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| Injured June textile workers during protest (Photo: The Phnom Penh Post) |
July 28, 2011
Fibre2fashion (India)
June Textile Factory, located in Cambodia’s capital Phnom Penh’s Sen Sok district, has agreed to make severance payment to around 4,000 employees in keeping with a ruling of the Arbitration Council. This has been announced by Administration Director of the company, Albert Teoh.
The decision of the company comes following months of agitation by workers demanding severance compensation after the factory got gutted due to fire during March this year.
The Arbitration Council, in a decision issued last month, directed June Textile to pay up to three months salary to its employees as a pre-notice period compensation prior to their termination.
The factory was also directed to pay outstanding amount of remaining annual leave and indemnity payments calculated as 15 days salary multiplied by the number of years worked, with a ceiling at six years, to the workers.
Mr. Teoh said that over 2,000 workers, who had already accepted the payments of US$ 20 per year worked initially offered by the company as compensation, would also be paid additional compensation in accordance with the ruling, in August.
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