VZCZCXRO7287
PP RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHPF #0292/01 1260420
ZNR UUUUU ZZH
P 060420Z MAY 09
FM AMEMBASSY PHNOM PENH
TO RUEHC/SECSTATE WASHINGTON DC PRIORITY
INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
RUEHC/DEPT OF LABOR WASHINGTON DC PRIORITY

UNCLAS SECTION 01 OF 02 PHNOM PENH 000292 
 
SENSITIVE 
SIPDIS 
 
STATE FOR EAP/MLS, DRL/IL - DOL FOR ILAB 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PGOV PHUM CB
SUBJECT: UNIONS SUBMIT MAY DAY DEMANDS IN CAMBODIA 
 
REF: PHNOM PENH 277 
 
¶1. (U) SUMMARY: Over 2,500 workers took to the streets in an 
approved march in Phnom Penh to celebrate International Labor 
Day on May 1.  The parade was organized by the few 
independent trade unions in Cambodia, who used the occasion 
to demand better conditions for workers.  The demonstrators, 
largely composed of textile and hotel workers, marched 
through the capital to the National Assembly, where they 
delivered a ten-point set of demands to parliamentarians from 
the opposition parties.  Although spirits were high, union 
leaders remain realistic about realizing their goals during 
what is a difficult time for Cambodia's struggling garment 
industry. The march also signaled a positive trend for 
freedom of assembly in Cambodia. END SUMMARY. 
 
--------------------- 
All Work and No Play 
--------------------- 
 
¶2. (U) Born in Chicago, but first popularized in the Soviet 
Union as an international workers day, May Day is typically 
celebrated in Cambodia with a march and rally often organized 
by independent or opposition affiliated trade unions.  Of 
significance this year was that the three independent unions 
collaborated and held a joint event, showing improved 
cooperation among leadership personalities.  A request to 
hold the May Day parade was approved by the Phnom Penh 
municipality which came as a pleasant surprise to some 
unionists.  However, government officials, including Prime 
Minister Hun Sen, urged workers to contribute to the 
Cambodian economy, which has been hard hit by the global 
economic crisis (Reftel), by working rather than 
demonstrating on May 1. 
 
------------------- 
Misplaced Optimism? 
------------------- 
 
¶3. (U) The parade started with a rally at a local park and 
proceeded on to the National Assembly, where a 
union-supported letter enumerating demands for improved 
working conditions was delivered to parliamentarians. 
Topping the list of demands was the establishment of an 
independent labor court, which was given passing mention in 
Cambodia's 1997 Labor Law, but has received little attention 
since.  Unions, long frustrated with the non-binding nature 
of the Arbitration Council, optimistically expect a labor 
court will provide quick, binding, and final decisions. 
However, some experts believe that this is unlikely in a 
country where judges are reportedly up for sale, and verdicts 
manipulated to suit those with influence and money.  Cambodia 
consistently ranks among the world's most corrupt in numerous 
reports such as Transparency International's Corruption 
Perception Index. 
 
------------------ 
A Joint Offensive 
------------------ 
 
¶4. (U) Also on the list of demands was the cancellation of 
the draft amendments to articles 67 and 73 of the Labor Law. 
Although discussed intermittently since 2007, proposed 
changes to Articles 67 and 73 of the Labor Law gained 
momentum and strong backing of the private sector only 
recently, apparently due to the global economic crisis.  The 
proposed amendments, if approved as currently written, would 
allow for an unlimited number of fixed duration contracts 
which would have a negative effect on workers and union 
rights and protection.  Business for Social Responsibility 
(BSR) sent a letter to the RGC on March 3 which expressed 
concern over the proposed amendments.  The letter stated that 
the RGC's support of Better Factories Cambodia and "labor 
standards in general is a key criterion for our companies' 
sourcing decisions."  BSR further commented that they wanted 
to "ensure that Cambodia's image as a sourcing country with 
high labor standards is maintained."  The letter was signed 
by the Gap, Wal-Mart, Levis and others. 
 
¶5. (SBU) The draft amendments were sent to PM Hun Sen for 
comment, and were the main agenda items for a recent 8th 
Working Group of the Government-Private Sector Forum which 
PolOff attended.  The Ambassador, in her courtesy call with 
the Minister of Labor, voiced concern over the proposed 
amendments, stating they would be "disastrous" for Cambodia's 
niche as a labor friendly nation.  The amendments are now on 
hold once again and may have been scrapped altogether 
according to Chuon Momthol, president of the pro-government 
Cambodia Union Federation.  In a recent conversation, Mr. 
 
PHNOM PENH 00000292  002 OF 002 
 
 
Momthol told PolOff that PM Hun Sen met with more than 3,000 
workers from pro-government unions.  At the meeting, Hun Sen 
agreed to cancel the proposed amendments after hearing that 
the unions did not support them. 
 
--------------------- 
Chea Vichea's Legacy 
--------------------- 
 
¶6. (U) The parade ended at the site where popular trade union 
leader Chea Vichea was gunned down in 2004.  Ou Virak, 
president of the Cambodian Center for Human Rights, recalled 
the "heroism and devotion to the plight of workers" by the 
late Chea Vichea and repeated the letter's demand to give 
Chea Vichea the title of "Worker Hero," to build a memorial 
statue in his honor near Independence Monument, and to 
re-open the investigation into his assassination.  As Chea 
Vichea did years before, organizers continued to call for the 
elimination of the discrimination against freedom of 
association, reinstatement of union leaders wrongfully 
suspended or dismissed, and fair resolution of labor disputes. 
 
---------------------- 
Economic Consequences 
---------------------- 
 
¶7. (U) The letter also demanded safeguard measures for 
employees should a factory close, diversification of the 
labor market, increased monitoring of rogue factory owners 
who claim bankruptcy only to reopen elsewhere, and a 
reduction of working hours from 48 to 44 hours per week. 
Stenciled on banners and shouted through loudspeakers, but 
noticeably absent from the list of demands, was a call to 
increase the monthly wage by almost one hundred percent to 
$120.  Although the day's events were peaceful and successful 
in the eyes of the organizers and participants, the reality 
of the bleak economic situation lingered in the shadows.  Ath 
Thorn, president of the independent Cambodian Labor 
Confederation, admitted that unions are currently at a 
disadvantage due to the global economic crisis, stating that 
recently employers "have been more likely to ignore our 
demands." 
 
¶8. (U) COMMENT: Although the requests made by workers may not 
be realistic in today's economic climate, the fact that the 
three main independent unions put their differences aside and 
worked together to agree on the demands and hold a joint 
demonstration shows an increased maturity in Cambodia's labor 
sector.  A further indication of maturity, this time by the 
government, was seen in that such a large demonstration was 
permitted and proceeded without incident.  The International 
Labor Day events were upbeat and successful, overall a 
positive trend for freedom of assembly in Cambodia.  END 
COMMENT. 
ALLEGRA