Myo Thein
Workers at Arao Garment Factory say the factory has demoted senior department heads and reduced their salaries. According to workers, after the factory relocated and reopened under the name Arao Garment from its former operation as Hahae Factory, management failed to recognize workers’ years of service and instead reduced both wages and positions.
“The factory has been operating for over two years, and our service periods are long. After the factory changed its name, the owner said there were too many cutting department leaders and announced that eight department heads would be demoted and have their salaries reduced. We don’t know what form this will take. It feels like they are saying, ‘If you can work, then work; if not, don’t,’” a worker said.
Workers said that during the factory transition, their service periods were not carried over even though they were required to continue working, causing losses for all workers. Management has now informed eight current department heads that they will be demoted and have their wages reduced. Workers said this action constitutes a violation of the Employment Contract (EC), yet no copies of the EC contract have ever been provided to workers.
“The EC contract has never been given to us since the factory first opened until now. The manager said there is nowhere we can complain, and even if we do, it would be useless. He said the owner has already discussed everything properly with senior officials before taking these actions,” a worker said.
Under the 2013 Employment and Skill Development Law, an Employment Contract must be signed between the employer and the worker within 30 days from the date of hiring. The contract must be prepared in at least two or three copies, with one original copy provided to the worker. Workers said that because they were not given EC contracts, they are suffering losses.
Workers also said that when overtime is called on public holidays, double overtime pay is not provided. Instead, only four hours of overtime are paid for those days. Although workers were required to sign the EC contract, they were never given a copy to keep.
Arao Garment Factory is jointly owned by South Korean and Myanmar nationals and operates in on Kanaung Min Thar Gyi Road, Dagon Seikkan Industrial Park (Kyisu), Dagon Seikkan Township. The factory employs nearly 3,000 workers and manufacture brands including POLHAM, JAJU, and TISSAIA, according to workers.
