GMAC will hold an OPEN FORUM WITH MEMBERS as the following.
Date: Sunday, 15th December 2013
Time: 08:00am – 1700pm
Venue: Naga World Level 2 (Ballroom 2)
Lunch: Will be provided
Languages: Khmer, English, and Chinese translation
The forum will discuss issues related to the industry. The main focuses will be on:
Inputs from GMAC to the Government's Reform (investment, import/export, labour, tax etc.,)
Minimum Wage (the negotiation on wage for year 2014 and coming years)
Please note that Top Management of company are invited to this forum. Kindly send your name, position, and contact number to GMAC Secretariat for verification and confirmation by 12 December 2013 by 1700.
13/11/13: Jointly with the Royal Government of Cambodia, GMAC congratulates Eco Base Factory Ltd. for being certified with ECO-FATORY STANDARD by the prestige UK-Based Marks and Spencer.
The celebration ceremony was honored by the presence of Kandal Province Governor H.E Phay Bun Chhoeun, H.E Chea Vuthy, Deputy Secretary General of Cambodia Investment Board of the Council for the Development of Cambodia, Mr. Richard Thomas, Regional Head of Marks & Spencer (M&S), and a representative from GMAC.
Eco Base Factory Ltd. is a subsidiary of Chinakey (HK) Ltd. under Addchnce Group. The construction was completed by the end of 2012. The core business is to produce sweaters by implementing the concept of sustainable development in both facilities and production process. The factory covers an area of 99,159sqm while production floor space is 11,944sqm. Read more...
GMAC Makes Donation to 350 Families in Peam Chor District, Prey Veng Province
Peam Chor, Prey Veng: It is an independent day holiday on 09th November 2013, the Garment Manufacturers Association in Cambodia (GMAC) delegate led by Mr. John Cha, Second Deputy Chairman visited and donated the victims of recently flooded areas with urgent rice, food, clothes, shoes, and other house wholes stuffs worth of about US$11,000 contributed by garment and footwear members.
“We are not just a big organization that provide more than 500,000 jobs to Cambodian people and develop economy in this country, we also join the Royal Government of Cambodia every time when we hear of hard time and difficulties. The donated gift, today is just a small part of our industry’s social activities”, said Mr John Cha.
The delegate was also saddened by the news of the lost of lives of four people in Prey Veng caused by the serious flood this year. The hardship and lost of the farming, the lack of food, evacuation, the diseases and other effects could be seen as evidences of the problems faced by villagers. “We decided to help share our condolence of US$100 to each family of the lost love ones” said Mr Ly Tek Heng, Operations Manager of GMAC, adding that “some of GMAC members were also effected by the flood that interrupted their production activities”.
In his remarks, HE Mok Theary, Deputy Governor of Prey Veng expressed his gratitude to the generosity of all members of GMAC to his people. He told people to support back to the industry by encouraging their children, if having chance to work in industry, to work hard and support back to industry.
The delegate thanked all authorities involve especially Mr. Chan Deth, Peam Chor district chief for his entire support and facilitation. Read more...
Li & Fung Ltd.’s CSR Mission to Cambodia
08/11/13: GMAC and Group Chairman of Li & Fung Ltd. and his top officials including Senior Vice President, Executive Vice President, and Executive Director are here in Cambodia to take PROACTIVE Action together with GMAC and the Cambodian Government on workers’ safety. We are going to send a clear message to the world that when it comes to issue of workers’ safety, “CAMBODIA IS A COMPLETELY DIFFERENT COUNTRY”, which it already is despite the public misconception.
We are really pleased with the active engagement and responsiveness of the Ministry of Commerce, Ministry of Labour and Ministry of Land Management.
Li & Fung Ltd. is a HK-based trading company with offices in 55 countries and turnover of over $22B (Close to 2 times the Cambodia’s GDP). Having sourced from close to 100 factories in Cambodia, L & F is one of Cambodia’s top buyers. Read more...
PATTERN TRAINING AVAILABLE IN CAMBODIA
Phnom Penh, Cambodia: After many years of skills development training programs, the Cambodian Garment Training Center (CGTC) with cooperation and support from the Overseas Human Resources and Industry Development Association (HIDA), Japan set up courses on pattern making skills to help Cambodia’s industry association and garment manufacturers in localizing their experts in pattern making.
The pattern training focuses on skirts, blouses, pants, dresses and jackets drawing, creating the block pattern, knowledge of draping, body measurement, fabric choosing, cutting, ironing, dress assembling- sewing and the important steps of garments construction.
Three local trainers have trained in various pattern skills so they are qualified to be pattern trainers and are expected to work in the coming establishment of the Cambodian Garment Training Institute (CGTI) expected to be in force in 2015. Meanwhile, sixty trainees from member factories and fashion shops have completed their courses and back to their jobs while those who are self-employed are developing their fashion businesses. Both local trainers and trainees wish to have their skills upgraded to higher level from their current basic level.
Join our training effort to increase your productivities and skill development to your workplace.
Visit of Hong Kong Business Delegation to Cambodia 13-14 October 2013
A 40-member Hong Kong Business Delegation visited Cambodia on 13-14 October 2013 to explore business & investment opportunities particularly in the upstream industry (Fabric production). Under GMAC‘s facilitation, the delegation was received by H.E Sok Chenda of the Council for the Development of Cambodia and H.E Sun Chanthol, the new Minister of Commerce. They also made visits to 2 factories who are GMAC members.
During the visit, the delegation was well informed of Cambodia’s investment environment and policies. The group was also briefed about relevant data and information which include introduction to the country, economic data, industry information, setting up of foreign invested company, land ownership, construction cost, duty & tax, utilities, waste water treatment, transportation, labour & trade union, employing foreign staff, foreign exchange control, so and so forth…
GMAC advise Members on new policy for
Better Factories Cambodia Monitoring
30 September 2013
The Garment Manufacturers Association in Cambodia (GMAC) has informed all its members that with immediate effect, Better Factories Cambodia (BFC) staff seeking access to factories for monitoring visits should be accompanied by officials of the Royal Government of Cambodia and/or possess letters from the Government authorizing such access to their factory. GMAC members are free to exercise their discretion if they want to grant access to BFC monitors that arrive unaccompanied by relevant representatives of the Government.
GMAC has been deeply involved with Better Factories Cambodia since its inception, both as a strategic partner, a constituent representing the interests of employers as well as a contributor to the funding of this project. However, recent events pertaining to the approach taken by BFC to introduce a “Public Disclosure Programme” have raised doubts within GMAC if we are being treated as a true partner and given the respect that we deserve.
We want to state categorically that GMAC fully supports the push for greater transparency within the garment industry. However, we strongly oppose the fact that stakeholders are not given ample time and opportunity to provide feedback before the launch.
The ONLY official meeting that occurred between BFC and GMAC to discuss this “Public Disclosure Programme” took place on 21 August 2013. However, the fact sheet was sent to GMAC only on 29 August. GMAC was informed that BFC intends to launch the initiative sometime during the week of 17 September 2013 despite GMAC repeated request for a pushback so as to allow ample time for more thorough discussion on how to best deal with the negative implications that might arise.
Excellency Sat Samoth, Under-Secretary of State at the Ministry of Labor and Vocational Training and also the current chairman of the Project Advisory Committee of BFC had also expressed the Government’s reservations and the need for further discussions. He said “If buyers have this information and they decide to cancel an order or put a sanction on a factory in Cambodia, it will have many drawbacks: The factory loses, the worker loses, Cambodia loses.”
The International Labor Organisation (ILO) is meant to be a tripartite organization with equal representation from Government, Employees and Employers. Yet, despite clear objections and reservations by 2 out of 3 social constituents, BFC chose to launch the initiative by sending an information package to various stakeholders and the media. Would it not be more logical to provide additional time for further discussions to try and address the concerns raised by stakeholders? GMAC seriously questions the intentions of BFC for launching this more than 3 months before the date of actual implementation.
“By undermining the valid concerns of tripartite partners, the BFC program frustrates the spirit of tripartism that we have passionately been embracing in Cambodia. It also goes against the recent independent evaluation of the BFC program which underlined the need for increased tripartite ownership of the programme. It is disappointing that under the umbrella of the ILO, such a program chooses to isolate partners, rather than bring together parties to enhance industrial relations. Such engagement by the BFC under the ILO sets a bad precedent as to the genuine nature and spirit of tripartism.” said the Vice President of the Cambodian Federation of Employers and Business Associations (CAMFEBA).
GMAC deserves and demands to be treated with more respect as a partner and stakeholder of BFC.
National Social Security Fund – Preparation for the Implementation of Health Insurance
On 25 September 2013, the Board of the National Social Security Fund (NSSF) had its first discussion on the implementation of Health Insurance for all private sector’s workers/employees. This is the second phase of implementation after the first phase “Work-Related Accidents and Occupational Diseases” was started at end of 2008. This Health Insurance is expected to kick off by September 2014.
NSSF is the Public Administration Institution established to offer basic social security to all workers/employees in the private sector. It is technically under the Ministry of Labour and Vocational Training (MoLVT) and financially under the Ministry of Economy and Finance (MEF). However, NSSF is headed by a tri-partite Board (Government-Employer-Union). GMAC Chairman Mr. Van Sou Ieng is also a member of the Board, allowing for the garment industry voice to be heard and proposals taken into account before any decision.
Heated discussion to come shortly is the determination of the contribution rate (Premium). NSSF has been assisted by the International Labour Organization (ILO) with regard to the contribution rate to be imposed for implementation. The lowest rate recently suggested by the ILO is 3.2% of the worker/employee’s gross salary, which both the employer and worker/employee find it very high and another factor leading to high cost of doing business in Cambodia.
The ILO used to suggest an impractical rate when starting the first phase “Work-Related Accidents and occupational Diseases”. It was originally 1.6% which was later on reduced to only 0.8% after strong objection from the employer and proper consultations were conducted.
Workers' Road Safety
Nowadays traffic accidents involving our workers are worryingly happening. According to the report on actions and results of the National Social Security Fund, in the first half of 2013 traffic accidents increased by 1,691, causing 37 workers to die and 296 to be seriously injured and 1,643 lightly injured.
In response to this issue, the working group on road traffic safety for worker protection in cooperation with relevant institutions has taken measures to prevent accidents during workers’ commute, including dissemination and instruction on the issue to all workers and worker truck drivers. The educational dissemination has focused mainly on things such as awareness of traffic law, traffic accident prevention, truck maintenance and first aid.
Pursuant to the law on road traffic and the spirit of the meeting of the inter-ministries and relevant institutions, the Ministry of Labour and Vocational Training has issued Decision no. 002 BK/S.S.R dated 25 January 2013 on Establishment of “Working Group on Road Traffic Safety for Worker Protection”. This working group, in which GMAC is a part, has carried out its role and duty by designing action plans and implementing them for 2013 and continuing to design action plans for 2014, aimed at reducing and preventing road accidents among workers to a minimum.
The working group on road traffic safety for worker protection in cooperation with relevant ministries, institutions, departments and authorities through the implementation of its 2014 action plan strongly expect that it will help improve the awareness of traffic safety, traffic law and vehicle check and maintenance methods among truck drivers and workers, ensuring safety during the commute of workers and especially taking part in enhancing traffic safety and socio-economic development and reducing poverty of all workers in line with the Royal Government’s policy
Workers Claim the Rights to work
Phnom Penh: This afternoon, 20th September 2013, SL factory workers staged strike at CCAWDU office to claim their rights to work. They holds the banner that reads "CCAWDU union blocking us from getting to work. I need my job". Some reads "I need my job back to survive and to feed my family". The angry workers strike to request the CCAWDU leader to take responsibility in the damages caused to their jobs and daily income lost.
The incident has happened since August and continues to today during which many workers lost their jobs and some could not access to their work places due to illegal strike staged by C-CAWDU union. The illegal strikers blocked the gate, acted violently and threatened other workers who wanted to work to join them. The serious production flow interruption occurred when group of CCAWDU activists got into the factory turned off the electricity power, shut down the steam boiler, and closed down the power generating plant.
The government and authority could not enforce the law and leave factory in damage. This kind of illegal strike and lack of law enforcement will minimize the attraction of Cambodia to investors.
GMAC has received technical support from the Japanese government
through HIDA to train Pattern Making to Cambodian people. We are
now accepting application to below training courses:
Courses for Phase 3 (weekend class):
1‐ Pattern Making on Blouses (14/09/13 – 20/10/13)
2‐ Pattern Making on Pants (26/10/13 – 22/12/13)
3‐ Pattern Making on Jackets (28/12/13 – 23/02/14)
Course Fee: US$ 70 per one person (for each course)
Number of Participants: 12 persons for each course
TRAINER: Cambodian trainers and Mr. Naruo Mizuno, the Pattern Making Expert.
Registration is now open and will be base on First come,
TRAINING DEPPARTMENT, GMAC
#175, Street 215, Phnom Penh
Phone: 023 301181 or 012 563082
Open letter from
The Garment Manufacturers Association in Cambodia
The Royal Government of Cambodia and
All other stakeholders of the Garment Industry
It is with much regret that we bear witness to yet another violent strike, this time at SL Garment Processing (Cambodia) Ltd. This trend in recent months of increasing use of violence and other strong-arm coercion techniques is disturbing and require the immediate attention of the Royal Government of Cambodia.
The issue of illegal strikes has plagued our industry for too long. GMAC has always tried to raise this problem to the attention of all stakeholders and especially the relevant authorities. We have asked for strict enforcement of existing laws and urged the Government to punish workers and unions that repeatedly flout the law and continue organizing strikes that do not comply with legal requirements.
The blocking of factory gates prohibiting access to and from the factory, the use of verbal and physical threats preventing workers from going to work are all in direct violation of both the Labor Law as well as the Law on Demonstrations. It has NEVER been our intention to violate workers rights to freedom of association and freedom to demonstrate but we are obliged to protect and uphold the rights of our members.
The rights of workers to freedom of association and bargain must also be respected by the trade unions. Various stakeholders including GMAC have been promoting the use of Collective Bargaining Agreements (CBA) and the rights of the Most Representative Union for years. Strikes organized at factories by minority unions and especially where a CBA is in place should not be tolerated and the offenders severely punished.
We strongly condemn the use of violence in any dispute and call on the Royal Government to immediately apprehend those responsible and bring them to justice. Bona fide investors should never fall victim to outbursts of violence such as those exhibited in the attacks on SL Garment Processing (Cambodia) Ltd. These perpetrators must be punished to the fullest extent of the law to prevent similar incidents from ever repeating.
We urge the Royal Government of Cambodia to:
Strictly enforce laws: Striking workers must not verbally or physically prevent other workers from working. Any form of coercion or threat on workers who want to work should not be tolerated.
Ensure Public Order: Relevant authorities must ensure that striking workers do not demonstrate in front of factory gates preventing access to and from the factory. Picketing should be conducted on the sides of the gates instead. More importantly workers must never be allowed to block public roads affecting public order.
Administer Zero Tolerance policy towards Violence: All strikes MUST be peaceful. Any hint of violence must be stopped immediately and those responsible punished in accordance with existing laws.
The relevant authorities MUST be delegated and empowered to take immediate actions instead of having to rely on further instructions from higher up in the hierarchy. Timely actions will be vital to ensure investor confidence and allow the garment industry to continue to provide more than 600,000 employment opportunities for Cambodian.
Pursuant to article 20 of the Statute of Garment Manufacturers Association in Cambodia (GMAC), an Annual General Meeting was convened on 30 March 2013 at Sofitel Phnom Penh Phokeethra, Phnom Penh. During the meeting, an election was held and members elected the following candidates as new Executive Committee of the association for term 2013-2015:
GMAC Welcomes New Director General of General Department of Taxation
GMAC warmly welcomes the appointment of H.E Kong Vibol as a new Director General of the General Department of Taxation. H.E Kong Vibol was assigned to both strengthen tax revenue collection and ensure transparency in the process. At very early days, in office, he initiated a Tax Workshop with all GMAC members to increase knowledge of our members and to also open opportunity for people to ask the Tax officers for answers and clarification on areas considered as grey which usually opens opportunity for disputes.
National Arbitration Center - Commercial Arbitration
Ten years ago, a first arbitration service in Cambodia was established but only dealt with labour disputes. The Labour Arbitration Council has been viewed as a major landmark in the development of sound labour relations in Cambodia, being trusted as an independent national institution with quasi-judicial authority derived from the Labour Law of Cambodia. The recent successful establishment of Commercial Arbitration is another milestone in the history of Cambodian business environment. It would contribute tremendously to investors’ confidence and conducive business environment leading to growth and development of the country’s economy.
Commercial Arbitration is one of the main things the private sector longs for and it is also Cambodia’s commitment toward its WTO accession. From the start, the private sector including GMAC has been very active and deeply involved in the establishment process to make sure it meets or exceeds the expectation of the private sector, its ultimate user. Of more importance moving forward is the direct involvement of the private sector thru its nominated representatives to be members of the NAC.
The business community firmly believes that this NAC will move forward boldly and professionally to be a recognized institution with complete confidence from the private sector, as what the labour arbitration council has set its boothprint.
Loan agreement signing for the establishment of Cambodian Garment Training Institute
Pursuant to the Statute of the association and with approval of more than 75% of members at the 2011 Annual General Meeting of the Association to allow the Executive Committee Members to act on GMAC's behalf in taking up the loan from the French Development Agency (AFD) for the purpose of the establishment of the Cambodia Garment Training Institute, and after about 2 years of detailed discussions among the Executive Committee Members and thorough studies, both legal and technical, the Loan Agreement was signed on 03 December 2012 at the AFD office in Phnom Penh by GMAC Chairman Mr. Van Sou Ieng and AFD's Asia Department Director Mr. Gregory Clemente.
The loan with the amount of $3.26M to be solely used for the establishment of the institute will benefit all members of the association and the country economy as a whole. The institute will train unskilled workers and other Cambodians who wish to undertake higher level works in garment factories, which will help both productivity improvement and the localization of workforce. The institute will be located inside the Phnom Penh Special economic Zone, around which many factories are clustered.
GMAC is thankful to AFD for their unwavering supports to the industry.
Global Apparel Buyers Supporting ASEAN Suppliers
Phnom Penh, October 2: Marks and Spencer, Target, Benetton and El-Corte Ingles are some of the top global clothing brands and retailers who are in Phnom Penh, Cambodia this week, attending the 3rd Annual SAFSA Global Forum 2012 at the Sofitel Hotel.
Source ASEAN Full Service Alliance (SAFSA) is a member based alliance of textile mills and garment factories in Southeast Asia and the world’s leading garment buyers.
The three day event organized in conjunction with the Garment Manufacturers Association in Cambodia (GMAC) gives high-level sourcing executives the opportunity to conduct B2B meetings with ASEAN based textile and apparel suppliers. During the two days, over 60 meetings are being held between the members and critical issues facing the region’s competitiveness are being discussed.
ASEAN textile and apparel companies are preparing for the move towards a single market in 2015 through the realization of the ASEAN Economic Community.
Mr. Ade Sudrajat, Chairman of the ASEAN Federation of Textile Industries (AFTEX) said, “Integration of the regional supply chain will allow the seamless transport of goods and stronger upstream and downstream linkages.”
The Annual SAFSA Global Forum is an ideal mechanism for brands and retailers to meet so many different ASEAN based suppliers in one event.
EU-ASEAN BUSINESS DIALOGUE PLANNING
To brain storm the Private Sector on the EU and ASEAN business linkages that lead to the development of the ASEAN & EU business communities and the coming 2nd EU-ASEAN Business Council at the EU-ASEAN Summit on April 1st 2012 in Phnom Penh. More Detail in <<English and Khmer >>
PRIME MINISTER VISITED GMAC BOOTH IN NANNING EXPO
Nanning, Guangxi province, South of China - Prime Minister Hun Sen visited the booth of Garment Manufacturers Association in Cambodia (GMAC) in the morning of October 21st, 2011. The visit started after Samdech attended the opening of the 8th China-ASEAN Expo 2011, the 8 years of trade promotion and cooperation between Cambodia (ASEAN) and China. He is proud to see more Cambodian exhibitors displayed their Made in Cambodia products.
During the visit, Samdech appreciated the quality garment and shoe products made by our Cambodian workers in the country. Cambodian government had strongly supported the annual trade promotion event. The 8th CAEXPO 2011 opened for traders and public from 21st to 26th October 2011 during which business match making and business conferences are set up to link traders, investors to do their trading and investment in Cambodia. Mr. Van Sou Ieng will attend the round table business meeting tomorrow.<<Detail >> STUDY VISIT, DONGGUAN, CHINA 11th – 14th NOVEMBER 2011
Dongguan city, China –The Garment Manufacturers Association in Cambodia (GMAC) organized a Garment Industry Survey trip to Dongguan, China from 11th to 14th November 2011 with participations from government’s multi ministries, union representatives, garment business players in Cambodia and Dongguan Garment and Textile Association in Cambodia.
The 3rd trip started with the conference co organized by GMAC and Dongguan Garment and Textile to promote the Cambodia’s current competitive investment environment to the potential 60 participants from more than 40 raw materials, fabric, textile, and related businesses.
Mr. Van Sou Ieng, Chairman of GMAC introduced 24-delegate members from Cambodia’s Ministry of Commerce, Ministry of Economy and Finance, the Council for the Development of Cambodia, Council of Ministers, Ministry of Environment, Unions and private companies and potential and competitive advantages to invest in Cambodia. The benefits given by the Royal Government of Cambodia with the Duty Free given by the EU, Canada, Japan, Korea, China, and other benefits could boost the garment, textile, textile mills, and other supporting industries to invest in Cambodia. <<Detail >>
Shoe Factories to Join GMAC
After a meeting held yesterday at the Ministry of Commerce (MOC) presided over by Senior Minister Cham Prasidh with participation of GMAC Exco and all the shoes factories' owners/managers, GMAC is pleased to inform you that all the shoes factories announced officially that they would join GMAC as members. The intention was to get all the shoes manufacturing companies in Cambodia organized as a group and for them to have an official channel to address their business issues, many of which are similar to ours. We warmly welcome them!
VISIT TO CHINA
Phnom Penh – A joint Delegation led by His Excellency Vong Sauth, Minister of Labour and Vocational Training will visit the garment factories, and other businesses in Dongguan, China today 28th May 2011 for the 4-day visit (28 – 31 May 2011) to study the situation and development of Chinese labour market and the better cooperation in workplaces. <<Detail >>
PREAH VIHEAR TEMPLE 2011
On 14th February to delivered GMAC’s supports to the soldiers and families station in Ta Maon temple area, in Preah Vihear. After handing out the goods, which included talkie-walkie (handset), noodle, soy sauce, dried turnip (Chhai pov). The soldiers and families thanked association for helping them during the needed time. General Chhin Chanpor praised the private sector; especially GMAC for the generous contribution to the front line men.<<Detail >>
ANNUAL SOCIALTRAINING 2011
Gawon, Phnom Penh: On 30 April and 1 May 2011, there was an annual training called “VISION 2011” at Gawon factory, which was presided over by H.E Pich Sophoin, Secretary of State of Ministry of Labour and Vocational Training. Mr. Ly Tek Heng, GMAC Operations Manager praised Ms Mercedes Cha, Director General of Gawon Apparel Co., Ltd. for her good training activities annually to help Cambodian workers to know how to live, work, andcare about themselves, united as one in their workplace. <<Detail>>