Executive Summary

Subcontracting refers to the practice of assigning, or outsourcing, part of the obligations and tasks under a contract to another party known as a subcontractor. In the garment sector, for example, a supplier enterprise (Factory A) with a contract to produce goods for a garment retailer or buyer may assign or outsource part of the obligations or tasks under that contract to another supplier enterprise (Factory B).

Subcontracting has been a common practice within garment and footwear supply chains for decades (Anner, Bair, and Blaisi 2013) and is widely accepted as “part and parcel of the [garment] industry in Cambodia” (Salmivaara 2021). However, several studies (Lawreniuk, Brickell, and McCarthy 2022; Salmivaara 2021) suggest that work in subcontracting factories in Cambodia is subject to weak labour rights enforcement which serves as a barrier to the attainment of decent work and social protection in the segment of the industry. Further studies (ILO 2017) suggest the model of subcontracting may be accelerating as a way for formal enterprises to cope with “the pressures of buyers’ fluctuating orders and
unreasonable volumes and timelines” (Salmivaara 2021).

Although many stakeholders are aware of the existence of the subcontracting segment of the garment industry, to date there is little reliable data and evidence available about either the size and characteristics of the informal sector or working conditions within it. The widespread existence of subcontracting facilities with weak labour rights enforcement therefore poses threat to the progress made towards achieving Decent Work and social protection targets for female workers in the garment sector in Cambodia.

Responding to these concerns, this report outlines the rationale, methods, and findings of a research study to provide a detailed assessment of access to decent work and social protection for (female) garment workers in subcontracting facilities within the garment industry in Cambodia.

Download the full publication to learn more.