New Fair Work Monitor Urges Better Living Conditions for Garment Workers in Cambodia

By Juliette Tafreschi, September 13, 2023

The Fair Work Monitor, conducted by CNV Internationaal in collaboration with Cambodian trade unions, has shed light on alarming issues surrounding the living conditions of garment workers in the country.

CNV Internationaal is calling on garment brands to address the findings of the study seriously and do everything in their power to help improve the situation so that garment workers in Cambodia can live a dignified life. Find a brief summary of the most important findings here:

1. Declining Salaries:
The average monthly salary of Cambodian garment workers is approximately $260, while their basic living expenses amount to around $500. This glaring income-expense gap means that many workers struggle to make ends meet, pushing them into financial hardship.

2. Rising Costs of Living:
Between 2022 (the pilot study) and 2023, the living expenses of surveyed workers increased by 42%. This surge in costs puts immense financial pressure on workers, forcing 40% of them to take on additional jobs alongside their full-time positions in garment factories.

3. Growing Debt Crisis:
The combination of stagnant wages and a high cost of living has led to an alarming level of debt among garment workers. Nearly 80% of surveyed workers in 2023 reported having to borrow money just to cover essential daily needs like food and medicine.

Recommendations for Improvement: To address these pressing issues and improve the lives of Cambodia's garment workers, several key recommendations have been made:


4. Promoting Social Dialogue:
Encouraging open dialogue among employers, the Cambodian government, and unions is crucial for improving working conditions and wages in the garment industry. This collaborative effort is vital for the long-term sustainability and competitiveness of the industry.

5. Involvement of Clothing Brands:
Clothing brands play a pivotal role in effecting change. They are urged to:

  • Raise purchase prices to enable the payment of higher (minimum) wages to workers.
  • Establish long-term, stable business relationships with the factories they source from. Improve payment terms towards these factories.
  • Collaborate with other brands and initiatives in the supply chain to achieve fair living wages as soon as possible.

6. Role of Governments:
Dutch, European, and other governments are encouraged to enact ambitious and effective legislation regarding international corporate social responsibility. Such legislation should firmly incorporate the concepts of living wages and union rights.

7. Strengthening Unions:
Unions play a critical role in securing living wages through minimum wage negotiations and collective bargaining agreements. They have direct access to workers and can collect up-to-date information on wages, living costs, and labor conditions, benefiting all stakeholders interested in improving the situation of garment workers in Cambodia. 

Conclusion


Garment workers in Cambodia face major challenges to their living conditions, including inadequate wages, rising living costs and increasing debt. Urgent action is needed by all stakeholders, including garment brands, governments and unions, to improve the situation. By promoting social dialogue, supporting fair wages and passing responsible legislation, a concerted effort can be made to improve the lives of garment workers in Cambodia and enable them to live with dignity.

Resources

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Report: Making the case for higher wages in the Cambodian garment sector

This report has been commissioned by CNV International as part of their Fair Work Monitor to provide key data on incomes and expenses of workers, which would be useful to understand the economic situation of workers and support stakeholders to respond to the situation.

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Asia Garment Hub  | September 07, 2023

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