Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Ministry seeks loan to pay Tack Fat workers

Ministry seeks loan to pay Tack Fat workers

A US$1 million loan sought by the Ministry of Social Affairs could see more than 1,000 former employees of the defunct Tack Fat garment factory fully compensated for their severance before Khmer New Year.

An industrial dispute has simmered between Tack Fat and its former employees over the company’s legal compensation commitments since it declared bankruptcy last month and laid off its entire workforce. Ke Sokrithiny, a member of the government-lead committee overseeing compensation negotiations, said this week that the Ministry of Social Affairs would attempt to borrow money in order to cover remaining points of compensation that the company has said it is unable to pay.

“I want the ministry to get that money before Khmer New Year [because] if they [workers] wait for a resolution with the factory to be completed, it can take such a long time,” he said.

“Thus the ministry borrows the state money to settle first, and will settle the account with company later.”

He said money could be borrowed from the Ministry of Economy and Finance or state banks but stressed Tack Fat would still be obligated to pay the money back to the government.

Ke Soksithiny offered no promises, saying only that the ministry would do its best to find a loan.

Yong Leap, President of the Free Trade Union of Workers of Cambodia, said her constituency already distrusted the Ministry because of its track record during prior compensation negotiations. Sri Kim You, a lawyer representing Tack Fat, vowed to repay any loan the Ministry could secure.

0

Comments

Please, login or register to post a comment

Latest Video

ACLEDA’s boss on how tech is changing financial services

In today’s world of fast-changing technology, Cambodia is seeing increasing innovation in financial services.

ACLEDA President In Channy on the key to the bank’s success

Post Khmer Editor-in-Chief Kay Kimsong sat down with Dr In Channy, President and Group Managing Director of ACLEDA Bank Plc, to explore the main principle guiding Cambodia’s biggest bank.

A taste of Phnom Penh's first container night market

At the launch of Phnom Penh's newest market, The Post spoke to customers and stallholders about what the hub of bars, food stalls, shops and live music will add to the city's nightlife.