The garment sector is Lao PDR’s largest manufacturing employer and makes a significant contribution to annual national exports. Around 30,000 workers are employed by about 60 exporting factories and 45 subcontracting firms. Garment workers are mostly women under 25. They tend to see the work as temporary, generating extra income for their families and improving their own prospects. Most have a limited understanding of their contractual rights and obligations, and working conditions in the sector are often difficult, with long hours and compulsory overtime. Garment sector employers identify labour supply as their most significant constraint. For example, some report that only half their workers stay beyond three years. Firms find it hard to improve productivity while regularly losing experienced workers, and the sector remains stuck in a cycle of low productivity and high staff turnover.

The project aimed to improve working conditions, productivity and competitiveness in the Lao garment manufacturing sector by strengthening the national labour inspection system to ensure compliance with national labour laws in line with international labour standards. The project also improved workers’ and employers’ understanding of labour law and their role in ensuring good working conditions, while empowering factoring managers and employees to design and implement workplace improvement plans.

To achieve these objectives the project worked at three levels to:

• Improve the capacity of the labour inspection system to achieve compliance, using up-to-date ILO tools and methodologies and incorporate lessons learned from other labour inspectorates in the region;
• Develop and implement an awareness-raising strategy for workers and employers so that they are aware of their rights and obligations under the labour law; and,
• Implement a targeted compliance strategy for the garment sector.

The project was organised around three main outcomes, with a set of activities designed to achieve each outcome.

Outcome 1: The capacity of the labour inspection system in Lao PDR is improved so that it can effectively undertake labour inspection functions for the benefit of workers and employers in the garment sector.

• The development of a national labour inspection plan setting out common objectives, standardised working procedures and key performance indicators
• The design and adoption of labour inspection tools to improve the ability of inspectors to carry out inspection visits and to collect and analyse data
• Working with the Government and social partners towards the ratification of ILO Convention No 81 on Labour Inspection

Outcome 2: Workers and employers are aware of their rights and obligations and understand how to achieve workplace compliance

• The production and dissemination of awareness-raising materials for employers and workers on national labour laws and ILO fundamental principles and rights at work
• The development and use of training materials on workers’ rights, industrial relations and productivity

Outcome 3: Factories improve working conditions and productivity through workplace cooperation using the project advisory and training services

• The creation of workplace improvement committees with worker representatives freely elected by factory workers
• Enterprise assessments to determine how to achieve compliance with national and international standards, with assistance from the labour inspectorate
• Workplace improvement plans are developed, agreed and implemented based on the assessment findings.

Ms Khemphone Phaokhamkeo
National Coordinator
ILO Country Office for Thailand, Cambodia and Lao PDR
Alounmai Tower
4th Fl, Room 401
Ban Nongbone, 23 Singha Rd.
Saysettha District
Vientiane Capital, Lao PDR
Tel./Fax: +856 21 454 415
Email