By Hsu Latt Phyu - Sep 18, 2025
Workers from Wan Xin Myanmar Company Limited, located in Industrial Zone 5, Hlaingtharyar Township, Yangon Region, say they are being intimidated into signing off on accepting just 3,400 kyats as severance pay after being laid off, with police brought into the factory floor to pressure them.
The factory, which has been operating for over two years, reportedly began quietly moving garments and sewing machines out in June without providing any explanation to workers. Employees claim that some were terminated without proper compensation, while others were offered only 3,400 kyats in final pay.
The company began reducing operations as early as February when garment orders started to drop according to workers. “They were relocating production materials by June. In July, they started moving sewing machines to other locations. We didn’t expect the factory to close, and no one said anything officially. But now only about 150 workers are left,” one worker said.
More than 80 workers with 3 to 6 months of service were dismissed without explanation. in September. Workers with three months of service received no compensation, and those with six months of service were offered only 3,400 kyats, well below Myanmar’s standard daily wage or severance expectations.
“There was no prior notice. They just terminated us suddenly and said we would only receive 3,400 kyats. That’s not acceptable. We asked for the full 6,800 kyats, but they refused. We could have searched for other jobs if they had informed us earlier. Now we’re struggling to pay rent and food expenses,” a worker explained.
The factory’s management brought in police officers to threaten them into signing documents as many workers refused to accept the 3,400 kyat severance, according to workers’ testimonies.
“They said the Hlaingtharyar labour office directed them to settle with 3,400 kyats, and that , we could be arrested if we didn’t accept,” one worker said.
Wan Xin Myanmar Company Limited manufacture brands such as Nautica and Soulcal&Co, and is Chinese-owned.
Workers say the factory is continuing to lay off remaining employees gradually, again without advance notice or proper severance, and have called on authorities and labor rights organizations to intervene.
Workers' Demands:
- Employers must stop terminating workers without prior notice and without fault on the workers’ part.
- Workers who have been laid off must be paid full and fair severance.
- Employers must not bring police into the factory to intimidate workers into signing documents or threaten arrests.
- Workers demand transparent and open communication in advance if the factory is planning to shut down.
