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NagaWorld Claims They Never Fired Employees Based on their Union Membership

PHNOM PENH: NagaWorld issued a press release on 23 January stating that the company has never used union membership as a prerequisite for layoffs, and has said that the main reason for firing close to 15 thousand employees between 2020 and 2021 was because of excessive losses the company made during the Covid-19 pandemic.

The press release stated that due to the serious impact of Covid-19 on the global tourism industry, many companies in the world have lost revenue and business due to a bad economy environment, and as of the first half of 2021, the company lost about $77 million dollars.

NagaWorld Hotel and Casino added that due to the bad business environment, the company has started to reduce some of its costs in order to continue to its operations. Among these cost reductions, reducing the number of human resources was a big step the company took, especially in those areas where there are more employees than needed or an unproductive workforce.

The company, which has been operating since 1995, stated that it had complied with labor laws and other rules that benefited its workers, and has implemented the Mutual Separation Plan which provides employees with better compensation than required by Cambodian labor law.

NagaWorld states that 73% of the affected employees have accepted their contract termination agreement, which was made in full transparency through consultation and implementation of the calculation method in accordance with all the rules and regulations in force, the Ministry of Labor and Vocational Training, as well as all relevant laws and measures in Cambodia.

The company further stated that it has engaged in mass lay-offs of employees twice in 2020 and 2021, totaling 14,522 workers, including 6,548 union members. However, 360 employees have refused to accept the contract termination agreement and went on strike on 18 December 2021.

NagaWorld added, "The union has objected to the method of calculating compensation, which is not based on any rules, regulations and relevant laws in force in Cambodia."

It has now been 36 days since former NagaWorld employees went on strike, starting from 18 December 2021, to demand that the company to take them back to work. So far eight people have been arrested and charged by the court for involvement in inciting serious chaos to social security after authorities reported finding evidence of receiving money and orders from abroad to incite the protests.

On 5 January 2022, the Special Rapporteur on the Situation of Human Rights in Cambodia, Vitit Muntarbhorn, the Special Rapporteur on the Situation of Human Rights Defenders, Mary Lawlor, and the Special Rapporteur on the Rights of Peaceful Assembly and Association, Clément Nyaletsossi Voule, issued a statement condemning the arrest and detention of NagaWorld union leaders, calling the move a violation of human rights law and called on the Cambodian Government to explain the move.

Immediately after, the Cambodian Permanent Mission to the United Nations, An Sokhoeun, defended the Royal Government's actions in accordance with the law and in proportion to the fact that the strike of the former NagaWorld workers was illegal and lasted for several weeks, threatened security, order and public safety. He added that prior to the action, the Cambodian authorities had urged the strikers to return to more peaceful and straightforward negotiations.

An Sokhoeun added that the law enforcement authorities are still protecting the rights and interests of the suspects and defendants, who have full access to a trial, including the right to a lawyer, in accordance with all procedures. He prompted the Special Rapporteurs to abide by the Code of Conduct for the special envoys and to work on the basis of facts rather than distortions.



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