The template agreement runs from 1 July 2026 to 31 July 2029 and enables standardized, brand-supported CBAs at factory level across the sector. As a template agreement, it becomes legally binding once adopted at factory level.
What the agreement covers
The CBA includes:
- wage increases,
- 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,
- an industrial peace clause.
The renewed agreement increases the monthly base wage by US$6 until December 2027, rising to a further US$9 increase from January 2028. It also extends maternity leave by 15 additional days and introduces five days of paid paternity leave for the first time, alongside the agreement’s existing protections on freedom of association, gender-based violence, heat stress and dispute resolution.
Supporting fair wage growth
The CBA complements national minimum wage increases and builds on the minimum wage process. In line with International Labour Organization (ILO) recommendations, wage increases under the CBA are established through collective bargaining between the social partners, providing predictable and reliable real wage growth supported through the supply chains of global brands.
By engaging global brands and negotiating a CBA template for standardized agreements at factory level, the social partners in Cambodia secure the connection to binding brand commitments. As a result, all factories adopting the template CBA benefit directly from those commitments.
The agreement is part of the ACT programme in Cambodia, which enables brands to engage meaningfully with unions, manufacturers and fellow retailers, setting a new industry standard for stable, predictable and responsible supply chains.
IndustriALL general secretary Atle Høie said:
“We congratulate our affiliates and the employers on this new collective agreement template. It is another constructive step towards sound industrial relations and stable workplaces. Further, the CBAs introduce new industry standards that complement national laws while securing brand support for wage developments that are transparent, accountable and sustainable.”
IndustriALL and its Cambodian affiliates call on all global brands and retailers sourcing in Cambodia to immediately sign the Cambodia Support Agreement.
Aligning with due diligence standards
By signing the agreement, brands commit to an industrial relations model that balances the priorities of workers, manufacturers and retailers. The initiative also aligns with due diligence requirements on stakeholder engagement, wages and freedom of association (FOA), supporting a transparent and responsible approach to sourcing practices.
Under the OECD Guidelines for Multinational Enterprises, wages, benefits and conditions of work offered across the operations of multinational enterprises should not be less favourable to workers than those offered by comparable employers in the host country. Where comparable employers do not exist, enterprises should provide the best possible wages, benefits and conditions of work, within the framework of government policies and applicable international standards (Chapter V, Paragraph 4b).
The CBA negotiated between the social partners in Cambodia within the ACT Cambodia programme provides the best possible wages, benefits and conditions of work within the framework of applicable international standards, including ILO Conventions No. 87 and 98, and is already implemented by comparable employers in the country.