Nearly 800 Cambodian garment workers fired over strike

By Prak Chan Thul

PHNOM PENH, Dec 3 (Reuters) - Sixteen Cambodian factories producing clothing for big brands such as Adidas AG and Gap Inc have dismissed nearly 800 employees for taking part in a nationwide strike, a union leader said on Friday.

Unions were preparing to issue demands to the factories to reinstate the 799 sacked workers by Dec. 15 or face legal action and possibly more strikes, which could further disrupt a sector that is a big currency earner for the impoverished country.

"We will take action in accordance with the law and we are trying to avoid a strike," Kong Athit, deputy president of the Coalition of Cambodian Apparel Workers Democratic Union (CCAWDU), told Reuters.

"The government and the courts have already ordered that these workers be reinstated, so these dismissals are illegal," added Kong Athit, whose union represents 40,000 workers.

The union said the factories that dismissed the workers produced clothing for major Western companies including Marks and Spencer Group PLC , Tesco PLC , H & M Hennes & Mauritz AB , Puma , Next Plc and Inditex , the world's biggest clothing retailer and owner of Zara.

Those sacked were among the estimated 210,000 garment workers -- about two-thirds of the sector's workforce -- from 95 factories who took part in the September strike to demand better working conditions and a wage increase to $93 a month from $56.

The strike was halted after three days when the government agreed to hold more talks to avoid damage to the industry, which is Cambodia's third-largest foreign currency earner after agriculture and tourism.

Garments also provide a vital source of income for rural families, and the sector is credited with helping to reduce poverty in a country where about a third of the population live on less than $1 a day.

The country's garment exports rose 12 percent in the first half of 2010 from a year earlier, hitting $1.25 billion, according to the Economic Institute of Cambodia, an independent think tank.

Worker disputes this year in China, mostly at foreign-owned factories, have raised questions over whether other low-cost Asian manufacturing centres would also have to pay higher wages as their workers became more assertive.

Naga World: The New Year Scrooge?

Fired Naga World employees protested in front of the company on 13 April 2010 (Photo: Khe Sonorng, RFA)
Naga World Casino

Naga World staff protest against unexplained firing

14 April 2010
By Khe Sonorng
Radio Free Asia
Translated from Khmer by Heng Soy
Click here to read the article in Khmer

About 50 employees of the Naga World Casino have gathered to protest their firing without prior warning and without providing clear reason on this action.

On 13 April, several employees of the Naga World Company, including both employees who were already fired and those who are not fired yet, have gathered in front of the company office after their managers fired them one after another without providing any explanation.

Miss San Molita, a more than 1-year-long card dealer for Naga World Casino, indicated that the company administrators fired her from her job on the spot without giving her any prior notice nor explaining the reason or providing any of the mistakes she may have committed.

San Molita said: “Less than one hour after I was dealin[g card to customers, I was told to go meet them (managers). I asked them what was the problem? [I was told:] ‘Sister! They are firing you! They told you to get all your stuff and get out!’. I said that I have no problem, but this is my working hour, and if I leave during working hours, I’m afraid that they would accuse me of being absent from work today. They counted the money for me, I got $515.15, but I lost my night shift pay and a lot of tip money. I can’t tell you the whole thing, it’s too much! What they did was not right. Then they lifted me and dragged me out, they asked the security to kick me out!”

Miss Thet Sophannary, a 7-year employee of Naga World who was fired by the company’s administrator, made similar claims also: “When they fired us, they had employees on standby to replace us. They fired us during the Cambodian New Year celebration and all state institutions are not working, therefore, I don’t know who can help us? I think what they did was against the law, I don’t know the exact cause [of the firing]. If we didn’t follow the [company’s] rule by, say if we were to steal money – because this job involves dealing with money – or affect the company, etc… then their firing would be legal and we wouldn’t have anything to protest about, but here there is no clear cause [for the firing].”

Naga World employees who are protesting in front of the company claimed that, up until 13 April, the company managers have already fired 38 employees and a number of other employees will be fired next: “They said that on 13 April, there will be 60 other employees fired. Now, we heard that they already highlighted the names of those who will be fired [next]…”

Gregory Goh, director of human resources for Naga World, declined to comment on the cause of the firing or the number of employees fired.

Today, RFA could not reach the ministry of Labor yet as it is closed for the Cambodian New Year celebration.

Protesting Naga World employees indicated that on 26 February 2009, the company managers fired 14 employees who were labor union representatives there. Then on 16 February 2010, a group of mediators ordered Naga World to reintegrate 4 of the union representatives fired, but the company refused. Because of this problem, on 08 March 2010, more than 1,000 employees boycotted their work and they asked that their union representatives be reintegrated back to work, but so far the company did not provide any resolution to this problem.

Workforce Abuse Jeopardizes US Trade Status: Union

Uncle Sam WARNS you!

By Taing Sarada, VOA Khmer
Original report from Washington
26 November 2009

If the government continues to ignore labor violations and fails to address working conditions, it risks its special trade access to lucrative US markets, a leading labor leader said in Washington last week.

Marking the 10-year anniversary of a preferential Cambodia-US trade agreement in Washington, Art Thorn, president of the Cambodian Labor Confederation, said unfair practices and poor working conditions will continue without the intervention of the international community.

“They exploit the workforce, and the employers fire factory union leaders or violate workers’ rights when the law isn’t well enforced,” he said at the World Bank’s International Finance Corporation.

“I think what has happened will continue to happen if the government and donor countries such as America do not help,” he said. “Our union is trying to work hard to solve the issues, but in reality our power is very limited. And if the leader of the country doesn’t help, then it will be impossible for us to do it alone.”

Cambodia’s economy is heavily dependent on the garment sector, a major earner of foreign currency, but observers warn that abusive practices and a lack of worker rights could drive buyers away.

The Freed Trade Union of Workers of the Kingdom of Cambodia, the country’s largest union, has warned that factory employers regularly violate labor codes, denying time off and maternity leave, paying salaries irregularly or even declaring bankruptcy and failing to pay workers when they strike. Union leaders say they are routinely discriminated against in their efforts to organize workers.

However, Cambodian trade officials say they have a strong labor law they try to enforce, and they have worked in recent years to brand Cambodian garments under fair practices.

In an interview with VOA Khmer on a trip to Washington last week, Commerce Minister Cham Prasidh said the law is well written and to international standards. His ministry sends monitors to factories often, he said.

“Honestly, we respect our labor rights more than any other countries,” he said. “We have a good law, but sometimes we also have some slow practices and a lack of enforcement.”

Trina Tocco, a member of the International Labor Rights Forum, based in Washington, told VOA Khmer that if Cambodia does not focus on the rights of workers, they will face abuses in the workplace.

John Ritchotte, a specialist in labor relations at the International Labour Organization, based in Bangkok, told VOA Khmer the labor law may need updated.

“The Cambodian labor law is now 10 years old, and like any law it needs to be adjusted and adapted to the change of circumstances,” he said at the IFC in Washington. “And now that there is a growing economy, a more diverse economy, they need to adapt the law to that reality.”

Firing targeted at the Naga casino

Naga Casino (Photo: DR, Cambodge Soir Hebdo)

03 March 2009
By Nhim Sophal
Cambodge Soir Hebdo
Translated from French by Luc Sâr
Click here to read the article in French

4 staffs of the Naga casino (Naga World) in Phnom Penh, all of them union members, were fired on 26 Feb 2009, after they demanded for better working conditions.

Sok Narith, the vice-president of the Cambodian Tourism and Service Workers Federation union, explained that the other union members and himself were fired following a stormy negotiation with the casino administration had failed. The workers demanded for profit-sharing based on seniority, yearly bonuses, and equality between Cambodian and foreign workers.

During the negotiation, the management asked the union to prove that profit-sharing also takes place in other tourist sectors, such as at the Phnom Penh international airport, and at the Sunway or Royal hotels, etc…

“We were able to establish that in all these sectors, which make less profit than the casino industry, workers received bonuses. Sunway workers receive 2-month salary bonus, and a yearly salary increase between 2 to 5%. Raffles Le Royal disburses 1.5-month salary in bonus, and at the airport, salary increases go up as high as 20%. Why not at the Naga casino, where the revenue for the first 3-month of 2008 was $109 million? But the management said that it was impossible!” the fired worker said.

“At the union, we are discussing on the follow up. We plan to bring a lawsuit and even to demonstrate in the street,” Sok Narith added while indicating that the Malaysian CEO had decided to cut off the union leaders in order to intimidate the other workers.