In order to ensure fair wages and a sustainable supply chain, IndustriALL Global Union is signing individual agreements with brands sourcing from Cambodia. The agreement (agreement to support collectively bargained wages in the garment, textile, footwear and travel goods industry in Cambodia) outlines how brands and retailers will support the implementation of collective bargaining agreements at factory level which in turn improves wages and working conditions for workers, strengthen industrial relations, establishes a functioning dispute resolution mechanism and foster skills development.
IndustriALL Global Union is signing agreements with brands sourcing from Cambodia to support collective bargaining for fair wages and improved working conditions in the garment industry.
The agreement promotes collaboration among brands, employers, and workers, ensuring responsible supply chains, better wages, and a functioning dispute resolution mechanism.
Highlighting the urgent need for collective action to ensure fair wages and a sustainable supply chain, IndustriALL general secretary Atle Høie said, “Low wages remain a systemic challenge in the garment industry, exacerbated by competitive pressures. No single brand or actor can address this alone. A sustainable and effective wage strategy must involve all stakeholders – brands, employers and workers.”
The agreement is part of the ACT programme in Cambodia, enabling brands to engage meaningfully with unions, manufacturers and fellow retailers, setting a new industry standard for stable, predictable and responsible supply chains, IndustriALL said in a press release.
By signing the agreement, brands commit to an industrial relations model that balances the priorities of workers, manufacturers and retailers alike. The initiative also aligns with due diligence requirements on stakeholder engagement, wages, and freedom of association (FOA), ensuring a transparent and responsible approach to sourcing practices.
The agreement, which has already been signed by leading brands like H&M Group, Primark and PVH, provides a structured framework to support the implementation of factory-level collective bargaining agreements.
“We urge more global brands sourcing from Cambodia to follow the lead of their industry peers and commit to binding agreements that support collective bargaining and wage improvements in the country,” concluded Høie.