Major MNCs back off on deal for welfare of Cambodian garment workers

Synopsis: After years of negotiations, Inditex and Next have declined to sign an agreement that would support collective bargaining for better wages and working conditions for Cambodian garment workers.

Multinational clothing majors, including Inditex and Next, have refused to back a new transformative agreement that would improve conditions for Cambodian garment workers, IndustriALL Global Union, which represents over 50 million workers across 130 countries, said in a statement issued recently.

Both companies have major stakes in the Cambodian garment industry.

At the beginning of 2025, IndustriALL urged all brands and retailers sourcing from Cambodia to sign an agreement in a bid to improve wages and working conditions for the country's garment workers.

"After years of negotiations and collective efforts, global garment brands Inditex and Next have so far declined to sign a landmark agreement that would support collective bargaining for better wages and working conditions for Cambodian garment workers, despite having helped develop the initiative and publicly committing to responsible business practices," IndustriALL statement said.

The Cambodia Agreements provide a legally binding mechanism for brand support of a standardised Collective Bargaining Agreement (CBA) template developed by Cambodian social partners, the statement pointed out.

It noted that the model aims to improve wages, secure better working conditions, and stabilise supply chains. "Twelve major global brands have already signed on, and IndustriALL Global Union continues to engage with other companies sourcing from Cambodia."

Developed through years of collaboration between IndustriALL, leading brands, employers, and its affiliated unions in Cambodia, the agreement represents a first-of-its-kind brand-supported CBA in the textile, garment, shoe and leather (TGSL) sector.

IndustriALL says it offers a viable solution to long-standing challenges in the industry, particularly the persistent difficulty of raising wages without endangering competitiveness.

Despite playing key roles in shaping the agreement, Inditex and Next have not yet committed to signing. IndustriALL has made repeated efforts to re-engage both brands and continues to urge them to support this transformative initiative.

The Cambodia CBA guarantees extended maternity leave, introduces paternity leave, enhances dispute resolution mechanisms, promotes peaceful industrial relations, and supports skills development.

These provisions directly benefit Cambodia's predominantly female garment workforce and contribute to sustainable industry practices, IndustriALL asserted.

Inditex, a Spanish company, primarily known for its fast fashion brands like Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho and Zara Home, is the world's largest fast fashion group, operating over 7,200 stores in 93 markets.

Similarly, Next is a British multinational clothing, footwear, and home products retailer. They offer a wide range of clothing for men, women, and children, as well as home goods, beauty products, and accessories.