Logo of Phnom Penh Post newspaper Phnom Penh Post - Factory shuts down abruptly, fires 3,000

Factory shuts down abruptly, fires 3,000

Factory shuts down abruptly, fires 3,000

Propitious (Cambodia) Garment Ltd, the largest factory in Takhmao town in Kandal province, announced an abrupt closure on Tuesday but did not inform its 3,000 workers in advance.

The company said the closure was announced because there were no orders.

Workers are now concerned about their livelihoods.

Sa Mady, one of the fired workers, told The Post on Wednesday that the factory management told workers about the closure while they were working. They were only told that no buyers had placed orders for garments and the factory was not able to suspend them from work.

“At that time, while they were working following lunch, the factory announced they should stop working and go home.

“The factory will prepare our final wages on April 30. I don’t know how the payment will be settled. Our workers find it difficult to accept this abrupt announcement and we were told to stop immediately,” she said.

Another worker Mak Phanun told The Post on Wednesday that many workers were very nervous. But they had not gathered to protest, pending receipt of their final wages. In case the workers are not compensated properly under the law, they will consider protesting, she said.

“The management didn’t speak about compensation. It only said that it will add money for us to our final wages. When being paid, I’m afraid of being paid less. But we don’t know what to do because we are just workers. We are under them. What they say, we follow. We just take what we are paid,” she said.

Phanun said the factory had previously employed as many as 8,000 workers. But a decline in orders and a lack of raw materials forced it to cut its workforce to 3,000.

Kuoch Davy, the factory’s head of administration declined to answer questions, saying briefly that the company was working to solve the issue.

Provincial Department of Labour and Vocational Training director Thon Neang also declined to comment on Wednesday, saying he was busy at a meeting.

But the ministry’s spokesperson Heng Sour told The Post that if the factory compensates workers improperly under the law, then they could bring the case to the ministry for a solution.

Cambodian Labour Confederation president Ath Thorn said for now, not only had this factory announced its closure, but many others were shutting their doors due to a lack of buyers.

He said the government should seek a way to stop the challenges from becoming a serious crisis. If many more workers have no jobs, then starvation will lead to an outbreak of protests.

“We should do whatever it takes to prevent more factories from being shut down. If possible, they should suspend work first and wait for conditions to improve. But should factories shut down, they should compensate workers properly under the law and not take advantage of them,” he said.


  • Historic Battambang town bans billboards

    The Battambang town administration informed all house and business owners in Svay Por commune to remove all billboards by August 1 as it is preparing to submit the town to UNESCO for inclusion on its historical cultural heritage list. Its July 25 notice said all signage was

  • All foreigners' accommodations to be inspected: Sar Kheng

    The Ministry of Interior is undertaking a serious effort to inspect all the accommodations of foreigners in Cambodia – except diplomats – in order to find and identify human traffickers. Minister Sar Kheng said this would include inspections on the homes of foreigners employed by businesses, private

  • Ice cream, noodles flagged over carcinogen

    The General Department of Customs and Excise of Cambodia (GDCE) has identified three types of instant noodles and ice cream trademarks originating from Thailand, Vietnam and France that are suspected to contain ethylene oxide, which poses a cancer risk to consumers. The general department has

  • Exclusive interview with Josep Borrell Fontelles, High Representative of the EU

    CAMBODIA is hosting the 55th ASEAN Foreign Ministers’ Meeting (AMM) and Related Meetings this week with top officials from the US, China, and Russia and other countries in the region slated to attend and to meet with face-to-face with their counterparts on the sidelines. In

  • Rise in Thai air routes to Siem Reap fuels travel hopes

    Local tourism industry players are eager for regional airline Bangkok Airways Pcl’s resumption of direct flight services between the Thai capital and Siem Reap town on August 1 – home of Cambodia’s awe-inspiring Angkor Archaeological Park – which is expected to boost the growth rate of

  • ASEAN Foreign Ministers’ meet commences, Taiwan issue possibly on table

    The 55th ASEAN Foreign Ministers’ Meeting (AMM) and related meetings hosted by Cambodia kicks off in Phnom Penh on August 3, with progress, challenges, and the way forward for the ASEAN Community-building on the table. Issues on Taiwan, sparked by the visit of US House Speaker