In Cambodia, the Arbitration Council Foundation (ACF) plays a very important role in settling labor disputes in garment industry which represents 10 percent of the Cambodian GDP. This institution will continue to play this crucial role in the country for many years to come as long as a high functioning labor court does not exist yet.
"The ACF’s role will be all the more important as the Government considers how to implement a system of labor courts in Cambodia. Realistically speaking, once the necessary laws are passed, it will take some time – probably years – to develop high functioning labor courts in Cambodia," said Mr. William A. Heidt, U.S. Ambassador to Cambodia, in his speech at the conference on "Labor Dispute Resolution System" on Monday.
According to the ambassador, after the passage of the Trade Union Law last year, a draft law on labor disputes and tribunal procedures, and another draft law on the national minimum wage are being discussed by stakeholders. These complex laws will have a strong impact on Cambodian international relation system.
Regarding these draft laws, Ambassador William A. Heidt urged the Royal Government of Cambodia (RGC) to openly discuss with all stakeholders so that the laws will be acceptable for everyone.
Particularly, from the ambassador's point of view, the draft law on labor disputes and tribunal procedures should be used as an instrument to find solution concerning labor dispute at all levels. The draft law should also set out clear roles for other institutions concerned including the ACF.
Moreover, Ambassador William A. Heidt added that the ACF is also an important agency through which other international institutions, such as International Labor Organization, Better Factories, could involve diectly in supporting Cambodian garment sector.
As for the ambassador, from a legal perspective, the participation of the international institutions in strengthening industrial labor dispute resolution proves that the RGC is openly and internationally committed to find better solution regarding labor dispute that affects also buyers of Cambodian products.
"In a labor intensive business like garments, it is critically important to build mechanisms that can resolve labor disputes without disrupting value chains. For more than a decade, the Arbitration Council Foundation has been such a mechanism, and has played a key role in building an environment of confidence for investors," added the ambassador.
After all, Ambassador William A. Heidt added that due to the RGC's policy of "Partnership in Development", he was very happy to be able to directly participate in developing and improving the living standards of the Cambodian people.
The ACF was established by the RGC in May 2003. Its main role is to resolve labor dispute through conciliation and arbitration under the Cambodia's Labor Law.
"The Arbitration Council is not a court but, pursuant to Cambodian statutes, is endowed with legal and equitable decision-making authority with regard to collective labour dispute cases," wrote the ACF on its website.
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