Logo of Phnom Penh Post newspaper Phnom Penh Post - Phnom Penh garment factory plans to close

Phnom Penh garment factory plans to close

Union rep Soth Chet addresses protesting workers outside Phnom Penh's Global Apparels Limited garment factory in February. Photo supplied
Union rep Soth Chet addresses protesting workers outside Phnom Penh's Global Apparels Limited garment factory in February. Photo supplied

Phnom Penh garment factory plans to close

Malaysian-owned Global Apparels Limited, a garment factory in Phnom Penh, announced that the factory would close by October of this year, a company staff member confirmed yesterday.

This followed a formal announcement issued on May 30 that cited a lack of orders – causing the company to operate at a loss – was the primary reason for the closure.

The staff member, who declined to be named as he is not allowed to speak to the press, said the factory had faced losses for the last 12 months and that orders had dried up.

“If [the company] continued to operate, [it would] have no ability to pay for the worker’s wages. So the company decided to close the factory,” he said.

Another reason, according to him, was that the factory was facing tense regional competition that had higher levels of productivity at lower costs.

“The competition is very fierce, especially the competition with Vietnam and Bangladesh,” he said. “Regarding the productivity, if we compare our productivity to other countries, we are lower than them.”

According to the announcement, if the factory continued to operate past October, it lacked the financial resources to pay the worker’s short-term and long-term contracts.

However, Suth Cheth, an official from Collective Union of Movement of Workers, said he did not fully believe the company’s claims.

He said that many companies that close down do so to avoid fulfilling back pay and tax obligations, and simply move to new locations.

“The company might have a new name or want to change its location. Although that is not the easy way,” he said.

The staff worker said that the company was trying to work with the trade unions to find a solution to wages and seniority pay.

According to him, the factory currently employs around 2,000 workers and primarily exports to US, Europe and Japan.

MOST VIEWED

  • Forest rangers seek 1,210 rifles after serious attacks

    The Ministry of Environment sought permission from the Ministry of National Defence to arm municipal and provincial rangers with 1,210 rifles in response to one of its rangers being killed and two others critically assaulted while out on patrol in Mondulkiri and Kampong Thom provinces. In

  • Rainsy stopped in Paris from boarding Thai flight

    Airline officials at Paris’ Charles de Gaulle airport on Thursday prevented Sam Rainsy from boarding his flight to Bangkok ahead of his announced return to Cambodia on Saturday. Prime Minister Hun Sen had earlier in the day assured Phnom Penh residents that there would be

  • Analyst: Rainsy blocked from boarding flight 'an excuse'

    THAI Airways not allowing Sam Rainsy on its route from Paris to Bangkok on Thursday is being used as an excuse to keep his standing among fellow coup plotters and his uninformed supporters as flights to non-Asean countries are available, an analyst said on Friday.

  • Rainsy lands in Malaysia

    Cambodian opposition figure Sam Rainsy arrived in Kuala Lumpur airport on Saturday afternoon after boarding a flight from Paris, where he has been living for more than four years. Ministry of Foreign Affairs and International Cooperation spokesperson Koy Kuong said on Saturday that Cambodia respected

  • Sokha continues call for dropping of charge after bail conditions reduced

    Not satisfied with having his bail conditions reduced, allowing him to travel freely in Cambodia, Kem Sokha says he wants his charge totally dropped. “As an innocent man who has been in detention for two years even without being found guilty, I continue to demand

  • Touch: Rainsy will never return

    Sam Rainsy, the “acting president” of the Supreme Court-dissolved Cambodia National Rescue Party (CNRP), has claimed it has achieved 70 per cent of its struggle to find a solution to the current political situation in the Kingdom. Just before boarding a plane at Charles de Gaulle