Something big is happening in Cambodian clothing factories: workers are organising and securing much-needed wage increases and improvements in working conditions. How are they doing it? Through collective power.
The impact of the textile and apparel sector in Cambodia is huge. 1.1 million workers (about 10% of Cambodia’s workforce) are employed in the sector. Most of them are young women, who provide vital support to their families, indirectly benefiting around 3 million people (UN). Improving working conditions industry-wide will have society wide benefits.
Workers are getting results. Nine factories have already signed collective bargaining agreements (CBAs) covering more than 12,000 workers. This achievement is part of an initiative called ACT (Action, Collaboration, Transformation) between IndustriALL Global Union and 20 global clothing brands supported by the Partnerships for Decent Work program through Union Aid Abroad-APHEDA and DFAT. They are working together to improve wages, working conditions, and industrial relations in Cambodia’s garment industry through collective bargaining.
The win: Wage increases, maternity leave, climate-related clauses, freedom of association and a seat at the table
The new CBA agreements under ACT deliver several important and immediate benefits for workers, including a USD $6 monthly wage increase until December 2027, rising to USD $9 per month from January 2028, in addition to future government minimum wage adjustments. Workers will also benefit from three days of fully paid special leave, an additional 15 days of maternity leave at 50% pay, and five days of paid paternity leave. In a sector where over 80 % of workers are women, these changes are set to provide major support for workers and their families.
The CBAs also further strengthen workers’ rights by reinforcing freedom of association and protection against union discrimination, while establishing clear mechanisms for dialogue, grievance handling, and dispute resolution. Through regular consultation and joint monitoring, management and union representatives will continue working together to address workplace concerns and promote stable industrial relations.
For workers at Fushun Cambo Fashion Co. Ltd., where a new factory-level CBA has recently been signed with the workers’ union, this is already delivering tangible improvements such as:
- better wages
- improved working conditions
- good workplace relations
Worker representatives reported that employees have received a wage increase of more than USD $10 per month, which has helped workers better cover their family expenses. They also noted improved relations with management under the new Collective Bargaining Agreement (CBA), which has strengthened communication and issue resolution mechanisms. Representatives are now able to regularly meet with management to raise worker concerns, resulting in improvements such as the installation of a better cooling system to address workplace heat issues raised by workers.
As one representative stated, “The increase is not much, but it helps our family expenses, and management is listening more to workers’ concerns”.
The agreements signed at factories like Fushun Cambo Fashion also invest in workers’ wellbeing and future opportunities by ensuring employees receive their normal wages and benefits while attending training programmes and by promoting skills development and recognition. In addition, new provisions address climate-related workplace challenges, including protection from heat stress through access to:
- drinking water
- cooling breaks
- improved ventilation
- emergency preparedness measures
- and enhanced safeguards for vulnerable workers
The positive outcomes of collective agreements under ACT demonstrate the value of continued collective bargaining efforts. The IndustriALL Global Union project will continue to support CBA signing with more factories and implementation in the coming years, with the aim of expanding coverage and enabling more workers to benefit from improved wages, working conditions, and effective worker-management dialogue.
This project is supported by the Australian Government’s Department of Foreign Affairs and Trade (DFAT) through Union Aid Abroad-APHEDA’s Partnerships for Decent Work program. The ACT initiative sets new, sector-wide standards that ensure decent work for all.
