Foreign garment firms could face legal action

Foreign garment firms could face legal action

Garment factories threatening closure over proposed minimum wage adjustments could face legal action if they fail to obey official procedures, warned Burma’s Ministry of Labour, Employment and Social Welfare.

The warning comes after the Myanmar Garment Manufacturers Association said in late June that around 30 Chinese and 60 South Korean-operated factories would shut down operations if the minimum wage of 3,600 kyat (US$3.00) per day proposed by the government-led National Committee for Minimum Wage is approved.

The labour ministry responded by saying foreign investors working in Burma should be aware of employment laws in the country.

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Master Sports, a South Korean-owned sports footwear firm, came under fire in July 2014 for closing its Burmese factory allegedly without prior notice, leaving more than 750 employees jobless.

Meanwhile, hundreds of workers in Rangoon’s Hlaing Tharyar industrial zone on Sunday rallied in a protest demanding a minimum daily wage of 4,000 kyat ($3.33).

 

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