Chhim Sithar, a prominent union leader in Cambodia, has made it clear that she and her fellow workers will continue their strike against NagaWorld, Cambodia’s largest casino, until justice is served. This decision comes despite Sithar’s recent release from a two-year imprisonment for her role in leading what has now become the longest labor strike in the nation’s history. Her defiance highlights the growing tensions surrounding labor rights in Cambodia and the broader Southeast Asian region, as workers increasingly push back against layoffs and alleged union-busting tactics.
The ongoing strike, which began in December 2021, was a response to mass layoffs by NagaWorld, owned by the Hong Kong-listed NagaCorp. The casino let go of hundreds of employees as a result of financial difficulties during the COVID-19 pandemic. However, the union believes that these layoffs disproportionately targeted union members in a deliberate attempt to weaken workers’ rights advocacy at the casino.
Background: The Roots of the Nagaworld Strike
The Nagaworld strike began in December 2021 as a direct response to the layoffs of 373 employees by NagaWorld, which the company attributed to financial strains during the COVID-19 pandemic. However, the layoffs included a significant number of union members, prompting accusations from labor activists that NagaWorld was engaging in union-busting tactics.
Chhim Sithar, who leads the Labor Rights Supported Union of Khmer Employees of NagaWorld (LRSU), became the face of the resistance, calling out the alleged unfair treatment of workers. The employees who were laid off demanded their jobs back, claiming that the casino’s actions were unjustified and targeted union leaders and active members in a systematic attempt to dismantle the union’s growing influence.
By January 2022, as protests continued, the situation escalated when Sithar was arrested during a demonstration of dismissed employees. Her arrest only fueled the resolve of the striking workers, who vowed to keep fighting for their rights. Sithar’s detention became a rallying point for international labor organizations and human rights groups, who began monitoring the situation closely.
Chhim Sithar’s Imprisonment and Release
Sithar’s imprisonment for nearly two years highlights the risks that Cambodian labor leaders face when challenging large corporations. She was charged with incitement and disrupting public order, accusations that her supporters claim were politically motivated to suppress union activity at Nagaworld. During her imprisonment, labor strikes continued, although they lost some momentum due to the harsh crackdown by authorities and the pressures on workers to accept compensation offers from the casino operator.
The Cambodian government has a history of clamping down on labor movements, often aligning with business interests to maintain political and economic stability. Sithar’s arrest was seen as part of a broader strategy by the state and corporations to weaken organized labor and limit worker demands.
After her release in 2023, Sithar made a public vow to continue the strike until a fair resolution is reached. Her message was clear: the workers at Nagaworld will not back down until their demands for fair treatment, job security, and union rights are met.
Nagaworld’s Financial Struggles and Labor Tensions
Nagaworld, operated by NagaCorp, is one of Cambodia’s largest employers, and its operations are critical to the country’s economy. However, the casino’s financial health has been a point of concern, especially during and after the pandemic. In 2021, NagaWorld faced severe financial setbacks due to pandemic-related travel restrictions and reduced tourism, which is a key revenue driver for the casino industry.
In response to these financial pressures, NagaWorld laid off 373 employees, citing the need to cut costs. This move, however, sparked outrage among the workers, who believed the company was using the pandemic as a cover to eliminate union activists. The union accused NagaWorld of specifically targeting union members for layoffs in a bid to weaken the labor movement.
Adding to the company’s financial challenges, NagaCorp issued a profit warning in August 2023, acknowledging potential losses stemming from its Vladivostok project in Russia. This came at a time when the company was still trying to recover from the pandemic and address labor tensions back home. Despite reporting a 12.3% year-on-year increase in its half-year financial report for 2023, the company’s overall financial stability remains in question, and this uncertainty has complicated negotiations with the striking workers.
Union Rights and Alleged Union-Busting at Nagaworld
At the heart of the Nagaworld strike are issues surrounding union rights and the alleged union-busting activities by the casino management. The Labor Rights Supported Union of Khmer Employees of NagaWorld has accused the company of systematically targeting union members and leaders for layoffs as a way to diminish their bargaining power.
Union-busting refers to the various strategies used by employers to weaken or destroy labor unions. This often includes layoffs, intimidation, or offering financial incentives to employees in exchange for leaving the union or dropping legal claims. In the case of Nagaworld, the union believes that the company deliberately laid off union members under the guise of financial hardship.
Although Cambodia’s labor laws protect workers’ rights to unionize and engage in collective bargaining, enforcement of these laws has been inconsistent, and many businesses operate with minimal oversight. Sithar and her fellow union leaders have been pushing for greater accountability and stronger protections for workers, but they have faced significant resistance from both corporate and governmental forces.
The Cambodian Government’s Role and Response
The Cambodian government’s response to the Nagaworld strike has been one of concern for both maintaining stability and protecting the economic interests tied to the casino. Cambodia’s Ministry of Labor and Vocational Training has been involved in mediating the dispute but has faced criticism for not doing enough to protect the rights of workers.
In December 2022, the ministry announced that 200 of the laid-off employees had accepted compensation and dropped their cases against Nagaworld. This development marked a partial victory for the casino, but the core issue—ensuring fair treatment and job security for union members—remained unresolved for many.
Labor unions in Cambodia have historically faced challenges when dealing with both the government and large businesses, particularly in industries like hospitality, manufacturing, and tourism. The Cambodian government often walks a fine line between appeasing international organizations that advocate for labor rights and maintaining strong ties with powerful businesses that drive economic growth.
The Broader Implications of the Nagaworld Strike for Cambodia’s Labor Movement
The Nagaworld strike has significant implications for Cambodia’s labor movement and the broader Southeast Asian labor landscape. This ongoing dispute is more than just a fight for jobs at a single company—it reflects a growing trend of workers demanding better rights, protections, and fair treatment in a rapidly developing economy.
For years, Cambodian workers have struggled to secure basic labor rights, particularly in industries like garment manufacturing and construction. The Nagaworld strike, however, represents a major step forward in the fight for union rights, as it involves high-profile sectors like tourism and entertainment, which are crucial to Cambodia’s economic future.
Sithar’s defiance and continued advocacy have inspired many within the labor movement, both in Cambodia and abroad. Her case has garnered international attention, with human rights groups and labor organizations calling for greater scrutiny of Cambodia’s labor practices. The fact that she is willing to continue the strike even after her two-year imprisonment demonstrates the resolve of the workers and their commitment to securing a just resolution.
Chhim Sithar’s vow to continue the strike until justice is achieved highlights the enduring strength of Cambodia’s labor movement, despite significant obstacles. The battle between Nagaworld workers and their employer encapsulates the larger struggle for workers’ rights in Southeast Asia, where labor activism is often met with resistance from both corporate and governmental forces.
For NagaWorld, resolving the dispute will require more than just financial compensation—it will demand meaningful dialogue with union leaders and a commitment to addressing the concerns of the workers. The company’s financial challenges, particularly with its Vladivostok project, complicate the situation, but the longer the strike drags on, the more pressure it faces from both local and international observers.
The Nagaworld strike, the longest in Cambodia’s history, continues to be a symbol of the growing demand for worker protections in a globalized economy. As the strike enters its third year, all eyes remain on Sithar and the labor movement, with hopes that their persistence will lead to meaningful change for Cambodian workers.