Garment Sector Shows Signs of Recovery


PHNOM PENH, Cambodia - The International Labour Organization's (ILO) Better Factories Cambodia today releases its 24th Synthesis Report on Working Conditions in Cambodia's Garment Sector, which assesses compliance with Cambodian labour law and international labour standards in exporting garment factories.

The 24th Synthesis Report reflects compliance data from 157 factory monitoring reports completed between November 1, 2009 and April 30, 2010. The report contains a range of information, including information on factory size across the industry, as well as comparative data on compliance with fundamental rights and selected working conditions to facilitate tracking of compliance levels over time.

The 24th Synthesis Report is the first report to show an increase in employment levels when compared with the preceding report since the 21st Synthesis Report of 31 October 2008. The level of employment increased slightly since November 1, 2009, despite additional factory closures. Although employment is still down from one year ago, job losses resulting from the crisis have leveled off, as reflected by the smaller percentage drop during the past year (6%) than that seen during the year before (12.5%). Ministry of Commerce data also points toward the recovery in the garment sector, with export levels for the first five months of 2010 exceeding those for the same months last year.

Compliance levels generally remain high, although some areas of concern remain, particularly regarding freedom of association and discrimination. Compliance with workers' wage payments improved moderately in four of the six areas reported on. In addition, an ILO-commissioned study by the Cambodian Institute of Development Study suggests that fewer workers are experiencing reductions in income due to cuts in regular and overtime hours, compulsory leave, and work suspensions this year than during the last quarter of last year. However, most workers still report that they do not have enough to spend on basic needs including food, housing and health care.