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Labour Standards in Global Supply Chains – Programme of Action for Asia and the Garment Sector

eval_number:

3044

eval_title:

Labour Standards in Global Supply Chains – Programme of Action for Asia and the Garment Sector

location:

region:

Asia and the Pacific

country:

Asia and the Pacific - regional

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eval_url:

https://analyticstest.ilo.org/ievaldiscovery/eval/3044

lessons_learned:

description:

The evaluation highlights significant project achievement in Cambodia introducing participatory and evidence-based minimum wage setting mechanisms. Based on analysis of the project’s success, a lesson learned associated with the achievement is, when designing a project, sometimes it is better to focus on contributing to one important outcome and do it thoroughly over an extended period than to set many objectives supported by very short term and/or superficial technical assistance activities. Based on project documents and ILO and ILO constituents’ accounts, project outcomes on strengthening wage-setting mechanisms were significant in Cambodia, where minimum wage has been re-evaluated every year since 2015 using ILO project inputs and applying ILO-recommended participative and evidence-based approaches. One trade union leader remarked, “Through project support on the wage component, this project has strengthened the capacity of our leadership to do research and gather data for the minimum wage negotiations process.” An employers’ representative affirmed, “We have seen the gap between the three negotiating parties’ positions reduced thanks to the activities of the project.” ILO constituents likewise indicated that project interventions contributed to making decision-making in the national tripartite council more transparent. To achieve this outcome, the project delivered a very focused strategy over more than four years (since the first interventions predated this project). Intervention strategies included training programmes, producing, publishing and diffusing industry research and statistical analysis, convening stakeholders to share relevant data and analysis, and holding high level policy workshops with decision-makers and academics. According to ILO programme managers, the project tailored training to match various stakeholder needs, a practice which increased the effectiveness of training interventions.

context:

Economic Importance of the target sector The garment sector is a significant employer and export industry Cambodia, a factor underlining project relevance to ILO constituents. In Cambodia, the sector is the top provider of formal sector jobs, employing nearly 700,000 workers, 85% of whom are women. Demand-driven technical assistance In Cambodia, based on ILO programme manager accounts, the project began in a context in which minimum wage was a highly political and contentious issue often featured in the national news. The project followed an extended period of stagnant minimum wages in Cambodia, a trade union campaign to increase wages, and in early 2014 violent protests that ended in the death of five workers. Labour unrest on minimum wage, which only applies to Cambodia’s garment and footwear sector, threatened the country’s most important export industry and the main provider of formal sector jobs, making action urgent. According ILO specialists and project documents, the government specifically requested ILO assistance to find a solution and, even before the LSGSC project began, initial tripartite consultations had laid the groundwork for project interventions. Established trust among key stakeholders The long term presence of Better Factories in Cambodia likewise facilitated outreach to garment sector stakeholders. Data showing positive economic outcomes Based on project research, rising wages and maintaining a competitive garment sector have to date been compatible in Cambodia. Exports and employment in the sector are still growing despite five successive years of rising wages.

success:

Project wage-related activities in target countries were demand-driven in Cambodia - Before engaging on an intensive capacity building initiative, it is very important that to ensure there is a high level of stakeholder demand for ILO support and it meets a critical need. Project work in Cambodia benefited from an extended period of political and economic stability and growth. The status of multilateral trade agreements, potentially affecting garment sector competitiveness, formed a backdrop for project activities in Cambodia, possibly influencing stakeholder commitment and behaviour. In Cambodia, the EU is in the process of revoking Everything But Arms preferential trade status from Cambodia. Key informants indicated that national garment stakeholders hope that the country’s progress on labour rights may reverse the decision. The project strongly anchored improved wage setting mechanisms in Cambodian institutions which is positive for sustainability. Government representatives explained that an annual minimum wage review has been integrated into new minimum wage law. In the new law, the role of the Labour Advisory Council has been institutionalized through the creation of a tripartite wage board, with government, employers and workers equally represented.

challenges:

Tripartite stakeholders indicate low levels of trust between the government, some trade unions, and employers affecting information sharing and confidence in data produced by other parties. The ILO was able to bridge trust gaps during the project and may need to continue to play some role in validating data used for wage negotiations even after the project. Trade union capacity is low in Cambodia. One program manager indicated that the ILO project focused a lot on building the capacity of the weakest party in negotiations – the trade unions.

administrative_issues:

Various ILO programme managers and constituents highlighted the significant contributions of ILO regional wage and industrial relations specialists in support of LSGSC project outcomes. ILO regional specialists involved in the LSGSC project highlighted that the coordination and country-level expertise given by the project’s national programme officers and in some cases, national consultants were critical inputs to the specialists’ effectiveness.

comments:

Based on ILO and ILO constituent feedback, LSGSC outcomes in Cambodia contributed to improving lives of workers, with benefits for employers as well. In Cambodia, wages have more than doubled since 2013. In addition, project support for social dialogue brought relative calm to industrial relations compared to the labour unrest that preceded the project.

url:

https://analyticstest.ilo.org/ievaldiscovery/lessons/236897

themes:

theme:

Planning and programme design

category:

Organizational issues

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