VZCZCXRO6279
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0366/01 0650422
ZNR UUUUU ZZH
P 060422Z MAR 07
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHDC PRIORITY 8143
INFO RUCNASE/ASEAN MEMBER COLLECTIVE

UNCLAS SECTION 01 OF 02 PHNOM PENH 000366 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
FOR G/TIP, EAP/MLS and EAP/RSP 
 
E.O. 12958: N/A 
TAGS: PHUM SMIG ELAB CB
SUBJECT:  LEGAL LABOR MIGRATION -- REDUCTING POVERTY OR TRAFFICKING 
THE POOR? 
 
 
¶1.  (U)  Summary.  On February 22, 37 Cambodian workers, who 
migrated legally to Thailand in January 2007 to work in a rubber 
factory, returned to Cambodia through their recruiting company. 
Workers complained that their working conditions were not as 
promised.  The Cambodian government promotes labor migration as a 
means to increase income generation opportunity, reduce poverty and 
diminish stress on its labor market; however, poor management and 
lack of adequate monitoring may lead to a negative result.  End 
Summary. 
 
A Case of Migration Gone Bad 
---------------------------- 
 
¶2.  (U)  On February 22, the labor export company Top Manpower 
returned 37 out 43 Cambodian legal migrant workers, who had gone to 
work in a rubber factory in the southern Thailand province of Nakorn 
Sri Thammarat under the labor export arrangement agreed to by both 
the Cambodian and Thai governments.  The workers went to work for 
Southland Resources Factory on January 24, after being recruited by 
the Top Manpower recruiting company. 
 
¶3.  (U)  According to the Cambodian human rights NGO LICADHO, the 
recruitment announcement stated that the workers were to work eight 
hours per day, in exchange for a daily wage of 240 to 260 Baht 
(~USD6.86 to USD 7.42).  The factory was also responsible for daily 
meals and the accommodations of the workers.  In reality, the 
workers had to work 10 hours per day for a daily wage of only 160 to 
170 Baht (~USD4.57 to USD4.85).  The factory also refused 
responsibility for meals and accommodations, as promised by the 
recruitment process.  Workers claimed that in addition to the USD100 
to USD150 each of them paid for their travel documents, the company 
charged each of them USD500 for unspecified reasons to be deducted 
from their respective salaries over a period of two years.  The 
company confiscated the workers' passports upon arrival in Thailand. 
 
 
¶4.  (U)  The workers tried to contact the labor recruiting company 
several times before their return, but to no avail.  The workers 
could not return by themselves as their passports had been taken 
away.  Eventually, the workers contacted LICADHO for assistance, 
after which the latter contacted the concerned authority in 
Thailand, leading to the eventual return of 37 workers.  The other 
six workers decided to stay in the factories, after having 
re-negotiated with the factory. 
 
¶5.  (U)  LICADHO staff indicated that the workers plan to file a 
complaint with the Ministry of Labor and Vocation training (MOLVT), 
demanding the return of their passports, repayment of the money they 
paid the company for their travel documents, and their unpaid 
salaries.  The MOLVT said they will work with the recruiting company 
to resolve this problem. 
 
¶6.  (U)  This case is illustrative of the legal migration dilemma. 
In 2006, the NGO Cambodian Women's Crisis Center (CWCC) reported 
thirteen similar cases for Malaysia.  In a public forum entitled 
safe migration and labor rights organized by the NGO Coordination of 
Action Research on AIDS and Migration (CARAM) Cambodia and MOLVT in 
September 2006, two women who had experienced difficult work 
conditions in Malaysia as domestic maids talked about their problems 
and ordeals.  One said that her passport was taken but no document 
of any kind was given to verify her legal status.  The other woman 
said that she complained of abusive work conditions to the 
recruitment company.  However, the company told her that her pay 
would be cut if she changed employers. She ran away one day and met 
a sympathetic Malaysian who took her to CARAM, after which she was 
returned to Cambodia. 
 
Passport Confiscation Justified 
------------------------------- 
 
¶7.  (U)  In the September CARAM-sponsored public forum, Ms. Medine 
Nathya, Director of the Cambodian Labor Supply Company, admitted 
that the company confiscates the workers' passports upon arrival. 
She claimed that workers often lose their passport which causes the 
company problems as well as a financial loss.  She also said that 
the workers cannot use the passport anyway without authorization 
from the company.  For these reasons, the company keeps the 
passports but provides workers with a paper allowing to travel 
freely within the country but not internationally.  According to 
her, the MOLVT has approved this procedure. 
 
Facts on Cambodian Exports of Labor 
----------------------------------- 
 
¶8.  (U)  Mr. Nhem Kim Houy, Office Chief of the MOLVT's Employment 
Department, said that exporting labor abroad is one of the 
government priorities, as it is an effective means to promote 
Cambodian economic development through foreign remittances. He 
acknowledged that seeking employment for people is a challenge for 
 
PHNOM PENH 00000366  002 OF 002 
 
 
the government; therefore, the government has to partner with 
private companies.  Target destinations for Cambodian labor are 
Thailand, Malaysia, South Korea and Japan. 
 
¶9.  (U)  According to statistics provided by the MOVLT, as of 
December 2006, 7,451 Cambodians had been sent to work legally in 
Malaysia since 1998, mostly in domestic work; 3,399 in the Republic 
of Korea since 2003; and 445 in the Kingdom of Thailand since 
October 2006.  In 2006, Cambodia was permitted to send 1,050 workers 
to Korea but this quota has been increased to 3,000 additional 
workers for 2007.  Sending labor to Japan is still under discussion 
since a bilateral labor export agreement has not yet been signed and 
as Japan demands higher standards than other countries. 
 
¶10.  (U)  According to a 2006 survey, there are 180,000 Cambodian 
illegal migrants working in Thailand.  Both countries have been 
working together to legalize the status of these workers so they may 
work in Thailand legally.  Between March 2005 and March 2006, both 
governments registered and provided identity cards to 37,142 of the 
180,000 illegal migrants; however, only 12,694 registered workers 
received a Thai visa and Work Permit.   The Thai government also 
agreed to allow more Cambodian workers to work in Thailand through 
approved labor recruitment companies. 
 
 
List of Approved Labor Export Companies 
-------------------------------------- 
 
¶11.  (U)  Labor export companies are required to deposit USD 100,000 
with the MOLVT in order to gain the right to export labors.  Below 
is a list of companies that have officially registered with the 
MOLVT and are recognized as legal exporting agents, according to a 
MOLVT directive dated October 12, 2006.  It should be noted that 
earlier, there were more than 30 private companies, operating in 
Cambodia without depositing the required amount of money with the 
Ministry.  Furthermore, although MOLVT has granted permission to two 
companies to send labor to Japan, the Japanese government has agreed 
only to accept trainees to upgrade their skills; to date, no 
Cambodians have been sent to Japan through this mechanism. 
 
¶1. Cambodia Labor Supply Company PTY Ltd, sending workers to 
Malaysia, Thailand, South Korea and Japan. 
¶2. Human Resources Development Co., Ltd, sending to Malaysia and 
Thailand. 
¶3. Philimore Cambodia Co; Ltd, sending to Malaysia and Thailand. 
      ¶4. Human Power Co; Ltd, to Malaysia and Thailand. 
      ¶5. Mey Yourn Service Co; Ltd, to Thailand 
      ¶6. Top Manpower, to Thailand 
      ¶7. CDM Trading Manpower Co; Ltd to Thailand 
¶8. Chhun Hong Manpower Pte. Ltd to Malaysia and Thailand 
      ¶9. VC Manpower Co; Ltd to Malaysia 
¶10. (Cambodia) Victory Cooperation Co; Ltd, to Malaysia, Thailand 
and Japan. 
      ¶11. Ung Rithy Group, to Malaysia and Thailand. 
      ¶12. SPT International Cambodia Public, to Thailand. 
 
Comment 
------- 
 
¶12.  (U)  The case of 37 workers highlighted the fact that migrant 
workers, although having gone through legal channels to work in 
foreign countries, received little protection, if any, from the 
labor export companies or its agents.  It is discouraging to see 
that the MOLVT agreed to and allowed the companies to confiscate the 
workers passports upon arrival at destination. 
 
CAMPBELL