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Department of labor re-denied the letter issued for Saung Oo Shwe Nay Garment Factory workers to sue the employer

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By Min Ni Kyaw - May 20, 2024

Workers from Saung Oo Shwe Nay garment factory said that the Department of Labor issued them the letter to sue their employer but it is taken back. The factory locates at Alal 3 Street, Ngwe Pin Lae Industrial Zone, Hlaing Thar Yar Township, Yangon.

“The western district Department of Labor officials issued the letter to sue the employer for violating the EC contracts and let the workers read. After the workers agree they badged and signed and kept it in an envelope but after 15 minutes, the decision was changed,” said a worker who participated.

The Employment Agreement (EC) contract is signed under Section 5(a) 1 of the Employment and Professional Development Act of 2013, and this contract must be complied by the employer and the employee. Those who do not comply must be dealt with in accordance with Section (39) of the Employment and Professional Development Law. 

The violation of the employment contract was negotiated 3 times between the workers and the employer of Saung Oo Shwe Nay garment factory A at the Hlaing Thar Yar Department of Labor office.

Workers said that the contract is signed according to the law and the violations are the workers being changed to other departments. There are more than 300 workers in the A factory and the workers asked to dismiss them with compensation if the factory will not re-open.

In addition, on May 13, officials from the township's Ministry of Labor visited the Saung Oo Shwe Nay factory and called and inspected 4 workers from A factory who were making demands in the evening.

Therefore, the labor office officials repeatedly intimidated that they would not receive the salary for the period under negotiation if they did not work, and they did not ask and discuss with the workers who were making the request. 

The case was examined by the arbitration panel, and the employer's representative must pay the interim wages, but the arbitration decision did not decide upon that issue.

Saung Oo Shwe Nay garment factory is owned by Chinese national and employs about 1,800 workers and manufactures SMOG, H&M and DIVIDED brand apparels. The workers also said that H&M orders were transferred to other branches due to the disputes with workers.


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