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12 Sep 2021


Cambodia: C&A's response to workers’ wage losses and improper payment of severance in their supply chain factories during the COVID-19 pandemic

"... In the letter sent to us by the Cambodian stakeholders, they named five suppliers that allegedly had not followed national labor laws. Out of these five suppliers mentioned in the text, C&A only has business relations with one: Sangwoo. As far as this supplier is concerned, our local teams confirmed that severances were paid as per legal requirements. Local teams even had access to the relevant labor department confirmation letters corroborating this point. There is, however, one element in the closure compensation that has been disputed by the local trade unions: the "damages payment". This entitlement did not apply to all suppliers and situations. In fact, at Sangwoo it was not applicable. Therefore, the supplier did not pay damages payments its workers..."