CAMBODIAN LABOR REACTION TO NEW LABOR MINISTER

UNCLAS SECTION 01 OF 02 PHNOM PENH 000998

SIPDIS

SENSITIVE
SIPDIS

STATE FOR EAP/MLS, DRL/IL
DEPT OF LABOR FOR ILAB--VIVITA ROZENBERGS AND JONA LAI

E.O. 12958: N/A
TAGS: ELAB PGOV ECON CB
SUBJECT: CAMBODIAN LABOR REACTION TO NEW LABOR MINISTER


1. (U) SUMMARY: Cambodia's newly appointed Minister of
Labor and Vocational Training (MOLVT),Vorng Sotr (CPP),
replaces Nhep Bunchin (FUNCINPEC),who was removed from
office pending a corruption investigation. The few labor
observers who know Vorng Sotr from his previous position as
MOLVT Secretary of State working on child labor and
trafficking speak highly of him, but for most union leaders,
he is an unfamiliar figure whose appointment comes as a
surprise. Despite the widespread belief that Nhep Bunchin's
removal is more about power consolidation than
anti-corruption concerns, most union leaders and labor
observers are cautiously optimistic that a well-connected CPP
minister will reinvigorate the moribund MOLVT. END SUMMARY.

FUNCINPEC's Nhep Bunchin Out, CPP's Vorng Sotr In
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2. (U) On May 23, the National Assembly approved the
nomination of Vorng Sotr, the son-in-law of National Assembly
President Heng Samrin, who had been undersecretary of state
for trafficking in children and child labor under the former
Ministry of Social Affairs, Labor, Veterans, and Youth
(MOSALVY) from 1998 to 2004. When MOSALVY split in July
2004, Sotr was transferred to the newly created MOLVT as
secretary of state for child labor.

SIPDIS


3. (SBU) Former Labor Minister Nhep Bunchin (FUNCINPEC) was
suspended on May 11 pending an on-going corruption
investigation. According to Prime Minister Hun Sen's
accusations, the former minister allowed local labor
migration placement companies to charge Cambodian workers
bound for South Korea USD 1,000 each, nominally for passport
and visa services which should cost far less. Nhep Bunchin
allegedly turned a blind eye to Cambodian migrant workers in
Malaysia being sent to work in Saudi Arabia despite the lack
of a Cambodia-Saudi Arabia labor agreement that would allow
the practice. Nhep Bunchin, who is a US citizen, is
reportedly visiting relatives in California.

ILO Child Labor Specialists Praise New Minister
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4. (U) International Labor Organization--International
Program to End Child Labor (ILO-IPEC) officers gave Vorng
Sotr high marks for his work on child labor issues, though
they noted that his efforts were frequently thwarted by the
overall ineffectiveness of the MOLVT. Menacherry Paul
Joseph, ILO-IPEC Chief Technical Advisor, said that Vorng
Sotr had demonstrated an openness to new ideas and helped to
expedite approval of the ILO's action programs. Khleang Rim,
ILO-IPEC National Project Coordinator, noted that the new
minister is known for fostering good relations with his staff
and for his approachability. Khleang Rim remarked that Vorng
Sotr's background--growing up as part of a farming family,
and serving as deputy governor in Kandal province, as well as
two terms in the Ministry of Labor (MOSALVY and MOLVT)--has
created a humble but experienced professional.

Unions and Labor Observers: Vorng Who?
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5. (U) In contrast to the warm words from child labor
specialists, most union leaders and international labor
observers are unfamiliar with Vorng Sotr and were surprised
by his appointment. Anne Horsley of the International
Organization on Migration summed up the feelings of many when
she described him as an "unknown quantity." Many were
cautiously optimistic about the appointment's affect on the
MOLVT, noting that under the leadership of Nhep Bunchin, the
ministry was inactive and paralyzed by CPP-FUNCINPEC
rivalries. A CPP leader, they hope, will be able to break
the deadlock within the ministry and will have the ear of CPP
leaders as well.


6. (U) It appears as if the only major union leader familiar
with Vorng Sotr is Chuon Momthol, leader of the
pro-government Cambodian Confederation of Trade Unions (CCTU)
and advisor to Deputy Prime Minister Sar Kheng. Chuon
Momthol described Vorng Sotr as hard-working and open-minded,
someone who could deliver quick action on several stalled
labor issues. Chuon Momthol echoed many criticisms
pro-opposition unions and international labor observers have
leveled against Nhep Bunchin during his nearly two years in
office: no labor background, lacking a sense of direction,
and not engaged on key issues like labor law revision.

PHNOM PENH 00000998 002 OF 002



Unions and Labor Observers: Hun Sen Power Play
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7. (SBU) Pro-opposition union leaders Rong Chhun, of the
Cambodian Independent Teachers Association (CITA),and Chea
Mony, of the Free Trade Union (FTU),criticized Vorng Sotr's
rise as part of Prime Minister Hun Sen's recent consolidation
of power. Both leaders agreed that the MOLVT was ineffective
and were unsurprised by allegations of corruption, but, they
pointed out, many government ministries are ineffective and
corrupt. Nhep Bunchin was removed not because he was the
most egregious offender, but because he was FUNCINPEC, they
asserted. Most international labor observers agreed with
this assessment, seeing Nhep Bunchin's removal as motivated
more by politics than by a genuine concern for battling
corruption or helping workers. Nonetheless, they hope that a
more active and functional MOLVT could be the silver lining
for this cloud.

Key Issues for the New Labor Minister
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8. (SBU) Vorng Sotr inherits a poorly functioning MOLVT that
has been paralyzed by lack of leadership and
inter-ministerial political divisions since the labor
component split from the former Ministry of Social Affairs,
Labor, Veterans, and Youth in July 2004. Among the most
critical labor issues facing him are:

--Threatened General Strike: Pro-opposition leaders Rong
Chhun and Chea Mony have threatened to lead a general strike
if their demands for higher wages, lower gasoline prices, and
shorter working hours are not met. Garment manufacturers,
rival union leaders, and international observers doubt that a
large-scale strike will come to pass--either the government
will step in to make some compromises or the unions will not
be able to gain the support of other unions needed to truly
make this action a general strike.

--Stalled Labor Law Review Process: The current labor law,
passed in 1997, is vague and contradictory and was written
without the input of unions, which did not exist at the time.
Key areas of contention are expanding the scope of the law
to include civil servants, informal sector employees,
domestic workers, and migrant workers; working hours and
premium pay; job protections afforded to workers'
representatives; and Arbitration Council jurisdiction over
individual disputes. The new law remains in the discussion
stage.

--Labor Advisory Committee: This critical tripartite
committee is responsible for approving sub-decrees (prakas)
governing all aspects of labor affairs, from minimum wages to
defining hazardous and light work in the context of child
labor. The committee has not met since the MOLVT/MOSAVY
split in July 2004, though several unions on the committee
have been pushing for the committee to resume its work.

Comment
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9. (SBU) Since March, the Prime Minister has removed at
least 76 high-ranking FUNCINPEC officials from office, and
Nhep Bunchin appears to be the latest victim of his
housecleaning spree. The move consolidates Hun Sen's power
not by removing a dynamic FUNCINPEC leader actively pursuing
an agenda opposed to the Prime Minister's interests, but
rather by clearing out the deadwood blocking CPP from full
access to the Labor Ministry. From a purely labor
perspective, the change in leadership is probably a positive
development. Hopefully with a well-connected CPP minister at
the helm, the Ministry of Labor and Vocational Training will
begin tackling some of the difficult issues that it has all
but ignored in the past.
STORELLA