Cambodian employers embrace the challenge

As Cambodia strives to make its way in the global economy, more attention is being paid to the business and investment climate, with a particular focus on labour rights. Van Sou Ieng, the president of the powerful Cambodia Federation of Employers and Business Associations (Camfeba), believes there has been steady progress on many fronts. He spoke recently with the Post's Achara Ashayagachat.Q: How will Cambodia's Asean chairmanship affect the domestic economy and business environment?

A: Hosting the Asean summits will ensure Cambodia is a credible and respected country as we are playing a part in global society. It shows that Cambodia can also be relied on.

For business, [engaging and integrating] with the world is a big opportunity _ certainly with both advantages and disadvantages, as we have to improve infrastructure, energy, transport and telecommunications. But (foreign) investment will come later when businessmen are confident in Cambodia.

Q: What about upgrading labour standards?

A: Cambodia is the only country apart from Jordan and Haiti that link trade and labour standards, or we cannot export. For example, garment and footwear companies are regularly inspected by international auditors. It's quite extremely stable for workers; workers have been protected by ILO (International labour Organization) standards. Buyers also check [compliance].

Q: So no problem, quite a good business environment?

A: But the challenge (for employers) is that workers have abused their freedom of association by setting up too many trade unions. Now, there are 2,300 unions for 400 factories, meaning one plant with some seven to 10 unions. How can a husband have peace with seven wives?

Now, the government, since it can't stop this, is trying to pass a new law to manage the "wives". The authorities and employers will listen and deal with the most-voted representatives of those unions. Those with fewer votes will not have the right to negotiate. [The law] is being debated in the parliament now, and it is hoped that it can be enacted within the first half of 2012.

Q: How about protecting Cambodian migrants in neighbouring countries?

A: This is a new issue for our country. Now the government has been trying to monitor the rights and plights of our migrants. [Workers] will have to go through a recruitment agency, while the authorities will also set up care centres in countries such as Malaysia to deal with the issue in destination countries.

Q: It sounds good, as Asean as well as Cambodia have several mechanisms to take care of women and children and migrant labour.

A: Yes, but Asean has to deal with human rights issues at their own speed; we cannot just bring in an outside standard and implement it in Asean.

Q: You mean that having a lower common denominator is justified?

A: No. It's about perceptions of rights that could be different. Asean has many ethnic groups and different levels of development; [it takes] education of the people and time to digest information about freedom and rights. This issue must not be abused to instill violent behaviour _ your rights must have borders; do not trespass into others' boundaries.

Q: Do you feel the Arab Spring impact will seep into Asean as frustration about economic inequality might become a trigger of political violence too?

A: Once the population becomes educated, they will understand their rights and freedom and demand more. If you oppress them too long, they will revolt.

What's perhaps a more pressing concern for us is the imminent formation of the Asean Economic Community and people will be able to move more freely. Political violence is still not so damaging compared to natural disasters _ look at Thailand, where your recent floods were worse than the protests.

But what we are learning from the world is that if we copy the European Union, workers will not help themselves but will wait for the state. We must not fall into the (western) trap. Of course social safety nets are necessary but they must be within relevant contexts and traditions. Europe has its own character, and so has Asean.

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