CAMBODIA: Labour law change could increase strike risk

By | 9 August 2011

New research has warned that possible changes to Cambodia's labour law could raise the risk of future strikes in the country and undermine the competitiveness of the garment industry.

The concerns are raised in a report by Yale Law School's Allard K Lowenstein International Human Rights Clinic, which claims the widespread use of temporary short-term employment contracts in Cambodia - called 'fixed-duration contracts' (FDCs) - not only denies workers statutory benefits, but also restricts their rights under international and local laws.

They also found it limits the competitiveness of the garment industry and introduces the threat of a major breakdown of industrial relations - including the potential for massive strikes.

And worryingly, the Cambodian government is considering an amendment to the Labor Law that would ease restrictions on the use of FDCs, according to the report, 'Tearing Apart at the Seams: How Widespread Use of Fixed-Duration Contracts Threatens Cambodian Workers and the Cambodian Garment Industry.'

The study warns the widespread use of FDCs could damage the competitiveness of the Cambodian garment industry once it becomes widely known to international buyers that the country is backsliding on workers' rights.

A number of international brands, including Gap, Nike and Wal-Mart, have already expressed concern over the use of FDCs.

And other international apparel buyers and their suppliers are now being urged to take steps to avoid using FDCs for their regular workforce, and to award contracts not just to the lowest-cost producers, but to the lowest-cost rights-friendly producers.

Click here for more details on the research findings.

Sectors: Apparel, Manufacturing, Retail, Social & environmental responsibility, Sourcing

Companies: Nike, Wal-Mart

View next/previous articles

Currently reading -

CAMBODIA: Labour law change could increase strike risk

There are currently no comments on this article

Be the first to comment on this article

Related research

Footwear: Advanced Emerging Markets (Brazil, Hungary, Mexico, Poland, South Africa, Taiwan) Industry Guide

Datamonitor's Footwear: Advanced Emerging Markets (Brazil, Hungary, Mexico, Poland, South Africa, Taiwan) Industry Guide is an essential resource for top-level data and analysis covering the Footwear industry in Brazil, Hungary, Mexico, Poland, South...

Related articles

just-style management briefing: Lessons learnt from the past for the future

What should apparel firms have learnt from the upheaval of the past couple of years - and what should they be doing now if they want to remain competitive into the future? Buyers and manufacturers need to build a deeper, long-term relationship our respondents said, as well as focusing on a sourcing portfolio that balances costs and risks.

just-style management briefing: Opportunities for the apparel industry in 2012

Opportunities the apparel industry can look forward to this year include speed to market, which favours sourcing in the western hemisphere; growth in the number and spending power of middle-lass consumers in emerging markets like China and India; and the use of technology and the internet to make sourcing a truly global activity.

Plassat to face French challenges at Carrefour

After a tumultuous three years at the helm of the world's second-largest grocery retailer, Carrefour chairman and CEO Lars Olofsson is set to be replaced by Georges Plassat.

Read more on this hot issue

Short-term contracts exploit Cambodia garment workers

International apparel buyers and their suppliers are being urged to take steps to put an end to the widespread use of short-term employment contracts in the Cambodian garment industry amid concerns the practice not only threatens to erode the industry's competitiveness but also violates labour laws and could lead to widespread unrest.

Tag line

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page