The Importance of Trade Unions

By: William E. Todd, U.S. Ambassador to the Kingdom of Cambodia

Phnom Penh

01-Jun-15

I begin my column this week with the exciting news that Scott Busby – Deputy Assistant Secretary for the Department of State’s Bureau of Democracy, Human Rights and Labor – will be making an official visit to Cambodia early next week to meet with the Cambodian government and representatives from civil society.  The Bureau of Democracy, Human Rights, and Labor is at the forefront of U.S. government efforts to promote freedom and democracy.  Deputy Assistant Secretary Busby’s visit is another sign of our commitment to human rights in Cambodia, which includes a strong and healthy civil society.  I expect that a primary topic of conversation will be the draft NGO law and that Mr. Busby’s visit will contribute to the important discussion that has been taking place over recent weeks and months. 

Another important human rights issue that continues to receive national and international attention is that of Montagnards from Vietnam who are seeking asylum in Cambodia.  The government recently acknowledged the presence of Montagnards who are in Phnom Penh and seeking to register their asylum claims, but I was dismayed to see a quote from a spokesman saying that the Cambodian government is “fed up” with the Montagnard refugees and has “no interest” in considering their claims for asylum.  If the spokesman was quoted correctly, then it raises concerns that the Montagnards may not be given due process in accordance with Cambodia’s national and international obligations.  The government should take immediate steps to work with the United Nations High Commission for Refugees and other organizations to find long-term solutions for refugees and asylum seekers in accordance with international humanitarian standards.

A third topic that is likely to come up on Deputy Assistant Secretary Busby’s visit is labor rights, which is the focus of this week’s column.   In particular, I would like to spend some time discussing the important role that trade unions can play as a means for people to learn about transparency, governance, and accountability. 

An effective trade union does not focus solely on the economic interests of its worker members; it also serves as a key democratic organization that stresses the importance of voting, regular assembly, access to information, and other processes that reflect the value of each member’s opinion.  While free and fair elections are the first critical step for democracy, trade unions are one of the institutions that help to insure the long-term sustainability of democracies.  Across the world, it is no coincidence that countries with a free and active trade union movement are more democratic, more transparent, and more prosperous.  Here in Cambodia, many are discussing the impact of trade unions in the country’s development.  In light of conversations with a number of labor experts during my recent reverse trade mission to the United States, I would like to take some time to reflect on the positive role trade unions can play in addressing a variety of issues that are important to Cambodia’s workforce.

Much of the discussion on trade unions in Cambodia relates to the garment sector.  According to the Ministry of Industry and Handicraft, about 700,000 Cambodians currently work in the 1,200 garment businesses located throughout the country, with women representing 90 percent of these employees.  The garment industry has been a key vehicle for economic growth, becoming the primary means for attracting foreign investment and creating opportunities for many Cambodians to supplement their family incomes.  Providing such opportunities, however, is only a half measure if laborers are subjected to poor conditions or are treated unfairly.

With the large number of garment workers in the country, trade unions play a crucial role by representing the interests of laborers, promoting safer working environments, and negotiating for employees’ benefits.  Along with supporting workers in disputes with management, Cambodian unions also help with social services, financial assistance, and medical support.  In the past, I have highlighted examples of companies that value strong corporate social responsibility practices in Cambodia, such as General Electric’s contributions to schools and medical training; Tiffany & Co. providing free medical care for its workers; and Pactics offering its employees fair wages, reasonable working hours, safe and clean working conditions, and even subsidies for motorbike helmets for a safe commute.  However, there are reports of some companies in Cambodia that are not as committed to improving labor standards for their employees.  This is another reason why trade unions matter, as they are often the only institutions that can give a voice to neglected workers.

Most recently, trade unions have represented workers’ concerns in the negotiations on the minimum wage in Cambodia’s garment industry.  As many of us know, the minimum wage is a contentious issue in Cambodia, as witnessed during the mass demonstrations and violent clashes that occurred in January 2014. 

Partnerships between trade unions, the government, the private sector, and civil society were essential contributors to the increase of the minimum wage from $60 to $128 last year.  With the rising cost of living that has come with Cambodia’s economic growth, many workers are pushing for an additional wage increase.  As such, it is vital that trade unions continue to collaborate with various stakeholders to come up with a fair, equitable, and transparent solution to the minimum wage issue.  In future negotiations, I encourage all sides to remain committed to peaceful and respectful dialogue, using assistance from the International Labor Organization (ILO) and other experts to make decisions that are based on data and in the best interests of all parties.

Another key issue is the Law on Unions of Enterprises, the pending trade union law that has been in the works since 2011.  In the past, trade unions have been a part of consultations on the draft law, providing valuable insight to government officials.  However, despite a number of revisions, several trade unions and civil society groups are still concerned that the final version of the law will not take into account any of the recommendations given, thereby limiting the rights of unions and Cambodian workers.  It is more important than ever to pay attention to the concerns of trade unions, factory owners, and civil society, as any action that restricts rather than empowers in my opinion does not serve the best interests of the Cambodian people.

The road accident that took the lives of 19 people in Svay Rieng Province last week was a sad reminder of the need to protect workers in Cambodia.  As many people have noted, trade unions could help reduce the number of garment workers killed and injured during their daily commute by working with factories to provide safer transportation options.  Beyond Cambodia’s borders, trade unions can also play a role in protecting migrant workers against labor trafficking.  Despite the high visibility given to the fight against sex trafficking, the overwhelming majority of Cambodian trafficking victims are trafficked for labor purposes.  The desire for a better life has led to approximately 140,000 Cambodians working legally in Thailand and anywhere from 400,000 to 500,000 more working there illegally.  These workers are at an increased risk of being trafficked due to greater use of illegitimate labor brokers and payment of higher fees to gain entry to Thailand, leading to a greater likelihood of debt bondage.  As trade unions continue to grow across the region, they can help identify and offer support to trafficking victims. 

With ASEAN integration approaching later this year, Cambodia has an opportunity to set itself apart from other countries in the region in a positive way by becoming more attractive to foreign business and investment.  The country’s practices with respect to labor rights will continue to be monitored by international companies looking to protect their brands.  Concurrently, businesses operating in Cambodia will be evaluated by human rights groups and consumers interested in purchasing goods that have been manufactured under fair labor conditions.  As such, it is essential that trade unions work together with the government, private sector, and civil society to peacefully resolve disputes and find equitable solutions to labor matters.  Utilizing the expertise of organizations like the ILO, the Solidarity Center – the NGO affiliate of the American Federation of Labor (AFL-CIO) – and the Cambodia Legal Education Center (CLEC), further economic prosperity can be expected.

As Solidarity Center country director David Welsh said in his recent New York Times op-ed, improving labor conditions in Cambodia calls for “a global solution.”  The United States remains a committed partner in developing this solution, and we stand ready to work with trade unions, the Cambodian government, the private sector, and civil society to ensure a better future for all Cambodians.

I would like to again thank you for reading my column this and every week.  Feel free to send me questions in English or Khmer at AskAMBToddPP@state.gov and follow my blog at http://blogs.usembassy.gov/todd/.