Worked to debt: Over-indebtedness in Cambodia's garment sector

This​ joint​ briefing​ paper​ is​ made​ under​ the​ Cambodian​ Alliance​ of​ Trade​ Union​ (CATU),​ Center​ for​ Alliance​ of​ Labor​ and​ Human​ Rights​ (CENTRAL),​ and​ Cambodian​ Leauge​ for​ the​ Promotion​ and​ Defense​ of​ Human​ Rights​ (LICADHO).​ Results​ of​ this​ research​ are​ from​ a​ survey​ of​ 162​ garment​ workers​ (158​ women)​ between​ March​ and​ May​ 2020.​ Workers​ came​ from​ three​ different​ factories​ that​ have​ partially​ or​ fully​ suspended​ work.​ Researchers​ found​ that​ two-thirds​ of​ workers​ were​ paying​ off​ at​ least​ one​ microloan,​ and​ that​ these​ repayments​ took​ up​ the​ majority​ of​ their​ pre-suspension​ incomes.​ On​ average,​ the​ combined​ monthly​ payments​ for​ debt​ and​ food​ expenses​ exceeded​ workers’​ salaries,​ resulting​ in​ the​ vast​ majority​ of​ microloan​ borrowers​ eating​ less​ food​ to​ be​ able​ to​ repay.​ 96%​ of​ respondents​ who​ held​ microloans​ said​ their​ life​ was​ either​ “much​ worse”​ (80%)​ or​ “slightly​ worse”​ (16%)​ now​ compared​ to​ before​ taking​ out​ their​ microloan.​ Just​ 2%​ reported​ their​ life​ was​ “slightly​ better”,​ and​ none​ said​ it​ was​ “much​ better”.