NagaCorp says union membership played no part in downsizing decisions

NagaCorp’s NagaWorld in Phnom Penh has defended its relationship with unionized workers after the treatment of striking employees by local authorities raised concerns amongst human rights organizations and the U.S.




In a public statement published in the Khmer Times, the company stressed that union membership was not a criteria that came into play when making decisions on downsizing its workforce.




The company released statistics that showed that it has reduced its employee headcount from 8,371 at the end of 2020 to 6,181 by the end of 2021. It said union membership had dropped from 3,976, or 47 percent of the total to 2,572, or 42 percent, showing little change in the overall level of unionized workers.




“In fact, with great emphasis towards protection of interests and right towards staff welfare, the company has always encouraged and emphasized staff to form unions since its inception in 1995.”




NagaCorp, which reported a net loss of $77 million in the first half of last year, said it had been forced to take cost cutting measures due to the impact of Covid and as a result, employees were offered a Mutual Separation Plan, which it said offered better benefits that those required under Cambodia Labour Law.




The company said 360 out of 1,329 affected employees refused to accept the plan and issued the company with a strike notification on December 18th.




However, Cambodian authorities’ heavy handed treatment of the striking employees risked becoming a cause celebre for civil rights movements in the country.




Police arrested nine on New Year’s Day and a further 15 were detained a few days later, including union leader Chhim Sithar. She was reportedly dragged away after stepping out of her car at the demonstration.




The U.S. embassy in Phnom Penh expressed its concern through a tweet, whilst other human rights experts also weighed in on the threat to the peaceful right to protest and to organize labour movements.




“We are following closely the troubling arrests of @NagaWorld union members for their peaceful expression and urge authorities to hear citizens, not silence them,” the embassy said in a tweet. “Freedoms of speech, assembly & association are guaranteed in the Cambodian constitution. Police have called the strike illegal and a threat to social order.




Naly Pilorge, executive director of rights group Licadho, told Al Jazeera the treatment of the NagaWorld strikers was just the latest example of the authorities using criminal proceedings to keep a lid on dissent.




“No one who looks at this strike, of hundreds of mostly women union members peacefully gathering to demand their labour rights, can possibly argue that it threatens ‘national security’ or causes social disorder,” Naly said.




NagaCorp has stressed that it was business as usual for the company despite the strike and that visitation has been increasing since the resort reopened after Covid lockdowns on Sept. 15. It will report its second-half results in early February.

"In its nine-month results, the company reported strong pent-up demand post reopening."

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