H&M CEO Karl-Johan Persson recently visited Cambodia to discuss annual wage reviews and industrial relations
As a social responsible brand, H&M has been closely following the developments of the apparel industry in Cambodia. In mid-October 2013, H&M’s CEO Karl-Johan Persson met the Cambodian Prime Minister Hun Sen to particularly discuss the urgency of annual wages reviews and functioning industrial relations. During the visit he also met other stakeholders such as trade unions and UN body Better Factories Cambodia.
H&M has observed that the majority of the strikes that has occurred during last year have been in connection with terms and conditions of employment, including wages. We believe that the Cambodian government should conduct an annual review of the minimum wage, taking into consideration national inflation and the consumer price index. If an effective review system is created and implemented, these revisions will help address the basic needs of the workers. When working conditions are more stable, both suppliers and buyers can focus on productivity and on developing the textile industry in Cambodia.
During autumn 2013, H&M are about to launch a unique project in partnership with the Swedish Embassy, UN body ILO and the Swedish union IF Metall, aimed at strengthening industrial relations in Cambodia. Cambodia is a country with excellent conditions for a functioning labor market, but need support to take advantage of them. We can support them in the importance of signing contracts, negotiation techniques and conflict resolution and teach them the importance of cooperation and collective agreements. Our goal is to create opportunities for dialogue and strengthen the textile workers’ influence.
We believe that it is in the interest of the Cambodian textile industry, as well as in our interest, that the industry continues to develop into an advanced and mature textile industry. Stable markets, in which people are treated with respect, and where the workers are properly compensated by their employers, are of the utmost importance.
Foreign trade plays a major role in the development of countries as it is a source of economic growth. It helps to lift people and nations out of poverty. Textile production accounts for a large portion of Cambodian exports, so the development of the industry is vital to the country’s future. By being present in Cambodia and by using our influence to promote good practice we can help to consistent change. H&M indirectly creates work for hundreds of thousands of people in the countries we buy from and by being in a country like Cambodia we can influence the workers’ situation.
Cambodia is an important buying market for H&M. We have been buying from suppliers in Cambodia since 1998 and we opened our production office in Phnom Penh in 2000. The textile industry in Cambodia has developed tremendously over the past fifteen years. Today the Cambodian textile manufacturing industry offers products that require technically advanced equipment, skilled labour and entrepreneurial owners. While significant progress has been made, many challenges still remain for the textile industry in Cambodia.