By Min Ni Kyaw - Jan 27, 2025
Diamond Rental Myanmar Co., Ltd has laid off contract employees without providing compensation, according to workers. Employees whose contracts had expired were given a six-day break and were initially told their contracts would be renewed, but they were instead laid off, a worker said.
"They have reduced contract workers for the fourth time now. The years of service were counted when Mitsubishi Corporation was managing it. But after Noda Company took over, they said those years would no longer be considered. The workers did not accept this. The company did not provide any compensation, nor did they renew the contracts," the worker explained.
Diamond Rental Myanmar Co., Ltd is a Japanese company currently managed by Noda Company. The workforce has shrunk from around 100 employees to about 50 due to the layoffs, workers said. Workers reported that contract terminations were carried out without compensation after Noda Company took over Diamond Rental Myanmar Co., Ltd in 2023.
"The company treats permanent employees and contract workers differently. Salaries and benefits are also different. Some contract workers managed to become permanent employees, so other workers kept trying. Many contract workers have worked for years in hopes of becoming permanent staff. But they targeted contract workers when layoffs happened. They didn’t give any severance pay. They didn’t want to count the years of service, so they just ignored and said they wouldn’t provide anything," a contract worker explained.
During Mitsubishi Corporation’s management, there had been layoffs, but senior employees were not affected, and there were no disputes with contract workers. Full compensation was provided when contracts were terminated, workers said.
"We didn’t receive any severance pay for our years of service. We lost a lot of benefits since we worked for many years. We reported it to the township labor office, but there has been no effective resolution. Workers are already suffering losses. Mitsubishi Corporation also bears responsibility. Why? Because it was their company that hired us. The workers were not informed when they transferred their shares. Even now, I’ve heard Mitsubishi Corporation still holds a 20% stake," another contract worker said.
Currently, Diamond Rental Myanmar Co., Ltd no longer hires contract workers and instead employs daily wage workers, a worker said.
Diamond Rental Myanmar Co., Ltd is a machinery rental company operating in Thilawa Industrial Zone, Yangon. According to the company’s website, Mitsubishi Corporation and Nikken Corporation are among its shareholders. Mitsubishi Corporation is also involved in several projects in Myanmar that are funded through Japan’s Official Development Assistance (ODA) program.
A labor rights advocate stated that the current situation has been reported to the Japanese government and JICA through the embassy, and efforts will be made to contact Mitsubishi Corporation.
