Following mediation by the Ministry of Labour and Vocational Training on Tuesday, May 20, the Color Star (Cambodia) Product Co., Ltd. factory has pledged to provide compensation to workers who do not wish to relocate to the company’s new site.

Around 500 workers staged a protest on May 19 and 20, blocking Street 272 in Prek Chrey village of Spean Thmor commune, in Phnom Penh’s Dangkor district, after the company announced the relocation. The company explained the move was due to the landowner of the current factory site refusing to renew the lease.

Upon receiving news of the workers’ protest against the relocation, the labour ministry oraganised a meeting and helped both sides reach a mutual agreement.

The ministry announced that the company has agreed to terminate employment contracts and pay compensation to workers who do not agree to work at the new location. The company will make all four legally required payments. This includes unpaid wages, compensation for unused annual leave, compensation in lieu of prior notice and seniority indemnity.

The ministry appealed to the workers to trust the ministry's resolution process and cease blockading public roads, which disrupts public order and may lead to criminal charges.

The labour ministry negotiated a mutual settlement and assured the workers they will be paid what they are owed. CENTRAL

According to Center for Alliance of Labor and Human Rights (CENTRAL), the factory management previously told the employees that the final day of operations would be September 30, but that some staff would begin working at the new location from as soon as May 26.

The new location is 35 kilometres away, on National Road 2, in Krang Thnung village and commune of Takeo province’s Bati district.