1

Cambodia

Labour Market Profile

2014

This Labour Market Profile is a yearly updated report that provides a broad overview of the labour

market's situation and development. The report is based on the latest data available and following

trends. Each section has also accesses to the sources' links that can be used to go more in-depth on

selected themes. This is a revised version.

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Cambodia – Labour Market Profile 2014

Executive Summary

Cambodia has a sustained economic growth and a stable macroeconomic position. But the country has a grave political muddle after the disputed general elections in July 2013 and a suppression of peaceful protests and extra-judicial detentions. The share of working poor with less than US$1.25 a day fell from 45% in 1994 to 19% in 2009. On the other hand, according to the Human Development Index, the country has stepped down on one step from 137 to 138 out of 187 countries in the period 2007-2012. It indicates that Cambodians human development has not followed the economic growth. Many strikes have ended in clashes between workers and the police. Several ended in injuries, fatalities and arrests of workers; just as workers set fire to police vehicles and attacked police officers. However, the nature and number of strikes and lockouts have changed over time and being reduced. It is part of a maturing of the relatively new trade union culture. The trade union movement experienced a strong expansion period during the 1990s. It is estimated that 7.7% of workers in the labour force are members of trade unions today. There has recently been a decline on 15% of membership from five trade union confederations, though. Trade unions have struggled with internal organizational challenges and employment instability in the shrinking labour market. An emerging problem is that 'fixed duration contracts' are becoming favored instead of the 'unspecific duration contracts'. Some trade unions have claimed it is a tool to threaten workers not to join trade unions. The government has pledged to introduce a Trade Union Law by the end of 2014. Voices from trade unions have argued that the initiative is a way to control the unions. On the other hand, the draft law has also been interrelated to be inclusive of all workers regardless of status, which can have an important positive impact on workers in the informal economy.

It is estimated that 83% of trade union members are women, which are concentrated in the garment industry. In union leadership at the federation level, women have an underrepresentation, though. The minimum wage for workers in the garment sector was initially raised from US$80 per month in 2013 to US$95 in 2014, but due to the turmoil of strikes in January, it was further increased to US$100 in February. The system of Collective Bargaining Agreement (CBA) is under development and has been improved. The Ministry of Labour and Vocational Training (MoLVT) registered 405 CBAs in 2012. A central issue of the workforce is the quality of employment. It is estimated that nine out of ten (90%) workers operate in the informal economy. The labour market is increasing with 300,000 workers per year, but on a decreasing trend. There is a growing emigrating outflow to find jobs with higher wages. Migration policies have moreover been improved and there has been an increase in the number of Cambodian workers going abroad through legal channels. Latest official figures show that it increased from 53,160 in 2009/2010 to 130,000 in 2012. The Government has taken steps to a comprehensive social protection system. This change is registered on the public spending on social protection, which has been on a rise, increasing 11% per year since 2007. Still three out of four (74%) of the population is not covered by health social protection. To create a stronger and more united trade union movement and to safeguard the rights and interests of the workers, a new labour organisation council was officially established and launched in April 2012, i.e. the Cambodian Council of National Unions (CCNU). It is composed of 62 member-federations and associations among registered national federations and associations in the country.

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Contents

Trade Unions ......................................................................................................................................... 4

Trade Unions in Cambodia ............................................................................................................................ 4

Employers’ Organisations ....................................................................................................................... 7

Central Tripartite Structures ................................................................................................................... 7

National Labour Legislation .................................................................................................................... 8

ILO Conventions ..................................................................................................................................... 8

Trade Union Rights Violations ................................................................................................................ 9

Working Conditions.............................................................................................................................. 10

Workforce ........................................................................................................................................... 11

Unemployment and underemployment ..................................................................................................... 12

Sectoral employment .................................................................................................................................. 12

Migration ..................................................................................................................................................... 13

Informal Economy ....................................................................................................................................... 14

Child Labour ................................................................................................................................................. 14

Gender ......................................................................................................................................................... 15

Youth ........................................................................................................................................................... 15

Characteristics of the Working Age Population ..................................................................................... 16

Vocational training ...................................................................................................................................... 17

Social Protection .................................................................................................................................. 18

General Economic Performance ............................................................................................................ 19

Trade ................................................................................................................................................... 20

Trade agreements ....................................................................................................................................... 20

Export Processing Zones .............................................................................................................................. 20

References ........................................................................................................................................... 21

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Trade Unions

Trade unions in Cambodia

Registered trade union confederations 9

Registered trade union federations 68

Registered trade unions 1,758

Dues per month (standard) US$0.25

Members of trade unions confederations 646,104

Trade union members share of labour force 7.7 %

Trade union members to waged workers 25 %

Female member share of trade unions 83 %

Members of affiliated trade unions from the informal economy (IDEA and NACC)

24,819

Number of CBAs 405

Workers covered by CBAs (NACC, CCT, CLC) 63,665

Share of waged workers covered by CBAs 2.5 %

Labour force (2013) 8,597,000

The trade union movement in Cambodia expanded rapidly in the early 1990s as part of the transition to a market economy and democracy. It is estimated that in 1997 there were 20 trade unions. Today, 1,758 unions exist, 68 union federations, 7 trade union confederations and one alliance of confederation.

1

These numbers are somewhat underestimated, but the country lacks an effective national system of recording active unions. It is estimated that close to 650,000 are members of trade union confederations/Alliance Chamber, which equals 7.7% of the labour force. In the recent years there has been a decline of membership from trade union confederations, i.e. approximately 15% on average. Some of the reasons of this trend are related to losing jobs in the formal garment sector and the blossoming of fixed duration contracts (see also the section of Working Conditions). The trade union movement is the largest civil society membership-based institution in the country. It is still considered to be relatively new and with a young membership base. The majority of unions are affiliated with the ruling party, although some are affiliated with the opposition party, and a few independent unions. The movement is confronted with internal challenges, employment instability in a shrinking labour market, and a rise of non-standard forms of employment.

2

The exponentially growth of the trade union movement has to a large degree been based on the

rapidly expanding garment industry. The achievements in construction, transport, hotel and tourism sectors have also pressured for union formation.

3 The government has pledged to introduce

an amended Trade Union Law by the end of 2014. Voices from the trade unions movement have argued that the draft law is a way to control the unions.

4

International organizations have also raised their concerns of the law and a possible decline in the registration of unions.

5

The trade union membership is dominated by women, which is more or less 83% of the total trade union membership. The trade union movement is dominated by male leadership, though. It is also noted that it is difficult of integrating women-related issues in collective bargaining, e.g. gender sensitivity training and reproductive health programs.

6

The Labour Law does not apply to civil servants. Thus, they do not have the right to form or join a trade union. An example is that the Cambodian Independent Teachers Association is denied of its requests for permission to marching and protest. On the other hand, personnel in the air and maritime transportation industries are free to form unions, but are not entitled to social security and pension benefits, and are exempt from the limitations on work hours prescribed by the labor law.

7

The collective bargaining agreements (CBAs) system is also quite new, initiating with five agreements in 2003 that emerged in the hotel and tourism sector. Based on MoLVT report as of 2012, a total of 405 CBAs were negotiated. This reduction from the previous year is probably due to a large proportion of genuine, improved agreements, i.e. comprehensively negotiated CBAs between parties that covered not just a single issue, but multiple core concerns, such as wages, working hours, overtime, benefit entitlements, and union rights.

8

The nature and number of strikes and lockouts changed also over time. In general, there were more strikes in the first half of the decade of the 2000s. Based on the recent report from the Arbitration Council, in 2011 there was a downward trend in strike activities. Unfortunately, in 2012 onwards, the strikes went up again from 31 in 2011, to 121 in 2012, and 147 in 2013.

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Trade Unions in Cambodia9

Members, Dues, Collective Bargaining Agreements (CBA) and Occupational Safety and Health committees

Trade Union / Trade Union Centre

Affiliation To national trade union

centre

Total Members

Female Members

Dues (per

month)

Number of CBAs

Workers covered by CBAs

Number of OSH com-mittees at workplaces

NACC National Union Alliance Chamber of Cambodia

163,045 139,635 $0.25 38 42,500 16 Factories

CCTU Cambodia Confederation of Trade Unions

176,400 141,120 $0.25 15 11,635 15 Factories

CLC Cambodian Labour Confederation 83,614 66,400 $0.5 22 11,500 250 OSH

committees in 21 Factories

CCU Cambodian Confederation of Unions 25,000 20,000 $0.25 0 0 -

CNC Coalition of Cambodia of National Labor Confederation

35,000 29,750 $0.25 0 0 -

CIC Coalition of Cambodia Inheritance Confederation

NACC 19,654 17,271 $0.25 - - -

CCWR Cambodia Confederation for Workers Rights

NACC 107,175 92,288 $0.25 - - -

CUNIC Confederation of Union National Independence Cambodia

NACC 36,216 30,076 $0.25 - - -

FTUWKC Free Trade Union of Workers of the Kingdom of Cambodia

- 60,000 54,000 $0.25 1 2300 -

CITA Cambodian Independent Teacher’s Association

- - - - - - -

CAC Cambodian Asian Confederation CCWR 6,083 5, 375 $0.25 1 - -

CIUF Cambodia Industial Union Federation CCWR 2,540 2, 292 $0.25 - -

CLUF Cambodia Labour Union Federation CCWR 55,857 50, 282 $0.25 26 - -

DISUF Democratic Independent Solidarity Union Federation

CCWR 2,819 2, 528 $0.25 - - -

NEAD National Educators' Association For Development

CCWR 7,345 3, 950 $0.25 - - -

OITA Occupational and Transportation Association

CCWR 2,130 241 $0.25 - - -

TAC Teachers Association of Cambodia CNCLP 10,797 10,101 $0.25 - - -

TUFDW Trade Union Federation Democracy of Workers

CCWR 11,482 10,222 $0.25 4 - -

TUWFPD Trade Union Workers Federation of Progerss Democracy

CCWR/NACC 6,897 6,207 $0.25 3 4,500 -

USWUF United Struggle for Women Union Federation

CCWR 1,225 1,090 $0.25 - - -

CFWR Cambodia Federation For Workers' Rights

CIC/NACC 6,376 5,490 $0.25 - - -

CFWU Cambodia Federation Voices' of Worker Union (CFWU) having

CIC 1,940 1,739 $0.25 - - -

LDUF Labor Development Union Federation

CIC 3,729 3,239 $0.25 - - -

NUCW National Union Federation Cambodia Worker

CIC/NACC 7,609 6,803 $0.25 - - -

C.CAWDU Coalition of Cambodian Apparel Worker Democratic Union

CLC 68,000 61,200 $0.5 5 7,500 12

CICA Cambodian Independent Civil Servant Association

CLC 1, 494 419 $0.5 - - -

BWTUC (Building Wood Workers Trade union of Cambodia) Construction Sector

CLC 3,500 1,400 $0.5 3 750 0

CTSWF Cambodian Tourist and Service's Workers Federation

CLC 5,800 3,480 $1 14 3,500 -

FAPD Farmers Assn. for Peace & Development

CLC 620 372 $0.25 0 0 0

IDEA Independent Democratic of Informal Economic Association

CLC 4,519 533 $0.5 - -

WDURG Workers Union Democratic of Rackhorn Group

- 50 - - - - -

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CIFUF Cambodia Industrial Food Union Federation

CUNIC/NACC 7,345 4, 395 $0.25 - -

FUKDW Federal Union of Khmer Democracy Workers

CUNIC/NACC 10,169 8, 939 $0.25 2 - -

PWUF Prosperity of Workers Union Federation

NACC/CUNIC 12,882 11, 542 $0.25 - - -

WFUF Workers Freedom Union Federation CUNIC/NACC 2,750 2, 465 $0.25 - - -

CFITU Cambodia Federation of Independent Trade Unions

CCTU 7,985 7186 $0.25 1 573 4 factories

CUF Cambodia Union Federation CCTU 76,066 68,459 $0.25 10 8,416 10 factories

CWLFU Cambodia Workers Labour Federation Union

CCTU 1,400 12,600 $0.25 3 3,015 3 factories

DISUF Democratic Independent Solidarity Union Federation

NACC 32,005 - - -

CFTU Cambodia Federation Trade Union CUNIC/NACC 1,928 1, 722 $0.25 - - -

TWUF Trade Workers Union Federation CUNIC/NACC 1,142 1, 013 $0.25 - - -

DTFUDhamaThpatay Federation Union CCTU 4,928 - - -

FBWW Federation of Building and Wood Workers

CCTU 654 196 $0.25 - - 1 factory

FUDWR Federation Union Development Workers Right

CCTU 4,847 4,362 $0.25 - - -

FUF Free Union Federation of Khmer Labour

CCTU 6,875 6,188 $0.25 - - -

FUS Federation Union of Solidarity CCTU 2,066 1,850 $0.25 - - 1 factory

TUFIKEL Trade Union Federation for Increasing Khmer Employees Lifestyle

CCTU 3,742 3,367 $0.25 - - 1 factory

UFID Union Federation of Independent and Democratic

CCTU 11,451 10,306 $0.25 1 859 1 factory

WUF Workers Union Federation CCTU 2,660 2,367 $0.25 0 0 0

CWFDFU Cambodian Worker’s Force Democratic Federation Union

CCTU 2,205 1,985 $0.25 0 0 0

TUFCWP Trade Union Federation Cambodia Workers Power

CCTU 630 567 $0.25 0 0 0

TUFKWL Trade Union Federation Khmer Workers League

CCTU 1,639 1,475 $0.25 0 0 0

KKLF Koun Khmer Lobor Federation CCTU 1,590 1,431 $0.25 0 0 0

CLWBUF Cambodia Labour of Worker Building Union Fedaretion CCTU 1,004 301 $0.25 0 0 0

UNICAM Labour Union Federation of

Cambodia Services CCTU 120 108 $0.25 0 0 0

CRWUF Cambodia Rights Workers Union Federation

CCTU 2,756 2,480 $0.25 0 0 0

CFLM Cambodia Federation Of Labour Moment

CCTU 3,042 2,738 $0.25 0 0 0

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Employers’ Organisations

Cambodian Federation of Employers and Business Associations (CAMFEBA)

CAMFEBA was established in 2000 and has increased its membership from 10 to 138 enterprises in 2010.

10

In 2012 CAMFEBA represented over 1,000 employers, both unionized and non-unionized, comprising of six business associations, 155 individual companies and 14 non-profit organizations.

11

CAMFEBA’s services include human resources & labour consultation, information dissemination, training, lobbying and advocacy. According to CAMFEBA, ILO made explicit statements on January 2014 that undermined employers’ credibility in Cambodia based on incorrect information and created tensions as a result.

12 CAMFEBA

requested ILO to retract their statements.

Garment Manufacturers Association in Cambodia (GMAC)

13

GMAC is the apex trade body that represents the garment and footwaer industry in Cambodia. The Association by the end of June 2013 represents 426 garment factories and 47 footwear factories, which totally employ approximately 500,000 workers mainly disadvantaged and poverty stricken females from rural provinces. The principal objective of GMAC is to

establish conducive and healthy business environment for the industry through regular activities of representation and advocacy, capacity building, information sharing and dissemination, networking, market linkage, trade promotion, support for market access and others.

Central Tripartite Structures

Mediation and Arbitration

Individual and collective labour disputes are regulated by the Labour Law:

14 An individual dispute is first

attempted to be settled by the labour inspector, otherwise it ought to be referred to the Labour Court. Collective disputes are first attempted to be settled by a Conciliator, if that fails the dispute shall be arbitrated either by procedures set out in the collective agreement often the Arbitration Council. The Arbitration Council has a list of 30 arbitrators with 10 nominated each from trade unions, employers’ organisations and the minister in charge of Labour. Each party in the dispute select an arbitrator, who then chose a third member to chair the council. The Arbitration Council started operating in 2003, and now handles around 150 cases per year. According to the Arbitration Council itself the growth in cases handled by the Council, has led to fewer strikes in the garment sector later years.

15

According to International Trade Union Confederation (ITUC),

16 the Arbitration Council has effectively taken

the place of labour courts, which have not been established despite them being provided in the Labour law of 1997. The Council is widely respected for its

even-handed and impartial investigations and rulings, but employers found to have engaged in anti-union discrimination usually appeal against the Council’s decisions in the provincial courts. Moreover, employers often choose not to apply the Council’s recommendations. The Arbitration Council is a response to the lack of social dialogue, which has led to several conflicts between workers and employers. Sporadic protests and strikes are commonplace, especially in the garment sector, which is the dominant manufacturing sector, where an average of 80 strikes per year took place between 2005 and 2009.

The Labour Advisory Committee

18

The Committee studies labour and employment related issues, formulates recommendation for the minimum wage and gives advice on the scope of collective bargaining agreements. Other bi/tripartite organs

- Governing Body of National Social Security Fund - Labour Advisory Committee - 8th Working Group on Labour and Industrial

Relations

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National Labour Legislation

Constitution17

The constitution is from 1993 and last amended in 2008. It gives the right to form and join trade unions, equal pay for equal work and the right to strike. It also obliges the state to establish social security systems.

Labour Law18

The labour law from 1997 regulates employment relations, wages, hours of work, time off, collective bargaining agreements and trade unions and Occupational Safety and Health standards. It prohibits child, forced and dept bonded labour, and also establishes the labour inspectorate, the Labour Advisory Committee, labour courts and procedures for labour disputes.

Memorandum of Understanding on Improving Industrial Relations in the Garment Industry

19

The MoU from 2012 covers employers’ members of the Garment Manufacturers Association as well as unions’ confederations and federations that have signed this MoU. Parties agree to adhere to national law and that both parties support Collective Bargaining Agreements as a means to protecting rights and conditions of work for both parties.

The Labour Law is the most important labour legislation. Several other legislations exists which regulates and sets standards and restrictions for the labour market.

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ILO Conventions

Ratified ILO Conventions21

Subject and/or right Convention Ratification date

Fundamental Conventions

Freedom of association and collective bargaining

C087 - Freedom of Association and Protection of the Right to Organise, 1948 1999

C098 - Right to Organise and Collective Bargaining Convention, 1949 1999

Elimination of all forms of forced labour

C029 - Forced Labour Convention, 1930 1969

C105 - Abolition of Forced Labour Convention, 1957 1999

Effective abolition of child labour

C138 - Minimum Age Convention, 1973 1999

C182 - Worst Forms of Child Labour Convention, 1999 2006

Elimination of discri-mination in employment

C100 - Equal Remuneration Convention, 1951 1999

C111 - Discrimination (Employment and Occupation) Convention, 1958 1999

Governance Conventions

Labour inspection C081 - Labour Inspection Convention, 1947 Not ratified

C129 - Labour Inspection (Agriculture) Convention, 1969 Not ratified

Employment policy C122 - Employment Policy Convention, 1964 1971

Tripartism C144 - Tripartite Consultation (International Labour Standards) Convention, 1976 Not ratified

Up-to-date Conventions

Labour Administration C150 - Labour Administration Convention, 1978 1999

Fundamental Conventions are the eight most important ILO conventions that cover four fundamental principles and rights at work. Equivalent to basic human rights at work.

Governance Conventions are four conventions that the ILO has designated as important to building national institutions and capacities that serve to promote employment. In other words, conventions that promotes a well-regulated and well-functioning labour market.

In addition, there are 71 conventions, which ILO considers “up-to-date" and actively promotes.

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Trade Union Rights Violations

ITUC registered several cases in 2013:22

among others there were acts of anti-union discrimination in August 2013 while 67 workers were dismissed for having tried to form a union. The arbitration council and provincial court ruled in favour of their reinstatement. There was dismissal of more than 400 workers for participating in a strike. They were dismissed by the company for having participated in a strike. Security guards and police also intervened in the strike and detained 19 workers and trade union representatives. Workers went on strike to demand higher pay and improved working conditions.

Police brutality has been noted when workers marched to the Prime Minister’s residence demanding better pay and working conditions. Heavily armed police responded by using live bullets and tear gas to disperse the marchers. A woman was shot and killed. The Prime Minister argued that protests would put the garment industry under risk by encouraging companies to relocate to countries with lower labour costs.

There were physical assaults against trade unionists as a gunman opened fire against 1,000 workers from three different factories who were demonstrating in favour of better working conditions. The governor of the Bavet region is the alleged perpetrator and charged with “unintentional injury”.

It was also observed that there was violation of collective agreement when a garment factory refused to comply with a collective agreement. About 4,000 of the total 5,300 workers went on a strike. All though the strike did not violate the law, police intervened violently and injured 30 workers; arrested 8 workers and issued 8 arrest warrants. The company dismissed 415 workers for having participated in the strike.

According to the U.S. Department of State,23

there were credible reports of anti-union harassment by employers, including the dismissal of union leaders in garment factories and other enterprises. In some factories the management appeared to have established or supported pro-management unions or compromised union leaders by jeopardizing their employment. Despite legal provisions protecting strikers from reprisals, there were also credible reports that workers were dismissed on spurious grounds after organizing or participating in strikes. Despite most strikes were illegal, participating in an illegal strike was not by itself a legally acceptable reason for dismissal. In some cases employers pressured strikers to accept compensation and leave their employment.

IndustriALL Global Union and the ITUC called for the government to act to investigate the killing of four garment workers during strikes with 350,000 workers in January 2014.

24 On the other hand, more than 150

factories had filed lawsuits and more were being prepared.

25

ILO's Committee of Freedom of Association is processing three active cases. One is concerning the murder of three trade union leaders and continuing repression of trade unionists in Cambodia. The second concerns unfair dismissals, acts of anti-union discrimination, and refusal to negotiate with the trade union concerned. Regarding the third case, the ITUC has submitted confidential allegations.

26

ILO Complaints Procedure Freedom of Association cases (2014)

Active 3

Follow-up 0

Closed 7

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Working Conditions

Wages and earnings Monthly average and legal minimum wages

Source

Current Riel

Current US$

Average wage (2009)

Global Wage Database27

314,665 80.5

Minimum wage (2014)

RFA28 394,200 100

Minimum wage for a 19-year old worker or an apprentice (2013)

Doing Business29

170,366 43

Growth of real average wage (2004-2009) Global Wage

Database

16.6 %

Growth of real minimum wage (2000-2011)

1.4 %

The minimum wage for workers in the garment sector was initially raised from US$80 per month in 2013 to US$95 in 2014, but due to turmoil of strikes in January, it was further increased to US$100 in February. This included US$5 per month as health allowances. The law does not mandate a minimum wage for other sectors. It has been estimated that there has been a limited real growth of minimum wage of 1.4% for the period 2000-2011. The real average wage is increasing much faster, though. In addition, the minimum wage is close to three times higher than the World Bank's poverty level of US$1.25 per day (Riel 20,000), which equals US$37.5 per month. There has been a progress in developing labor laws and administrative structure to implement laws. However, improvement in practice is quite slow and limited, particularly in relation to the laws guaranteeing freedom of association and workers’ right to collective bargaining. Assessments suggest that approximately 217 out of the more than 1,700 registered unions have a capacity to carry out multifaceted CBAs.

30

Outside the garment industry, regulations on working hours were rarely enforced. It has also been registered that employers often used coercion to force employees to work as well as workers often faced fines, dismissal, or loss of premium pay if they refused to work overtime.

An emerging problem is the use of employment contracts. There exist two types: “fixed duration contracts” (FDC) and “unspecific duration contracts” (UDC). Trade unions have claimed that employers are favoring the use of the FDC as a tool of threaten workers not to join trade unions, to intimidate union leaders to leave workplace, and even to terminate the employment of the union leaders and members.

31

The U.S. Annual Country Report on Human Rights Practices reported that although the MoLVT employed labor inspectors, the lack of financial resources, endemic corruption, and insufficient penalties hindered efficacy. Also due to a lack of financial and human resources, the Ministry of Labor did not conduct regular factory inspections.

32

Work-related injuries and health problems are common. It includes that working conditions in some poor small-scale factories and cottage industries do often not meet international standards. The National Social Security Fund (NSSF) reported that during the first six months of 2013, there were 7,043 cases of work-related injuries, including 54 fatalities. During the same period, the NSSF reportedly fined six companies that did not comply with the NSSF’s rules and regulations and sued three others in court. The government has 107 labour inspectors, who conduct inspections, but due to lack of equipment, training, staff and also corruption, enforcement of occupational safety and health standards remain selective and insufficient. Those 107 labour inspectors is 1 per 79,000 workers in the labour force. The ILO recommends 1 per 40,000 workers in less developed countries.

33

The industry employs around 500,000 workers, mostly women, bringing jobs and increased economic empowerment. Social and political rights are also increasingly being pushed by citizens.

34 At the same

time, working conditions are tough, with recurring mass fainting at factories. The NSSF reported that for the first six months of 2013, 316 workers fainted in six factories across the country while performing their jobs, which is quite decreased in comparison with the 900 persons in 2012 in the same period.

11

Workforce

Cambodia's total population was estimated as 14.9 million in 2012, with a labor force, aged 15 and older, of 8.4 million engaged actively on the labour market. In 2006, the labour force of youth (age group 15-24 years) peaked with 2.5 million and has afterwards decreased yearly, reaching 2.2 million in 2012. This trend of youth is part of the growing migrating outflow to find jobs with higher wages. Men have a higher employment rate. Rates increases more after the age of 25, as men are often prioritised in education and women work instead. The youth have similar rates. Asia has seen a strong growth in the middle class during the last decade. Cambodia’s has smaller middle class with especially the upper middle class growing slower than the average for East Asia and the Pacific: In East Asia and the Pacific 26% lived for US$2-4 a day and 12% for US$4-20 in 1999. In 2008 33% lived for US$2-4 a day and 33% for US$4-20. In Cambodia 25% lived for US$2-4 a day and 8.9% for US$4-20 in 2004.

In 2008 34% lived for US$2-4 a day and 12% for US$4-20. The dollars are in purchasing power parity.

36

The country has more working poor than the average for South-East Asia and the Pacific. Notwithstanding, the share of working poor with less than US$1.25 a day fell from 45% in 1994 to 19% in 2009.

Working Poor

37

Age 15+

Share of workers

in total employment

1.25 US$

a day 2 US$ a day

Cambodia (2009) 19 % 50 %

South-East Asia and the Pacific (2009)

15 % 40 %

South-East Asia and the Pacific (2012)

12 % 33 %

Working poor measures employed people living for less than US$1.25 and US$2 a day, as proportion of total employment in that group.

Employment rates35

(2012), Age and Sex distribution

Sex Age Employment

rate

Male & female

Total 15+ 81 %

Youth 15-24 70 %

Adult 25+ 87 %

Male Total 15+ 85 %

Youth 15-24 69 %

Adult 25+ 93 %

Female Total 15+ 78 %

Youth 15-24 70 %

Adult 25+ 81 %

85%

69%

93%

78%

70%

81%

81%

70%

87%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

15+

15-24

25+

Male and female Female Male

12

Unemployment and underemployment

Unemployment, youth unemployment and underemployment

38

2008/2009

Un-

employment Youth

Unemployment Under-

employment

Total 1.6 % 3.3 % 36 %

Urban 4.5 % 7.8 % 23 %

Rural 1.0 % 2.2 % 39 %

Male 1.5 % 3.4 % 32 %

Female 1.6 % 3.3 % 41 %

ILO's estimation of the unemployment rate was 1.5% in 2012, which balances the national census data from 2008, which measured 1.6%. The low unemployment rate is largely because people cannot afford to spend time looking for the right job. There have been thousands of layoffs due to the global economic recession from 2007/08. It was not transferred into higher unemployment rates, though. Instead workers were rather pushed into work on the agriculture sector and/or in the informal economy. Underemployment affects a third of the employed. The concept of underemployment does sometimes

also include those who are employed below their skill-level, whereas the measure for Cambodia is confined to time-related underemployment, indicating those who involuntarily worked less than 40 hours per week. Although a third of the employed are in underemployment, 49% work more than 48 hours per week. Underemployment has been more common in rural areas, likely because of seasonal changes in activity, whereas unemployment is largely an urban phenomenon. The youth unemployment rate is relatively higher, especially among urban youth.

Interpretation of the open unemployment and employment rates as indicators of a well-functioning labour market is problematic in developing countries. When unemployment is not an option where a person can survive, work of some sort has to be found, often casual and informal work. Unemployment should therefore be understood in relation to the strength of social safety nets, the prevalence of informal employment and how much of informal employment is underemployment due to few formal employment possibilities.

39

Sectoral employment

Employment (2004)40

& GDP share (2012)41

Sector & Sex distribution – (Graph without Agriculture)

Sector Male

employment Female

employment GDP share per sector

Mining and quarrying 8,400 6,800 0.8 %

Manufacturing 225,421 428,554 15.1 %

Electricity, gas and water 10,547 2,983 0.5 %

Construction 156,841 22,226 6.5 %

Trade, restaurants and hotels

299,678 636,058 13.6 %

Transport and communication

229,659 70,105 7.5 %

Finance, real estate and business services

242,975 81,957 7.2 %

Public administration, education, health etc.

397,242 198,487 9.4 %

Agriculture 1,674,749 1,825,481 33.6 %

9.4%

7.2%

7.5%

13.6%

6.5%

0.5%

15.1%

0.8%

0% 3% 6% 9% 12%

0 200,000 400,000 600,000 800,000Male Female GDP share by Sector

13

Agriculture is the largest sector employing 54% of working Cambodians, and contributing with 34% of GDP. Newer data from 2011, display that a comparable 56% are employed in the agricultural sector. For an agricultural sector in a developing country it is a relative high contribution to GDP relative to employment. Land mines from the civil war make agriculture difficult in several areas and still cripple many. In the garment sector, 200 factories operate in Phnom Penh at any given moment, employing some 200,000 workers by official count, over 85% of who are women.

42

As demonstrated on the Sector Share graph, the global financial recession that initiated in 2007 significantly reduced the industry sector’s contribution to GDP. Instead raised the agricultural sector and absorbed

workers that were layoff in the manufacturing sector. These workers could also be more productive, raising the agricultural contribution to GDP. Agricultural labour productivity has also risen in those years.

Sectors Share 2000-2012 (% of GDP)

43

Migration

Migration44

Net migration (2008-2012)

Cambodia -174,997

Net migration to average population per year (2008-2012)

Cambodia - 1 : 411

inhabitants

East Asia & Pacific (developing only)

- 1 : 3,208 inhabitants

Personal transfers i.e. remittances received, % of GDP (2012)

Cambodia 1.8 %

East Asia & Pacific (developing only)

0.8 %

Net migration is the net total of migrants during the period, i.e. the total number of immigrants less the annual number of emigrants, including both citizens and noncitizens.

The net migration rate in Cambodia has been on a decline and is estimated current estimated as 1 out of every 411 inhabitants. It is still considerably higher than the average for developing countries in East Asia and the Pacific. At around 1.8% of GDP is based on remittances and thus plays only a modest part of the total GDP. The primary destinations for Cambodian workers are South Korea, Malaysia, and Thailand. Despite the steady economic growth, many Cambodians, especially young people, struggle to find decent jobs. It has driven a rise in migration to other

countries for work. The Labour Migration Policy and the Action Plan were adopted in 2010. It has made improvements for migration systems as well as in main destination countries. It has been observed that there are better positions to find decent work, or at least have access to recourse in case of rights abuses.

45 It is

also noteworthy that there has been a considerable increase in the number of Cambodian workers going abroad through legal channels. Latest official figures show that more than doubled over the last few years: from 53,160 in 2009/2010 to 130,000 in 2012. As a case, recently many more Cambodians have obtained regular status in Thailand and the Thai government introduced a new minimum wage of 300 baht per day (US$10), compared to 18,000 riel (US$4.5) for unskilled laborers in Cambodia. It has steadily increased the migration towards Thailand. It is estimated that as many as 500,000 young Cambodians are working in Thailand now.

46

In the national comprehensive policy framework, “Rectangular Strategy-Phase III, 2013-2018", the Cambodian government incorporated a priority of reducing migration from rural to urban areas as well as to foreign countries to seek jobs.

47

38 36

33 34 31

32 32 32

35 36 36 37 36

23 23 26 26 27 26

28 27

24 23 23 24 24

39 40

42 40

42 41 41 41 41 41 41 40 40

15

20

25

30

35

40

45

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Agriculture Industry Services

14

Informal Economy

Estimates of employment in the informal economy are around 90%, with a contribution to GDP over 50%.

48

Informal work is not only a temporary phenomenon. It is often a result of low wages and the disparity between wages and the cost of living. Most employment is in the agricultural sector, which as of 2011 employed 56% of the population. Depending on the status in employment, own-account workers and contributing family workers also make up most of the informal economy, constituting 53% and 15% of the employment, respectively.

49

The informal economy has been slowly declining. It is unlike most other developing countries where the informal economy has steadily grown. In Cambodia, the trend in the informal economy has been spurred by job creation in service and manufacturing industries, while workers moving from rural areas into cities. The high negative net migration flows has also a reason, i.e. workers leave the country. However, during the recent global financial recession, the trend has been somewhat reversed, while workers laid-off in the manufacturing sector, being pushed back into agricultural or informal employment.

Apart from the many exporting factories, which are well monitored, there are many informal non-exporting factories. Non-compliance with minimum wages and working standards are common in these. Indeed, informal employment is more precarious, has less legal cover and worse occupation safety and health standards.

50

The new draft Trade Union Law appears to be inclusive of all workers regardless of status, which can have an important impact on workers in the informal economy. They can be allowed to collectively bargain and entitle them to social security, health benefits, and any insurance that is provided for under the Labor Law. Two affiliated trade unions from the informal economy have been registered: i) Independent Democratic of Informal Economic Association (IDEA) which is affiliated to CLC and having around 4,500 members; NACC has around 20,300 affiliated members. Other cases have demonstrated that the media and international organizations have been important players to support workers from the informal economy to organize in unions and get formally recognizing.

51

Child Labour

Working children Proportion of all children in age group

Region Year Type Proportion

Cambodia (age 5-17)52

2009 Child labourers 27.3 %

Hazardous work 18.3 %

Asia and the Pacific53 (age 5-17)

2008

Children in employment

20.4 %

Child labourers 13.3 %

Hazardous work 5.6 %

Children in employment include all children who conduct some kind of work, whereas child labourers are a narrower term without mild forms of work. Hazardous work is the worst from of child labour as defined in ILO C182.

Child labour is very common in Cambodia. The proportion of child labourers is estimated of 27%, which is more than double the average for Asian and Pacific countries. Child labour is higher in rural areas (31%) than urban (11%). Boys (28%) were slightly more likely than girls (26%) to be engaged in child labour. Children aged 12-14 were most likely to be engaged in child labour (38%). The high share of hazardous work is particular worrisome, as it is much higher than the average for

Asia and the Pacific, and it is a growing problem, having doubled from 9.6% in 2001 to 18% 2009. The rise happens among all age groups, with the share of children in hazardous work at aged 5-11 at 4.5%, age 12-14 at 21% and age 15-17 at 45%. Hazardous work has increased fastest for boys, and more boys (20%) than girls (17%) are in hazardous work. The Government adopted a child labor monitoring system and trained government officials. The legal framework continuous to has critical gaps that leave children vulnerable to the worst forms of child labor. It is also noted that there is no compulsory education requirement, and the law allows children as young as age 12 to work in domestic service.

54

Trade unions have increased attention on child labour. In July 2012, a Trade Union Code of Conduct on Child Labour and Trade Union National Forums against Child Labour were organized and launched by an Inter-Trade Union Committee against Child Labour. Around 45 trade union leaders, representatives from five confederation, and two non-affiliated trade union federations were involved.

55

15

Gender

In the last decade, efforts to improve the situation for women have made progress, particularly in the legislative and political arenas. Challenges remain in their implementation and enforcement. It is estimated that 84% of trade union members are women, concentrated in garment industry. Women have an underrepresentation in union leadership at the federation level, though. This trend is apparent when focusing on the composition of the bargaining teams, where 31% of participants are women. A survey highlighted that unions have a plethora of policies from specific targets of women representation in various structures to policy allocation for women in union education and training. The provision of gender-sensitivity training and reproductive health programs is also very much prevalent in the garment workplaces. However, some large sectors, such as agriculture, the informal economy, construction, and services, still have small or ineffective unions.

56

In practice, social norms of women interacting with male business owners and government officials make it difficult for women to obtain business information, and women report more difficulty than men in hiring, managing, and retaining male staff. In addition, a Gender Mainstreaming Action Plan (GMAP) recognizes women-specific constraints related to land, training, and credit. But although women provide more than 50% of the labor in the agriculture sector and 80% of food production, they only receive 10% of extension of services.

57

Women’s employment rates have increased dramatically over the past decade, led especially by formal wage employment in the garment sector. Women also enter the labour market at a younger age whereas men are typically encouraged to stay in education for longer. Lay-off due to the recent global financial recession hit the garment industry and thereby especially with young women workers.

58

Youth

Central issues are confronting youth in Cambodia: The quality of employment; more young people receive below-average wages; and informal employment is estimated of 98%.

59

Many seek jobs outside of the country, as previously described. It also explains why the youth labour force has a decreasing trend. The garment, tourism, and construction industries are simply not growing sufficiently quickly to absorb so many new entrants on the labour market. The government has taken steps to develop the agricultural sector as a “third engine” of growth. However, on-farm employment is constrained by insecure land tenure, lack of affordable credit, fragmented inputs and services, a lack of infrastructure, and poorly functioning markets. On the other hand, off-farm employment seems to have potentials, but more effort is needed to stimulate Small and Medium Enterprise (SME) development and agri-business investments.

60

Labour force participation rate ('000), 1990-201261

Around 7% of young people aged 15–24 are unemployed, which is a high bulk in urban areas, e.g. Phnom Penh has 20%.

62 To curb these problems, the

country has a National Policy on Youth Development from 2011 and in a process of developing a National Employment Policy with a special focus on youth.

63

0

2 000

4 000

6 000

8 000

10 000

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Age group 15-24 Age group 15+

16

Characteristics of the Working Age Population

Almost every Cambodian has been to school, which is rather impressive considering the level of Cambodia’s development, and the turmoil the country have been through. As impressive as this might be, few have progressed into secondary or tertiary education.

The difference between the genders is also very small. The graph above also shows the educational attainment of all Cambodians above 25 years, therefore gives a glance of the human capital of the labour force.

Enrolment in Primary, Secondary and Tertiary schools (2000-2011)66

Total and Female, Cambodia and East Asia & Pacific (developing countries only)

Net enrolment is the ratio of children of official school age, who are enrolled in school to the population of the corresponding official school age. Gross enrolment is the ratio of total enrolment, regardless of age, to the population of the corresponding official school age. Gross primary enrolment is therefore sometimes higher than 100%.

Enrolment into primary schools has steadily increased to currently be higher than the average for developing countries in East Asia and the Pacific.

Enrolment into secondary and tertiary schools is also increasing, but is considerably lower in the previously respective region comparison, though.

80%

85%

90%

95%

100%

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0%

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Gross tertiary school enrolment Cambodia , Totalenrolment

Cambodia ,Female enrolment

EAP (developing) ,Total enrolment

EAP (developing) ,Female enrolment

Highest level attained and years of schooling in the population64

(2010), Population 25+, Total and Female

Highest Level Attained Total Female

No Schooling 1.5 % 2.1 %

Primary Begun 35.2 % 37.1 %

Completed 47.6 % 49.3 %

Secondary Begun 6.9 % 5.2 %

Completed 7.9 % 5.8 %

Tertiary Begun 0.4 % 0.2 %

Completed 0.5 % 0.4 %

Average year of total schooling 5.8 years 5.4 years

Educational Gini Coefficient 0.24 0.23

Primary, secondary and tertiary is the internationally defined distinction of education. In Denmark these corresponds to grundskole, gymnasium & university.

The educational Gini Coefficient is similar to the Gini Coefficient, but instead of measuring the distribution of income in a population, it measures the distribution of education measured as years of schooling among the population.65

0% 20% 40% 60% 80% 100%

Total

Female

No Schooling Primary - Begun Primary - CompletedSecondary - Begun Secondary - Completed Tertiary - BegunTertiary - Completed

17

Vocational training

Vocational Training67

Pupils in vocational training (2008)

Cambodia 21,167

Ratio of pupils in vocational student to all pupils in secondary education

Cambodia 2.0 %

South Asia 0.7 %

Ratio of pupils in vocational training out of 15-24 year olds

Cambodia 0.7 %

South Eastern Asia

1.6 %

Cambodia’s ratio of pupils in vocational training to all pupils in secondary education were calculated on average for the period 2006-2008, while the South Asia region is an average of the period 2006-2009. The ratio of 15-24 year olds is calculated on average in the period 2005-2010.68

The latest data on vocation students in Cambodia is from 2008. They show that the number of students in vocational education has increased from 8,049 in 2000 to 21,167 in 2008. It covers only 2% of pupils in secondary education. The table also demonstrates that merely 0.7% of the 15-24 year olds are participating in vocational training, while the average in the South Eastern Asia region is 1.6%. A study has showed that few have completed secondary education or vocational training, and reported lack of skills within basic literacy and numeracy, technical training, English literacy and softer skills such as communication, teamwork, etc.

69

A National TVET Development Plan (NTDP) drawn a 25-year development plan for Technical and Vocational Education and Training (TVET) from 1996 to 2020 with four steps. The current Step 3 (2009-2014) is focused on to strengthening the Technical Institute (TI) and Sectoral Council links, expanding competency standards program, improve all aspects of the post-secondary TVET system and develop training to all provinces.

70

Over all, there are many public and private institutions that provide TVET. It is estimated that 48% of firms are offering formal training programs for their permanent, full-time employees.

71 Among others, the Directorate

General of Technical and Vocational Education and Training (DGTVET) has 38 institutes and centers serving 24 provinces and offering programs from basic skills training to advanced degrees. They train approximately 2,000 individuals each year, but operating with a limited budget.

There are also approximately 60,000 small enterprises that provide skills training, either in the form of apprenticeships against fee and free labour or through free apprenticeships and unpaid labour.

72 Every year

small enterprises train an estimated 30,000 within family businesses and another estimated 80,000 through paid-for apprenticeships.

18

Social Protection

Public spending on social protection schemes73

(2013)

Public social protection

expenditure, excl. health

Riel 501 billion

US$ 124 million

% of GDP 0.8 %

per capita 8.1 US$

% of government expenditure

13 %

Public health care % of GDP 1.5 %

Health social protection coverage

% of population 26 %

Trends in government expenditure in health

% changes per year (2007-2011)

11 %

Benefits, coverage and contributions to pension schemes

74 (2010)

Social benefits for the active age % of GDP 0.1 %

Pensionable age receiving an old age pension (age 55+)

Proportion of total

5 %

Old age effective coverage as proportion of programs

Proportion of contributory

N/a

Active contributors to a pension scheme

15-64 years 0 %

Coverage of NSSF and NSSF-C

75

(2012)

Coverage of NSSF 700,000

Coverage of NSSF-C 180,000

Coverage of labour force 11 %

Coverage to waged workers 34 %

Coverage to formal workers 71 %

The Government has taken steps to comprehensive social protection system. New legislation and strategies have been formulated and institutional structures built to expand the coverage of social security, social assistance, and health. The National Strategic Development Plan of 2010 has an important role of social protection in tackling poverty. Moreover, the first National Social Protection Strategy for the Poor and Vulnerable (2011-2015) was adopted in March 2011. Changes of priorities have been observed of the public spending on social protection. The spending has been on a rise, increasing 11% per year since 2007. It has reached a total public social security expenditure and health expenditure of 2.2% of GDP in 2013. Around one out of four (26%) of the population is covered by health social protection.

The Government's fiscal space for increasing social spending is constrained and dependent on support from donors and NGOs to implement a wide range of public social assistance projects and programs.

76 Fully

implemented scheme of comprehensive social protection needs still to be established, including contributory social insurance for formal workers and civil servant, contributory community based health insurance, and non-contributory social protection.

77

The National Social Security Fund (NSSF) for formal workers currently only contains employment injury, but is planned to include old-age pension and health insurance, to be introduced in 2013 and 2015, respectively. The National Social Security Fund for civil servants (NSSF-C) includes old-age pensions, employment injury, funeral grants, maternity and sick leave. The National Social Security Fund for war veterans, armed forced and policy also exists (NSSF-V). NSSF-C is planned to include worker contribution. NSSF covers 700,000 employees and NSSF-C covers 180,000 both were introduced in 2008. Informal and self-employed workers are not covered by the NSSF, but the Law on Social Security Schemes opens up for the Minister in charge of Social Security to issue Prakas (decrees), on social security coverage for self-employed, seasonal or occasional workers.

78

Non-contributory social protection programmes are planned to be implemented through the "National Social Protection Strategy for the Poor and Vulnerable (NSPS). The Social Protection Coordination Unit (SPCU) will be in charge of the programmes. The programs include community-based health insurance, health equity funds, food or cash for public works, vocational training, conditional and unconditional cash transfers and social subsidies. Cambodia already has several similar programmes running, but most are patchy and ad hoc. Pilot testing are running until 2015, when new schemes ought to be developed.

77 There are no nation-wide employment creation or unemployment compensation schemes, but labour-intensive infrastructure and food-for-work programs have been implemented in cooperation with donors. It has been noted that only 5% of the population with an age above 55 years receiving an old age pension.

19

General Economic Performance

Key Facts79

2013 (est.)

GDP (US$)

GDP per capita (PPP) (US$)

GDP real

growth

Human Development Index80 (2012)

Gini Index (2008)

15.6 billion

2,600

7 %

0.543 37.9

183 of 229 countries

138 of 187 countries

73 of 139 countries

The Human Development Index (HDI) measures the average of a long and healthy life, access to knowledge, and a decent standard of living. This Gini Index is measured if income was distributed with perfect 'equality', the index would be zero; if income were distributed with perfect 'inequality', the index would be 100. In terms of the ranking, the first country has the highest inequality, while the number 139 has the highest equality.

Doing business81 (2014/15)

Control of Corruption

Government Effectiveness

Rule of Law

135 of 189 countries

-1.09 (2007) -0.86 (2007) -1.08 (2007)

-1.04 (2012) -0.83 (2012) -0.87 (2012)

A high ranking on the Ease of Doing Business Index means the regulatory environment is more conducive to the start-up and operation of a local firm.82 The selected Governance Indicators83 cover the years 2007 and 2012, and ranging from ‐2.5 to 2.5; i.e. negative tendencies below the zero mean and unit standard deviation, score negative measurements.84

Since 2004, garments, construction, agriculture, and tourism have driven Cambodia's economic growth; and GDP climbed more than 7% per year between 2010 and 2013. Exploitable oil deposits were found, which has potential revenue for the government, if commercial extraction becomes feasible. With a GDP per capita measured in Purchasing Power Parity (PPP) at US$2,600, Cambodia is lacking behind the average of developing countries in Asia, which does include regional powerhouses like China and India. Cambodia is ranking in the middle of the Gini Index, but 50% of the working poor lives with less than US$2 a day. On the Human Development Index’s ranking change in the period 2007-2012, the country has stepped down one step from 137 to 138 out of 187 countries. Especially the countryside is impoverished and lacks infrastructure. Half the government budget comes from donor assistance.

85

Inflation exploded in 2008 and reached 25%, but was brought under control the next year. It is projected to remain below the average of developing countries in Asia. The Doing Business Indicator ranks Cambodia on a medium to low level of 135 out of 189 countries. On the Governance Indicators, Control of Corruption has a low achievement. It has been registered that there has been small improvements on the Rule of Law and slightly on Government Effectiveness. Corruption, impunity and an inefficient government are reported as major problems in Cambodia.

GDP per Capita (PPP), trend and forecast86

Inflation, trend and forecast86

Gross fixed capital formation (% of GDP)87

0100020003000400050006000700080009000

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Cambodia East Asia & Pacific (developing only)

20

Trade

Trade and Foreign Direct Investment 2013 (est.)

88

Exports Imports FDI flow89

(average 2008-12) FDI Stock

6.8 billion US$

8.9 billion US$

0.92 billion US$

N/A 43 % of GDP 57 % of GDP 5.9 % of GDP

With exports at 43% and import of 57% of GDP, trade plays a major role in Cambodia’s economy. The country also has a large inflow of foreign direct investment, close to US$1 billion. Trade figures are to some extent difficult to interpret since some goods are freely smuggled between Cambodia and Thailand, and large volumes of Cambodian imports are undocumented and untaxed.

90

The labour intensive production of readymade garment is the dominant export sector. The garment industry accounts for about 70% of Cambodia's total exports. These are largely exported to the United States and the European Union. Mining also is attracting some investor interests and the government has touted opportunities for mining bauxite, gold, iron, and gems. In addition, the tourism industry has continued to expand swiftly with foreign arrivals exceeding 2 million per year since 2007 and reaching over 3 mill ion visitors in 2012.

91

A large part of Cambodia’s imports are fabrics from China and other neighbouring countries, and refined petroleum.

Trade agreements

Cambodia had special trade arrangement with the United States from 1999 to 2005, where individual garment factories gained increased access to the United States’ market, when complying with better working conditions. The programme was within the Multi Fibre Agreement, a quota system that has been phased out.

92 The ILO Better Factories Cambodia has

continued the monitoring of compliance. Cambodia benefits from the United States’ Generalised System of Preferences (GSP). These are unilateral trade benefits from the U.S. government, allowing duty and quota free access for some product. In 2012, the United States and Cambodia agreed to

begin exploratory discussions of a potential bilateral investment treaty (BIT). Cambodia also benefits from the EU’s unilateral Generalised System of Preferences, Everything But Arms (EBA), which allows duty and quota free access for all products except arms. A country can be removed from EBA, if it seriously and systematically violates principles of human rights and of the ILO Core Conventions. So far only Myanmar and Belarus have been removed.

93 Following the land graps, EBA has

been mentioned in the EU as leverage against Cambodia.

94

Export Processing Zones

Cambodia started operating Special Economic Zones in 2005, and today there are 28 zones. There are no special laws or exemptions from labour laws to export processing zones.

95

Previous reporting has noted problems in relation to incorrect payment of wages, involuntary and excessive overtime and anti-union discrimination.

96 Many

workers do not know much about the end of the quota system or the potential factory closures.

Products share of exports (2011)97

Cambodia's main export markets (2011)98

Postage Stamps;

15%

Knit Sweaters;

14%

Knit Women's Suits; 8.4%

Leather Footwear;

6.0% Non-Knit Women's

Suits; 5.3%

Knit Men's Suits; 5.2%

Non-Knit Men's Suits;

4.4%

Others; 42%

US; 40%

EU; 25%

Canada; 8%

Vietnam; 6%

Japan; 4%

Singapore; 3%

China; 3% Others; 11%

21

References

1 Figures based on Trade Union Structure diagram from American Solidarity Centre, 2012

2FES, Nuon& Serrano, Building Unions in Cambodia, 2010

3ILO, Decent Work Country Profile - Cambodia, 2012

4The Cambodia Daily, Government Sets Deadline for Trade Union Law, February 14, 2014

5HRW, Decline in union registration and proposed revision of Prakas 21, April 29, 2014

6FES, Building Unions in Cambodia: History, Challenges, Strategies, 2010

7U.S. Department of State, Annual Country Report on Human Rights Practices, 2013

8ILO, Decent Work Country Profile - Cambodia, 2012

9 LO/FTF Council

10 ILO, Decent Work Country Profile - Cambodia, 2012

11 http://www.camfeba.com

12 CAMFEBA, Request for ILO to retract comments, February 3, 2014

13 Garment Manufacturers Association in Cambodia

14 ILO, NATLEX, Labour Law

15 http://www.arbitrationcouncil.org

16 ITUC, Annual Survey of violations of Trade Union Rights, 2012

17 ILO, NATLEX, Constitution of the Kingdom of Cambodia

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19 ILO, NATLEX, Freedom of association, collective bargaining and industrial relations, October 2012

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21 ILO, NORMLEX, Country Profiles

22 ITUC, Survey of violations of trade union rights

23 U.S. Department of State, Annual Country Report on Human Rights Practices, 2013

24 IndustriAll, Cambodian government must investigate killings and increase minimum wage, 13 January, 2014

25 Reuters, Cambodian garment workers return to work; firms sue unions, January 10, 2014

26 ILO, NORMLEX, Country Profile, Cambodia, Freedom of association cases

27 ILO, Global Wage Database 2012/13

28 RFA, Cambodian Panel Begins to Grapple With Minimum Wage Reforms, February 6, 2014

29 IFC, World Bank, Doing Business 2013, 10

th ed.

30 ITUC, Cambodia: Monitoring Progress in Labor Law Reform

31 http://www.ilo.org/wcmsp5/groups/public/---asia/---ro-bangkok/documents/meetingdocument/wcms_185902.pdf

32 U.S. Department of State, Annual Country Report on Human Rights Practices, 2013

33 ILO, Press Release, ILO calls for strengthening labour inspection worldwide, 16 November 2006

34 The Economist, Cambodia’s economy: Not a complete stitch-up, Sep 29th 2012

35 ILO, Key Indicators of the Labour Market Database

36 World Bank, PovcalNet database

37 ILO, Key Indicators of the Labour Market Database

38 ILO, Decent Work Country Profile - Cambodia, 2012

39 Kucera D. & Roncolato L. (2008), Informal Employment: Two contested policy issues, International Labour Review, Vol. 147

(2008). No. 4 40

ILO, Key Indicators of the Labour Market Database 41

ADB, Key Indicators for Asia and the Pacific 2012 42

http://digitalcommons.law.yale.edu/cgi/viewcontent.cgi?article=1043&context=yhrdlj 43

World Bank, World Development Indicators 44

World Bank, World Development Indicators 45

ILO, Cross-border labour migration in Cambodia: Considerations for the national employment policy, October 2013 46

In Asia, Migration Puts Cambodia’s Youth in Danger, June 5, 2013 47

The Royal Government of Cambodia, “Rectangular Strategy” for Growth, Employment, Equity and Efficiency Phase III, 2013 48

Results for Development Institute, Skills for Employability: The Informal Economy, 2012 49

ILO, Key Indicators of the Labour Market Database 50

ILO, Decent Work Country Profile - Cambodia, 2012 51

Solidarity Center, Trade Unions Organizing Workers “Informalized“ From Above: ”Case Studies from Cambodia, Colombia, South Africa, and Tunisia, 2013 52

ILO/UNICEF/WORLD BANK, Understanding Children’s Work, Country Reports, Cambodia 2011 53

ILO, Accelerating action against child labour, International Labour Conference, 99th

Session 2010

22

54

U.S. Department of Labor, Cambodia: 2012 Findings on the Worst Forms of Child Labor, 2012 55

ILO, Launching Trade Union Code of Conduct on Child Labour and Trade Union Forums Against Child Labour, July 24, 2012 56

Veasna Nuon, Melisa Serrano & Edlira Xhafa, Women and Gender Issues in Trade Unions in the Cambodian Garment Industry, 2011 57

ADB, Gender Equality in the Labor Market in Cambodia, 2013 58

ILO, Decent Work Country Programme, Cambodia (2011-2015) 59

ILO, Global Employment Trends for Youth 2013: A generation at risk, 2013 60

YouthPolicy.org, Factsheets: Cambodia 61

ILO, Key Indicators of the Labour Market Database 62

ILO, Youth Employment: Why is it an issue for Cambodia? 63

Royal Government of Cambodia, National Policy on Youth Development, 2011 64

Barro, Robert and Jong-Wha Lee, April 2010, "A New Data Set of Educational Attainment in the World, 1950-2010." NBER

Working Paper No. 15902 65

Calculation from based on Thomas, Wang & Fan (2001), with data sets from Barro-Lee (2010) and Psacharopoulos and Arriagada (1986). 66

World Bank, World Development Indicators 67

World Bank, World Development Indicators 68

UNdata, Population aged 15-24 (thousands) 69

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National Training Board, National TVET Development Plan- 2008 71

World Bank, DataBank, Firms offering formal training (% of firms) 72

The National Training Board, National TVET Development Plan- 2008 73

ILO, Social Protection, Statistics and indicators 74

ILO, Social Protection, Statistics and indicators 75

Estimated data for 2012 from ILO, Key Indicators of the Labour Market Database 76

ILO, Social Protection, Legal and Institutional Framework, Cambodia 77

GESS, Regions and Countries, Cambodia, Legal and institutional framework 78

ILO, NATLEX, Law on social security schemes for persons defined by the provisions of the Labour Law 79

CIA, The World Handbook, Cambodia 80

UNDP, Human Development Index trends 81

World Bank & IFC, Doing Business, Ease of Doing Business in Cambodia, 2014 82

World Bank & IFC, Doing Business, Methodology 83

World Bank, Worldwide Governance Indicators, Niger 84

World Bank, Worldwide Governance Indicators 85

CIA, The World Handbook, Cambodia 86

IMF, World Economic Outlook Databases 87

World Bank, DataBank 88

CIA, The World Handbook, Cambodia 89

World Bank, World Development Indicators 90

Encyclopædia Britannica, Trade, Cambodia 91

CIA, The World Handbook, Cambodia 92

Office of the United States Trade Representative, U.S.-Cambodian Textile Agreement Links Increasing Trade with Improving Workers’ Rights, January 7, 2002 93

EC, DG TRADE, Development, Generalized System of Preferences (GSP) 94

European Parliament, European Parliament resolution on the situation in Cambodia (2012/2844(RSP)), 23.10.2012 95

ITUC, Report for the WTO General Council review of Trade policies of Cambodia, 2012 96

WAC, The Likely Impact of Proposed Industrial Zones on Conditions in Cambodian Garment Factories 97

MIT, Observatory of Economic Complexity, Learn More About Trade in Cambodia 98

European Commission, DG TRADE, Bilateral Relations, Statistics