By endorsing the ‘Agreement to Support Collectively Bargained Wages’, brands and retailers back the enforcement of collective bargaining agreements at the manufacturing stage, IndustriALL said in an article on its website. Such support is also expected to bolster industrial relations, create an effective dispute resolution system, and encourage the advancement of skills.
IndustriALL is actively engaging with brands on an individual basis to secure their commitment to this initiative.
IndustriALL general secretary Atle Høie said: “Low wages remain a systemic challenge in the garment industry, exacerbated by competitive pressures. No single brand or actor can address this alone. A sustainable and effective wage strategy must involve all stakeholders - brands, employers and workers.”
The call to action is part of the Action, Collaboration, Transformation (ACT) programme in Cambodia. This programme facilitates meaningful engagement between brands, unions, manufacturers, and retailers.
The initiative also supports due diligence concerning stakeholder engagement, wages, and freedom of association (FOA), thus promoting transparent and accountable sourcing practices.
Leading fashion brands such as H&M Group, Primark, and PVH have already signed the agreement, which provides a structured approach to implementing collective bargaining agreements at the factory level.
Atle Høie said: “We urge more global brands sourcing from Cambodia to follow the lead of their industry peers and commit to binding agreements that support collective bargaining and wage improvements in the country.”
In May last year, ACT collaborated with IndustriALL to reach individual binding agreements that aim to support the ongoing process of reaching a collective bargaining agreement over wages in Cambodia.
The garment and textile manufacturing sector accounts for approximately 10% of Cambodia's GDP and makes up over 70% of the nation's total exports.
According to the Business & Human Rights Resource Centre, Cambodia announced last year an increase in the minimum wage for workers in the textile, garment, footwear, and travel product industries for 2025, following a decision by the National Council on Minimum Wage (NCMW). This body, composed of labour unions, employer associations, and the government, established the new rates through Prakas 211.
Effective 1 January 2025, the minimum wage for these industries will be set at $208 per month for regular workers and $206 per month for probationary workers.
In comparison, the minimum wage for 2024 was $204 per month for regular workers and $202 per month for probationary workers.
