Observation (CEACR) - adopted 2010, published 100th ILC session (2011)

Employment Policy Convention, 1964 (No. 122) - Cambodia (Ratification: 1971)

The Committee notes the Government’s report received in May 2010 containing some replies to the points raised in the 2009 observation. The Committee has also benefited from the information provided by the ILO specialists in the Regional Office for Asia and the Pacific.

Articles 1 and 2 of the Convention. Coordination of social and economic policy with poverty reduction. In its report, the Government refers to the implementation of the National Strategic Development Plan, the Rectangular Strategy Plan, and the Vocational Training’s Strategic Plan. The Committee notes that the Government’s new policies under the Tourism Law include plans to establish a tourism-focused research institute, university, and vocational school to promote industry-specific skills. The Government details other measures adopted to respond to the global crisis, including provision of short-term vocational training and micro-credit service to newly unemployed workers and availability of low interest, short-term credit to farmers in small and medium-sized enterprises. The Government also describes the 2008–11 implementation of the Emergency Food Project financed by the Asian Development Bank, which seeks to build a better response system to food crises, provide subsidies for seeds and fertilizers, and distribute free food to the most vulnerable groups in 200 communes and seven provinces. The Committee notes that the Government also endorses a policy of labour migration to neighbouring countries as a way of reducing poverty and unemployment. The Committee invites the Government to provide information in its next report on the achievements of the employment objectives defined in the Rectangular Strategy and other development plans designed to promote full, productive, and lasting employment opportunities to the unemployed and other categories of workers affected by the crisis. The Committee also invites the Government to report on the action taken within the framework of an active employment policy to prevent abuse in the recruitment of Cambodians working abroad (see Part X of the Employment Policy (Supplementary Provisions) Recommendation, 1984 (No. 169)).

Employment trends. The Committee notes that according to the Ministry of Planning’s 2007 Labour Force Report, Cambodia’s labour force participation rate in 2007 remained at 75 per cent and its unemployment rate continued to be low at 1 per cent. The informal economy is said to provide up to 90 per cent of all employment due to inadequate opportunities and wages in the formal sector. The Committee notes that under the global economic crisis, the economy has experienced a significant drop from the average growth rate exceeding 10 per cent in the years between 2004 and 2007 to loss of 2 per cent in 2009, although the growth rate in 2010 has recovered to a rate between 4 and 5 per cent. The Committee invites the Government to provide in its next report updated information on the labour market and employment trends and communicate any difficulties experienced in collecting relevant data and using such data to implement policies in accordance with the Convention.

ILO technical assistance. The Government indicates improvements in labour law compliance since the Better Factories in Cambodia Programme despite the pressure engendered by the economic crisis. Minimum wage compliance rate increased by 12 per cent, while the compliance rates regarding requirements to provide protective equipment and install needle guards on sewing machines have also increased by 12 per cent and 7 per cent, respectively. Noting that the garment industry has been particularly affected by the crisis and that its workers are among the most vulnerable, the Committee requests the Government to continue providing information on the progress in implementing the Better Factories initiatives in the country and its impact on fostering productive employment.

Regional development and rural employment. The Committee notes the Government’s efforts to address the regional disparity in development by promoting the tourism industry, planning to establish Special Economic Zones in locations other than Phnom Penh, and cooperating with regional partners like Japan to develop the triangle area of Cambodia–Laos–Viet Nam. The Committee also notes that the ILO has assisted the Government since 1992 to promote labour-based appropriate technology (LBAT) to build essential rural infrastructure and that this strategy is currently being considered as a part of the Government’s comprehensive strategy to improve social safety through productive and employment-intensive public works. The Committee requests the Government to provide information on the effects of the abovementioned measures on promoting employment opportunities in the rural areas, including data and analysis examining the progress made towards achieving equitable regional development. In addition, the Committee invites the Government to detail the specific employment objectives of the Triangle Development Area in its next report.

Youth employment. In its 2009 observation, the Committee expressed its concern regarding the estimated rate of 275,000 young people annually entering the labour market. The Committee understands that the Government is finalizing a youth policy with an action plan partly addressing the employment issue. The Committee asks the Government to provide information on specific measures adopted to generate employment opportunities for the youth.

Educational and training policies. The Committee notes the establishment of the National Training Board, headed by the Deputy Prime Minister and composed of representatives from the private sector, training institutions, and governmental ministries. The Board seeks to improve the existing educational and vocational institutions by setting national standards and certificates in cooperation with foreign experts, as well as creating a National Employment Agency and job centres. The Government indicates that there are 45 public and 209 private/NGO educational and vocational institutions and that the number of students graduating from these programmes has increased by 22.5 per cent in the years between 2006 and 2008. The Committee requests the Government to continue providing information on the effects of such educational and training measures on increasing employment opportunities.

Article 3. Participation of the social partners. The Government continues to indicate that the Labour Advisory Committee has not been consulted in the development and implementation of employment policies. The Committee emphasizes that social dialogue is essential in normal times and that it becomes even more so in times of crisis. The employment instruments require member States to promote and engage in genuine tripartite consultations (General Survey of 2010 concerning employment instruments, paragraph 794). The Committee invites the Government to intensify its efforts to take into account the stakeholders’ perspectives in formulating and implementing employment policies. The Committee asks the Government to address this essential issue in its next report by demonstrating how the representatives of employers and workers are consulted at the policy planning and implementation stages so that their experience and views are taken into account.