By Yoon Sat - Mar 12, 2025
Around 2,000 workers had staged an in-factory protest demanding a wage increase at the Myanmar GiGi Leather wallet factory, located on Pale Street in Thardukan Industrial Zone, Shwe Pyi Thar Township. It has now been confirmed that an agreement has been reached with the employer.
"We have reached an agreement and the negotiation took place yesterday at 4 PM. A representative from the Ministry of Labor also came to the factory. The employer agreed to provide a wage of 8,800 MMK, overtime pay of 2,000 MMK per hour, and an increase of 10,000 MMK in the attendance bonus, raising it to 30,000 MMK. The employer stated that this was the maximum they could offer and that it was already a significant increase. They told workers who were still dissatisfied to resign. A list of those unwilling to accept the terms was collected, but in the end, all workers agreed. The contract was signed on the spot in the presence of officials," said the workers.
This factory is owned by Chinese nationals and operates with approximately 2,000 workers, manufacturing Lethar wallets.
Workers had been earning 7,800 MMK, including allowances and attendance bonuses, with an overtime pay rate of 1,700 MMK per hour and an attendance bonus of 20,000 MMK. As other factories had increased daily wages, the workers, through the WCC, submitted a request to the employer for a daily wage increase, including an attendance bonus of 10,000 MMK, an overtime rate of 2,000 MMK per hour, and an attendance bonus of 40,000 MMK. However, as negotiations were delayed, around 2,000 workers staged a power-off protest inside the factory on March 10 and 11.
Following negotiations between the employer, workers, and the Ministry of Labor, the workers ultimately accepted a wage of 8,800 MMK, an overtime rate of 2,000 MMK per hour, and an attendance bonus of 30,000 MMK. The agreement was finalized on the evening of March 11.
The factory had previously faced complaints regarding discriminatory treatment and had also been accused of keeping workers as temporary employees for over a year.
