By Ma Ma - Nov 09, 2024
Workers from Real Star factory, owned by a South Korean national report that they are not being paid the minimum wage set by the Ministry of Labor, and they also face wage deductions for overtime wages.
This factory located in the Dagon Seikkan Industrial Zone 2 in Dagon Myothit (Seikkan) Township, Yangon Region, employs over 1,000 workers. The factory primarily produces down jackets for the South Korean brand BOUTIQUE, and more than half of the workforce consists of underage laborers.
"We currently receive only 5,800 kyats in daily wages. Although the Ministry mandates an additional 2,000 kyats as subsidies, the factory does not provide it. Also, we don’t receive our full wages for the overtime hours we work. Regular working hours are from 7:40 a.m. to 4:20 p.m., and if we work overtime, it is until 7:00 p.m. However, on Tuesdays and Thursdays, we have to work from 8:00 p.m. to 2:00 a.m. For that, we only get 6,000 kyats. We have to buy our own meals as nothing is provided by the factory. For those who live far away, if they can’t bring meals from home, they have to buy lunch for the next day too. The wages they give us barely cover our food costs. Even though we work overtime, we don’t receive any benefits for it," said one worker.
Workers also report that they are forced to use the same water for both drinking and sanitation purposes, leading to unclean restroom facilities and an insufficient number of toilets for the workforce. Additionally, the dispensary lacks essential medicines, and workers have to purchase equipements using their own money.
"They turn off the lights at 2:00 a.m. as soon as we finish work. Some workers who live nearby go home, but those who live far sleep in their workstations, on tables or floor. Some have mosquito nets, but others sleep under layers of fabric. There is no dormitory room provided. As time goes on, this affects our health, but we can’t even take sick leave. If we miss a day of work, we lose both the daily wage and our attendance bonus." The output target is set at 35 pieces per 40 minutes. For ticket bonuses, if we reach 100% of the target, we get 60,000 kyats; 90% earns 50,000 kyats; 80% gets 40,000 kyats; and 70% gets 30,000 kyats. But if we fall below 70%, we get nothing. I’ve only managed to meet the target once in a month," a worker explained
The factory does not provide Employment Contract (EC) agreements, and while it deducts social security contributions from workers’ wages, some workers have still not received social security cards even after more than a year of employment.
"There are many violations. The lack of EC contracts means the Department of Labor Inspection does not properly inspect the factory. Maternity leave is also not granted—if a worker is pregnant, she has to leave her job. They turn off all the lights after working hours, which raises safety concerns for female workers. We urge the Ministry of Labor to provide effective oversight," said a labor rights activist.
For workers who do not take their annual leave, the factory does not pay compensation based on the wage rate, but instead provides only bonuses. The factory also requires overtime work even on public holidays.
