Leading fashion brands have reached individual binding agreements to support collective bargaining agreements in Cambodia in a move that was facilitated by the ACT (Action, Collaboration, Transformation) initiative with labour rights group IndustriALL.
- Later today at the Global Fashion Summit: Copenhagen Edition 2024, the ACT initiative will present a new approach to supply chain industrial relations, to support wage improvements, better working conditions and a future-proof industry.
- These bilateral agreements between individual brands and IndustriALL Global Union, mark a significant milestone in the move towards the first-ever brand-supported collective bargaining agreement in the apparel and footwear sector.
- ACT is an agreement between IndustriALL and international brands and retailers in the garment and footwear industry to support sustainable wage growth through collective bargaining in production countries.
FOCUS OF ATTENTION: The key areas of how brands can support collective bargaining agreements were designed collaboratively with partners in Cambodia recognising that this shift toward binding agreements on wages necessitates legally binding commitments by individual brands specifically tailored to meet the priorities of social partners in Cambodia.
- Setting a new standard in supply chain industrial relations, these agreements foster sustainable structural transformation and support for sound industrial relations.
- This approach adopts a win-win strategy, aiming to meet investor and human rights due diligence expectations on in-country outcomes and addressing brand obligations on meaningful stakeholder engagement.
- These agreements also support effective and sustainable industry collaboration amongst all actors across the value chain. They demonstrate strong leadership by brands, employers, and unions in the sector and signal the potential for a new era in wage approaches, freedom of association, and responsible purchasing practices.
- The ACT programme in Cambodia is implemented through the ACT foundation and directed through tripartite stakeholders of brands, employers and unions.
- In parallel to the negotiations towards the binding individual agreements, employers and trade unions in Cambodia are working on collective bargaining agreements for garment factories in Cambodia.
WHAT THEY SAID:
The individual agreements have the potential for broad impact on the apparel sector, setting higher standards and conditions and representing a new era for supply chain industrial relations.
—Mira Neumaier
Executive Director
ACT
These agreements that we now have with brands to support collective agreements in the textiles and clothing sector in Cambodia is innovative and groundbreaking. We have worked on this for many years, and we finally see the result. This shows that when you take time to build trust and understanding you can achieve great things.
— Atle Hoie
General Secretary
IndustriAll
