By Thar Gyi - Jun 26, 2025
Preclo Myanmar garment factory has dismissed five workers and is refusing to pay their due compensation, workers said. They also told the Confederation of Trade Unions, Myanmar (CTUM) that the factory violated a mutual agreement signed at the Department of Labour.
“The factory is refusing to pay compensation to two workers including Ko Aung Kyaw Thu and three workers including Ko Myat Ko Ko. They also failed to reinstate the workers as agreed in the official settlement at the Department of Labour Relations,” said CTUM.
Two workers including Ko Aung Kyaw Thu were dismissed on March 20, and a mutual agreement to reinstate them was signed on March 26 at the Department of Labour.
However, the factory manager refused to allow them back and denied them access to the factory when the workers returned to the workplace on March 29. The factory continued to reject reinstatement during all four rounds of mediation the workers said that although they filed a complaint for breach of the settlement.
The factory manager reportedly offered to settle the case with a token payment instead of reinstatement or full compensationduring the June 24 mediation, workers said.
Amid these events, three other workers also filed complaints with the Labour office demanding compensation owed by the factory, CTUM stated.
The factory manager still continued to refuse payment after five rounds of mediation.
“The manager representing the factory said they wouldn’t pay what the workers are owed. They said the factory won’t pay the compensation unless the workers agree to settle the file letter for breaching the mutual agreement at the labour office with a notice fee. They said go ahead if we don’t satisfy,” according to the workers.
No resolution has been reached as of the most recent mediation on June 24 at the Department of Labour due to the factory maintaining its previous position.
Preclo Myanmar Co., Ltd is a Chinese citizen-owned garment factory located at Road 1 Extension, Shwepyithar Industrial Zone 1, Shwepyithar Township, Yangon and employs around 1,000 workers.
