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

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Lynda Kelly
Suominen Corporation

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

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

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

October 2017

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
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

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
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

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
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

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
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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