Poverty Deepened by Bank Loans and Family Hardships:

Thida’s Child Labour Remediation Story in Cambodia

Poverty is the primary driver of child labour. For many families connected to global supply chains, this means being extremely vulnerable and unprepared to handle unexpected shocks like a family member losing a source of income or requiring medical treatment. One sudden event like this can plunge a whole family into a deep crisis. This is the reality for Thida and her family in Cambodia. 

Thida belonged to a family of seven, and making ends meet was increasingly difficult. Despite being hardworking and eager to support their family, her parents both faced serious health issues that hindered their ability to secure stable employment in local factories. As a result, the family relied on seasonal income sources, like her father’s fishing earnings, which typically range from $5 to $7 a day, barely enough to cover their daily food expenses. Medical expenses for her ailing grandparents and the family’s mounting debts also compelled Thida 's family to send her to work to help supplement their income. 

Photo: Thida’s family home

Families like Thida’s often become trapped in a cycle of debt, exacerbated by exploitative lending practices within Cambodia's financial system. Concerns have been raised regarding the impact of these practices, particularly in the microfinance sector. A 2022 article by Al Jazeera reported that many Cambodians struggle with overwhelming debts often linked to land titles, which regularly leads to coerced land sales and other significant hardships. Banks and microfinance lenders frequently entice borrowers with easily accessible loans that come with high interest rates, plunging families into a relentless struggle to keep up with payments and potentially increasing the risks of child labour.

Children engaged in child labour, like Thida, tend to receive far lower hourly wages compared to contract workers and often face exploitation that includes minimal pay, unpredictable hours, and a lack of job security. The silver lining in Thida’s case was that she worked in a factory supplying an international brand that conducts regular audits and has a policy and procedure for dealing with cases of child labour. The brand also has an ongoing partnership with The Centre to manage child labour remediation cases from start to finish. 

And so it was that during one of the brand’s audits, Thida was identified as an underaged worker. The brand and the factory collaborated with The Centre to implement a three-month remediation programme (until she reached the minimum working age) to help Thida acquire skills that could provide her with better employment prospects in the future, offering her family a chance to improve their situation.

Thida and her family opted for a three-month wedding embellishment training programme at a local training centre. During this time, Thida trained in bridal makeup, bridal hairstyling and dressing brides and grooms in traditional attire. The training schedule, from 8 a.m. to 11 a.m., five days a week, allowed her to practice hands-on skills by accompanying her mentor to wedding assignments. The remediation programme covered the fees, and she also received a monthly living stipend to support her family. 

Photo: Thida at the training centre

However, during her remediation programme, the rainy season hit Cambodia, impacting her father's fishing income. Faced with food shortages, Thida and her younger siblings resorted to catching frogs at night to feed the family. The brand recognised their hardship and extended Thida 's living stipend for an additional two months to ensure they had enough support during this challenging time.

In this case, the brand serves as a best practice model in child labour remediation since they fully supported a programme tailored to Thida’s needs and best interests and even went beyond the standard duration of a typical child labour remediation programme. This story also highlights financial institutions' impact on families and that they, too, are part of the narrative that drives poverty and child labour. Read our guide for financial institutions on how to tackle child labour. 

If you’d like to learn more about our child labour prevention and remediation services, visit our webpage here or contact us.