Memorandumof Understanding

On lmprovingIndustrialRelationsin the GarmentIndustry

SunwayHotel,PhnomPenh
28 September2010
In the interestof promotingharmonious industrialrelationsin Cambodia, we,the
undersigned partiesrepresentingworkersandemployers in thegarment
industry,havecommitted todayto improveindustrial relationsin the garment
industry.Thissolemnagreement, referredto as the MoU,hasbeenreached
freelyand in goodfaith,andcommitsthe partiesto respectandadhereto
certainkeyprinciples, andto followup theseprinciples witha numberof
concretesteosandactions.

ThisMoUcovers,on the sideof employers, currentandfuturemembersof the

GarmentManufacturers Association in Cambodia.lt covers,on the sideof the
unions,the confederationsandfederationsthat havesignedthisMoU,andtheir
currentandfutureaffiliates
at thefederation
andenterprise level.

shallpromoteand encourage
The undersigned the spiritof thisMoUto all
employersandworkerswhoare not signatory
to this MoU.

Partiesagreeto treatthisMoUas a wholepackage;eacharticlecannotbe read

or referredto individually.The monitoringmechanism agreedhereinshall
reviewadherence to thisMoUas a whole. lf eitherpartyfinds,throughthe
monitoring mechanism describedherein,thatviolationsof the MoUby either
partymakeit impossible to implement,thenthe partiesmaychooseto declare
the MoUnullandvoid. However, the partiesagreenotto declarethe MoUnull
andvoidfor at leastoneyearfollowingthe signatureof the MoU.

Thistextspecifiestheseprinciples
and commitments.

1) Parties
agreeto adhereto national
law

2) BothpartiessupportCBAin orderto achievecertaintyand predictability,

and
to protect
rightsandtermsandconditions of workfor bothparties.

3) Bothpartiessupportthe MRSas the exclusivebargaining agenton behalfof

all workersin the enterprise.
Minorityunionscan participate in the processby
choicebut alongwithall employees mustrespectthe authorityof the MRS
union,and haveno rightto initiateor disruptbargaining
or to objectto anyCBA
reached by MRSunion

4) A CBAnegotiated by MRSunionappliesto all employeesin the enterprise

and no strikeor lockoutshouldbe permittedby anygroupduringthe termof the
CBA.No furtherclaimsshallbe lodgedby eitherpartyduringthetermof the
agreement.fl

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5) Any disputethatarisesduringthe termof the CBAwillbe seftledin
accordance witha shortened disputeprocedure withbindingarbitration on
rightsdisputes.No strikeshalltakeplaceover.disputes of rights.
6) In the absenceof a CBA,the partiesshallagreeto usethe nationaldispute
procedure andaccept,wheremediationis unableto resolvethe issue,binding
arbitrationfor rightsdisputes.The partiesalsoagreeto followthe dispute
resolution procedures andnotresortto strikeor lockoutduringtheprocess.
Wherean arbitration decisionon disputeof rightsis given,the employerand
workersandtheirrepresentatives acceptthatthe decisionis finaland binding
on them.Wherea partyfailsto honourthe agreement, thenstrikeor lockout
shallbe availablea lastresort.

IMPLEMENTATION: Unionconfederationsand federations,and GMACand its

membersfactoriesagreeto undedakethe followingsleps io implementthis
MoUin good faith:

1) Media and Publicity

o Io issuea joint pressreleaseupon signingtheMotJ,in Khmer, Chinese

and English,and distributeit to relevantnationaland intemationalmedia
o Post the MoUand pressreleaseon GMACand unionwebsiles
. Withthe consentof the pafties,ILO may alsotake measuresto inform
the publicthroughnewsletters,websites,newspapersetc.

2) lnform unions and employers

. tJnionssha//
send a copyof the signedMolJto eachunion federation
and enterpriseunion;GMAC shallsenda copyof the signedMoUto the
GeneralManagerand seniormanagerresponsiblefor HR at each
memberfactory
o With/LO assisfance,developbrochureor otherpromotionaland
educationalmaterialthat both GMACand unionconfederations and
federationscan sendto members
. Postthe agreementand/orsignedmodelMoUin a publicspacewithin
the factory
. Encourageworkersand employersat the enterpriselevelto dlscusg
reproduceand signthisMoUat the enterpriselevel

3) lnformRoyalGovemmentof Cambodia

. On behalfof all parties,ILO shallsend a copyof the MoU to Ministryof

Labourand VocationalTrainingat centraland provinciallevel;Ministry
of Commerce;Ministryof SocialAffairs,Veteransand Youth
and othergovemmentauthoritiesas appropriate.
Rehabilitation;
. On behalfof all pafties,ILO shalltakemeasuresto ensurethatrelevant
MOLVTofficialsconcernedwithdisputeresolutionand labourinspection
are awareof and understandthe contentof the MoU.
o Withthe consentofthe parties,ILO may alsotake measuresto ensure
that MOLVTand othergovemmentagenciesa.re;awar.e of th,is.MoU.
U

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4) InformArbitrationCouncil

. On behalfof all parlies,ILO shallsendacopyof thesignedMolJtothe

ArbitrationCounciland requestthe Secretariatof theArbitrationCouncil
to ensurethat paftiescoveredby the MoUare awareof itscontents

Theaboveapplies
to Points1 through6 oJtheagreement.

7) The partiesagreeto carryoutfaclbasedjointresearchon the prevalence

and natureof shorttermemployment contractsin the garmentindustry.
On the
basisof this research,
the partiesagreeexaminelimitingthe useof fixed
durationcontractsto legitimatereasonssuchas businesscycle,seasonality,
and relatedreasons.

IMPLEMENTATION: ILO shalldraft fORs for thls research,which shallbe

reviewedand agreedby unionsand GMAC. The researchshaltbe completed
no laterthan 2 monthsafterthe agreementon the TORs,and a report shallbe
sentto unionsand GMACno later thanone monthafterthe researchis
completed.The pariiesagreeto meet withinone monthafterreceivingthe
repoftto discussitsfindingsand to determinefurtherpolicy measures,if any.

8) The partiesagreeto starta nationalpolicydialogueon productivity.

IMPLEMENTATION: Employersand unionsundersigned,in collaborationwith

relevantgovernmentagencies,traininginstitutions
and nationaland
internationalorganizations,
committo seek opportunitiesfor, and to engagein
goodfaithin, a nationaldialogueta imprcveproductivity

9) The partiesagreeto discussthe selectionprocessof arbitrators

in orderto
ensureconfidence in theArbitrationCouncilby allparties.

IMPLEMENTATION: Underthe auspicesof the World Bank'sDemandfor

GoodGovernanceprogram,whichprovidesfundingfor the AC, a tripaftite
advisorycommitteehasbeen esfab/ished.Thiscommitteemav wishto discuss
lhe processof selectingarbitrators.,

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 MONITORING MECHANISM: The paftiesagreeta meet4 timesperyear to
reviewandmonitorimprementation of thisirrou. Thepaftiessnir, goodfaith,
attemptto resorveanydifferencesthatmaycomeup duringtnetiieiitor"nis uiU.'
Timeframe_:
. This agreement
comesinto affecton I January201I . Theright to
terminatethis agreementasdescribedhereinshalrcomeinio effectafter ioctober 20r
r.

Signedon Behalfof G

Date: 28 September
2010
Mr. VAN SouIeng,Chairman

Signedon behalfof union coSQderations,

Federations
andaffiliatedenterpriseunions
.| AI 'r\fiJv
ffi PrintName:
flo?fl NH|f'l
Confederatio Cambodian
NationalConfederation
(CNC)

Confederation/Federation
Name: NationalUnionAllianceChamber
of Cambodia
(NACC)

3. rrintName:\r/o
g%nna
CambodianConlederation
of TradeUnions
(CCTU)

4. PrintName
hlP-''lRO'*
Confederation/FederationName:
CambodianLabourConfederation(CLC)
<-
s' CJ&,) printName uLla,^-
confederation/FederationName:
cambodianconfederationofUnions(ccU)

o.
PrintName:
l.fAMqSoriy^-
%
Confederation/Federation
Name KhmerYouthFederationof TradeUnions
(KYFTU)

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