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

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Claudia Kersten
Global Organic Textile Standard

‘GOTS is a very efficient supply chain management tool, especially for...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

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

Ashok Desai
Bombay Textile Research Association

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

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

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

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search