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Some 300 Cambodian Nike workers fired after protests

About 300 laborers at a Nike factory were fired yesterday after massive protests for better wages, part of a worldwide reflection on developing world factory conditions after the tragedy in Bangladesh. 

Garment workers sit beside police officers during a protest in front of a factory owned by Sabrina (Cambodia) Garment Manufacturing in Kampong Speu province, west of Phnom Penh, June 3. Several thousand workers protested and some clashed with police at the factory in Cambodia which makes clothing for Nike, as they continue a protest refusing to give up their campaign for higher pay.

Samrang Pring/Reuters

June 12, 2013

Cambodia's garment industry is increasingly considered the moral alternative to that of scandal-ridden Bangladesh. But this week a Nike clothing factory there fired some 300 workers after they protested for weeks about low wages.

Cambodia鈥檚 garment industry represents almost 80 percent of its exports, and with more than 300 factories and about 350,000 employees it is the booming heart of Cambodian economic life. For that reason, the government has aggressively polished the industry鈥檚 image over the past decade to reel in foreign retailers. But analysts say that much of the touted reforms are just gloss, lacquered onto a reality rife with abuses.聽

鈥淚t鈥檚 part of its marketing strategy,鈥 says Kimberly Elliott, a senior fellow at The Center for Global Development. 鈥淭he idea is to give buyers some assurance that they won鈥檛 face a sweatshop scandal.鈥

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In May, about 4,000 Cambodian laborers stood outside a Nike clothing factory in Kampong Speu Province, just outside the urban capital, Phnom Penh. Earning a monthly wage of $74, the workers wanted an additional $14 a month to help pay the costs of transportation, rent, and health care. They would not go back to work without it.

Factory owners fired some 300 employees, claiming they didn鈥檛 follow labor union rules of protest.

The mass firing comes on the heels of heightened international attention on the working conditions in the garment industry. Last month a Bangladeshi garment complex collapsed, killing more than 1,000 workers in the largest garment industry accident in recent history.

That accident brought Cambodia鈥檚 industry 鈥 billed as a still cheap but more ethically sound place to do business 鈥 into focus. In 1999, as part of the US-Cambodia Bilateral Textile Trade Agreement, the Cambodian government allowed the International Labor Organization to set up Better Factories Cambodia, a program that requires all factories to submit to regular ILO inspections. In exchange, Cambodia was promised better access to US markets. When the agreement ended in 2005, the Cambodian government chose to continue the initiative, and it is now a participant in the ILO鈥檚 global Better Work program.

Nuanced protections

While workers鈥 protections do exist in Cambodia聽鈥撀爎ecently ranked among the most corrupt countries in the world聽鈥撀爐he nuance of those protections is important.

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A 2011 report from a Yale University human rights team found that Cambodian garment factories overwhelmingly use short-term contracts that exclude them from rights outlined in Cambodia鈥檚 labor law.

And while a Better Work report that year found that almost all Cambodian factories allowed unions and strikes, it also noted that none of the 27 strikes documented at those factories were in compliance with the Cambodian Labor Law, which requires workers to give seven working days notice before going on strike.

鈥淥ne of the things to remember with the compliance analysis is that [it] is only checking for compliance with national law,鈥 says Raymond Robertson, one of the authors of the Better Work report and a professor of economics at Macalester College in Minnesota.

Cambodia鈥檚 own labor laws sometimes violate good labor practices, say analysts, which means that companies complying with the laws will pass inspection while not necessarily treating their workers fairly.

That was the case when the Nike protesters were let go this week.

Some of the fired workers included people caught destroying factory property when the protests turned violent after four days. Yet others were dismissed for violating an internal factory rule that says workers absent for more than seven days must have permission to do so. Without permission they will be 鈥渄eemed to have abandoned their jobs,鈥 said Ken Loo, secretary general of the Garment Manufacturers Association of Cambodia, in an e-mail.

Workers in that category 鈥渉ave been requested to present themselves and inform the company if they wish to continue working,鈥 Mr. Loo said, adding that they have not been officially dismissed, contradicting reports from the Free Trade Union that all the workers were fired without benefits. 鈥淚f they no longer wish to continue working, the company will then calculate all relevant wages and benefits due to them under the law,鈥 Loo said.

'Starting to push'

Labor unrest has been on the upswing in Cambodia in recent years, coinciding with new economic growth. Cambodia鈥檚 economy grew almost 10 percent聽per year between 1998 and 2008, and it is expected to grow 6.7 percent in 2013, according to the World Bank.

But just three years ago, more than half the country鈥檚 garment workers went unsuccessfully on strike for a wage boost to $93 a month. 鈥淲ages have been flat while the value of exports has been rising,鈥 says Mr. Robertson.

鈥淲orkers are starting to push for a share in the country鈥檚 productivity,鈥 he says.