25 September 2026
The Center for Alliance of Labor and Human Rights (CENTRAL) and the Federation Union of Free and Independent (FUFI)submit this urgent appeal regarding repeated allegations of anti-union discrimination and interference with workers' freedom of association at Qi Heng Xin Factory Co., Ltd. The current case is not an isolated labour dispute. Rather, it represents a continuation of a longstanding pattern of alleged retaliation against workers seeking to organize independently.
Background
Workers established a FUFI-affiliated independent union on 22 March 2026 and submitted a registration application on 26 March 2026. According to workers and FUFI, factory management and representatives of a company-supported union subsequently pressured workers to abandon the independent union, encouraged them to join the company-backed union, offered incentives to withdraw from union activities, and monitored workers believed to support the organizing effort. Between April and June 2026, six workers associated with the union formation process, including three union founders, were dismissed, forced to resign, or denied contract renewal. All six continue to seek reinstatement.
The dismissals significantly disrupted the union registration process. On 19 June, the Ministry of Labour informed FUFI that the factory had challenged the registration because three founders were no longer employed. Workers subsequently held a second election on 16 August and resubmitted their registration application on 25 August. While the application remained pending, the factory terminated 74 workers on 10 September, including 33 union founders listed in the pending registration application. The remaining dismissed workers were reported to be union supporters. Management cited reduced orders as the justification, but workers and FUFI dispute that explanation given the disproportionate impact on independent union members.
Six union founders, including the elected union president, continued seeking reinstatement. When they reported for work on 11 September, they were removed from the factory by administration and security personnel and allegedly threatened with criminal complaints. The six workers subsequently filed a complaint with the Labour Disputes Department.
A Recurring Pattern
The significance of this case lies in its recurrence. Evidence indicates that Qi Heng Xin operates substantially the same factory previously known as Qi Ming Xin Factory Co., Ltd. Workers report that the management structure has remained largely unchanged despite the change in company name.
In an earlier dispute between 2022 and 2024, five union founders were dismissed during a union registration process. Although labour authorities ordered reinstatement, workers reported that required back pay and benefits were never fully provided, and several union leaders were later dismissed again. Prior allegations of anti-union retaliation were also reported at the factory in 2019.
The repetition of similar allegations over several years raises serious concerns regarding respect for workers' rights and the effectiveness of existing corrective measures.
Need for Buyer Action
CENTRAL and FUFI have repeatedly informed international buyers linked to the factory, including Target, Walmart, Champion, and H&M, about the allegations and developments in the case. While H&M has initiated an investigation and engaged with the concerns raised, other buyers have yet to provide meaningful information regarding their findings, actions, or plans to secure remedy for affected workers.
The allegations involve potential violations of freedom of association, protection against anti-union discrimination, and safeguards for union founders under Cambodian labour law and international labour standards, including ILO Conventions No. 87 and No. 98. They also raise concerns under the UN Guiding Principles on Business and Human Rights and the OECD Due Diligence Guidance for Responsible Supply Chains in the Garment and Footwear Sector.
Given the recurring nature of these allegations, buyers connected to the factory should not treat the case as an isolated incident. They should use their leverage to prevent further retaliation, ensure meaningful remedy, and guarantee that workers can freely exercise their right to organize without fear of dismissal or intimidation.
CENTRAL and FUFI call on buyers linked to Qi Heng Xin Factory to:
- Require an immediate end to anti-union retaliation and interference and ensure respect for the independent union's registration and operation.
- Engage directly and meaningfully with FUFI and affected workers through confidential and retaliation-free processes.
- Support reinstatement of the affected union leaders and founders, including full back pay, benefits, seniority, and restoration of previous positions.
- Investigate the September dismissals, including disclosure of selection criteria, compliance with Cambodian labour law, and consultation with worker representatives.
- Implement and monitor effective corrective measures to address recurring freedom of association violations and prevent future retaliation.
The repeated allegations of anti-union discrimination at Qi Heng Xin Factory underscore the urgent need for decisive action by both the factory and its international business partners. Effective remedy, accountability, and protection of workers' rights are essential to prevent further violations and restore confidence that workers can organize freely and independently without fear of retaliation.