Logo of Phnom Penh Post newspaper Phnom Penh Post - Garment factory bankrupt

Garment factory bankrupt

Garment factory bankrupt

5_story_1
Employees of the Tack Fat garment factory sit near a gate at the factory in Chak Angre Leu commune in Phnom Penh. The factory announced today that it was bankrupt and would close, leaving more than 1,000 workers unemployed.

Tack Fat Garment Ltd closed its factory in Phnom Penh today, while its lawyer announced the company was bankrupt and unable to fully compensate 1,008 workers who are now out of a job.

Workers showed up to work as usual today at Tack Fat Garment factory in Chak Angre Leu commune of Phnom Penh’s Meanchey district, but found the doors shuttered.

Sry Kim You, an attorney for Tack Fat, convened a meeting with workers and said the company would pay only seniority money, this month’s salary and US$150 in additional compensation to each worker.

“This factory is bankrupt and decided to close today. Over the past year, the factory has had problems and struggled to produce products,” Sry Kim You said.

“The closure without prior notice does not mean the factory will avoid finding a solution for workers. We ask you to understand the company is unable [to pay],” he said.

Workers said, however, they are owed additional compensation under the Kingdom’s Labour Law.

Yang Sophorn, vice president of the Free Trade Union of Cambodia, demanded during the meeting that Tack Fat provide five benefits stipulated in the Labour Law, including severance pay, two month’s pay on top of this month’s salary, seniority bonuses and other compensation.

“The factory owner looked down on workers because he did not give information before the closure. It is an excuse to avoid providing benefits to us,” said Ol Thol, 33, who has worked for Tack Fat for 13 years.

Ol Thol calculated that he is owed a total of $1,600.

Under the 1997 Labour Law, a company that has gone bankrupt is still obligated to pay full compensation.

Chheang Thida, deputy head of the Tack Fat local FTU, said the company had been transporting sewing machines and other equipment from the factory since January, which demonstrated that the factory was “not stabilised”, though management gave no signs of the closure.

“More than 6,000 sewing machines were brought out. The owner intended to cancel the factory without giving compensation and open a new factory,” she said.

She said talks with the company were not fruitful and workers filed a request to the Ministry of Labour for intervention today.

Sum Pharen, deputy bureau chief of the labour dispute department at the Ministry of Labour, said Tack Fat had called him to request that the ministry not intervene and allow them to “negotiate internally with workers”.

“We will give them the chance to negotiate with each other. If there is no solution, we will intervene,” he said.

MOST VIEWED

  • Proof giants walked among us humans?

    For years a debate has waged about whether certain bas relief carvings at the 12th-century To Prohm Temple, one of the most popular attractions at the Angkor Wat Temple Complex in Siem Reap province, depicted dinosaurs or some rather less exotic and more contemporary animal,

  • New US bill ‘is a violation of Cambodian independence’

    After a US congressmen introduced bipartisan legislation that will enact sanctions on Cambodian officials responsible for “undermining democracy” in the Kingdom, government officials and the ruling Cambodian People’s Party on Sunday said they regarded the potential action as the “violation of independence and sovereignty

  • Long way to go before Cambodia gets a ‘smart city’

    Phnom Penh, Siem Reap and Battambang will struggle to attain smart city status without adopting far reaching master plans, according to officials tasked with implementing the program. The brainchild of the Association of Southeast Asian Nations (Asean), the smart city program seeks to link up

  • Japan bank buys major stake in ANZ Royal Bank

    Japan's largest bank acquired more than half of ANZ’s shares in Cambodia on Thursday, according to a statement from Kith Meng’s Royal Group. Japan's JTrust Bank, announced that they had acquired a 55% of stake in ANZ Royal Bank. According to a Royal Group