Employment policy, social protection needed to help garment workers recover from impacts of economic downturn

Press Release

Thursday, March 25, 2010

PHNOM PENH, Cambodia - On the surface, those garment workers who were not laid off as a result of the economic downturn should be considered lucky. But new data from an ILO-led survey shows that even those who kept their jobs were not left unscathed - many have had their salaries significantly reduced and now struggle to cover basic living costs.

The study, which assessed 1200 employed and 800 unemployed Phnom Penh-based garment workers, seeks to better understand the hardships workers are facing as a result of the economic slowdown, as well as their coping mechanisms and job-seeking strategies when they are retrenched.

Preliminary information was gathered between September and December 2009, and follow-up interviews will be conducted at three- and six-month intervals. A full study will be completed during the third quarter of 2010.

The results of the preliminary survey show that employed workers face a range of new hardships, most importantly reduced income in 2009 compared to 2008. Workers now feel they do not have enough money to cover remittances and basic needs such as food, healthcare, and transport. Some employed workers who were retrenched and have since found new jobs are working under less favourable conditions. Many surveyed have sought assistance from trade unions to deal with challenges such as asking for leave and late wage payments.

Most unemployed workers surveyed lost their jobs during factory closures or cutbacks due to reduced orders. One in ten unemployed workers were retrenched two or more times in 2009. While a small percentage of those retrenched have since found new jobs, at the time of the survey, the majority were still looking for work.

The survey also found that laid off workers most commonly look for jobs in other garment factories, although only one in three succeed in finding work. Those who look for work outside the garment sector typically look to the service sector for work as salespeople, tailors, food vendors or tuk-tuk drivers. Very few enrol in training programs, even though many would like to. The families of some workers - both employed and unemployed - have sent additional family members to find work to help cope with reductions in income, mostly female siblings between 16-28 years of age. Significantly, three quarters of unemployed workers said they would return to their home villages if they could not find work within six weeks.

The results of the benchmarking survey already have proven useful, according to Tuomo Poutiainen, Chief Technical Advisor at ILO Better Factories Cambodia. "The information we are gathering through the survey has been helpful in identifying action that can be taken by a range of stakeholders to help struggling workers, strengthen the garment sector, and better prepare the country to deal with future economic setbacks."

Based on the results of this study and other crisis-related research, ILO is proposing a number of recommendations involving action on the part of government, employers, trade unions, and development partners. Employment policies for promoting productive employment, to enhance social protection, and to work with employers to improve compliance with the labour law are called for. ILO also suggests increased consultation between employers and trade unions during layoffs and closures. Development partners are urged to financially and technically support re-training programs, support social programs for workers, and to help unions provide practical advice and assistance to their members during this difficult time.

The study was commissioned by the International Labour Organization (ILO) with UNDP support and conducted by The Cambodia Institute of Development Study (CIDS).

A Research Snapshot highlights some of the findings gleaned through the worker interviews conducted for the benchmarking survey. The Research Snapshot as well as the full version of the Benchmarking Survey Report are available on the Better Factories Cambodia website (www.betterfactories.org). This is the first in a series of Research Snapshots that will be posted online to highlight the ILO's crisis-related research.

EU offers $1.6 millions for Human Rights, Democracy Work in Cambodia

PRESS RELEASE

Phnom Penh, 19 April 2010 – The Delegation of European Union to Cambodia has today launched its new call for proposals for human rights projects with a total allocation of €1.2 million (over $1.6 million). The funds are drawn from the European Instrument for Democracy and Human Rights (EIDHR) and aim to finance Cambodian NGOs whose work contributes to the development and consolidation of democracy and respect for all human rights in Cambodia..

"The European Union values the expertise that many Cambodian NGOs possess, and notably the role that they can play in the field of strengthening human rights and democracy. This is why we are very keen in continuing our support to human rights defenders in Cambodia," said Mr. Rafael Dochao Moreno, Chargé d' Affaires a.i. of the Delegation of the European Union to Cambodia.

Funding is available for projects in very diverse areas: to promote the rights and empowerment of indigenous people and their communities, to enhance the role of women in society and politics, and to address human trafficking, to prevent torture and improve prison conditions, to ensure the respect for the rights of detainees and convicts, as well as to promote land security and tenure for the most vulnerable and marginalized groups.

The EU has published this call for proposals every year since 2004, and it has awarded a total of € 10.5 million (about $ 14 million) in grants since then. The EU is currently funding 33 human rights projects, which are implemented by 26 national and international NGOs.

ADB Calls for Stronger Social Protections in Wake of Global Economic Crisis

News Release

MANILA, PHILIPPINES - Asian Development Bank (ADB) President Haruhiko Kuroda said Wednesday that the global economic crisis has shown that stronger social protection programs are needed if the Asia and Pacific region is to achieve sustainable and inclusive economic growth.

"The global economic crisis made us acutely aware of the extreme vulnerability of individuals to various sources of risk. These include economic shocks, loss of employment, disability and illness, natural disasters, conflict, and environmental degradation," Mr. Kuroda said at the opening of a social protection conference in Manila.

World Day for Safety and Health at Work - Knowing the Risks

Press Release: Thursday 29 April 2010

Cambodia will mark World Day for Safety and Health at Work on Friday April 30th with an event focusing on the theme "Knowing Your Health and Safety Risks and Preventing Workplace Accidents"

Cambodia's chosen topic compliments the global theme for the 2010 Day chosen by the organizer, the International Labour Organization (ILO); "Emerging Risks and New Patterns of Prevention in a Changing World of Work".

The Ministry of Labour and Vocational Training (MoLVT) extends a safety campaign to the provincial level and will mark the day with a march in Kampot Province. More than 350 representatives of the Government employers and workers will attend the celebration which will begin with the march along Kampot river carrying specially-printed flags with the campaign theme, placards and banners and will assemble in front of the Provincial Government Office to enjoy speeches and safety shows. Dozens more banners and posters will be hung over the main streets of Kampot City, to raise public awareness of the importance of occupational safety and health.

The day's events will be presided over by H.E. Dr. Huy Han Song, Secretary of State, who will also speak on behalf of the Minister of Labour and Vocational Training, Mr. Duong Siv Vuth, Deputy Governor of Kampot, and Dr. Tsuyoshi Kawakami, Senior Specialist on Occupational Safety and Health of the ILO Decent Work Team for East and South-East Asia and the Pacific in Bangkok, will speak on behalf of the Organization.

The event is also being financially supported by the ILO/Korea Programme, the ILO's Better Factories Cambodia Project (BFC), and the MoLVT.

"Emerging health and safety risks come unnoticed by the conventional way and beyond human common senses. We need to have an innovative approach to combating the risks and to educate workers a new, practical preventive measure" said Dr. Huy Han Song, Secretary of State in charge of OSH, HIV/AIDS and Social Security, MoLVT. The Royal Government of Cambodia places a highest priority to improve people's quality of life. Ensuring safe, healthy and productive working environments is a prerequisite for this purpose. Cambodia is implementing the stronger national OSH system to provide adequate OSH protection to all workers."

"The event aims to put safety and health on everyone's mind for today and to promote a safety culture in workplace in the country" said Dr. Leng Tong, Director of Occupational Safety and Health Department (MoLVT), citing nearly 3,000 workers inflicted with serious work-related accidents in Cambodia in 2009.

"This is the fifth year that Cambodia is marking World Day which shows their continuing commitment to occupational safety and health," said Dr. Kawakami. "But we mustn't be complacent. We should strengthen our efforts to reach more and more workers and employers at grassroots workplaces and provide them with practical support to prevent accidents".

It is estimated that more than 1,500 persons in Cambodia die each year as a result of work-related accidents, equivalent to four people a day. An estimated 1.6 million serious workplace accidents take place annually.

As Efforts To End Child Labour Slow, ILO Calls for 'Re-Energized' Global Action

Phnom Penh (ILO News) – Amid growing concerns over the impact of the economic downturn, the International Labour Office (ILO) warned in a new study that efforts to eliminate the worst forms of child labour are slowing down and called for a “re-energized” global campaign to end the practice.

In its quadrennial Global Report on child labour, the ILO said that the global number of child labourers had declined from 222 million to 215 million, or 3 per cent, over the period 2004 to 2008, representing a “slowing down of the global pace of reduction.” The report also expressed concern that the global economic crisis could “further brake” progress toward the goal of eliminating the worst forms of child labour by 2016.

“Progress is uneven: neither fast enough nor comprehensive enough to reach the goals that we have set,” said ILO Director-General Juan Somavia. “New and large-scale efforts are needed. The situation calls for a reenergized campaign against child labour. We must scale up action and move into a higher gear.”

Mr. Somavia added: “The economic downturn cannot become an excuse for diminished ambition and inaction. Instead it offers the opportunity to implement the policy measures that work for people, for recovery and for sustainable development.” The new ILO report, entitled Accelerating action against Child Labour, comes on the eve of a Global Child Labour Conference organized by the Government of the Netherlands in the Hague in cooperation with the ILO. Mr. Somavia said the impetus for action will be given a boost at the Global Conference, which is to consider a new "road map" for the elimination of child labour.

Trends since 2006

The new report’s findings are in contrast to the last quadrennial evaluation in 2006 which found greater cause for optimism. The updated picture is one of “uneven” progress toward the goal of eliminating the worst forms of child labour by 2016. The report warns that if current trends continue the 2016 target will be missed.

The good news is that the overall pattern of child labour reduction has been maintained: the more harmful the work and the more vulnerable the children involved, the faster the decline. However, a staggering 115 million are still exposed to hazardous work, a proxy often used for the worst forms of child labour.

The report breaks down data by age and gender. Progress was greatest among children aged 5-14, where the number of child labourers fell by 10 per cent. The number of children in hazardous work in this age range fell by 31 per cent. Child labour among girls decreased considerably (by 15 million or 15 per cent). However, it increased among boys (by 8 million or 7 per cent). What’s more, child labour among young people aged 15 to 17 increased by 20 per cent, from 52 million to 62 million.

The Global Report also includes data aggregated by region. It shows, for example, that Asia Pacific and Latin America and the Caribbean continue to reduce child labour, while sub-Saharan Africa has witnessed an increase both in relative and absolute terms. This region also has the highest incidence of children working, with one in four children engaged in child labour.

Constance Thomas, Director of the ILO’s International Programme on the Elimination of Child Labour (IPEC), outlined some of the key remaining challenges in tackling child labour, including the scale of the problem in Africa, a much needed reakthrough in agriculture – where most child labourers work – and the need to address sometimes “hidden” forms of child labour, which are often among the worst forms.

“Most child labour is rooted in poverty. The way to tackle the problem is clear. We must ensure that all children have the chance of going to school, we need social protection systems that support vulnerable families –particularly at times of crisis – and we need to ensure that adults have a chance of decent work. These measures, combined with effective enforcement of laws that protect children, provide the way forward”, Ms Thomas said. The ILO IPEC programme was launched in 1992, and in the 2008-09 biennium it was operational in over 90 countries.

The global conference on child labour in The Hague on 10-11 May will gather some 450 delegates from 80 countries. The meeting will also serve as a platform for the launch of an interagency report by the ILO, the World Bank and UNICEF. The report, “Joining forces against child labour – Inter-agency report for The Hague Global Child Labour Conference of 2010”, calls for child labour to be placed at the forefront of national development agendas and presents a range of evidence ndicating that child labour constitutes an important impediment to national

development.

For Cambodia:

The Royal Government of Cambodia is one of the first countries in the world that has already committed itself to end the worst forms of child labour by 2016. This commitment was made last year on 2 June, during the World Day Against Child Labour, by the Deputy Prime Minister of the country. The Royal Government has

thereafter taken many steps to realize this goal.

Cambodia has a National Plan of Action for the Elimination of the Worst Forms of Child Labour (NPA-WFCL), signed by the Prime Minister in 2008 which has time bound measures for the elimination of the worst forms of child labour. The country has taken many significant measures to implement the NPA-WFCL, including removing and withdrawing children from child labour, putting in place and strengthening coordination mechanisms on child labour, promoting livelihoods of the poorest of the poor families, improving knowledge and understanding on child labour, mobilizing employers’ and trade unions against child labour and setting up etworks of civil society organizations to combat child labour, etc.

To move forward towards the goal of the complete elimination of the worst forms of child labour by 2016, The Royal Government of Cambodia has now prepared a Roadmap to Twenty-Sixteen which has 12 important milestones in its journey to 2016. Please see Annex for the 12 Milestones.

Cambodia has also made an assessment of the additional resources required to end the worst forms of child labour by 2016. The Rome-based Understanding Children’s Work (UCW) project, a joint project of the World Bank, ILO and UNICEF, has stimated that Cambodia will require an additional amount of about $100 million to realize this goal.

As Prices of Gasoline Rise, So Do Impacts Hit Economy

BY MR. HOEM SEIHA

February 15, 2010

By the early decade of 2000s, Cambodia saw a stable pace of gasoline prices of around 1500 riels per liter. By the late 2000s, however, the prices of gasoline changed the pleasant moments to the painful ones due to the substantial growth of global demand for gasoline.

The prices of refined oil have tripled, reaching the highest of 5250 riels per liter for premium gas, according to Radio Free Asia 2008, and the currently-stable price of 4150 riels. These soaring prices of gasoline have adversely contributed to economic recessions in the whole country.

One of the adverse impacts of steeply raised prices of gasoline is a reduction in macroeconomic growth. According to Cambodia Economy Profile 2009, economic growth rate dropped below 7% in 2008 as a consequence of the global economic downturn partially caused by the rises in oil prices.

Ms Kim Reasmey, 31, a professor of economics at IC, said, ' The rising of oil prices has indirect impacts on not only small but also large scale economy.' She added, 'The growth of GDP has slightly dropped as a result of raised oil prices.'

Industrial growth rate lagged behind in productions by only 8% in 2008, compared to the past seven years when oil prices were threefold low, according to the same source.

Cambodia's industry depends largely on garment sector. Garment factories depend on exports of their products to neighboring countries, but due to global crisis partially induced by oil prices, the demand for redundantly-imported garment products has then decreased.

Agricultural sector has been also affected by the rises in oil prices. A report in the Thirty-first session of IFAD's Governing Council, 14 February 2008, stated that the increases in fuel prices have raised the costs not only of producing agricultural commodities, but also of transporting them.

'Most farmers currently employ modern technology such as tractors, harvesters, and other farm machinery, all of which are activated by fuel,' said Professor Kim Reasmey. She added, 'They spend a lot of money to buy petroleum for their agricultural productions, but at harvesting season, it yields unfavorable results.'

Another adverse impact of high price gasoline is a reduction in microeconomic growth. Some companies and service providers have to maintain their prices of products or reduce their spending by laying off redundant staff because of the decreases in the number of customers or clients and workloads.

Mr. Tin Sophal, 25, a marketing supervisor of Paramount Angkor Tours, said, 'Though the prices of gasoline have risen sharply, the company has still maintained the prices of transportation offered to the clients.' This can reflect that the company has currently profited less when compared to the time of low prices of gasoline.

Public spending increased compared to the last four years. The high gasoline prices lead to sharp rises in the costs of transportation, foods, services and other general imported products, which contributes to high expenditure on public administration and other operations of the government.

Heng Reaksmey reported in September, 2005 in VOA that the government is also trying to cut down 10% of the fuel used by the government institutions to help the farmers in tilling their farms, and pumping the water for the people. This reflects that, though gaining from tax on imported fuel, government's annual spending over-increases.

In addition to a reduction in micro and macro-economic growth, according to Radio Free Asia 2007, Rong Chhun, President of CITA, told RFA that the soaring prices of gasoline directly affect households, especially poor people, teachers, government workers, soldiers, factory workers, and those who earn slightly more than $1 per day. Motorists and taxi drivers are also observed to be affected by the rises in gasoline prices.

Mr. Rattana, 29, a tuk-tuk driver said hopelessly while sitting on his three wheel tuk-tuk along with other tuk-tuk and motor taxi drivers, 'The prices of gasoline have increasingly gone up, but we can't raise our prices of transportation services in accordance with the rising gasoline prices, though.' 'If we do so, the clients won't ride our tuk-tuk', he added in a desperate way, 'so we earn less than before.'

Hike prices of gasoline has been still a big issue for the health of economy, both micro and macro and household levels. 'If the prices of gasoline still continue rising, the ones who suffer the most are the vulnerable grassroots,' said one of the tuk-tuk drivers, who desperately propose a reduction in oil prices.