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KINGDOM OF CAMBODIA
INTERNATIONAL LABOUR ORGANIZATION BETTER FACTORIES CAMBODIA

THIRTIETH SYNTHESIS REPORT ON WORKING CONDITIONS IN CAMBODIA’S GARMENT SECTOR

Publication date Report period

: 18 July 2013 : 1 November 2012 – 30 April 2013

Copyright © International Labour Organization (ILO) and International Finance Corporation (IFC) (2013) First published (2013) Publications of the ILO enjoy copyright under Protocol 2 of the Universal Copyright Convention. Nevertheless, short excerpts from them may be reproduced without authorization, on condition that the source is indicated. For rights of reproduction or translation, application should be made to the ILO, acting on behalf of both organizations: ILO Publications (Rights and Permissions), International Labour Office, CH-1211 Geneva 22, Switzerland, or by email: pubdroit@ilo.org. The IFC and ILO welcome such applications. Libraries, institutions and other users registered with reproduction rights organizations may make copies in accordance with the licences issued to them for this purpose. Visit www.ifrro.org to find the reproduction rights organization in your country.

Better Factories Cambodia: Thirtieth synthesis report on working conditions in Cambodia’s garment sector / International Labour Office ; International Finance Corporation. - Geneva: ILO, 2013

1 v. Better Work Synthesis Reports: ISSN 2227-958X (web pdf) International Labour Office; International Finance Corporation clothing industry / textile industry / working conditions / workers rights / labour legislation / ILO Convention / international labour standards / comment / application / Cambodia ILO Cataloguing in Publication Data

The designations employed in this, which are in conformity with United Nations practice, and the presentation of material therein do not imply the expression of any opinion whatsoever on the part of the IFC or ILO concerning the legal status of any country, area or territory or of its authorities, or concerning the delimitation of its frontiers. The responsibility for opinions expressed in signed articles, studies and other contributions rests solely with their authors, and publication does not constitute an endorsement by the IFC or ILO of the opinions expressed in them. Reference to names of firms and commercial products and processes does not imply their endorsement by the IFC or ILO, and any failure to mention a particular firm, commercial product or process is not a sign of disapproval. ILO publications can be obtained through major booksellers or ILO local offices in many countries, or direct from ILO Publications, International Labour Office, CH-1211 Geneva 22, Switzerland. Catalogues or lists of new publications are available free of charge from the above address, or by email: pubvente@ilo.org Visit our website: www.ilo.org/publns

B Better Fa actories C Cambodi ia Synthe esis Repo ort
1 Novemb ber 2012 – 3 30 April 2013 155 Fa actories Mo onitored 1.

Exe ecutive Sum mmary

The chief pur rpose of the B Better Factorie es Cambodia Synthesis Rep ports is to pro ovide an overv view of workin ng conditions in the Cambodi ian garment a and footwear industries, and to enable st takeholders to o use this info ormation to im mprove workin ng conditions. This report d demonstrates that improve ements are no being made in many are including fire safety, ch labour, an ot e eas hild nd worker safet ty and health. At the mome ent when glob bal garment a and footwear buyers are pu ublicly stating g that they see ek factories and d business par rtners that sho ow workers m more considera ation, the curr rent and recen nt Synthesis R Reports reveal l a lack of attention to workin ng conditions. This can hav ve a direct impact on worke ers and on the health of th he industry as s a whole. n in working co onditions may y be attributed d to the rapid growth of the e industry. How wever, industry Some of this deterioration d not and shou uld not result in poor working conditions s. While indivi idual factories s must take re esponsibility fo growth need or making posit tive changes, sector‐wide change is unlikely without the sustaine and target intervention of industry t ed ted players such as GMAC, uni ions, and the R Royal Governm ment of Camb bodia. math of the deaths of more than 1,100 garment workers in the Ra Plaza disa e ana aster in Bangl ladesh, and th he In the afterm death of two Cambodian workers at a footwear fact o tory in May, g global buyers are demanding that Camb bodia’s indust try make good o on its commitm ment to decen nt work. ly, the data re eveal waning a attention to working conditi ions in this rep porting period d, and over the e last three Unfortunatel years: Graph 1: Fact tory complian nce (percentag ge) by categor ry, 2005 – 2013 (Garment in ndustry‐wide)1 100 95 90 85 80 75 70 2005 200 07 2009 2011 2013

Contracts Wages Hours Leave Welfare Labour relations Safety/Healt th Fundamenta al rights

Page 1 (of 15 5)

Two themes—fire safety and worker s safety and he ealth—rise to the top in th report bec his cause significa numbers of ant factories are failing to com mply with the law and becau use assessmen nts show that compliance is s falling. Investors, the e Royal Gover rnment of Cam mbodia, global buyers, unio ons, and worke ers benefitted d to varying de egrees from th he impressive im mprovements in working co onditions in th he ten years f following the signing of the e 1999 U.S.‐Ca ambodian trad de agreement. T These same ac ctors must no ow take steps to stop and re everse the de eterioration in working cond ditions over th he last few year rs. The indust try’s chronica ally non‐compliant factories s need to be h held accounta able, and non‐ ‐compliance o on critical cross‐ ‐cutting issues s highlighted in this report t needs to be addressed. If this does not t occur, Camb bodia’s industry runs the risk of forfeiting the advantage es that come fr rom its reputa ation for decent working conditions. h This report covers 152 gar rment and thr ree (3) footwe ear factories. I It is BFC’s 30th Synthesis Re eport since the e project’s sta art in 2001 and w we take the opportunity of this milestone to look at ke ey compliance e issues in the industry over r longer period ds 2 of time. This report also marks a shift to an annua reporting cy which will allow BFC t present a f t al ycle to fuller picture of y and to introd duce additiona al types of rep ports, including issue‐specific reports. compliance in the industry 2.

Inst titutional Context

Growth. The industry cont tinues to grow w rapidly. According to the Ministry of C Commerce, the e number of e export factorie es jumped to 41 12 from 384— —an eight perc cent (8%) incre ease in the six x months betw ween November 2012 and A April 2013—an nd the number of workers in export facto n ories grew to 394,262 from 374,318, an increase of over five perc m n cent (5%).3 Th he f some workin ng conditions noted in this report may be e driven in pa art by growth of the industr ry, as manage ers worsening of struggle to ke eep up with a surge in orde 4 ers. otal number o of strikes in the e industry fell 12% from 67 strikes in the previous repo orting period t to Industrial Relations. The to 59 in this period, accordin ng to data pro ovided by GM MAC. However, , the number of strikes has s risen dramatically betwee en 12—up nearly y 170%. 2010 and 201 of e number and d length of strikes as well as the hundre eds of thousands productio on The causes o strikes are varied but the hours lost an nnually point to the need for more mature industria relations be al etween worke and their managers, an ers nd meaningful e enforcement o of legal require ements by the e Royal Government of Cam mbodia. urge in strikes correlates w the grow in the ind s with wth dustry. (See S Section 3 for a The graph below suggests that this su f strikes and unions in this reporting perio od.) discussion of es and number of export fac ctories, 2006 ‐ ‐ 20135 (Garm ment industry‐w wide) Graph 2: Number of strike 400 0 350 0 300 0 250 0 200 0 150 0 100 0 50 0 0 2006 2007 2008 2009 2010 2011 2 7 2012 Page 2 (of 15 5)

Number of ex xport factories Number of st trikes

The Arbitrati Council re ion egistered 121 cases during the reportin period, of w g ng which 100 we garment f ere factory‐relate ed. Thirty‐nine (3 39) of the gar rment factory y‐related cases were resolv ved through m mediation befo ore going to a arbitration. Th he top five issue es referred to the Arbitratio on Council during this period d were:

1. W Wages and bonus payments s 2. D Discipline and termination 3. G General working conditions 4. O Occupational s safety and hea alth 5. L Labour rights o of women Court of Appea als returned the case against former Bav vet City Gover rnor Chhouk B Bandith in March 2013 to th he Finally, the C Svey Rieng P Provincial Cou for re‐inve urt estigation. Ban ndith was acc cused of “unintentional inj juries” in the February 201 12 shooting of t three garmen workers wh were part of a 6,000‐wo nt ho orker protest for better wo orking conditi ions. The lower court droppe ed the charges s in December 2012.6 The defendant ref fused to appe ear at two hea arings, and wa as sentenced o on 25 June 2013 3 to one and a half years in prison. As of t this writing, M Mr. Bandith has not been detained. Wages. The Royal Govern nment of Cam mbodia announced an agreement of the Labor Adviso Committe e ory ee—a tri‐partite committee— increase t —to the industry’s minimum w s wage to US$7 from $61 per month starting on 1 May 2013. A 75 1 mandatory m monthly health h care benefit of $5 is now i included in the e minimum w wage for a total of $80 per m month. 3. Com mpliance St tatus The rapid gro owth in the ind dustry means that just over r one quarter of the factorie es covered in this report are e new and hav ve only had one e BFC assessment. However r, a majority o of the 152 garm ment factories s in this repor rt have receive ed five or more assessments from BFC. Th s hese factories have had ma opportun s any nities to note, understand, and correct n non‐complianc ce with the law reported by B BFC. 4 visits % 3 vists 7% 9% 2 visits 7% 1 visit 2 26% 5 5+ visits 51%

Findings on S Selected Work king Condition ns Wages. It is important to note issue that have seen improv es vements in th current report. Three o the top fiv he of ve improvements relate to pr roper payment of wages:  Wor rkers who wor rk regularly were paid the c correct attendance bonus an nd other mandatory wage s supplements (18% % improvemen nt)  Wor rkers were paid during norm mal working hours (10% imp provement) Page 3 (of 15 5)



Sick leave is paid as required by y the factory’s s internal regu ulations (9% im mprovement)

f shers, clearly marked emer rgency exits, a and emergency Fire Safety. Some measures including availability of fire extinguis procedures s show strong co ompliance wit th the law. But t compliance w with other me easures has de ecreased and is unacceptab bly low. Of the fa actories cover red in this report:  Twe enty‐four facto ories (15%) ke emergenc exit doors l ept cy locked during working hou g urs—a significa decrease in ant com mpliance over t the last three years  Nearly 70 factorie es (45%) failed d to conduct e emergency fire e drills every s six months  Eigh hty factories (5 53%) had obst tructed access s paths—anoth her decrease in compliance e over the last year Graph 3: Key y Fire Safety C Compliance Me easures, 2006 6 –2013 (Garm ment industry‐w wide) 100 90 80 70 60 50 40 30 20 10 0 y. Ten of the leading non‐c compliance iss sues in this re eporting perio od impact wor rker health an nd Worker Health and Safety safety, and th he industry’s f fainting proble 7 (An addit em. tional ten lead ding non‐compliance issues can be found d in Annex 3). p non‐compliance issues (6 m months to dat te) Graph 4: Top 2006 2007 2008 2009 2010 2011 2 2012 Paths free o of obstructions Regular fire e drills Exit doors lo ocked

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Graph 5: Key y Workers Safety and Health Measures, 2 2006 –2013 (G Garment indus stry‐wide) 100 90 80 70 60 50 40 30 20 10 0 2 2006 2007 20 2009 201 2011 2012 008 10 2 Table 1: Non n‐Compliance with Fundam mental Rights a at Work Child Labou ur (factories w with confirmed d underage wo orkers) Forced Labo our (factories used forced la abour) Discrimination8 (factories s engaged in d discrimination) Unions9 (fac ctories with one or more un nion) 0 Unionization Rate (CIDS G Garment Workers Survey)10 1 Freedom of f Association11 (factories int terfered with F FOA) Anti‐union D Discrimination n (factories en ngaged in discrimination) Strikes (fact tories with str rikes) Strikes failin ng to comply w with one or more legal requ uirements12 Current report 2% 0% 16% 69% 58% 7% 2% 19% 100% N Nov 2 2012 1% 0% 18% 71% 58% 9% 5% 20% 100% May Nov M May 2012 2011 2011 7% % 9% 0% 0% % 0% 0% 19% % 18% 13% 73% % 66% 76% 58% % 58% 58% 6% % 5% 2% 3% % 4% 3% 11% % 8% 21% 100% 100% 1 % 100% Acceptable he A eat levels in factor ry Sanitary mean S ns for drinking water d r Overtime limit O ted to 2 hours per day h

Child Labour. BFC monitor rs suspected c child labourers s in 13 factorie es covered by y this report. B BFC was able t to conduct fie eld investigations of workers i in only three o of the 13 facto ories, confirm ming that six ch hildren under 15 years old w were at work in these three f factories. a on nd n ying documen significant nts tly The lack of a universal birth registratio system in Cambodia an falsification of age‐verify impede the detection of u underage wor rkers, and ma BFC child labor investig ake gations and re emediation time‐consumin ng. f BFC to inves stigate suspec cted cases of c child labor als so depends on n the coopera ation of factor ry management The ability of and the avail lability of BFC C resources. As s a result, the e prevalence o of child labour r in the Cambo odian garmen nt and footwear industries is likely greater than the factory‐level data a in recent Syn nthesis Report ts indicates. O Other limitatio ons in detectin ng orkers, extensive guidance f for factories, a and the BFC investigation a and remediation procedure es are describe ed underage wo in BFC’s Child d Labour Guid dance paper a available at ht ttp://betterfactories.org/?p p=3201. BFC h has recently h hired a full‐tim me consultant to o conduct field d investigation ns and address s the child lab bour issue in a more compre ehensive manner. Page 5 (of 15 5)

Strikes. All 4 40 strikes (100 0%) recorded a at the factorie es covered by this report fa ailed to follow w the legal requirements. Th his is essentially unchanged o over the last three years an nd longer. Brin nging strikes in nto complianc ce with the law deserves th he focused atten ntion of gover rnment, mana agement, and in particular, w workers and t their organizat tions. elow shows th prevalence of unions in the 152 garm he e ment factories covered in t reporting period. Three‐ s this g The chart be quarters of th hese factories s have no unio on at all or only one union, a and one quart ter have two o or more union ns. Of the 29 fac ctories (19%) in this report t that had strike es, nearly half (46%) had only one active u union. Of the 40 fac ctories in this report that ha ave two or mo ore active unions, 38% (15 factories) had d strikes. Of th he 112 factorie es with one or n no unions, only 14% experie enced strikes. tory (6 months s to date) Registered un nions per fact 5 5+ unions 3% 5 unions 2% % 4 uni ions 3 unions 0% % 6%

No unio on 31%

2 unions 15%

1 uni ion 43% %

5) Page 6 (of 15

Graph 6: Are eas of Positive e Change (6 months to date) ove, three of the top five improvement relate to proper paymen of wages. T graph shows ten of th ts nt This he As noted abo twenty top a areas of impro ovement in Ca ambodian gar rment factorie es in the curre ent reporting period. The g graph compare es the current l level of comp pliance (%) wit the level o compliance six (6) month ago for eac individual issue. (Annex 4 th of hs ch contains othe er improveme ents).

Graph 7: Are eas of Negativ ve Change (6 m months to date e) It is critical that the neg gative trends shown in th graph are reversed, pa his articularly tho that directly impact o ose on preparedness for emergen ncies, and wo orkers’ health and safety. T graph sho ten of the twenty top areas of fallin The ows e ng compliance in Cambodian garment facto ories in the cu urrent reportin ng period. (Annex 4 contains other negative changes).

Footwear ion ot Programme in February 20 with the release of a special repor n 013 rt, BFC marked the completi of its pilo Footwear P /betterwork.co om/cambodia a/wp‐content/ /uploads/2013 3/04/Footwea ar‐ “Footwear Pilot Program 2012” (available at http:// m‐2012‐EN.pd The nine footwear fac df). ctories assessed in 2012—including thre factories a ee assessed in th his Pilot‐Program Page 7 (of 15 5)

reporting pe eriod—employ 19,755 w yed workers and ev videnced man of the sam issues see in the garm ny me en ment sector. In addition, the e report noted d that chemic cal safety and cross‐cultural difficulties in nvolving forei ign supervisor rs appear to b be troublesome issues for the e Cambodian f footwear indu ustry. 4.

Con nclusion and d Next Step ps

BFC’s monito oring, advisory y, and training g work is focus sed primarily a at the individu ual factory leve el, but many o of the issues that appear in this report a are systemic in n nature and r require interv vention relatin ng to national policies or to relationships and pressure es in the global supply chain n. Actions that t industry play yers can take t that can comp plement individ dual factory efforts are:  Ro oyal Governm ment of Cambo odia can strengthen enforc cement mech hanisms to uphold the labo law. This is our pa articularly important in pere ennially non‐co ompliant facto ories that resist change.  Em mployers’ orga anizations such as GMAC ca an assist by fos stering a cultu ure of compliance among th heir members, , rec cognizing thos se with excelle ent working co onditions, and d problem‐solv ving and strat tegizing with m members that cannot or will no ot meet the re equired compliance standar rds.  Tra ade Unions and civil societ ty groups hav ve vital roles in this process s. These organ nizations may be best place ed to highlight the data in this r report on a br road scale and d to use the d data to lobby f for changes in n the actions of nions at the plant level, and in manageme ent practices, with the goal of improving working cond ditions. un  Int ternational buyers sourcin from Camb ng bodia wield co onsiderable in nfluence over the factories in which the r s ey source. While buyer influence helps to make changes in individu factories, more buyers can approac ual s ch an wide basis and publicly com d mmit to com mpliance with Cambodian labour law an nd challenges on a industry‐w rbitration Coun ncil decisions throughout th heir entire sup pplier base. Ar Better Facto ories Cambodia can also do more. First BFC will continue to sha its data o chronically non‐complaint t, are on factories with relevant mi inistries in an effort to stre engthen legal enforcement Second, BFC t. C—in partners ship with other uyers in the p program. BFC has direct relationships wit th stakeholders—will pursue efforts to engage more international bu nearly 40 bu uyers sourcing from Camb g bodia. These buyers not only subscribe to receive m monitoring reports, but als so encourage fa actories to participate in tra aining program ms or advisor ry services. Bu uyers also prov vide critical su upport to BFC C’s advocacy act tivities. Still, t the majority o of buyers purc chasing garme ents and foot twear made in n Cambodia are not engage ed with BFC and d may not be e exerting levera age to improv ve working con nditions. More specifically, BFC is p pushing the plan below to h help drive imp provements in n fire/emergency safety in the Cambodia an garment indu ustry:     BFC and MoLVT h held a “Fire Safety and Occu upational Accident Prevention” contest. 1 1,300 workers s participated in elebration of W World Day for Safety and He ealth in which the contest w winners received their awards. (April 2013 3) a ce Lock ked emergenc cy exits and failure to hold r regular evacua ation drills are e now zero‐tolerance issues s. Violations are repo orted promptl ly by BFC to in nternational buyers (June 20 013) A Fi Safety Che ire ecklist and Be Practices sheet was se to GMAC and the Occupational Saf est ent fety and Healt th Dep partment of M MoLVT, as well as to all facto ories. Checklist ts are reviewe ed following BF FC assessments. (May 2013 3) “Wh hat to Look Fo or” fire safety f factsheets we ere sent to unions and shop stewards (Jun ne/July 2013) Page 8 (of 15 5)

  

BFC Factory Adv visors will co onduct fire safety trainin with all Performance Improvemen Consultativ ng nt ve Com mmittees13 (July/August 201 13) BFC will launch a mobile phon quiz for garment workers that includes two fire sa a ne afety question (July/Augu ns. ust 2013) BFC will dissemin nate key inform mation to GM MAC, all factor ries, and work ker representa atives on the n new Fire Safety w when approv ved by the Nat tional Assemb bly Law

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Annex 1 Number of w workers and fa actories cover red by Better Factories Cam mbodia (Garm ment Industry‐ ‐wide) hown includes s all active fac ctories (not clo osed or suspe ended) that ha ave registered d with and bee en The number of factories sh y Better Facto ories Cambodia. The emplo oyment figures s are drawn fr rom the most recent monito oring report fo or monitored by every active factory with m monitoring data in the IMS on the releva ant date. New wly registered factories are not reflected in s until after they have been monitored an nd a report has been issued. these figures may not line up precisely wi ith those refle ected in previo ous reports du ue to factory c closings and re e‐openings that The figures m were discove ered outside o of the Synthes sis Report per riod. The figu ures also diffe er from the Ministry of Com mmerce figure es, primarily due to differences in the time at which information becomes availab to each, a the fact t e ble and that the figure es above only in nclude active factories that t have been m monitored. Be etter Factorie es Cambodia t typically does not visit new wly registered factories until s six months aft ter their regist tration. As a result, during g times of rapi id growth, the e figures do not fully reflect the expansion in the sector.

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Annex 2 Comparative e findings on s selected work king conditions (last five rep porting cycles s): Legal Requ uirement Payment for maternity le 14 eave Exceptional overtime Overtime lim mited to 2 hou urs per day Only one pa ayroll ledger th hat accurately y reflects wage es paid to wor rkers Voluntary and exceptiona al work on Sun ndays Payment of f $7 attendanc ce bonus when n workers take e annual leave e Sufficient so oap and water r available nea ar the toilets Written hea alth and safety y policy in Khm mer Consultations with worke ers when deve eloping the he ealth and safet ty policy Heat levels in the factory y Minimum w wage for regula ar workers Minimum w wage for casua al workers Minimum w wage for piece e‐rate workers s Correct OT rate for regula ar workers Correct OT rate for casua al workers Correct OT rate for piece‐rate workers 18 days of a annual leave Not unreaso onably restrict ting workers f from taking an nnual leave Paid sick lea ave Voluntary o overtime Provision of f personal pro otective equipm ment Needle guards installed o on sewing mac chines At least 24 c consecutive hours off per w week Weekly time off on Sunda ay Factory wor rks on Sunday ys Not unreaso onably restrict ting workers f from taking sic ck leave Health and safety policy w written in Khm mer Safety and h health informa ation in Khme er posted in th he workplace First‐aid box xes in the wor rkplace No payment to get a job Rotating sh hort‐term contracts not used to avoid providing workers’ entitlement ts to maternity y leave, seniority bonus, an nd/or annual le eave All workers employed fo longer than two years t s or n total consider to be red employed u under an unspecified duratio on contract Page 11 (of 15) Percentage of factories in co ompliance (30th) 75% 5% 15% 52% 72% 63% 47% 68% 57% 27% 97% 92% 91% 97% (29th) (28th) (27th) (26th) 7 77% 4% 12% 55% 73% 58% 48% 64% 54% 32% 97% 92% 95% 83% 3% 14% 61% 71% 61% 54 % 62% 57% 38 % 97% 90% 98% 78 8% 5 5% 16 6% 67 7% 0% 70 2% 62 8% 48 65 5% 6% 56 8% 38 8% 98 84 4% 93 3% 82% 7% 25% 73% 66% 69% 49% 65% 62% 43% 97% 79% 98%

9% 100% 99 92% 100% 100% 100 0% 98% 81% 71% 87% 93 3% 92% 96% 95% 97% 98 8% 97% 74% 76% 86% 41% 64% 1 100% 97% 14% 89% 68% 92% 61% 99% 71% 70% 77% 68% 89% 48% 58% 76% 73% 86% 54% 2% 72 8% 78 87 7% 1% 51 80% 77% 89% 54% 65% 99% 97% 28% 91% 65% 89% 66% 98% 63% 72%

97% 100%

66% 66 6% 95% 100% 100 0% 94% 99% 98 8% 11% 93% 64% 92% 59% 98% 63% 75% 20% 89% 62% 95% 72% 99% 66% 74% 22 2% 8% 88 65 5% 94 4% 2% 72 98 8% 7% 67 76 6%

Annex 3 Top non‐com mpliance issue es (6 months to date) This table sho ows an additio onal ten of the e twenty most t common non‐compliance findings in Ca ambodian garm ment factories. s Non‐ Assessment findin ngs ance Complia Is the e workplace w well lit? Do w workers who w work sitting do own have adjustable chairs w with backrests s? Do w workers who w work standing up have chairs near the wo orkstation to re est on? Does s the infirmary y have medica al staff working g the required d number of hours (including ov vertime) Does s the factory h have a function ning and acces ssible nursing room? Has m management f failed to provi ide an office f for stewards? Do w workers unders stand the calc culation of wag ges? Has m management f failed to give w workers a 2‐hour break to c consider the candidates Does s management t pay workers within 48 hou urs after they stop working for th he factory? Does s management t pay the child dcare costs of women employees? 95% 88% 74% 72% 67% 61% 61% 60% 58% 56%

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Annex 4 Top areas of positive and negative chan nge (6 months s to date) Positive Chan nge. The findi ings below sh how the ten m most improved issues found factories during the Sy d d in ynthesis Repo ort period that w were not cited d in Section 3. Assessment findin ngs Do any workers wo ork sitting on the floor? Does s management t deduct atten ndance bonus when worker rs take leave? Are d dust levels in t the factory acc ceptable? Does s management t make unauth horized deduc ctions from wo orkers’ pay? Do se ewing machines have functioning needle guards? Does s management t include the e entire period o of continuous employment when n determining g workers' entitlements? Is the e workplace ti idy? Are r reliable docum ments used to verify age of w workers prior to hiring? Does s management t use correct e exchange rate e when conver rting to Riels? Are s stewards prov vided two paid d hours/week to perform functions? Complia ance +7% +6% +6% +6% +6% +6% +6% +6% +6% +5%

Negative Cha ange. The fin ndings below show the ten issues that saw the most negative change in facto n ories during th he Synthesis Rep port period th hat were not c cited in Section n 3. Non‐ Assessment findin ngs Compliance Has m management f failed to provi ide an office f for stewards? Does s the factory h have a function ning and acces ssible nursing room? Has m management f failed to provi ide separate b ballots for sho op stewards an nd assist tant shop stew wards? Does s the infirmary y have enough h beds? Do w workers unders stand the calc culations of wa ages? Do m managers and s supervisors ha ave clear OSH responsibilities? Has m management f failed to elect t the correct n number of shop stewards? Does s management t post the list of public holid days in the fac ctory? Does s management t post the ove ertime permiss sion in the fac ctory? Is the e workplace w well lit? Page 13 (of 15) ‐12% ‐ ‐11% ‐ ‐10% ‐ ‐8% 7% 7% ‐6% ‐6% ‐6% ‐6%

Annex 5 Factories and d workforce b by factory size e (6 Months to o date)

actory size (last 12 months) ) Changes in fa

Although the industry has been expand e s ding overall, t there has not been a significant shift in the distribution of factories f e based on the eir size.

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Endnotes 1 Compliance da ata for this and ot ther “Garment ind dustry‐wide” grap phs and tables are e compiled from all 2005 – 2013 B BFC factory assess sments (regardles ss of the number o of factory visits pe er factory) and ex xtracted from the Better Factories’ ’ IMS database. A All assessment que estions are group ped into the eight t categories show ws in the graph. 2 A complete list of the f factories registe ered with and monitored by Better Factorie Cambodia is available on our website a es s at: http://www.bet factories make u tterfactories.org/monitoring.aspx? ?z=5&c=1. Export up the vast majori ity of BFC‐monito ored factories. Most of the gra aphs and charts in this report reflect current monitoring data from factory reports posted during th m he past six months. The graphs and charts that refle ect this set of mo onitoring data are e labeled ''6 Mon nths to date.'' Ot ther graphs and c charts display ind dustry‐wide infor rmation. They dra aw data from the m most recent repor rt for every active e factory (not clos sed or suspended d) with monitorin ng data in the Bet tter Factories Cam mbodia Information Management Sy ystem (IMS). All p percentage figure es shown in this r report are rounde ed to the nearest t whole number. Assessment info ormation is entered into IMS which m makes it possible to produce reports in Khmer, Eng glish and Chinese. C monitors log calls received from union leaders, sh hop stewards, wo orkers, human res source and admin nistrative staff in all During the reporting period, BFC received 107 calls s in this reporting period. Common n topics for calls in ncluded clarificat tion on compensa ation after contract termination, and factories. Staff r gender discrimin nation (males and females provid ded with different types of contra acts). Many caller rs complained ab bout involuntary o overtime, overtim me exceeding 2 hou urs, and frequent Sunday work. Further, workers as sked for clarificati ion on rights relat ted to leave entit tlements (annual leave, special lea ave and sick leave) a and the proper pr rocedures for requesting leave. BFC also logs all cash, meals, or o other gifts offered to BFC monitor rs. Two such offers were made to BFC staff in this reporting period. Those offers we ere itors and recorde ed. refused by moni 3 These figures a are based on data provided by the e Ministry of Com mmerce. The num mber of active exporting factories includes all expo orting factories th hat the ministry has s indicated are eff fectively operatin ng. 4 UN Confere ence on Trade and Develop e pment reported that foreign direct investm d ment grew 73% in 2012 o over 2011 leve els. http://unctad.or rg/sections/dite_ _dir/docs/wir2013 3/wir13_fs_kh_en n.pdf. “[The inc crease is] largely credited to bu y usinesses looking to invest in t g the inexpensive, lab bour‐intensive gar rment and manuf facturing industri ies”, in Anne Renzenbrink, “Foreig gn Investment rises 73 pct”, Phnom m Penh Post, 1 Ju uly 2013. 5 Data from Garm ment Manufactur rers Association o of Cambodia, May y 2013. 6 May Titthara, “ “Bandith charges reinstated”, Phno om Penh Post, 5 March 2013. 7 BFC introduce a strategy to combat factory faintings in 2012 including a CTN comedy show targeting faintin and related wo ed 2, ng orker health issu ues http://betterfac ctories.org/?p=6527), the training of Experts by Ex xperience (http:// /betterfactories.o org/?p=862), and the factory‐focu d used “One Chang ge” campaign (http:/ //betterfactories.org/?p=385). 8 Discrimination typically involve es unfair treatmen nt of pregnant w workers (for example, dismissal or non‐renewal of c contracts when t they become visib bly pregnant), or un nfair treatment of f men (for examp ple, failure to hire men because the ey are perceived a as more likely to lead workers to s strike). 9 The number of f unions reflects o only unions that a are active and reg gistered at the tim me of the monitor ring visit. 10 The unionization rate is drawn n from a 2009‐201 10 survey of 2000 0 garment workers commissioned d by BFC and perf formed by the Cambodia Institute of tudy. Development St 11 These figures represent interfe erence and discrim mination occurrin ng only in factorie es assessed by BFC during the repo orting period. Oft ten factories whe ere interference or discrimination oc ccurs have multip ple cases of such h action during th he reporting perio od. For purpose es of this report, BFC reports on the ories with this find ding, not the num mber of incidents. number of facto 12 The legal requ uirements for com mmencing a strik ke include striking g for reasons per rmitted by law; attempting to sett tle the dispute us sing other peacef ful methods first; union members’ a approving the strike by secret ballo ot; and providing 7 working days p prior notice to the e employer and th he Labour Ministry. If workers failed d to comply with any one (or more e) of these requir rements, the strik ke is included in t the figure above. Under Cambodia an law, only a cou urt has the authorit ty to declare a strike illegal. 13 PICCs are wo orker‐managemen committees re nt esponsible for m making and implementing improve ement plans in f factories subscrib bing to BFC facto ory advisory services. 14 This figure is t the sum of two c compliance quest tions: payment of half of wages and benefits, and payment of only y half wages durin ng maternity leav ve. This figure includes both types of f maternity leave e payments. Mate ernity leave figure es have been re‐s stated to correct a technical error in previous reports that resulted in lower than actual compliance leve els.

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