NEWS

Sub factories are closing as mother factories do not pay and workers are on the margin to become unemployed

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A worker told Myanmar Labor News that they are on the margin to become unemployed as the Sam Clothing (Myanmar) garment factory from East Dagon Industrial Zone, Yangon, which mainly manufactures the ZARA brand hires some small factories to sub-manufacture the LCW casual brand but does not pay.

"It's been more than 3 months since they appointed to manufacture the cloths. For the first two months, the owner had to find money from somewhere else and never have a dept on the workers. The boss looks good on the workers. For this month, he said that he will pay by selling the machines." said a factory worker.

Sam Clothing (Myanmar) is located in the east of Dagon University Gate, East Dagon Industrial Zone, Yangon and according to DICA's information, it is operating with foreign investment.

One of the managers of the small garment factory said that there are a total of 6 sub-factories that do not receive payment from Sam Clothing (Myanmar) currently and around 500 workers are facing a situation of unemployment.

"The fabrics were sewn according to the process. QC from Sam Clothing (Myanmar) came to check while we were manufacturing. Everything was fine. But they did not even allow to enter the when the payment time reaches," said the administrative staff.

The administrative staff said that the agreement between the two parties to sew the clothes was signed with the letter head of Sam Clothing (Myanmar) and the signed documents were sent via WE chat.

Also, a sub-factory worker said that they have to work 2 days all night and all light at Sam Clothing (Myanmar) factory for LCW casual brand order but there were no wages for those days.

"When the last sewn LCW casual clothes were sent to the Sam Clothing factory, each garment was tested twice. When I checked the clothes at Sam's last time, I worked all light for packing. At that time, didn't want to go as it isn’t my factory. But my boss pardoned and said that to go for the wages. I went there but now; it is known that we still haven't got those." said a female worker.

An administrative employee said that when the contract between Sam Clothing (Myanmar) and the small factories was signed, it was stipulated that the payment must be made within 15 days after the garment was deposited, but now it has been almost 3 months and it has not been paid yet.

They went to Sam Clothing (Myanmar) factory to negotiate about wages, but they did not let them to enter the factory and the factory officer and manager said to speak only with the boss from China.

An administrative employee said that as sub-factories are struggling to pay labor cost, rental fees and social security bills as they don’t get paid.

"At the factory, the bosses and leaders are consulting that to sell the machines and pay the workers. But without those machines, the factory will have to close. So, the workers will become unemployed. During this period, employment is rare. We are worried that the families will be in trouble," said one of the workers.

The workers of some sub-garment factories went to the Sam Clothing (Myanmar) factory to protest about the wages, but the it has not been paid until now, the workers said.

Therefore, the sub-factories seeked assistance from the person or organization in charge of the trademark, labor organizations and related organizations to help prevent workers from becoming unemployed.


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