NEWS

Factory Fails to Address Wage Deductions Despite Worker Complaints

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By Ma Ma - Feb 21, 2025

Workers from the Chinese-owned LUCKY FORTUNE GARMENT factory report that their production bonuses are being unfairly deducted by supervisors and leaders. It is said that no action has been taken to address the issue despite filing complaints with factory management.

The factory, located on U Tun Street in Shwe Pyi Thar Industrial Zone (4), Insein Township, operates with over 1,000 workers.

There is no trade union in the factory, and despite ongoing labor rights violations, it continues to manufacture brands such as CLOSSHI and RESTORATION.

“There are issues with production bonuses every month. The factory does not transparently disclose how bonuses are calculated. Weekly incentives are also deducted by supervisors and leaders, leaving nothing for sewing operators. Supervisors receive 20,000 MMK per day if we meet the factory’s production targets, while us who actually do the sewing get nothing. We endure extreme pressure, constant scolding, and verbal abuse to meet the set quotas. The team is supposed to receive 10 lakhs MMK as a reward. However, the supervisor takes 200,000 MMK, the leader takes 100,000 MMK, and the remaining amount is divided among the 45 workers on the line. The production manager himself told us that we should work our way up to become supervisors if we wanted more bonuses when we complained about these unfair deductions. We’ve had many disputes over production bonuses in the past, but factory management has never taken action to address these issues,” said a worker.

Workers also report discriminatory practices in granting leave. Those who have good relationships with supervisors and line leaders are given leave, while others are denied.

Because of this, workers who are denied leave face deductions of 9,000 MMK from their daily wage + subsidy and 20,000 MMK from their 40,000 MMK attendance bonus.

“There are also underage workers as young as 14, 15, and 16 years old in the factory. They are forced to work under the same conditions as adult workers without medical clearance. They are subjected to verbal abuse just like everyone else.

“There are no basic medical supplies in the clinic even though the factory has over 1,000 workers. Although a Worker Coordinating Committee (WCC) exists, it was established by the factory management, so it does not actually help workers resolve their issues,” another worker explained.

Due to these ongoing violations, workers have reached out to the Industrial Workers Federation of Myanmar (IWFM) for assistance.

Workers are demanding fair and equal treatment when applying for leave, an end to verbal abuse and shouting by supervisors when production targets are not met, that underage workers not be subjected to the same heavy workload as adults and transparency in production bonus calculations and an end to unjust deductions.

 


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