After enduring months of protests and back-and-forth negotiations, Giant Ibis Union reluctantly accepted severance and seniority payments from the bus company, although it fell short of its compliance with Cambodian labor laws which mandate full compensation for laid-off workers.
“We’ve unanimously agreed to accept the payment from the company as we fear being threatened with court proceedings, and our union members don’t have capacity to continue protesting to seek full compensation,” said Siem Morady, Giant Ibis union leader, who jointly formed the union with his colleagues in May 2020.
According to the negotiation letter, the company agreed to compensate union members on five points based on labor law, while ensuring that the payment was delivered by September 27, 2024.
Morady was offered about $1,000, which was lower than $2,000, the actual compensation he was entitled to. However, he contended that “at least we had been putting pressure on the company to take responsibility”.
Morady and other union members were summoned in October 2023 and put under surveillance by the Phnom Penh municipality court. In the summons, they were accused of provoking public disorder and incitement following their continuous protest. “I had already known the possible consequences of my advocacy,” he said.
As a result, his union delayed protesting and there had been no calls to appear in court. “It’s just their tactic to debilitate us and stop us from going against them.”
Or Chanthy, 46, a union member who worked with Giant Ibis for nearly three years as a bus driver, bemoaned the settlement, which he said was a violation of the labor law. He deemed the company’s protracted negotiation as a tool to subvert a legitimate union.
However, the union eventually agreed to the offer as they wanted to end the dispute and honor the Labor Ministry’s meditation, and use the time to focus on other ways of earning money.
“As the negotiation process, moderated by the ministry, did not come to fruition and to compel the company to comply with the labor law, we decided to accept the payment, though it is not correct,” Chanthy told CamboJA News. “Even though we proceed to seek justice, there is nothing [we] can do about it.”
While Chanthy was supposed to receive $7,000 in severance payment, he claimed that about $2,000 compensation was finalized. “This is little money. It is not proportionate to the actual amount. Taking into account expenses and the cost and time taken to advocate [travel and food cost], there will be nothing left,” he lamented.
Ros Dariya, Giant Ibis’s administrative officer who participated in final negotiation on September 19, said the company complied with the Labor Ministry’s measure and that it was based on the law. Acting on behalf of the company, Dariya denied any violation, noting that “both sides agreed to the solution moderated by the ministry”. “If they [the union] did not agree, they can proceed further,” she added.
Dariya declined to comment on the court proceedings involving the union and accusations regarding alleged threats to the legitimate union’s activities.
Giant Ibis Bus describes itself as “a prominent bus service provider in Cambodia”, known for offering affordable luxury and safe transportation across various destinations.
Giant Ibis listed “Ngeth Bora” as the board chairman on the Commerce Ministry’s business record. However, Bora’s phone number, listed on the site, could not be reached.
Saing Kimson, deputy chief of the ministry’s Labor Dispute Department, said both parties “reached a resolution without threats or bias”. He clarified that his department served solely as a mediator and did not have any authority over the decisions made by either side.
“However, we ensure compliance with labor laws,” Kimson remarked in an interview with CamboJA News, adding that if the parties do not agree with the resolution, they have the right to seek legal recourse.
The situation stems from Giant Ibis’s suspension of its operation due to the Covid-19 pandemic, which resulted in union leader Siem Morady and about 80 employees being laid off, with the company offering reinstatement without pay in the interim, which is against the law.
Union members were allegedly given the choice to be “permanently” fired with full payment of only $1,000 although the law mandates severance payment of $7,000 to $8,000 per employee in benefits and lost wages, according to Morady.
The Giant Ibis Union staged its first protest on April 23, 2023, outside the company’s headquarters in Phnom Penh, demanding unpaid severance and seniority payments. However, their efforts were met with silence, as no mediation occurred at the time.
In May 2023, the bus company agreed to settle the outstanding payments and compensate 30 terminated union workers, with no reinstatement. Despite the agreement, Giant Ibis failed to comply with the payment deadline, leading to a stalemate in negotiations mediated by the ministry. The union continued to protest but only 10 union members stayed on to demand their dues, as the rest sought alternative employment.
Moeun Tola, executive director of Center for the Alliance of Labor and Human Rights (CENTRAL), opined that the labor dispute should not have dragged on for months. The company should prioritize swift resolution of labor disputes with the union as well as provide fair compensation, while respecting union rights without resorting to court proceedings as pressure tactics, he said.
“I see that it is common that the company leaves the union behind without having the will to provide solutions for them. In some cases, they use the court system to put pressure,” he added. “Therefore, the ministry, which has a jurisdiction over labor disputes, should propel the company to facilitate fair compensation in compliance with the law.”
