Women Workers in Cambodias garment sector

Sukti Dasgupta DWT, Asia

The views expressed in this paper are the views of the authors and do not necessarily reflect the views or policies of the Asian Development Bank (ADB), or its Board of Governors, or the governments they represent. ADB does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequence of their use. The countries listed in this paper do not imply any view on ADB's part as to sovereignty or independent status or necessarily conform to ADB's terminology.

Women workers in the Garment sector have driven Cambodias high economic growth- (90% women in garments)

And contributed to reducing household poverty

MAIN INCOME EARNERS FOR THEIR FAMILY- support on average 3 5 family members
Having a daughter or close relative working in the garment industry was key factor in moving our of poverty (Neak and Samsen 2006) But still negative perceptions of women in garments- (ADB 2004)

Growth came from exports- 80% of Cambodias export earnings from garments
In the late 90s, trade negotiations with US resulted in generous annual quota increases to the US clothing sector IF Cambodia adhered to basic labour standards. Monitored by BFC. BFC set up in 2001.

Therefore in the highly competitive global market, Cambodia created for itself a niche market based on labour compliance. But low end product type - CMT

Factors contributing to Garment sector growth

Abundant low skilled, low wage female labour, mainly rural migrants, Favourable trade environment: not bound by quota restrictions on exports, agreement with US in GMAC negotiating with govt in one voice ILO/BFC monitoring appealed to brands embracing ethical approaches

Monitoring labour compliance of exporting firms

BFC unannounced factory visits Meetings with management Unaccompanied walk through and observation Collection of documents Interviews with workers/ union representatives BFC checklist based on labour code government and employers have endorsed this check list legality of contracts, working time, OT, sick and maternity leave, amenities, dispute resolution, OSH, ventilation, Freedom of association, no child and forced labour, no discrimiation, etc. Resulted in Garments largely formal sector many are unionised

Min. wage- 61 USD, less than what TUs ask for. Take home pay higher because of allowances and OT, but working time also long 48 to 60 hours a week.

Opportunities in garments contritbuted to faster increase in womens LF participation

Typically young migrants from poorer provinces

Average age between 15 35, unmarried

2/3 have completed primary education, very few have secondary education. Provided an opportunity outside of agri, gave women some financial independence

But contributed to greater vulnerabilities women bore the brunt of the economic crisis.

Impact of crisis
About 70 factories closed, and 70 000 lost jobs
Many more took home lower pay because of less OT, and Working conditions changed ILO/CIDS Tracking study also found that many families sent more young women to work as family incomes declined- additional worker effect. Many returned to work in late 2009, but on lower pay on different (short term) contracts.

By 2011 again back to pre crisis levels of output and employment

EU Cambodia trade negotiation 2011 everything but arms- assures a market

Challenges: a) Low productivity b) Low value added production c) Foreign ownership d) Lack of domestic embeddedness e) Export reliance

Move beyond basic labour compliance

Gains made in working conditions through BFC monitoring have more or less withstood pressures
Also provided training on management and training services But there is a necessity of moving beyond the basics and addressing more systematic issues with worker welfare and social protection

Some final observations

Women dominate in facotry level union leadership but not at federation level. Alternative employment opportunties outside of agriculture still underdeveloped. Collective bargaining still limited Issues with working conditions - mass fainting etc. Issues with child care facilities Training pre employment and on the job Social protection

Thank you
For more information, please contact: Sukti DasguptaTel: 662 288 1792 E-mail: dasgutpa@ilo.org www.ilo.org/asia