Afraid that the Dai Young Cambodia Co garment factory in Phnom Penh would not be renewing its land lease, more than 800 workers protested on Saturday at the factory in Russei Keo district demanding that the owner sign a guarantee of severance pay, labor unions said yesterday.
Nhet Vanny, vice president of Cambodia Workers Labor Union, said that after the workers found out in July that the property’s landlord would not be issuing a renewal to Dai Young when it expires in 2013, they made a request to the owner to sign a severance guarantee but were refused.
“Dai Yong has five other branches in Phnom Penh, so the workers are afraid the factory will close, or just move somewhere else without paying severance,” he said.
After a request to the Ministry of Social Affairs to intervene was rejected Aug 15, the workers staged the first of several single-day protests on the grounds of the factory the following day, he said.
Preap Len, administrative chief at Dai Young, said the factory has refused to sign a severance agreement because the factory is still operational and has no intentions of closing.
“We could not pay them because the factory does not have plans to shut down,” he said. “If our factory does shut down, then we will pay them according to the law.”
Open since 2003, Dai Young factory produces bathing suits and employs 1,070 workers, he added.
Chhoeun Bunnak, 32, who has worked at the factory for eight years, said yesterday that after he heard about the lease issue, he became afraid that if the factory shut down, he would be left without any severance.
“We protest because we want the factory owner to clear up the severance pay. It makes the workers angry and worried,” he said. “The contract will finish in 2013, then the landlord will use this land to build apartments. He will not rent to Dai Young anymore.”
