Cambodian government to intercede in NagaCorp conflict with unions

A meeting between NagaCorp’s management and laid-off workers will be attended by the country’s Ministry of Labour and Vocational Training.

Cambodia.- NagaCorp was highly criticised by labour unions after it announced plans to reduce pay and lay off employees to improve cost efficiency due to the impact of the Covid-19 pandemic.

Now, the government will intervene, with the Ministry of Labour and Vocational Training mediating a meeting between the two parties.

The meeting will also be attended by eight members of the “Labor Rights Supported Union of Khmer Employees of NagaWorld” and two lawyers.

The union aims for NagaCorp to reverse its lay-off decision, to rehire some of those fired and to increase the enhanced termination compensation for those workers who have already accepted the employer’s severance arrangement.

NagaCorp previously said: “We believe that it is important for the Group to maintain operational and financial flexibility to ensure that it remains focused and efficient during this period. 

“To reduce the impact on our employees, the Company will provide affected employees with enhanced termination compensation over and above payments required by the applicable Cambodian laws to assist their transition into other career or business interests.” 

Due to an increase in Covid-19 cases in Cambodia, NagaWorld temporarily suspended operations voluntarily on 2 March 2021. It has not reopened since.

To minimise its cash expenditures, NagaCorp has taken a series of actions, including scaling back hotel and food and beverages operations, reducing payroll expenses by limiting staff on-site, and the closure of facilities to reduce utility expenditure.

Chhun Sokha, union vice president, has said more than 500 employees union leaders, activists and members have received layoff notices.

Sokha claimed NagaCorp’s offer to provide the government with subsidies to help Cambodian people during the Covid-19 pandemic was “fake”. She argued the group did nothing to help its workers keep their jobs.

She added that those laid off include pregnant women and recent mothers.