Stakeholder Model Approach for Labor Practices Change of Cambodian Garment Industry

Globally Cambodia has been one of leading countries for the garment manufacturing industry since early 1990s. Foreign investors for garment factories of Cambodia were able to maximize the profit through very low wages, unpaid overtime labor, unsafe & unhealthy working environment. So the key source of cost leadership for Cambodian garment makers was closely concerned with the notorious working condition of Cambodia. This study accessed the labor practices change of Cambodia with the impact of the external mechanism like the bilateral trade treaty with the US government (UCBTA). This study divided the labor practices trend of Cambodian garment industry into three periods; pre-UCBTA period, during UCBTA period and post UCBTA period, and picked out major features of each period. Also the working condition reform of Cambodia was reviewed from the perspective of corporate social responsibility (CSR) type. This study accessed the limitation of labor practices reform of Cambodia through the interest dynamic among three stakeholders of the garment producers, that is Cambodian government, local employee, global garment buyers. In result, the tacit collusion and interest sharing structure between Cambodian government and the garment factory owners has worked as a big barrier of labor practices reform.