Garment industry in Cambodia has gone through sweeping changes. Textile and apparels account for 85% of the country's total exports, proving to be its lifeblood. Apparel making accounts for 16% of the country's GDP, employing 45% of the manufacturing workforce. During the initial stages, when the industry was experiencing a boom, many of the apparel workers were hired on a permanent basis. But currently, the majority of the companies hire workers on a short-term basis, which in Cambodia is generally referred to as 'fixed duration contracts' (FDCs). But widespread arguments exist that these short-term contracts violate ethical working environments. Nationwide protests and strikes are carried out by garment workers.

Textile and apparel industry of Cambodia:

Cambodia enjoys preferential market access to other countries such as the US, EU, and Canada through trade agreements. Factors such as GSP, most favored nation status, and less developed country categorization offer low tariffs and considerable market access to the country. Apart from this, availability of cheap labor and Government's recognition of the textile and apparel industry also augments its textile and apparel industry growth.

Cambodia is the only country independently monitored by the ILO (International Labor Organization) according to national and international standards on working conditions in apparel industries. This motivated leading brands such as Levis Gap, Wal-Mart, Disney, and Sears to source from Cambodia continuously.

Short Term Contracts in Garment Industries:


Despite the favorable market access, the industry faces problems due to increasing fixed duration contracts' (FDCs). These contracts violate domestic, and international law, posing a threat to collective bargaining, and the establishment of successful business relations of the country with foreign nations. Use of FDCs in factories is likely to harm their rights and threaten to destroy Cambodia's reputation in the global forefront.


Most of the regular full time workers are hired under short term contracts called FDCs. These contracts are renewed periodically. Workers who are hired under undetermined duration contracts known as UDCs are also pressurized to convert their UDCs into FDCs. Majority of the garment workers in Cambodia are young rural female. More than 90% of the labors in the Cambodian garment industry are women. Most of them are from rural areas and have no primary education. They are most likely to succumb to the pressures of their employers.


A report submitted by Allard K. Lowenstein International Human Rights Clinic, Yale Law School states that increasing FDCs causes insecurity among the workers, threatens their rights under domestic and international law, hinders labor productivity, and threatens to create a major breakdown of industrial relations due to potential provocation for massive strikes. Cambodia's reputation in the global forefront as a country committed to improve the working conditions for its workers is also under intimidation.


Garment manufacturers of Cambodia argue that they chose FDCs so as to keep the country's garment industry competitive in the global market, when faced with cyclical short term changes in the buyer demands. Furthermore, they state that FDCs offer job mobility to the workers, and prevents risk of factory closing, and owners' not paying benefit that have been accrued.

 

Buyers and suppliers from all across the globe are urged to put an end to FDCs. For better compliance results, to protect worker's rights, and the country's competitive advantage in the global market, the Government should take initiatives limiting the number of times an FDC could be renewed. It should also fix minimum time duration for all FDCs.


References:


1)     "Tearing Apart at the Seams", Allard K. Lowenstein International Human Rights Clinic, Yale Law School, April 2011

2)     Gmac-cambodia.org