Myo Thein
Jan 22, 2026
After nearly two weeks of demands inside the factory, the COSTEC garment factory, which increased the daily wage by 500 kyats, has dismissed a labor organization leader, according to reports. Workers said the dismissal was carried out on the grounds that the leader refused to sign documents that the factory was forcing workers to sign regarding wage payment methods and factory rules.
“This morning, they called [him] to the office and dismissed [him] from the job. That’s what we know,” a worker said.
It is reported that the factory summoned the president of the basic labor organization, who refused to sign, on the morning of January 21, saying that it was not convenient to keep workers who could not comply with factory rules.
As the November wages were cut by nearly 150,000 kyats compared to October wages, workers submitted a complaint letter to the Insein Township Office of the Department of Labor Inspection on December 31. Workers said that the department forced them to sign the factory’s wage payment system and rules instead of resolving this complaint.
“Up to today (January 21), this complaint has not been resolved. It has been nearly a month. Without resolving it, and without explaining even once, the factory forced workers to sign documents stating that they understood the wage payment method and rules. They said that if they did not sign, they would be dismissed, so workers signed. The labor leaders, however, refused,” it was said.
It is reported that all EC members of the factory’s basic labor organization refused to sign the documents that the factory forced them to sign. In addition, it is also reported that a person described as an HR advisor of the factory said that permission from the factory owner was required in order to form a basic labor organization.
“They also said that employees must obey the employer’s words, and that ‘if you want to form organizations like this, you must have the boss’s permission. It is not official if it is not submitted to the boss. Your duties will be terminated if you cannot comply with factory rules,’” the advisor reportedly said.
Under the Labour Organization Law currently in force in Myanmar (2011), it is stipulated that forming a labour organization (or labor union) does not require the employer’s permission, but only requires drafting a constitution and obtaining the consent votes of workers.
The garment factory owned by COSTEC INTERNATIONAL CO., LTD is located on Mya Taung Wun Gyi Road, Shwepyitha Industrial Zone (3), Insein Township, Yangon, and employs around 1,000 workers. It is reported that the factory is currently manufacturing brands such as Wakiki - X Shetter and Zero Staage.
