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Women workers in the Garment sector have driven Cambodias high economic growth- (90% women in garments)
Growth came from exports- 80% of Cambodias export earnings from garments
In the late 90s, trade negotiations with US resulted in generous annual quota increases to the US clothing sector IF Cambodia adhered to basic labour standards. Monitored by BFC. BFC set up in 2001.
Therefore in the highly competitive global market, Cambodia created for itself a niche market based on labour compliance. But low end product type - CMT
Min. wage- 61 USD, less than what TUs ask for. Take home pay higher because of allowances and OT, but working time also long 48 to 60 hours a week.
But contributed to greater vulnerabilities women bore the brunt of the economic crisis.
Impact of crisis
About 70 factories closed, and 70 000 lost jobs
Many more took home lower pay because of less OT, and Working conditions changed ILO/CIDS Tracking study also found that many families sent more young women to work as family incomes declined- additional worker effect. Many returned to work in late 2009, but on lower pay on different (short term) contracts.
Challenges: a) Low productivity b) Low value added production c) Foreign ownership d) Lack of domestic embeddedness e) Export reliance
Thank you
For more information, please contact: Sukti DasguptaTel: 662 288 1792 E-mail: dasgutpa@ilo.org www.ilo.org/asia