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### Viewing cable 06PHNOMPENH998, CAMBODIAN LABOR REACTION TO NEW LABOR MINISTER

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
06PHNOMPENH998 | 2006-05-25 08:08 | 2011-07-11 00:00 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Phnom Penh

`

    VZCZCXRO7155
    PP RUEHBI RUEHCHI RUEHCI RUEHDT RUEHHM RUEHJO RUEHNH
    DE RUEHPF #0998/01 1450808
    ZNR UUUUU ZZH
    P 250808Z MAY 06
    FM AMEMBASSY PHNOM PENH
    TO RUEHC/SECSTATE WASHDC PRIORITY 6753
    INFO RUCNASE/ASEAN MEMBER COLLECTIVE PRIORITY
    RUCNCLC/CHILD LABOR COLLECTIVE PRIORITY
    RUEHXI/LABOR COLLECTIVE PRIORITY
    RUEHGV/USMISSION GENEVA PRIORITY 1455
    RUEHC/DEPT OF LABOR WASHDC PRIORITY

` `

    UNCLAS SECTION 01 OF 02 PHNOM PENH 000998

    SIPDIS

    SENSITIVE
    SIPDIS

    STATE FOR EAP/MLS, DRL/IL
    DEPT OF LABOR FOR ILAB--VIVITA ROZENBERGS AND JONA LAI

    E.O. 12958: N/A
    TAGS: ELAB PGOV ECON CB
    SUBJECT: CAMBODIAN LABOR REACTION TO NEW LABOR MINISTER

     ¶1.  (U) SUMMARY:  Cambodia's newly appointed Minister of
    Labor and Vocational Training (MOLVT), Vorng Sotr (CPP),
    replaces Nhep Bunchin (FUNCINPEC), who was removed from
    office pending a corruption investigation.  The few labor
    observers who know Vorng Sotr from his previous position as
    MOLVT Secretary of State working on child labor and
    trafficking speak highly of him, but for most union leaders,
    he is an unfamiliar figure whose appointment comes as a
    surprise.  Despite the widespread belief that Nhep Bunchin's
    removal is more about power consolidation than
    anti-corruption concerns, most union leaders and labor
    observers are cautiously optimistic that a well-connected CPP
    minister will reinvigorate the moribund MOLVT.  END SUMMARY.

    FUNCINPEC's Nhep Bunchin Out, CPP's Vorng Sotr In
    --------------------------------------------- ----

    ¶2.  (U) On May 23, the National Assembly approved the
    nomination of Vorng Sotr, the son-in-law of National Assembly
    President Heng Samrin, who had been undersecretary of state
    for trafficking in children and child labor under the former
    Ministry of Social Affairs, Labor, Veterans, and Youth
    (MOSALVY) from 1998 to 2004.  When MOSALVY split in July
    2004, Sotr was transferred to the newly created MOLVT as
    secretary of state for child labor.

    SIPDIS

    ¶3.  (SBU) Former Labor Minister Nhep Bunchin (FUNCINPEC) was
    suspended on May 11 pending an on-going corruption
    investigation.  According to Prime Minister Hun Sen's
    accusations, the former minister allowed local labor
    migration placement companies to charge Cambodian workers
    bound for South Korea USD 1,000 each, nominally for passport
    and visa services which should cost far less.  Nhep Bunchin
    allegedly turned a blind eye to Cambodian migrant workers in
    Malaysia being sent to work in Saudi Arabia despite the lack
    of a Cambodia-Saudi Arabia labor agreement that would allow
    the practice.  Nhep Bunchin, who is a US citizen, is
    reportedly visiting relatives in California.

    ILO Child Labor Specialists Praise New Minister
    --------------------------------------------- --

    ¶4.  (U) International Labor Organization--International
    Program to End Child Labor (ILO-IPEC) officers gave Vorng
    Sotr high marks for his work on child labor issues, though
    they noted that his efforts were frequently thwarted by the
    overall ineffectiveness of the MOLVT.  Menacherry Paul
    Joseph, ILO-IPEC Chief Technical Advisor, said that Vorng
    Sotr had demonstrated an openness to new ideas and helped to
    expedite approval of the ILO's action programs.  Khleang Rim,
    ILO-IPEC National Project Coordinator, noted that the new
    minister is known for fostering good relations with his staff
    and for his approachability.  Khleang Rim remarked that Vorng
    Sotr's background--growing up as part of a farming family,
    and serving as deputy governor in Kandal province, as well as
    two terms in the Ministry of Labor (MOSALVY and MOLVT)--has
    created a humble but experienced professional.

    Unions and Labor Observers:  Vorng Who?
    ---------------------------------------

    ¶5.  (U) In contrast to the warm words from child labor
    specialists, most union leaders and international labor
    observers are unfamiliar with Vorng Sotr and were surprised
    by his appointment.  Anne Horsley of the International
    Organization on Migration summed up the feelings of many when
    she described him as an "unknown quantity."  Many were
    cautiously optimistic about the appointment's affect on the
    MOLVT, noting that under the leadership of Nhep Bunchin, the
    ministry was inactive and paralyzed by CPP-FUNCINPEC
    rivalries.  A CPP leader, they hope, will be able to break
    the deadlock within the ministry and will have the ear of CPP
    leaders as well.

    ¶6.  (U) It appears as if the only major union leader familiar
    with Vorng Sotr is Chuon Momthol, leader of the
    pro-government Cambodian Confederation of Trade Unions (CCTU)
    and advisor to Deputy Prime Minister Sar Kheng.  Chuon
    Momthol described Vorng Sotr as hard-working and open-minded,
    someone who could deliver quick action on several stalled
    labor issues.  Chuon Momthol echoed many criticisms
    pro-opposition unions and international labor observers have
    leveled against Nhep Bunchin during his nearly two years in
    office: no labor background, lacking a sense of direction,
    and not engaged on key issues like labor law revision.

    PHNOM PENH 00000998  002 OF 002

    Unions and Labor Observers: Hun Sen Power Play
    --------------------------------------------- -

    ¶7.  (SBU) Pro-opposition union leaders Rong Chhun, of the
    Cambodian Independent Teachers Association (CITA), and Chea
    Mony, of the Free Trade Union (FTU), criticized Vorng Sotr's
    rise as part of Prime Minister Hun Sen's recent consolidation
    of power.  Both leaders agreed that the MOLVT was ineffective
    and were unsurprised by allegations of corruption, but, they
    pointed out, many government ministries are ineffective and
    corrupt.  Nhep Bunchin was removed not because he was the
    most egregious offender, but because he was FUNCINPEC, they
    asserted.  Most international labor observers agreed with
    this assessment, seeing Nhep Bunchin's removal as motivated
    more by politics than by a genuine concern for battling
    corruption or helping workers.  Nonetheless, they hope that a
    more active and functional MOLVT could be the silver lining
    for this cloud.

    Key Issues for the New Labor Minister
    -------------------------------------

    ¶8.  (SBU) Vorng Sotr inherits a poorly functioning MOLVT that
    has been paralyzed by lack of leadership and
    inter-ministerial political divisions since the labor
    component split from the former Ministry of Social Affairs,
    Labor, Veterans, and Youth in July 2004.  Among the most
    critical labor issues facing him are:

    --Threatened General Strike:  Pro-opposition leaders Rong
    Chhun and Chea Mony have threatened to lead a general strike
    if their demands for higher wages, lower gasoline prices, and
    shorter working hours are not met.  Garment manufacturers,
    rival union leaders, and international observers doubt that a
    large-scale strike will come to pass--either the government
    will step in to make some compromises or the unions will not
    be able to gain the support of other unions needed to truly
    make this action a general strike.

    --Stalled Labor Law Review Process:  The current labor law,
    passed in 1997, is vague and contradictory and was written
    without the input of unions, which did not exist at the time.
     Key areas of contention are expanding the scope of the law
    to include civil servants, informal sector employees,
    domestic workers, and migrant workers; working hours and
    premium pay; job protections afforded to workers'
    representatives; and Arbitration Council jurisdiction over
    individual disputes.  The new law remains in the discussion
    stage.

    --Labor Advisory Committee:  This critical tripartite
    committee is responsible for approving sub-decrees (prakas)
    governing all aspects of labor affairs, from minimum wages to
    defining hazardous and light work in the context of child
    labor.  The committee has not met since the MOLVT/MOSAVY
    split in July 2004, though several unions on the committee
    have been pushing for the committee to resume its work.

    Comment
    -------

    ¶9.  (SBU) Since March, the Prime Minister has removed at
    least 76 high-ranking FUNCINPEC officials from office, and
    Nhep Bunchin appears to be the latest victim of his
    housecleaning spree.  The move consolidates Hun Sen's power
    not by removing a dynamic FUNCINPEC leader actively pursuing
    an agenda opposed to the Prime Minister's interests, but
    rather by clearing out the deadwood blocking CPP from full
    access to the Labor Ministry.  From a purely labor
    perspective, the change in leadership is probably a positive
    development.  Hopefully with a well-connected CPP minister at
    the helm, the Ministry of Labor and Vocational Training will
    begin tackling some of the difficult issues that it has all
    but ignored in the past.
    STORELLA

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