TCF POST Report
The Employers Association and the Trade Unions in Cambodia have renewed a framework for Collective Bargaining Agreements (CBA), which will be effective from July 1, 2026, to July 31, 2029. Defined as “renewed template for CBA,” the legally binding framework is supported by brands to standardize wages and benefits across garment, textile, footwear, and travel goods factories. It also ensures that wage increases are embedded into sourcing prices and production volumes are maintained.
The newly renewed CBA template was formally launched on 17 June by the Cambodia’s Employers Association and trade unions affiliated to IndustriALL Global Union. The template sets clear, coherent standards for wages, benefits, working conditions, and worker protections, and it helps elevate the garment, textile, and travel goods industries by avoiding the pitfalls of unbacked, voluntary wage adjustments.
The renewed agreement increases the monthly base wage for a Cambodian textile and footwear worker by US$6 until December 2027, with a further US$9 increase from January 2028. It also extends maternity leave by 15 additional days. It introduces five days of paid paternity leave. Alongside the agreement has covered additional special leave, additional maternity leave, paternity leave, embedded protection on freedom of association and gender-based violence, heat stress, skills development, a dispute resolution mechanism, and an industrial peace clause.
Here is a breakdown of what this groundbreaking agreement means for workers, employers, and international brands.
1. Boosted Wages and Enhanced Benefits
The new CBA establishes a stronger financial foundation for workers, ensuring that negotiated raises are added on top of existing base salaries and the official annual minimum wage.
Two-Phase Wage Increases:
Now until December 31, 2027: An extra +$6 USD per month added to the base wage.
From January 1, 2028 onward: An extra +$9 USD per month added to the base wage.
Note: This revised base wage will be used to calculate all other benefits and entitlements.
Expanded Family Leave:
Maternity Leave: Women workers receive 15 additional days at 50% pay, on top of the standard 90 days provided by Cambodian Labour Law.
Paternity Leave: New fathers receive 5 working days of fully paid leave without touching their annual leave balance.
Special Leave: Up to 3 days of fully paid special leave for immediate family events (out of a 7-day maximum) without annual leave deductions.
Workplace Safeguards and Training
Heat Stress Protections: If factory temperatures cross official safety thresholds, workers will receive mandatory cooling breaks with zero pay cuts.
Skills Bonuses: Workers who complete training will receive extra skills bonuses following a factory review 3 months later.
Paid Participation: Full wages and benefits are guaranteed while workers attend training or participate in dispute resolution processes.
2. Commitments of Employers and Brands
This agreement strictly applies to manufacturers tied to international buyers who have signed the “Agreement supporting collectively bargained wages in Cambodia.”
Under the CBA, employers must:
Universal Application: Apply all CBA terms equally to every single worker in the enterprise.
Zero Tolerance for Discrimination: Strictly prohibit union discrimination, retaliation, or unjustified role changes against trade union committee members.
Safe Workplaces: Maintain a work environment completely free from harassment, discrimination, and Gender-Based Violence and Harassment (GBVH).
Legal Compliance: Fully abide by the legally binding and final decisions issued by the Arbitration Council.
3. Commitments of Workers and Trade Unions
To maintain industrial peace and stability, workers and unions have agreed to the following terms for the duration of the CBA:
No Strikes or Lockouts: Both sides agree to refrain from unilateral actions. No strikes or lockouts are permitted during the term of the agreement, unless an employer refuses to enforce a binding decision by the Arbitration Council.
No Further Claims: Unions will make no additional financial or contractual claims while this CBA is active.
Respecting Management: Workers will respect the employer’s management rights (hiring, work assignments, and discipline) when exercised in good faith and within the law.
Contract Enforcement: Elected union representatives must continue to perform their regular work duties and comply with internal factory rules.