ETI Statement
Situation at Fortune Garments, Cambodia
May 2006
Introduction
During 2005/06, allegations of poor labour practices at Fortune Garments have been the subject of disagreement between Ethical Trading Initiative (ETI) trade union and corporate members, their suppliers and labour rights campaign groups. These issues have featured in newspaper articles. As is standard practice, ETI and its members conducted an investigation during this time period. This included visits to the factories and discussions with workers, factory management, trade unions and monitoring improvement plans. The parties to these discussions in the UK, which have included ETI, Asda, Debenhams, Next, the International Textile Garments and Leather Workers Federation and Labour Behind the Label currently understand there have been significant improvements in the industrial relations situation and working conditions at this factory. This document summarises what these parties understand the current situation to be.
ETI notes that while any improvements made are principally the work of the workers and the management at Fortune Garments, they also reflect a great deal of hard work by ETI members, intermediary suppliers and trade union affiliates in Cambodia.
Current situation at Fortune Garments
On 26 April, Fortune Garments and the Garment Workers Democratic Union (GWDU) reached a recognition agreement and the GWDU called off the proposed strike on 1 May. Both parties report positive working relationships and have expressed their commitment to ensure this continues. The Coalition of Cambodian Democratic Apparel Workers Unions (CCAWDU) has also been granted access into the factory to monitor implementation of this agreement. Fortune Garments have committed to implementing a training programme for all managers on human resources and industrial relations and will seek support from the ILO and other expert bodies for this.
Part of the dispute concerned the dismissal of two workers, Pay Ly Lay and Sok Vy, both of whom have accepted compensation and both parties report this matter is now resolved.
A number of trade union demands over pay and conditions have been agreed. Thes include increased provision for maternity pay and leave, improved holiday entitlements and clarifications to the disciplinary procedure. Negotiations continue on other demands related to pay and benefits including the provisions for determining piece rates.
The President of Fortune Garments acknowledges an oversight in not implementing all the recommendations of the ILO Better Factories Programme and has taken steps to address this. A manager has been appointed to oversee implementation of these recommendations. The factory is part of the Better Factories Programme and will receive regular visits from ILO officers to monitor implementation of their improvement programme.
Future engagement by ETI members
ETI members hope that the improved industrial relations at
Fortune Garments continue to strengthen as they recognise that mature industrial
relations are the best vehicle to ensure workers’ rights are observed.
ETI corporate members that source from the factory will continue
to monitor developments and all members will keep each other informed of
any progress or developments to the contrary.
-ends-
For further information:
Dan Rees/Julia Hawkins ETI, 0207 404 1643;
Email: press@eti.org.uk.
Jane Lyons, ETI press office, 0208 693 6693.
See also:
ETI Library: Key documents: ETI Base Code
ETI activities: ETI experimental projects
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