NEWS

Excessive Overtime and Lack of Staff ID Cards at FZ Garment Co., Ltd Cause Hardships for Workers

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By Ma Ma - Dec 20, 2024

Workers from the Chinese-owned FZ Garment Co., Ltd, located on King Wun Min Gyi Road, Shwe Lin Ban Industrial Zone, Hlaing Thar Yar Township, report excessive overtime demands, violations of workers' rights, and the lack of staff ID cards. These issues leave workers vulnerable, particularly when returning home late at night without proper documentation to show during military or police checkpoints, according to workers.

The factory employs over 700 workers and reportedly lacks a trade union. It manufacture sweaters, trousers, and coats for fashion brands like Fleur, Ikka, Koton, and Sweet.

"We’re required to work overtime from 7:30 AM to 8 PM every day. Even Sundays and holidays are not off dayswe still have to work overtime. The finishing department's Chinese supervisor complains to management and gets us fired if we refuse to stay past 6 PM instead of working until 8 PM. For example, five workers from the ironing section were dismissed because they refused to work overtime. They were only paid for the days they worked and told not to come back. Management follows the supervisor’s decisions and fires workers without any benefits, regardless of how long they have been employed. In addition, the factory doesn’t issue staff ID cards and that put workers who leave on bicycles and encounter military patrols at night are at risk since they have no proof of employment. The factory takes no responsibility for workers’ safety despite being required to stay until 8 PM. Even the transportation are overcrowded, and some workers can’t board them," said a worker.

The daily wage, including subsidy is 9,000 MMK. Overtime is paid at 2,000 MMK per hour. Attendance bonuses are 35,000 MMK, while skilled workers receive an additional 50,000 MMK for B level and 100,000 MMK for A level.

Dismissed workers are not given severance pay. They are instead compensated at a reduced rate of 6,800 MMK per workday, with overtime rates reduced to 1,500 MMK per hour.

Workers report that the factory does not grant leave entitlements and also fails to provide sufficient drinking water. Workers cannot drink water throughout the day if the water delivery service doesn’t arrive. The bathrooms lack cleanliness and proper lighting. Workers who speak up about these issues risk being fired.

"There are many underage workers in the factory. The company doesn’t even require them to submit health certificates from a doctor. During busy periods, these underage workers are called in, but when the workload decreases, the factory uses their age as an excuse to terminate them without any benefits. Although we are required to sign EC (Employment Contract) agreements, we are never given copies. There’s also a WCC (Workplace Coordination Committee) at the factory, but it was formed according to the employer’s preferences, and we were not allowed to choose our representatives," said a worker.

"Each production line has around 40 workers, and the factory demands a production target of 45 pairs of trousers or 50 shirts per hour. Supervisors and leaders scold if we fail to meet these quotas. There’s no medical clinic, and the nurse only stays in the sewing machine maintenance area, removing needles instead of providing medical care. There isn’t any available medicine. As for social security cards, the factory makes workers apply for new ones instead of continuing to use their existing cards. This causes workers to lose the contributions they had already made under their old social security numbers," the worker added.

Workers also face penalties if they need to leave the factory premises urgently. The factory deducts 10,000 MMK per hour and also cuts our attendance bonuses for taking gate pass for emergency situations.

Additionally, at the end of shifts, the factory only opens a narrow gate for workers to leave, causing delays and inconvenience.

The workers have reached out to the Industrial Workers’ Federation of Myanmar (IWFM) for help in resolving these challenges.

The workers are calling for realistic production targets they can achieve an end to verbal abuse from supervisors and leaders when setting quotas, a guarantee that refusing overtime will not lead to illegal termination, adequate ferry services for workers, continued use of existing social security cards instead of forcing new applications and sufficient drinking water and medical supplies.


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