NEWS

Diamond Rental Myanmar Declares Contract Workers' Service Years Invalid

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By Min Ni Kyaw - Dec 31, 2024

Workers at Diamond Rental Myanmar Company report that the company has stated that their previous service years as contract workers will not be recognized. According to the workers, the company gave them a six-day break to reconsider before re-signing new contracts, stating that contracts would only be renewed for those who agreed to the new terms.

“They gave us six days off to reconsider. Noda has disregarded the service years accumulated under Mitsubishi Corporation’s management. They said they won’t acknowledge our past service and will start counting from scratch. We will have to sign the contract on the reopening day if we agree to this, but if we don’t, they won’t renew our contracts,” said a worker.

Diamond Rental Myanmar is a joint venture between Mitsubishi Corporation and Nikken Corporation, according to information on the company’s website. It was established in 2016, and in 2023, Noda company took over the management from Mitsubishi Corporation, according to the workers.

“Noda have been downsizing contract workers since they took over the company. We’ve worked for years with the goal of becoming permanent staff, but now they are targeting contract workers for reduction. They’ve already reduced a significant number of workers, and after this six-day break, we are at risk of losing everything we worked for. When we asked about compensation, they told us they wouldn’t do anything,” said a contract worker.

Under Mitsubishi Corporation’s management, there were no formal EC contracts, and the workers were employed under general contracts. However, after the company transitioned to Noda’s management in 2023, EC contracts were introduced, according to the workers.

“There are about 50 contract workers and 50 permanent staff at the factory. The permanent staff are engineers, skilled workers, and office staff. The number of contract workers used to be around 100, but after four rounds of layoffs, only about 50 remain,” said another worker.

Diamond Rental Myanmar Company Limited has been involved in various projects under Japan’s Official Development Assistance (ODA) program in Myanmar. The company has worked on projects such as railway upgrades, bridge construction, port development, and special economic zone infrastructure. Currently, they are also involved in the construction of the Yangon-Dala Bridge, according to company staff.

“We’ve invested years working as contract workers with the hope of becoming permanent staff. Now, they are reducing long-serving contract workers. This is an unjust action against the workers. We have already reported the issue to the Japanese government and JICA through the Japanese Embassy. In addition, we plan to reach out to Japanese citizens and inform them about what’s happening here,” said a labor rights advocate.

Diamond Rental Myanmar Company Limited operates as a machinery and equipment rental company and is located in Thilawa Industrial Zone, Yangon.


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