NEWS

Numerous Labor Law Violations and Wage Exploitation of Daily Wage Workers at LIAN FA (Myanmar) Garment Factory

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By Ma Ma - Jan 17, 2025

Workers from the Chinese national owned LIAN FA (Myanmar) Garment Factory said that the factory has been accused of violating labor laws and exploiting daily wage workers by underpaying them.

The factory, located on Min Aya Road, Shwe Than Lwin Industrial Zone, Hlaing Thar Yar Township, operates with a workforce of nearly 300 employees. Instead of producing branded garments, the factory takes on contract manufacturing for other factories, making items such as coats, down jackets, jackets, and long pants. The factory has neither a labor union nor a WCC (Worker Coordination Committee) and is reportedly engaged in several labor rights violations.

"The factory's working hours are from 8:00 AM to either 6:00 PM or 7:30 PM, depending on their demands. They also impose overtime, including late-night and overnight shifts. Break times are unpredictable, and overtime hours are often decided on the spot. Workers daily wages and allowances are completely deducted if machine operators miss even one workday. Workers are not granted leave, even when requested although the factory has been operating for over a year. For emergencies, workers must request gate passes, but these are rarely approved. The workers' daily wage is deducted even if gate pass is granted. Daily wage workers are paid only 6,800 kyats per day and are paid only for the days they work. They work from Monday to Saturday, and they are still paid only 6,800 kyats for Saturday even if they work until evening. They receive no wages for Sundays although they work the same as permanent employees and frequently do overtime," a factory worker told Myanmar Labour News.

The factory pays workers as follows: a base wage and additional allowance totaling 6,800 kyats per day, attendance bonus of 20,000 kyats, and skill-based allowances—50,000 kyats for level A, 35,000 kyats for level B, and 25,000 kyats for level C. However, workers claim they suffer losses because they are not granted legally mandated leave.

"The factory does not pay their wages for workers who stop working due to various reasons or those who miss three consecutive workdays, especially if the missed days include public holidays. The factory refuses to pay them the full wages promised during recruitment and instead settles with just 4,800 kyats for daily wages even for workers who have completed more than three days of work," said another worker.

Workers at the factory have demanded that workers should not have their wages deducted when granted gate passes, legally mandated leave entitlements must be respected and provided, daily wages must not be deducted for any reason, full wages must be calculated, daily wage workers must be hired under conditions that comply with labor laws, Sunday wages must be counted since they work more than the legally allowed 48 hours per week, and wages for workdays must be calculated fully and in accordance with agreed terms.

The workers have also sought assistance from the Industrial Workers Federation of Myanmar (IWFM) regarding the labor rights violations and unfair treatment they are facing at the factory.


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