Cambodia : Open Letter to International Buyers sourcing from Cambodia

Paris, 24 September 2010

Subject: Responsibility of international buyers in the protection of workers’ rights in Cambodia

To international buyers,

The International Federation for Human Rights (FIDH) is deeply concerned that a recent peaceful and lawful strike by garment and apparel workers in Cambodia has been met with legal threats and court-sponsored retaliation, with tacit approval from the Cambodian government, against union leaders and workers.

The strike, which began on September 13, saw the participation of hundreds of thousands of workers from the Coalition of Cambodian Apparel Workers Democratic Union (CCAWDU), the National Independent Federation of Textile Unions of Cambodia (NIFTUC), and 13 other unions. The workers are seeking an increase in the current wage to meet minimum living standards. On September 16, union leaders agreed to temporarily cease the strike after they accepted a proposal from the Ministry of Social Affairs, Veterans and Youth Rehabilitation inviting union representatives to a negotiation meeting to be held on September 27.

During the strike, the Minister of Social Affairs, Veterans and Youth Rehabilitation and the Minister of Labour and Vocational Training publicly called for the investigation and prosecution of union leaders and a crackdown on the strike. The Prime Minister approved the two Ministries’ request to authorize the police and local authorities to take such actions.

According to court documents obtained, some provincial and municipal courts have ordered the suspension of at least 92 union workers in Kampong Speu and Kandal provinces. Since the cessation of the strike, as many as 200 union leaders have reportedly been suspended for their involvement. Reliable sources warn that at least nine union leaders are at risk of being served arrest warrants for organising the strike. Intimidation and harassment by the police, employers and factory security guards were reported, including seizure of communication equipment and publicly announced legal threats.

Our organization recalls that the Cambodian Constitution, the Labour Law (1997) and ILO Conventions 87 and 98, which Cambodia ratified, all guarantee the right to organise, the right to strike and the right to collective bargaining. The use or threat of legal actions against union leaders and workers are blatant violations of these basic rights.

The strike was called to demand an increase in the minimum wage for workers in the garment and shoe industry, taking into consideration all relevant factors, including costs of living and inflation. In July 2010, members of the Cambodian Labour Advisory Committee (LAC), comprised of government officials, industry representatives, and some unions, agreed to an increase in the minimum wage from US$ 56 to US$ 61 per month, which would come into effect on October 1, 2010 and not be subject to review until 2014. One study has shown that the absolute minimum wage on which a garment worker could afford to live is between US$72-75 per month [1] whereas another study indicated that US$93 per month would constitute a reasonable living wage [2].

Our organisation recalls that Article 104 of the Cambodian Labour Law of 1997 mandates that a minimum wage “must ensure every worker of a decent standard of living compatible with human dignity”. Furthermore, the four-year duration of the new minimum wage of US$61 seems in contradiction to Article 107 of the Labour Law which stipulates that the wage be “adjusted from time to time in accordance with the evolution of economic conditions and the cost of living”. Article 7(a)(ii) of the International Covenant on Economic, Social and Cultural Rights (ICESCR), to which Cambodia is a State Party, also guarantee the right to enjoy just and favourable conditions of work that ensure a “decent living for themselves and their families”.

The demand of the strike is legitimate and its organisation and implementation have been strictly legal and peaceful. That the Cambodian government decided to take such repressive and threatening actions against those involved casts serious doubt about its commitment to respect labour standards and workers’ right. Such a situation undermines the working conditions in Cambodia’s garment factories and makes it difficult for international firms to uphold their commitments to ensure respect of workers’ rights throughout their supply chain and thereby to avoid reputational risks.

Considering your company is sourcing from Cambodia, FIDH requests your public and principled support to uphold the highest social and labour standards as a buyer and reassure consumers that the products they are purchasing are not made by workers whose basic rights are being violated.
In this regard, we strongly urge your company to:

* Urge the Cambodian authorities to immediately cease and refrain from all acts of legal threats and judicial intimidation against union representatives, workers and labour activists for their involvement in the legal and peaceful strike;

* Request factories from which you are supplied to reinstate all workers who have been unjustly suspended, served warrants, or investigated for their role in the strike;

* Call on the Cambodian authorities and employers to engage in good-faith, honest and transparent negotiation with unions and workers in order to realise a reasonable increase in the current wage to meet minimum living standards, consistently with prevailing economic conditions and cost of living, and as required under Cambodia’s international human rights obligations;

* Further urge the Cambodian authorities to fully guarantee workers’ rights to organise, strike and engage in collective bargaining, freely and without fear of legal consequences or personal retaliation; and

* In line with your commitment to ensure that workers are treated fairly and equitably throughout your supply chain, we urge you to continue operating in Cambodia even in the event that the minimum wage is increase, and to reflect the wage increase in the negotiation with the Cambodian garment and apparel factories, including for the orders already made.

We sincerely hope you will take into consideration our deep concerns and recommendations. FIDH would welcome the opportunity to engage with your company to discuss your position in the on-going situation in Cambodia and the steps your company will take or have taken to address our concerns.

Sincerely yours,

Souhayr Belhassen
FIDH President

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