Background information on garment sector
The garment industry is Cambodia’s largest employer, employing more than 850,000 people and generating over US$10 billion annually. The minimum wage for garment workers is US$190 per month, however this still falls short of the estimated living wage of US$588 per month. As of January 2022, the minimum wage is set to rise by US$2, less than inflation and the US$12 rise unions were calling for. Some garment workers are also eligible for bonuses and allowances for food, attendance and seniority.
The European Union represents the largest market for Cambodian garment exports, accounting for approximately 40% of total manufacturing, followed by the United States (30%), Canada (9%), and Japan (4%). Brands sourcing from Cambodia on our tracker can be viewed below.
In February 2020, the European Commission decided to withdraw part of the tariff preferences granted to Cambodia under the European Union's Everything But Arms' (EBA) trade scheme because of serious concerns over violations of human rights and fundamental freedoms. Cambodia’s manufacturing association (GMAC) has requested the EU to postpone the partial withdrawal of the EBA to allow businesses to recover from the pandemic. The partial withdrawal came into effect on 12 August.
The 2020 ITUC Global Rights Index – which rates countries on a scale from 1 (best) to 5+ (worst) on the degree of respect for workers' rights – rates Cambodia as 5, indicating workers have no guarantee of internationally recognised labour rights.
Impacts of pandemic
Job losses
Since the outbreak of the COVID-19 pandemic, 265 garment factories have suspended operations as a result of fashion brands cancelling, reducing and not paying for orders, resulting in job losses for over 130,000 garment workers, however unions estimate the number of job losses is higher at 200,000. This number is likely to rise, with up to 300,000 garment workers vulnerable to losing their jobs. Cambodian manufacturers and unions have appealed to buyers, asking them not to cancel orders and fulfil existing contractual obligations.
Wages & social protections
Clean Clothes campaign estimates that in the months of March, April and May garment workers in Cambodia lost a total of approximately 33% of their normal wages, equivalent to US$122 million (despite government initiatives detailed below).
Currently, suspended garment workers are eligible for a US$70 monthly payment, which is comprised of a US$40 government stipend and a US$30 contribution from employers. The support scheme has been extended until the end of 2020.
Labour and human rights violations
In Cambodia, we have tracked reports of the following rights violations of garment workers during the COVID-19 pandemic:
This is not a comprehensive list of violations and cases, full coverage of the impacts of COVID-19 on Cambodia’s garment sector and related industrial disputes can be viewed here. Actions taken by fashion brands sourcing from Cambodia in response to the pandemic can be viewed below.
Demands from local unions & civil society groups
Asia Floor Wage Alliance, WIEGO, HomeNet South Asia and HomeNet South East Asia are calling on brands to make a one-time Supply Chain Relief Contribution equal to 60 days of wages lost for all garment workers in their supply chains – including time-rated, piece-rated, subcontracted and home workers – during the COVID-19 crisis, as a requirement of responsible business practice.
Click below to find out more information directly from local unions and labour groups:
Coalition of Cambodian Apparel Workers Democratic Union (CCAWDU)
Cambodian Alliance of Trade Unions (CATU)
Center for Alliance of Labor and Human Rights (CENTRAL)
Collective Union of Movement of Workers (CUMW)
You can view a list of campaigns and demands by international civil society organisations demands here.
[This is a live tracker we update on an ongoing basis. If you have additional information on these issues please contact us at [emailprotected] with the subject line ‘COVID-19 Action Tracker’]
FAQs
The Business and Human Rights Resource Centre draws attention to the human rights impacts (positive & negative) of over 5100 companies, operating in over 180 countries. The resource centre provides guidance materials and examples of good practice.
What is the Centre for business and human rights? ›
The Center takes on the most pressing issues at the intersection of business and human rights. Global companies are central players in either improving or eroding respect for human rights. This is especially true when they operate in states with weak institutions and rule of law.
What is the better factories Cambodia program? ›
Better Factories Cambodia is part of the Better Work Program, a comprehensive effort that brings together all levels of the apparel industry to improve working conditions and respect of labor rights for workers, while boosting the competitiveness of apparel businesses.
What are some human rights issues in Cambodia? ›
Significant human rights issues included credible reports of: unlawful or arbitrary killings; torture and cruel, inhuman, or degrading treatment or punishment by the government; arbitrary detention by the government; political prisoners and detainees; serious problems with the independence of the judiciary; arbitrary ...
Who funds the Business and human rights Resource Centre? ›
Our primary sources of income come from independent foundations, governments and individual donors.
What does the human rights Action Center do? ›
HRAC partners with leaders in the creative arts world (music, theater, film, written word) to focus awareness on areas of critical importance in the struggle for human rights and lend a hand to some of the less-publicized cases of human rights abuse and neglect.
Where is the headquarters of the human rights organization? ›
UN Human Rights is part of the United Nations Secretariat, with a staff of some 1300 people and its headquarters in Geneva, as well as an office in New York.
Where is the headquarters of the World human rights? ›
The headquarters of UN Human Rights is located in Geneva, Switzerland, in a few premises including the historic Palais Wilson.
Is there a UN Treaty on Business and Human Rights? ›
International Federation. for Human Rights
Since 2014, a UN Intergovernmental Working Group has been mandated to elaborate the Treaty, aimed at setting rights obligations for transnational corporations and other business enterprises.
What is the biggest company in Cambodia? ›
Largest Cambodian companies by market capitalization
| # | Name | M. Cap |
|---|
| 1 | Sihanoukville Autonomous Port 1PAS.KH | $1.36 B |
| 2 | CAMGSM Plc. (Cellcard) 2CGSM.KH | $1.18 B |
| 3 | ACLEDA Bank 3ABC.KH | $0.87 B |
| 4 | Phnom Penh Water Supply Authority 4PWSA.KH | $0.84 B |
5 more rowsPer capita income, although rapidly increasing, is low compared with most neighboring countries. Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas.
What is Cambodia's main industry? ›
The two leading sectors of Cambodian economy are textiles and tourism. In addition, agriculture remains the main source of income for many Cambodians. The service sector is highly concentrated on trading and catering services.
What is Cambodia's biggest problem? ›
The Cambodia water crisis stems largely from contaminated water supply from multiple sources. The lack of clean water is particularly prominent in rural areas with non-existent infrastructure, but urban cities face their own issues as well.
Why is Cambodia struggling? ›
Much of this slowdown has to do with a challenging global environment. Weighed down by tight financing conditions, high debt and growing geopolitical and economic tensions, global growth is expected to continue to slow next year for a third consecutive year.
Is Cambodia a struggling country? ›
In 2020, the economy contracted 3.1 percent. During the post-COVID-19 period, the economy continues to gradually recover, growing at 3.0 percent and 5.2 percent in 2021 and 2022, respectively. Cambodia's economic growth is estimated to have reached 5.4 percent in 2023.
What is business resource center? ›
The Business Resource Centre (BRC)is a district based one-stop shop, that serves as an information repository and provides a full range of Business Development Services to potential and existing entrepreneurs and diverse business organizations. There are currently 37 BRCs in Ghana.
What is the Center for human rights and Environment? ›
Created in 1999, originally in Argentina, and relocated to the United States in 2015, the Center for Human Rights and Environment (CHRE) is a non-profit 501 (c) 3 organization aiming to build a more harmonious relationship between the environment and people.
Why business and human rights? ›
Business plays an important role in promoting human rights. It has the power to drive equality in both the workplace and in the community, and through offering employment opportunities it can support the advancement of social and economic rights.
