About 500 workers of Color Star Cambodia Product Co Ltd in Prek Chrey village, Phnom Penh protested and blocked the road for two consecutive days after the factory announced that it is moving to a new location, about 40 kilometers away.
The workers are concerned about losing their job and benefits as the new location is far, and that the factory made the announcement without prior notice.
The company, which produces home and office supplies, said the last working day at the current factory is September 30, 2025, but the new plant is slated to open on May 26, 2025 with only a fraction of the current workers likely joining them in the new place.
A Facebook post by CENTRAL on Tuesday, which highlighted the workers’ plight, said the factory was relocating because the current landowner does not want to renew the lease. The protest occurred after negotiations on Monday failed to reach a satisfactory solution for the workers.
Worker Nom Nem, 30, said they were taken by surprise when the factory owner suddenly announced the relocation to Takeo province.
He hopes that the factory owner will resolve the compensation to workers in accordance with labor laws and ensure benefits for workers with long service years.
Alternatively, workers who agree to work at the new location would receive an additional $200, he said, adding that workers will be paid $30 every month on top of their basic salary until the total of $200 was reached. But Nem said this is “not a good option for the workers”.
“The first problem is that the factory just announced the relocation without informing the Ministry of Labor and Vocational Training, and second, workers will face difficulty traveling to the new location because it is far away. Our protest yesterday [May 19] was ineffective because the factory provided inappropriate benefits,” Nem said.
Another worker, Proung Saran, 42, said the distance to the new factory is too far as their homes are near the current factory. The solution by the factory is also not satisfactory, Saran said, wondering if they would receive a solution in accordance with labor laws if they refuse to work in the new location.
“We are worried and don’t know whether the factory is doing things legally. We asked the factory union but they sent a representative to talk to the boss. If we knew the law, we would not have come to work at the factory,” she remarked.
The brief protest near the factory premises was to seek intervention and a solution in accordance with labor laws, Saran said, adding that all the workers returned to work when ministry representatives arrived to resolve the issue.
However, the solution will take time as discussions will continue until June 30, before the factory informs the workers.
“Why is the factory taking so long to discuss? If the factory refuses to resolve the workers’ request, how can it be resolved? If the workers continue to work for the factory, the factory will almost run out of sewing materials,” Saran said.
According to a notification by the ministry, an agreement has been reached on the morning of May 20 where the company agreed to give contract termination payments to workers who are unwilling to work in the new location.
It said the company agreed to pay the workers based on four points stipulated by the labor law. They include payment for unpaid wages, compensation for remaining annual leave, compensation in lieu of the previous notice, and seniority payment.
The ministry called on the workers to “trust and wait” for its resolution and “avoid” protesting by blocking public roads, which could affect public order and lead to violations of the law.
Yang Sophorn, president of Cambodian Alliance of Trade Unions (CATU), told CamboJA News that the relocation is “not a coincidence” as the factory has hundreds of workers and has been operating for many years. The relocation has been planned, therefore the workers ought to receive severance pay and other benefits according to labor laws in case they refuse to continue working at the new location.
“The company’s notice to close and open immediately is too short, so it is making the workers worried while the distance from the old factory to the new factory is problematic,” Sophorn said.
“With regards to the company laying off workers and meeting the four points, one more point must be added, which is severance pay,” she added.
