the Arbitration Council (SAC) staff, to address the issue of conflicting arbitral awards on the implementation of the attendance bonus. In early October this group met formally for the first time and progress on an ‘internal guideline’ followed.

3.3 Sustainability

Implementation of Financial Sustainability has seen some progress. ACF signed an agreement with Sida in November 2014 to fund ACF from October 2014 to the end of 2016. ACF and DFAT signed an agreement in [MONTH] 2015 for a no-cost extension of fund also to the end of 2016. ACF submitted a separate proposal to the Royal Government of Cambodia (RGC) through Ministry of Labour and Vocational Training, has also received positive informal response. In connection therewith, the Garment Manufacturers Association in Cambodia (GMAC) has made an in principle agreement to providing funds matching the RGC contribution. ACF is following up to secure both possible transfers of funds respectively upon formal approvals of applications. With respect to contributions from trade unions, ACF is aware that local trade unions still lack capacity to provide a financial contribution in the immediate term; however, ACF has obtained in-principle support from trade unions to communicate with their international trade union affiliates for financial support purposes.

ACF has also received grants from the Swiss Agency for Development and Cooperation (SDC), Gap Inc., and Levis Strauss Foundation. New funding applications have been submitted to few other sources, including the USAID Civil Society APS, Trade Development Support Program (TDSP) through the Ministry of Commerce and World Bank, Gap Inc.

Component 4: General Operations and Project Management

General Operations: The ACF is tasked with providing managerial, technical and financial support to the Arbitration Council, while it is also important to maintaining its independence and integrity (by separating the arbitral and management/technical/financial functions). The ACF continued supporting operations of the AC under the Project. This component includes salary and benefits of certain staff, general overhead costs, and costs associated with monitoring and evaluation of the project.

Project Monitoring and Evaluation: The monitoring and evaluation (M&E) output indicators for the ACF to measure progress toward achieving results in order to inform ACF’s decision-making, resource allocation, learning and adaptation. These results are a management tool that ACF regularly updates over the course of its strategy, as appropriate and necessary. The ACF relies on three M&E instruments to monitor results:

1. ACF records cases and resolution rates which inform core services achievements. This data collection continued through the reporting period. The ACF also records data relevant to work plan progress and this information assists in understanding the story of the AC and ACF performance.

2. AC enterprise and union surveys measure awareness and process of AC service, stakeholder confidence in the system and to assess any corrupt practices. The endline evaluation/survey results under the World Bank-funded project are the baseline

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indicators for the purpose of the Project and inform the data gathered over the reporting period. The endline evaluation/survey study will be scheduled by close of the Project.

3. AC Expert Legal Audit measures the quality of the decisions made by the arbitration panels on particular cases. For previous projects, ACF engaged a Commissioner of Fair Work Australia to review the quality of its awards. Another legal audit is expected to be undertaken by close of the Project.

iv. Financial and Expenditure Status

During the reporting period, ACF has spent US$167,054 of which US$136,039 came from Swedish International Cooperation Agency (Sida) and US$31,014 came from other donors of ACF. Below summary expenditure by components by sources of fund (US$)

Sida SDC LSF DFAT AVI Others

1 Labor Dispute Solution 59,840 12,507 5,770 102 2,283 80,502 2 Partnerships and Stakeholders Outreach and Training 7,712 8,719 8,335 24,766 3 AC Institutional Integrity and Sustainability 18,549 4,944 (4,579) 18,914 4 General Operations and Project Management 49,938 40 861 22 (7,989) 42,872

136,039 12,547 20,294 22 102 (1,950) 167,054 Total

Sources of ExpendituresTotalNo. Project Component

v. Challenges and issues

While the industrial relations is still recovering from a low point following post-election unrest in 2013 – when conflicts resulted in violence, tragedy and mass arrests – discontent still remains, particularly in relation to the fixation and implementation of the minimum wage, and has a bearing on the AC. To date, the national minimum wage issue still has not been settled to the complete satisfaction of all industrial relations stakeholders. Effects on the AC’s core labour dispute resolution work include: Case increase: For the period October to December 2014, 86 cases were brought before

the AC. This represents a 21% increase compared to the same period in 2013. It should be noted that increasing caseloads reflect not only rising incidents of labour disputation in Cambodia, but also increasing demand for and desire to use the AC’s dispute resolution services.

Claims of union discrimination: Allegations of violations of freedom of association and union discrimination, including claims about unfair union leader termination and unreasonable barriers to union registration, continue to be among the most significant issues raised to the AC and remain among the most difficult issues to resolve. The government is also currently reviewing the draft Trade Union Law, the passing and implementation of which is expected to cause further discord. During the reporting period and to date there have been allegations of slowed union registration processing although this has not been verified.

Claims regarding payments: While the AC does not have remit to set minimum wages (such responsibility is specifically delegated by statute to the MoLVT after receiving recommendations from the Labour Advisory Committee (LAC)), parties are still bringing claims to the AC to increase their specific wages over and above the minimum set by the law as well as other remunerations, such as bonuses, incentives and allowances.

At the same time, the AC and the ACF seek to make the most of the AC’s role as one of the few actors in the industrial relations community that has the respect of both employers and trade unions. In fourth quarter 2014, ACF, with participation of the ILO, mobilized the peak garment employers’ association and leading trade union federations to engage in dialogue to renew the Memorandum of Understanding on Improving Industrial Relations in the Garment

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Industry (MoU). This renewal would be the third generation of the MoU which was first signed by parties in 2009 and parties expressed a strong desire to make substantive changes to introduce an ‘enforcement’ mechanism. Dialogue to determine a new clause is ongoing, and also requires care to move forward, the fact that ACF was able to marshal such an assembly in this context is a remarkable achievement.

vi. Conclusions

Arbitration Council has continued its’ implementation of proposed activities to achieve the outcomes of the Project. During this reporting period for the Project, the AC resolved labour disputes for the private sector workers and managers in Cambodia in a speedy, independent and effective manner that is aligned with the Logical Framework.

All of the ACF’s activities in last quarter 2014 as outlined in this report show the AC’s effectiveness in labour dispute resolution and the value of it as an institution contributing to the improvement of industrial relations and economic growth in Cambodia, through a good dispute resolution system. The AC has become a model in the Cambodian industrial relations landscape by building a reputation for professionalism and integrity, which is relied upon by hundreds of thousands of workers and their enterprises for fair and quick decisions.

Caseload registered at the Arbitration Council for settlement continues to rise compared to the same period in previous years. The AC continues to be able to address the increase; however, within the next few months, ACF plans to review the input of resources against the work plan in order to respond to the rising caseload. The ACF will continue to prioritize its support to the AC to ensure the AC services are provided in a credible and effective manner and of the highest possible quality.

1. Ensure that dispute resolution by the AC continues to be effective, efficient and reliable.. The AC will work with disputant parties to promote binding arbitration and to keep industrial action to a minimum.

2. Despites challenges, AC and ACF continues to meet all targets, and the completion of the end evaluation provides updated reporting. Capacity building of the AC and ACF, the platform of AC arbitrators has continued.

3. The current nature of industrial relations in Cambodia has affected relations between unions and employers; between unions (which have adopted different tactics to address the minimum wage); and affected the timeline for the dialogue over a sustainable financing arrangement for the AC. There is also some evidence that it affects the ACF indicators such as perceptions of independence.

4. The process to extend and renew the current MoU is ongoing. Parties have raised concerns about compliance with the MoU, on both sides. Parties are increasingly turning to ACF for assistance, including requesting the ACF facilitate negotiations to successfully sign a new, possibly-amended MoU.

vii. Annexes

Annex 1: Updated Logical Framework

Annex 2: Project Implementation Plan with status update

Annex 3: Updated Risk Management Matrix

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Annex 1: Updated Logical Framework

Overall Project Objective: To contribute to an effective labour market environment for private sector development by enhancing the extent to which a well-functioning labour arbitration system builds workers’ and employers’ confidence that labour disputes will be resolved effectively and fairly.

Values Data Collection and ReportingIndicators Baseline

[2013]Q4-2014 2015 2016 Data collection

instrumentResponsibility

for data collection

Remarks

Component 1 – Labour Dispute ResolutionObjective: To increase the AC’s capacity and effectiveness to resolve labour disputes across the countryLabour dispute cases are processed in a timely manner and resolved through the AC process

Increase in cases from outside the greater Phnom Penh area (outside of Phnom Penh and Kandal province)

1. Number of labour dispute cases handled by the Arbitration Council

285 Target. 335 cases (or 83.7 per quarter)

394 464 Arbitration Council records

Arbitration Council Foundation

Actual. AC handled 86 cases in Q4 2014

n/a n/a

3. Number of worker beneficiaries directly affected by the Arbitration Council’s services

100,000 Target. 115,000 (or 28,750 per quarter)

130,000 145,000 Arbitration Council records

Arbitration Council records

Actual. AC service affected 48,172 workers in Q4 2014

n/a n/a

5. % of labour dispute cases successfully resolved through Arbitration Council process

73% 74% 75% 76% Arbitration Council records


There is no result at this time. AC allows 60 calendar days for parties to implement AC award. The result will reveal in next quarter.

6. % of arbitration decisions that 47% Target. 55% 59% Arbitration Council Arbitration

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are binding 51% records Council FoundationActual.52% n/a n/a

8. % of cases where AC issues an award within the 15-day period mandated by law, or within the extended deadline, if an extension has been authorised by the parties

100% Target. 100%

100% 100% Arbitration Council records


Actual. 100%

n/a n/a

10. % of decrease of cases with industrial actions (e.g. a strike) registered at the Arbitration Council

23% Target. 20%



The ACF noted that the post-election unrest has impacted on industrial relations. This crisis affected relations between unions and employers; and have adopted different tactics to address the minimum wage. In particular, an increase in strikes, and the intensity and violence of strikes.

Actual. 26% (or 95 cases with strike among 361 cases AC received in Q4 2014)

n/a n/a

12. % of compliance by workers and employers with Arbitration Council’s interim-return-to-work orders pertaining to Arbitration Council cases involving an industrial actions (strike or lock-out)

56% Target. 60%



Trade Unions continuing their demands for an increase in the minimum wage, when many of them understand AC would not be able to satisfy their claim over interest dispute.

Actual. 39%

14. % of cases from outside the greater Phnom Penh area

40% Target. 43%


Arbitration Council FoundationActual.

50%n/a n/a


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Objectives:1. To establish and maintain partnerships to strengthen AC/F2. To improve stakeholders’ awareness and understanding of the Arbitration Council and how to resolve laour disputesQuality partnership established and maintained with relevant institutions

1. % of trainees (workers, employers, and other stakeholders) who report the training meet their expectation in increasing capacity to resolve labour disputes (through negotiation, mediation, or arbitration)

n/a To be determined in 2014

Increase by 5%

Increase by 5%



Not applicable, to be determined in 2015.

2. Postive feedback from relevant stakeholders (including Ministry of Labour, International Labour Organization, American Center for International Labor Solidarity, etc) regarding partnership established under the project

Positive with explanation

Positive with explanation

n/a Positive with explanation

Enterprise / union survey (qualitative data)

Arbitration Council Foundation through an independent research agency

Not applicable. The result will be assessed by close of project

Component 3 – Institutional Integrity and SustainabilityObjective: to ensure the independence, credibility and sustainability of the Arbitration CouncilIndependence and credibility, and sustainability assured

1. % of union and employer organization leaders and representatives aware of the Arbitration Council

91% Increase by 3%

Increase by 3%

Increase by 3%

Enterprise / union survey



2. % of union and employer organization leaders and representatives aware of Labour Arbitration Process

70% Increase by 3%

Increase by 3%

Increase by 3%




3. % of union and employer group representative that viewed Arbitration Council as independent

49% Increase by 3%

Increase by 3%

Increase by 3%


Arbitration Council Foundation through an


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independent expert

4. % of union and employer group representative that reported AC’s service is credible and effective.

78% Increase by 3%

Increase by 3%

Increase by 3%

AC expert audit Arbitration Council Foundation through an independent expert


5. % of arbitration awards considered to be of satisfactory quality

86% n/a n/a 90% AC expert audit Arbitration Council Foundation through an independent expert


6. % of AC clients who report paying unofficial fees to arbitrators, SAC or ACF staff for resolving their labour disputes.

Nil Nil n/a Nil Enterprise / union survey



7. Revenue generated from national budget of RGC other contributions as % of operating costs

15% 15% 20% (in which a minimum of US$50,000 comes from national budget)

20% (in which a minimum of US$50,000 comes from national budget)



RGC approved the request by ACF from the national of total US$80,000. It will receive in 2015.

8. Revenue contributed by employers (GMAC and CAMFEBA members) through bipartite funding model

n/a n/a US$100,000 US$150,000



GMAC has agreed in-principle to provide for matching funding contribution with RGC. ACF will follow up in 2015.

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Annex 2: Project Implementation Plan with status updated

NºKey

Activities

Description of Activity Start Date Completion date If not achieved or delayed, reasons:

Component 1: Labour Dispute Resolution1.1 Resolution of Labour Dispute Cases 1.1.1 Resolve labour disputes by mediation and

arbitrationOct-2014 Dec-2014 Completed: During fourth quarter of 2014, AC handled 86

cases. 1.1.2 Secretariat administrative support to

Arbitration PanelsOct-2014 Dec-2014 On-going: Three SAC staff continued providing their

administrative support to arbitral panels such as case registration, communication with disputant parties on their cases, providing assistance to the arbitral panel during hearings, assistance in drafting settlement agreements, and educating the parties about the substance of the Memorandum of Understanding on Promoting Industrial Relations in the Garment Industry.

1.1.3 Legal support to Arbitration Panels Oct-2014 Dec-2014 On-going: All Legal Support Department’s staff continued providing their legal support to Arbitral Panels through training and legal research.

1.2 Capacity Building of AC/F and SAC 1.2.1 Development of legal tools and system for

legal and industrial relations research(Benchbook and legal database)

Oct-2014 Dec-2014 Pending: No plan for this period. This activity to be carried out during first quarter of 2015.

1.2.2 Deliver continued professional development programs for arbitrators (AC capacity building, CLE and foreign trainer visits)

Oct-2014 Dec-2014 Pending: No plan for this period. This activity to be carried out during first quarter of 2015.

1.2.3 Training and exchange visits and international conferences

Oct-2014 Dec-2014 Completed: On 21 – 26 November 2014, ACF organized bilateral fact

finding mission to Fair Work Commission in Melbourne,

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Australia. (this visit was moved from the original plan in March 2015, due to avialibilty of Labour Minister, H.E Ith Samheng).

1.2.4 ACF, SAC staff capacity building (training course and other related courses)

Oct-2014 Dec-2014 Completed: 0n 11 Dec 2014, ACF organized presentation session on Development and Adoption of ACF Child Protection Policy

1.3 Expansion of AC services 1.3.1 Mobile teams at regional, provincial level

(partnership, outreach and training, mobile hearing, etc.)

Oct-2014 Dec-2014 Pending: No mobile hearing during the reporting period. This is depended on the demand.

1.3.2 Fee-based mediation service Oct-2014 Dec-2014 Pending: Most of the work on the administrative structure was completed. ACF management has approved delay of the mediation service launch from mid-2015 to potentially mid-2016.

1.3.3 In-house study on Individual Labour Disputes

Oct-2014 Dec-2014 Pending: the study is planned in July 2015.

1.3.4 Study on the causes of labour strikes Oct-2014 Dec-2014 On-going: The TOR has been developed and consulted with management team. The project will be executed during first and second quarter 2015, earlier than the plan in third quarter of 2015

Component 2: Partnerships and Stakeholder Outreach and Training2.1 Support to AC outreach training

2.1.1 AC outreach activities and training Oct-2014 Dec-2014 On-going: AC/ACF has continued cooperation in development of the Arbitration Council between the key stakeholders include State and Non-state actors.

2.2 Establishing and maintaining partnerships 2.2.1 Organise meetings of Stakeholder Advisory

Group (SAG)Oct-2014 Dec-2014 Pending: This activity postponed to next quarter because, ACF

focused on the extesion and renewing Garment Sector MoU.

2.2.2 Organise AC Partnership meeting/workshop Oct-2014 Dec-2014 On-going: ACF maintained its partnerships with other dispute

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resolution bodies and other organisations, including MoLVT, CAMFEBA, and Garment Manufacturers Association in Cambodia, various union federations, confederation, and various local and international organisations operating in the field of labor relations.

2.2.3 Maintain membership in professional bodies3 (including registration of the Arbitration Council to become a member of International Labour and Employment Relations Association)

Oct-2014 Dec-2014 On-going: ACF maintained its memberships with other professional bodies regionally and internationally.

2.2.4 Establish and maintain institutional relations with other dispute resolution bodies and other organisations, including MoLVT and other civil society organisations working in the field of labor law and industrial relations

Oct-2014 Dec-2014 On-going: ACF maintained its institutional relations with other dispute resolution bodies nationally and internationally.

2.3 Stakeholders Awareness 2.3.1 Maintain and improve website Oct-2014 Dec-2014 On-going: The AC is continuing to Maintain and improve

website.2.3.2 Publication of arbitral decisions (awards and

orders)Oct-2014 Dec-2014 On-going: ACF continuing published arbitral decisions to

assisting disputant parties to understand past award orders and prepare themselves for the AC hearing.

2.3.3 Development and production of publications and other tools.

Oct-2014 Dec-2014 On-going: ACF continuing producing Annual Report and Quarterly Newsletter. Dissemination of publications and information materials is also made through email and delivery of printed copies.

2.3.4 Manage AC library and open it to the public Oct-2014 Dec-2014 Completed: The AC Library Management System has developed by using open source called Newgenlib, aligning with the database upgrading project. The library clerk is begun her work by cataloguing the library materials.

3

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2.4 Media relations and promotion 2.4.1 Educational video (rebroadcasting via TV) Oct-2014 Dec-2014 Pending: This activity planned in next quarter. 2.4.2 Publication service announcement

(rebroadcasting via TV and Radio)Oct-2014 Dec-2014 On-going: AC rebroadcast Ratio Program on AC service for

the workers and management of the factories through Women Media Center 102FM Radio Station. There were 15 live shows were produced and broadcast which meets the planned output from the project proposal

2.4.3 Training video Oct-2014 Dec-2014 Pending: This activity planned for next year.

2.4.4 Annual media campaign Oct-2014 Dec-2014 Pending: This activity planned for next year.

2.4.5 Media briefing, when necessary. Oct-2014 Dec-2014 Pending: This activity planned for next year.

2.4.6 Media Monitoring Oct-2014 Dec-2014 On-going: ACF has monitored local and international media on industrial relations and share among key labour stakeholders on weekly basis.

2.5 Stakeholder training (including training on binding arbitration) 2.5.1 Training employees/employers in Phnom

Penh Oct-2014 Dec-2014 Completed: ACF receive fund support from Levi Strass

Foundation (LSF) to conduct a for employers and employees in Phnom Penh on labour dispute resoltion and prestion. The training course commenced before original plan in first quarter 2015.

Training employees/employers in Phnom Penh

Oct-2014 Dec-2014 Pending: As project implementation plan, this activity to be conducted in next quater.

Training conciliators Oct-2014 Dec-2014 Pending: As project implementation plan, this activity to be conducted in next quater.

2.5.2 MoLVT and provincial labor officer Oct-2014 Dec-2014 Pending: As project implementation plan, this activity to be conducted in next quater.

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2.5.4 Court clerks Oct-2014 Dec-2014 Pending No training for court clerks during the reporting period. It is planned in August 2015.

2.5.5 Judges (student or sitting judges) Oct-2014 Dec-2014 Pending No training for Judges during the reporting period.

2.5.6 Advocates Oct-2014 Dec-2014 Pending No training for Advocates during the reporting period. It is planned in November 2015.

2.5.7 Trainee lawyers Oct-2014 Dec-2014 Pending No training for Trainee lawyers during the reporting period. It is planned in April 2015.

2.5.8 Law students at universities Oct-2014 Dec-2014 Pending No training for Law students during the reporting period. It is planned in February 2015.

Component 3: Institutional Integrity and Sustainability3.1 Selection/ recruitment of arbitrators 3.1.1 Formulate a procedure for

selection/recruitment of arbitratorsN/A

N/A

Pending: No need for additional arbitrators at this time

3.2 Arbitration Council governance 3.2.1 Convene ACF Board of Directors meeting Oct-2014 Dec-2014 Completed: ACF organized 35th Board Director Meeting on 26

December 2014 at Malis Restaurant in December.

3.2.2 Organise meetings of Representatives of the AC

Oct-2014 Dec-2014 Pending: No meeting took place, the meeting postphoned to January 2015.

3.2.3 Convene Regular Arbitrator Meetings Oct-2014 Dec-2014 Completed: The meeting organized at ACF on 4 October 2014 to discuss on the contradictory decisions in regard to Attendance Bonus.

3.2.4 Organise Arbitrator Retreat Oct-2014 Dec-2014 Pending: ACF/AC/SAC annual retreat organized in December

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12-13 to Sihanouk Ville.

3.2.5 Organise Arbitrator Working Group Oct-2014 Dec-2014 Pending: Arbitrators Working Group established call ”Full Bench” to settle the contradictory over decisions on attendance bonus.

3.3 Sustainability3.3.1 Seek stakeholders’ support for GMAC-union

financial model or an equivalent financial model

Oct-2014 Dec-2014 On-going: Financial Sustainability has seen some progress (see full report 3.3 Sustainability)

3.3.2 Implement agreed financial model (GMAC-union model or an equivalent model)

Oct-2014 Dec-2014 Pending: As planned this activities will be undertaken during third quarter of 2014 and unless bipartite agreed to formalized.

3.3.3 Submit budget request to the Government (via MOLVT) if RGC’s support is confirmed

Oct-2014 Dec-2014 Completed: Proposal submitted to the Royal Government of Cambodia (RGC) through Ministry of Labour and Vocational Training, has also received positive informal response. The fund supprt will be available for ACF operaion in 2015.

3.3.4 Request for a plot of land from the RGC for construction of an office building to house the Arbitration Council.

Oct-2014 Dec-2014 Pending: This activity planned in early 2015

3.3.5 Develop and implement fee-based training programs

Oct-2014 Dec-2014 On-going: Drafting of the Trainer and Trainee Manuals for the ‘Negotiations Skills’ course continued during this reporting period. The pilot of the negotiation skills course is expected to be run in 2015.

3.3.6 Sell the AC/F publications (AA compilations, Bluebook, a negotiation booklet called ‘Getting to Yes’ in Khmer)

Oct-2014 Dec-2014 On-going: ACF generated $xxx from the sales of the publications between Oct-Dec 2014.

3.3.7 Develop and implement the mediation services

Oct-2014 Dec-2014 Pending: this activity planned to carry out in 2015.

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3.3.8 Prepare and oprganise 1st Asia-Pacific Industrial Relation Conference

Oct-2014 Dec-2014 Pending: This activity planned in fourth quarter 2015

Component 4: General Operations and Project Management4.1 Equipment and occupancy 4.1.1 Salary and benefits Oct-2014 Dec-2014 Completed: Salary and benefits were provided to ACF staff in

order to support the AC. 4.1.2 Occupancy Oct-2014 Dec-2014 Completed: This item will be implemented until end of year as

planned. 4.1.3 Supplies Oct-2014 Dec-2014 Completed: This item will be implemented until end of year as

planned. 4.1.4 Communications and postage Oct-2014 Dec-2014 Completed: This item will be implemented until end of year as

planned. 4.1.5 Equipment Oct-2014 Dec-2014 Completed: This item will be implemented until end of year as

planned. 4.1.6 Contractual services Oct-2014 Dec-2014 Completed: This item will be implemented until end of year as

planned.4.2 Project monitoring and evaluation

4.2.1 M&E activities Oct-2014 Dec-2014 On-going: Results outputs monitoring on monthly and quarterly basis (case receive, success rate, legal toolkits, capacity building, material produce and disseminate, etc). ACF has produced those outputs and shared to its donors and stakeholders through Monthly E-newsletter, Quarterly Newsletter, Quarterly Progress Report and Annual Progress Report.

4.2.2 Conduct Endline survey Evaluation Oct-2014 Dec-2014 Pending: The Endline evaluation/survey result under the World Bank-funded project in 2014 as the baseline indicators for the purpose of the Project. The Endline evaluation/survey study will be scheduled by close of the Project.

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Annex 3: Risk Management Matrix Updated

This Risk Matrix is a management tool to be used by the senior managers of the organisations to discuss key areas of concerns (especially where the Risk Magnitude is rated High or Moderate or Low) at the start or during project implementation. Due to the changing circumstances, the risk plan and matrix will be updated at regular intervals.

Risk Description Impact Likelihood(H/M/L)

Importance(H/M/L)

Risk level(H/M/L)

Mitigation strategy

1. Improper influence exerted on the Arbitration Council, especially the selection, appointment, removal of arbitrators or in the decision-making process of arbitration panels on specific labour disputes

Loss of reputation – independence, integrity and impartiality.

L H M 1. Update procedures to ensure that arbitrators are not influenced by stakeholders or vested interests, especially the statement of ethical conduct for arbitrators called Professional Guidelines for Arbitrators2. Implement measures to institutionalise and expand AC’s partnership with other industrial relations institutions and stakeholders to ensure countervailing forces and interests prevent improper influence by particular interests3. Implements measure to raise awareness and visibility of the Arbitration Council

2. Illegal strikes (including national level strike), in which workers contravene the procedures laid out in the law and have gone on strike before their case is heard by the Ministry and the Arbitration Council

The credibility and effectiveness of the AC are undermined

H H H 1. Cooperate with social partners in promotion of collective bargaining agreements with non-strike clause and binding arbitration in exchange for the unions’ agreement to give up their right to strike for a certain period of time, or at least to eliminate the practice of illegal strikes.2. Cooperate with the ILO, Ministry of Labour, and other stakeholders in raising awareness about provisions of the Memorandum of Understanding on Promoting Industrial Relations in the Garment Industry.

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3. ACF to expand training to stakeholders (including unions) regarding the labour dispute resolution process.

3. Capacity of Ministry at provincial levels, in forwarding cases to the Arbitration Council

Access of stakeholders outside of Phnom Penh to AC’s services are limited or undermined

M M M 1. Strengthen the capacity of conciliators of provincial labour offices, including joint training and outreach provided by Ministry and ACF to conciliators on labour dispute resolution process and conciliation2. Ministry and ACF to continue to cooperate to build close relations and good understanding of their respective roles, the role of the Arbitration Council and their mutual obligations to parties, through joint events, workshops, etc.3. Ministry conciliators to hand out information to parties regarding the arbitration process and arbitrators (including location of the Arbitration Council, what a hearing is, how to select arbitrators, where the arbitrator biography can be found, etc.)

4. Non-implementation of awards

Credibility and sustainability of AC are undermined

M M M 1. ACF to cooperate with social partners in promoting of collective bargaining agreements with non-strike clause and binding arbitration2. ACF to implement measures to promote binding arbitration (e.g. work with conciliators to communicate advantages of binding arbitration (which provides a final resolution and closure to a dispute) to parties at the conciliation stage before the case is referred to the AC.)3. ACF to continue to publish the arbitration awards on its website, which enables third parties such as ILO’s Better Factories Cambodia to monitor

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compliance with the awards.

5. Creation of a Labour Court A nascent Labour Court may have inadequate understanding and appreciation for arbitration and Alternative Dispute Resolution frameworks. Rulings might undermine the AC decisions and the body of jurisprudence that has developed

M H H 1. Train Labour Court judges in cooperation with social partners regarding the legal and jurisdictional issues at the intersection of alternative labour dispute resolution and judicial authority

6. Delay in partial contribution from the employers as part of the bipartite funding model (employers and workers funded model) to the Arbitration Council

Under this proposal, the Arbitration Council plans to raise an approximate total amount of US$250,000 (from approximately US$100,000 for 2015 and US$150,000 for 2016). A delay in partial funding contribution from the employers (members of GMAC and CAMFEBA) would undermine the implementation of certain activities, and thus impacts of the project

H H H 1. Devise and implement a plan to secure the partial funding contribution from the employers2. Raise funds reserve funds for use as an alternative in the situation where employers’ contribution is delayed.3. Pre-identify certain activities that could be affected in the situation the contribution from employers is delayed.

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Documents

upload.openaid.se€¦ · Web viewRecognising the problem, the Arbitration Council Foundation (ACF) utilises the funding support by Swedish International Development Cooperation