Home / Knowledge / News / Apparel/Garments / Myanmar garment factories may fire more workers
Myanmar garment factories may fire more workers
07
Sep '15
With the coming into force of the new minimum wage on 1 September in Myanmar, many labourers working in garment factories woke up to the nightmare of losing their jobs. As factories implement the new minimum wage of K3,600 ($2.80) per day, they are likely to reduce manpower, say media reports in Myanmar.
 
According to the Ministry of Labour of Myanmar, thousands of workers have already lost their job since the implementation of the new wage rate. 
 
In the past, low wages in the country have spurred strikes and protests by the labour unions and workers. But, clothing retailers like GAP and Hennes & Mauritz that work with factories in Myanmar came out in support of a stable minimum wage.
 
The first minimum wage at K3600 ($2.80), for an eight-hour work day, came after two years of negotiations, and was supposed to bring relief to the workers. However, the new wage rate was not received well by the factory workers of Myanmar, who expected a bare minimum of K4,000 ($3.11), the reports said.
 
On the other hand, garment factory owners were also not delighted by the announcement. According to the Myanmar Garment Manufacturer's Association, the new minimum rate is a 4.5-fold increase for some factories for entry-level workers. As a result, employers are now cutting down benefits like transport allowances and stipends, and even reducing the workforce. Decline in orders and lack of productivity are also being held as reasons leading to unemployment in garment workers.
 
The upside is that the minimum monthly pay of $67 per month can give a reasonable advantage to garment manufacturers of Myanmar, since it is still lower than countries like Vietnam and Cambodia, where the minimum wage ranges from $90 to $128, according to the International Labour Organization. 
 
Moreover, the clarity on labour costs may attract global apparel retailers to invest in the fast growing garment sector. Myanmar exported $1.5 billion of clothes and other material in 2014, as per Global Trade Atlas.
 
The minimum wage is applicable to workers across all industries, except small or family-operated businesses comprising less than 15 individuals. (HO)
 

Fibre2Fashion News Desk – India


Must ReadView All

Japan’s JICA promoting energy-saving devices in Bangladesh

Apparel/Garments | On 21st Feb 2018

Japan’s JICA promoting energy-saving devices in Bangladesh

The Japan International Cooperation Agency (JICA) is promoting use of ...

China’s JD.com announces financing pacts for JD Logistics

Textiles | On 21st Feb 2018

China’s JD.com announces financing pacts for JD Logistics

China’s largest retailer JD.com Inc recently announced it has entered ...

Courtesy: Indorama Ventures

Textiles | On 21st Feb 2018

IVL 2017 revenue up 17% y-o-y to $8,438 million

Indorama Ventures Public Company Limited (IVL) has reported revenue...

Interviews View All

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Neel Sawhney
One Friday

‘The share of kidswear segment in the online sector is still small in...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.6%
No
12.7%
Skip
16.7%

Total Votes: 102

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.7%
No
29.4%
Skip
6.9%

Total Votes: 102

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.2%
No
8.8%
Skip
2.9%

Total Votes: 102

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.3%
No
7.8%
Skip
8.8%

Total Votes: 102


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search