Bangladesh and Cambodia: Two Countries, Similar Stories

Bangladesh and Cambodia are the two countries whose garment industries have benefited from the termination of Agreement on Textiles and Clothing (ATC), a successor of Multi-Fibre Agreement that imposed quota on developing countries’ exports to developed countries, in 2005.[1] The two countries offer comparative and competitive advantages otherwise no longer available in developed countries and even other fellow developing countries, such as relatively lower operational and labour costs.[2] Yet, behind such advantages lie a plethora of issues plaguing workers’ rights. Such issues range from unsafe working environments,[3] numerous abuses,[4] and irregular working hours.[5]

When it comes to working hours, the laws in both countries stipulated that the maximum number of working hours is 48 hours per week. Notwithstanding the ostensibly clear-cut and protective maximum working hours, the reality on the ground speaks differently. In Cambodia, mass fainting caused by overwork is a common occurrence.[6] In June last year, the Ministry of Labour and Employment of Bangladesh, passed a government policy (without having to be discussed through the national legislature), stipulating that garment-exporting factories can deploy workers for a maximum of 72 hours per week with double wage for the overtime period and that translates to additional 12 hours of allowable working hours,[7] notwithstanding many instances of excessive working hours experienced by male and female workers alike.[8]

From minimum wage towards a living wage

The global living cost crisis which is exacerbated by the pandemic and recent geopolitical crises is hitting everyone hard and this is especially true in countries and regions that have yet to introduce minimum wage that is comparable to the living wage. Research conducted by Common Objective found a significant gap between Bangladeshi minimum wage and the living wage, with the former being BDT 8,000, or about USD 75, and the latter being USD 255 for Dhaka and USD 215 for Dhaka’s satellites.[9] The Anker Research Institute found the minimum living wage to be USD 231[10] in Cambodia which is still substantially above the latest minimum wage of around USD 200.[11]

Will tripartism address this gap?

While such gaps still present challenge to garment workers, the fact that both Bangladesh and Cambodia are moving towards more tripartism of employers, unions, and the governments offers a spark of hope. In March 2023, facing raging inflation, the Bangladeshi government has set up a tripartite board to review annual minimum wages. In Cambodia, the government will continue the previous year’s practice of tripartite discussion on 2024 minimum wages.[12] Admittedly, there is no bulletproof guarantee that tripartism is a panacea to bridging the gap between the minimum wage and the living wage, considering intangible but real power imbalance between the three parties.

Historical precedents nevertheless show us that labour unions and movements that are insistent and well-organized, such as Australian 8-hour movement and[13] Dindigul Agreement in India,[14] have the potential to succeed.