Retailers urged to compensate Cambodian workers after factory closure


The Clean Clothes Campaign is calling on UK apparel retailers M&S and Bonmarché as well as Canadian brand Nygård to compensate Cambodian workers after a factory closure a year ago left 208 without jobs, salaries or compensation.

Chung Fai Knitwear Factory closed suddenly in July 2016 leaving workers without notice, severance pay or their final salaries for the previous month. Workers claim to have found labels with the names of all of the brands in the factory; however, all three brands initially denied contractual relationships with Chung Fai.

The workers are now demanding that these companies give them the legally due payments that their supplier failed to provide.

Well over half of the workers had been employed at the factory for more than 10 years. They claim that US$550,000 is needed to cover their final month’s salaries and lawful severance pay.

After their sudden dismissal, the workers, mostly women, prevented the owners from selling the remaining assets from the factory through physical occupation of the building as well as legal measures, and the local court issued an injunction order that temporarily froze the assets of Chung Fai.

The workers have continued their struggle with appeals to the brands sourcing from their factory, urging them to intervene.

For the full story, see the August 2017 edition of Textiles South East Asia. Not a subscriber? Sign up HERE