Supporting Cambodia’s Workers
The Cambodia Herald – September 08,
2013
William E. Todd
The first Monday in September marks
Labor Day in the United States, a holiday celebrating the American labor
movement and honoring workers’ contributions to the strength and prosperity of
the American economy. In Cambodia, the workforce also plays a critical role
in the country’s continued economic development. The importance of
protecting and providing for the Cambodian workforce prompted a young Cambodian
named Chanthou to ask, “What do you think about the announcement of the fifth
annual meeting between Cambodian government officials and union leaders to
discuss wage increases for garment workers?”
In this column, I have written often about the strong economic development that Cambodia has already witnessed, as well as Cambodia’s tremendous potential. Understanding that a healthy, skilled, and efficient workforce is critical to a vibrant economy, the U.S. government strongly supports workers’ rights and improved working conditions in Cambodia, including a livable wage, a safe work environment, the provision of nutritious meals to factory workers, and accountability for non-compliant factories with unsafe working conditions.
Since I believe these issues are vitally important to Cambodia’s development, I was pleased to host a reception last week for Better Factories Cambodia and welcome representatives from some of the leading U.S. garment retailers. As U.S. consumers become more aware of the social and environmental impact of their purchasing decisions, U.S. companies are increasingly sourcing their products from and investing in countries with manufacturers that pay a livable wage, provide safe work conditions, promote workers’ health, and abide by labor laws. From my conversations with these representatives, it was clear that U.S. retailers place a great value on preserving their reputation for buying products only from factories with ethical work standards. Better Factories’ trailblazing concept of monitoring and reporting on the conditions of garment factories both helps factory owners improve the work environment for their staff and provides retailers with independent assessments that give them confidence in buying products from factories participating in the program. This win-win formula is helping Cambodia strengthen its commercial ties with the United States, creating more economic opportunities for all Cambodians.
The success of Better Factories in improving working conditions in the garment industry requires a strong partnership with the Cambodian government and garment buyers in pressing for positive changes. Therefore, I am hopeful that meetings between the Cambodian government and garment-sector stakeholders to discuss an increase in wages will be fruitful. As I have said before, providing a livable wage is an investment not only in workers’ well being, but also in developing a strong middle class. As the labor pool becomes more skilled and better educated, the economy will be able to attract even higher-paying jobs that further drive economic development.
In May, the minimum wage for garment workers increased from $66 per month to $80 per month. The agreement was a compromise that took weeks of negotiations to reach, and the increase was a positive development for the more than 400,000 workers in the garment sector. Success with further discussions on wage increases will require finding a balance between the protection of workers’ interests and fostering an environment that encourages investment and economic growth.
The U.S. Embassy has been, and will continue to be, a partner in this process. Every day, we are working to strengthen our ties with the Cambodian government, the business community, and the Cambodian people. We are committed to working together to strengthen democratic institutions, encourage greater respect for human rights, and promote economic opportunities for both Cambodians and Americans.
Thank you very much for reading this week’s column. I am very curious to read what you think about my answer to this question, and I look forward to receiving other comments and questions. Please write to me in English or Khmer at AskAMBToddPP@state.gov.
In this column, I have written often about the strong economic development that Cambodia has already witnessed, as well as Cambodia’s tremendous potential. Understanding that a healthy, skilled, and efficient workforce is critical to a vibrant economy, the U.S. government strongly supports workers’ rights and improved working conditions in Cambodia, including a livable wage, a safe work environment, the provision of nutritious meals to factory workers, and accountability for non-compliant factories with unsafe working conditions.
Since I believe these issues are vitally important to Cambodia’s development, I was pleased to host a reception last week for Better Factories Cambodia and welcome representatives from some of the leading U.S. garment retailers. As U.S. consumers become more aware of the social and environmental impact of their purchasing decisions, U.S. companies are increasingly sourcing their products from and investing in countries with manufacturers that pay a livable wage, provide safe work conditions, promote workers’ health, and abide by labor laws. From my conversations with these representatives, it was clear that U.S. retailers place a great value on preserving their reputation for buying products only from factories with ethical work standards. Better Factories’ trailblazing concept of monitoring and reporting on the conditions of garment factories both helps factory owners improve the work environment for their staff and provides retailers with independent assessments that give them confidence in buying products from factories participating in the program. This win-win formula is helping Cambodia strengthen its commercial ties with the United States, creating more economic opportunities for all Cambodians.
The success of Better Factories in improving working conditions in the garment industry requires a strong partnership with the Cambodian government and garment buyers in pressing for positive changes. Therefore, I am hopeful that meetings between the Cambodian government and garment-sector stakeholders to discuss an increase in wages will be fruitful. As I have said before, providing a livable wage is an investment not only in workers’ well being, but also in developing a strong middle class. As the labor pool becomes more skilled and better educated, the economy will be able to attract even higher-paying jobs that further drive economic development.
In May, the minimum wage for garment workers increased from $66 per month to $80 per month. The agreement was a compromise that took weeks of negotiations to reach, and the increase was a positive development for the more than 400,000 workers in the garment sector. Success with further discussions on wage increases will require finding a balance between the protection of workers’ interests and fostering an environment that encourages investment and economic growth.
The U.S. Embassy has been, and will continue to be, a partner in this process. Every day, we are working to strengthen our ties with the Cambodian government, the business community, and the Cambodian people. We are committed to working together to strengthen democratic institutions, encourage greater respect for human rights, and promote economic opportunities for both Cambodians and Americans.
Thank you very much for reading this week’s column. I am very curious to read what you think about my answer to this question, and I look forward to receiving other comments and questions. Please write to me in English or Khmer at AskAMBToddPP@state.gov.
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