ILO launches initiative for a Just Transition in Cambodia's construction industry

Phnom Penh (ILO News) - A new International Labour Organization (ILO) initiative will promote a Just Transition in Cambodia's construction industry. Supported by the ILO-Korea Partnership Programme (I-KORP), the initiative seeks to address critical challenges in the sector while fostering environmentally sustainable practices and enhancing labour standards.

The initiative, entitled "Asia-Pacific Regional Case for Implementing the Global Accelerator through a Just Transition in the Construction Industry in Cambodia,"

was introduced to Cambodia's government, employers' and workers' representatives during consultations held in Phnom Penh from 31 October - 1 November 2024.

Before the COVID-19 pandemic, Cambodia's construction industry accounted for 5.8 per cent of GDP and was a key economic driver. However, the sector has faced significant challenges, including a decline in construction projects, high rates of occupational hazards, limited social security coverage, and reliance on low-skilled labour.

To address these issues, the project will focus on areas such as skilling and upskilling workers, raising awareness about social security schemes, advocating for effective enforcement of labour laws, strengthening occupational safety and health standards, and importantly social dialogue.

Speaking during the consultations, Cambodia's Minister of Employment and Vocational Training, Heng Sour stressed the vital role social dialogue between government, employers and workers plays in addressing challenges faced by the construction industry.

"Social dialogue is vital for effective tripartite decision-making, as it fosters collaboration among partners. The maturity and constructive inputs of social partners are essential to ensuring productive discussions and finding amicable solutions to labour challenges," he said.

As a first step, the project will conduct research to assess challenges and develop actionable recommendations for improving working conditions and promoting sustainable practices in the construction sector. The project interventions will include capacity-building on ILO's Just Transition guidelines, advocating for occupational safety and health legislation, piloting new practices in selected firms, and improving outreach to construction workers and small contractors.

"This initiative aims to pave the way for facilitating a just transition in Cambodia's construction industry from the impact of climate change towards workers' safety sustainable environment, and energy-efficient industry," said Hochul Shin, Chief Technical Adviser for I-KORP.

The project will be carried out in collaboration with Ministry of Labour and Vocational Training (MoLVT), the Ministry of Land Management, Urban Planning and Construction (MLMUPC), the Cambodian Federation of Employers and Business Associations (CAMFEBA) the Cambodia Construction Association (CCA) and national union confederations.

It will run until December 2026 and also includes a parallel focus on the pulp and paper industry in Viet Nam, demonstrating the ILO's commitment to advancing just transitions across diverse sectors in the Asia-Pacific region.