Phnom Penh Municipal Court on Monday handed down an injunction prohibiting bankrupt garment factory Tack Fat from selling, renting or transferring property or equipment, as over 1,000 former employees staged a protest demanding that Tack Fat expand compensation after they lost their jobs when the factory closed this month.
The former employees demanded that Tack Fat meet five requirements of
Cambodia’s labour law relating to severance of workers due to bankruptcy.
Sri Kim You, a lawyer for Tack Fat owner Kuk Voeng, said yesterday that Tack Fat was trying to negotiate a resolution to the dispute for both parties through the Social Affairs Ministry’s committee for solving disputes between employers and workers.
“The company has the capacity to pay three points of the compensation but a resolution was passed by the committee to find the possibility of better solution,” said Sri Kim You. Tack Fat have agreed to pay seniority bonuses, one month of wages and a lump sum payment of US$150 to each worker.
Chhean Thida, a representative of former Tack Fat employees, said that workers would protest if a suitable outcome was not reached during the meeting.
Soy Siphun, director of the committee for solving disputes between employers and workers, could not be reached for comment yesterday.