More than 1,000 textile workers in Takeo province were paid after the sale of equipment from the defunct Hong Sen Textile (Cambodia) Co Ltd.
The workers had been protesting since September 9 and blocked the road in front of the factory in Prohot village, Donkeo town, on September 25.
The protest prompted the Ministry of Labour and Vocational Training to intervene. The workers were given two options – a lawsuit or an alternative out-of-court settlement via a factory equipment auction.
Provincial Department of Labour director Moeung Virya told The Post on Thursday all workers opted for the auction option.
“We monitored the bidding to make sure it was conducted legally to protect the workers’ interests. The problem was solved smoothly and properly,” Virya said.
Virya said because the 1,285 workers were from two factories owned by the same owner – one had 906 workers and the other had 379 – the auctions were held based on the workers’ consent.
Six companies participated in the bidding, and the TK Company won the auction with an offer of $138,999 for the larger factory and $43,000 for the smaller one.
Each worker at the large factory received $150 and those at the smaller one between $100 and $200 based on their positions.
Cambodia Federation of Labour Unions president Sear Sorn, who facilitated the dispute, told The Post on Thursday the workers at the two factories received their compensation without objection.
The Hong Sen textile company had been operating for eight years, exporting underwear and baby clothes.