By Thar Gyi - Jun 19, 2025

Workers from Tai Hong Garment Factory who had been demanding higher wages have reached a mutual agreement with the employer and have now returned to work, according themselves.

“Both parties signed the agreement yesterday afternoon (June 17). The employer and officials from the labor office were present. The key decisions came from the workers. The majority accepted the offer so we signed although we didn’t get everything we asked for. But there were a lot of difficulties along the way,” said one of the workers.

The factory’s pay rate was 8,500 kyats for daily wages and 1,175 kyats for hourly overtime before the protest. The workers had been demanding a daily wage of 13,000 kyats, 13,000 kyats for hourly overtime (likely a misreport), and 70,000 kyats for regular attendance bonus.

“Under the new agreement, workers with less than one year of service will get 11,000 kyats, and those with over a year will get 11,500 kyats as daily wages. The overtime rate is now 2,200 kyats per hour. Attendance bonus is 50,000 kyats, but 25,000 will be deducted for one day of absence, and for two days, the full amount will be deducted,” a worker explained.

The agreement also includes a commitment from the employer to allow workers to access their legally entitled leave and benefits, which had previously been denied. These changes will go into effect starting June 18.

“There were many challenges during the protest. We had to protect the factory’s equipment and staff from damage. There were some workers who didn’t participate and others who tried to disrupt the movement,” said a female worker involved in the protest.

Workers will not be paid for the three protest days, as stated in the agreement. The document was signed only by worker representatives and the employer, with no third-party observers.

Tai Hong Garment employs over 1,000 workers and has a WCC (Workplace Coordination Committee). The Chinese citizen-owned factory is located in the Watayar Industrial Zone, Shwepyithar Township, Yangon.