PROMISING CAMBODIAN UNION'S DECLINE HIGHLIGHTS

UNCLAS SECTION 01 OF 02 PHNOM PENH 001048

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/MLS, DRL/IL
GENEVA FOR RMA
DEPT OF LABOR FOR ILAB--JONA LAI

E.O. 12958: N/A
TAGS: ELAB ECON KTEX PHUM CB
SUBJECT: PROMISING CAMBODIAN UNION'S DECLINE HIGHLIGHTS
COMMON UNION FAILINGS

REF: PHNOM PENH 814


1. (SBU) SUMMARY. The Coalition of Cambodian Apparel Workers
Democratic Union (CCAWDU),which was once one of the
country's most respected unions, has plummeted in stature
following the dismissal of former union president Chhorn
Sokha. Embassy persuasion has been required on several
occasions to prevent or reverse unwise and sometimes illegal
actions. While the Cambodian labor movement has made
remarkable progress since its inception ten years ago,
CCAWDU's dramatic reversal highlights unions' immaturity and
the vulnerability of Cambodian workers to union leaders who
are sometimes unscrupulous and often inexperienced. END
SUMMARY.

Dynamic Female Leader Pushed Out
--------------


2. (U) Since its formation in 2000, CCAWDU has been hailed
as a transparent and well-run union that promoted the
election of women as union leaders and was free from partisan
political connections. In a country where some unions are
known for accepting bribes, using violence to intimidate
non-members, and holding frequent illegal strikes, and where
nearly all garment sector unions have mostly male officers
leading an overwhelmingly female workforce, CCAWDU was a
promising breath of fresh air that many labor observers hoped
was a harbinger of future union developments.


3. (SBU) In contrast to this promising start, a CCAWDU
election defeat and leadership struggle has pushed the
well-respected female former president Chhorn Sokha out and
left a less experienced and rash man, Ath Thorn, in her
place. Throughout the fall of 2005, Chhorn Sokha and Ath
Thorn waged battle, trading charges of corruption and
financial mismanagement. In February 2006, a CCAWDU
fact-finding committee dismissed Chhorn Sokha from CCAWDU in
a move that surprised and angered many international
observers, who saw her as the victim of Ath Thorn's personal
ambitions and unfounded allegations.

Flying Dragon Factories: Widespread Strike Threatened
-------------- --------------


4. (SBU) Under Ath Thorn's leadership, CCAWDU has shed the
transparency and pragmatism that were once its hallmarks. In
March, Ath Thorn called the embassy to announce his plans to
lead 20 workers in a march to the embassy and hold a press
conference outside the embassy to call attention to an
on-going labor dispute at the Flying Dragon garment
factories, which produce garments for mostly US-based buyers.
Rather than utilize the long-standing relationship between
the embassy and CCAWDU to highlight the case and discuss ways
to resolve the dispute, Ath Thorn failed to even alert the
embassy to the increasingly serious dispute and instead
rushed to leverage the embassy's high public profile in a
dispute that was really between Cambodian workers and Hong
Kong-based factory owners. The embassy persuaded Ath Thorn
to cancel these plans and delivered a sharp rebuke, reminding
the union that the US Embassy was one of the labor movement's
strongest supporters in Cambodia and asking to be engaged in
helping to resolve disputes rather than implicitly being
blamed for them.


5. (SBU) A few days later, CCAWDU tried another tactic,
threatening to expand their strike from the Flying Dragon
factories to other factories with a CCAWDU union presence,
potentially involving 25,000 workers and causing considerable
alarm among garment factory owners. Econoff and FSN Labor
Assistant persuaded CCAWDU to negotiate with management, and
worked with the Garment Manufacturers Association of Cambodia
(GMAC) to offer more respected industry leaders to help
negotiate with Flying Dragon management, in whom the union
had lost confidence.

Goldfame Factory: Strikes Held in Defiance of Judicial
Rulings
-------------- --------------


6. (SBU) More recently, Embassy learned that 10,000 CCAWDU
members were striking at the Goldfame garment factory despite
two rulings from the Arbitration Council and one from
municipal court declaring the strike to be illegal and
ordering the strikers to return to work. Stressing the

PHNOM PENH 00001048 002 OF 002


importance of the Arbitration Council as a uniquely
transparent labor dispute resolution body, Econoff persuaded
union leadership to return to work on May 18 pending further
negotiations with factory management. FSN Labor Assistant
monitored the opening of business the next day to help
encourage a smooth return of the workforce. CCAWDU now
reports that major areas of contention have been resolved,
but negotiations continue on smaller matters.

CCAWDU Moves Towards Pro-Opposition Unions
--------------


7. (U) Finally, in another dramatic change, CCAWDU has
abandoned its formerly nonpartisan stance to ally itself with
the leading pro-opposition Free Trade Union (FTU) and
Cambodian Independent Teachers Association (CITA). These
organizations have a part-union, part-political agenda, with
leaders -- particularly Rong Chhun of CITA -- who speak out
on a variety of social and political issues. CCAWDU recently
joined FTU and CITA in a May Day march that proceeded despite
being denied permission from city officials (reftel) and
joined their calls for a general strike if the government
fails to meet their demands of higher wages for teachers and
garment factory workers, a shorter workweek, and lower
gasoline prices. Labor observers have speculated that Ath
Thorn seems to be seeking guidance from Chea Mony, the leader
of the FTU.


8. (SBU) COMMENT: The Cambodian labor movement has made
remarkable progress since 1997 when the first independent
unions were established. Garment and tourism sector unions
have racked up impressive labor victories, and the labor
movement is the largest, most powerful, and most indigenous
part of civil society. Nonetheless, CCAWDU's swift decline
serves as a reminder that Cambodia's unions remain adolescent
organizations facing significant obstacles. Union leaders
confront a variety of challenges and temptations, including
lack of training and experience, fear of losing member
enthusiasm during protracted negotiations, few accountability
procedures within unions, constant temptation to trade
factory bribes for labor peace, and frustration with the
non-binding nature of arbitral awards. Cambodia's
much-touted labor rights generally protect unions from undue
government interference, but do not always protect workers
from poor union managers and unscrupulous leaders. END
COMMENT.
STORELLA