A Phnom Penh garment factory yesterday reached an agreement with 400 protesting workers to pay their back wages. The deal came just six days after the South Korean-owned company told employees it would close.
H&L Apparel, which is based in Por Sen Chey district, had told workers that a decline in orders was to blame for its decision to shutter its operations. The news caused 400 workers to protest over the weekend.
After negotiations yesterday, the company agreed it would pay them what they are owed.
“The employer did not escape like other factories, and they will pay all the workers,” said Soth Chet, a union official from the Collective Union of Movement of Workers.
Chet said long-term workers were paid yesterday, while those on short-term contracts would receive their outstanding salaries on August 19.
Factory administrator Phoa Bo blamed a drop in orders from major buyers for the closure.