Cambodian Garment Workers Settle 8-Year Dispute, Return to Factory

Three Cambodian garment workers fired after forming a union at a South Korean-owned factory have reached a rare out-of-court settlement, ending an eight-year labor dispute, labor group Central said Tuesday. So Chanthea, Keut Sokny, and Tep Sreynoeun agreed to drop their lawsuit against CIK Cambodia and will return to work at the factory with compensation, said Central, which has represented the workers since 2023. The group said it could not disclose the amount of back pay. “I’m so excited as now I can go back to work and eight years is too long for me,” Sreynoeun said. “We decided to end the dispute throughout the mutual agreement and I hope there is no pressure or discrimination of the union again.” The three were dismissed in 2017 from CIK’s factory in Phnom Penh, which supplies major international retailers, after forming a union in what they said was a response to the company’s practice of firing women once they became pregnant. The factory has since transferred its operations to Mix & Match Garments Co. CIK said the dismissals were necessary to cut staff amid declining orders, a justification labor advocates have disputed given the timing. Both the Arbitration Council and the Phnom Penh Municipal Court issued binding rulings early in the case ordering reinstatement with full backpay. CIK appealed the reinstatement ruling in 2020 but failed to pay a $20 processing fee, effectively stalling the case for years. In 2019, CIK’s deputy director also filed a $100,000 counterclaim against the three workers, which has been dropped under the settlement. Sokny said she never expected to return to work at the factory. She will resume the same position on Aug. 17. “I will continue my activism in the union, as I did nothing wrong against the law or the company,” she said. Before the settlement, the case drew intervention earlier this year from South Korean President Lee Jae-myung, who called on his government’s ministries to intervene, citing unfair dismissals that occurred before the company changed hands. Lee said the unresolved dispute was damaging South Korea’s reputation abroad. Central Program Manager Khun Tharo said the case highlighted the shortcomings of Cambodia’s courts in resolving labor disputes. “Cambodia’s labor dispute resolution system has not been effective in addressing workers’ grievances, including dismissals and compensation that do not comply with the law,” he said. He added that the case should serve as a reminder to international companies to uphold responsible business practices, respect human rights and comply with legal and social responsibility standards. CIK and Mix & Match Garments did not immediately respond to requests for comment. Labor Ministry spokesperson Sun Mesa also did not respond to a request for comment by publication.