NEWS

Factory Closure Cited; Workers Demand Transparency Regarding Layoffs

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By Hsu Latt Phyu - Sep 12, 2025

#Workers' Letter

This is from the CHI MEI INTERNATIONAL COMPANY LIMITED garment factory owned by Chinese citizen, located on Pale Road, Industrial Zone 3, Shwepyithar Township, Yangon Region.

There are more than 900 workers, and there are 17 sewing lines. The factory has reopened in the former premises of the Honor Apparel garment factory and is currently producing Japan Brands such as Rafinat.

CHI MEI INTERNATIONAL COMPANY LIMITED garment factory, which operates with over 900 workers, has not even reached one year of operation yet.

Previously, it was the old Honor Apparel garment factory. Since 2021, it has opened and closed three times already.

Now it is operating under the new name CHI MEI INTERNATIONAL COMPANY LIMITED. The factory has not rehired the previous workers. The current factory has only been operating since October 2024 and has not yet reached one year. Working hours are from 8:00 a.m. to 6:30 p.m., with 2 hours of overtime. On Saturdays, the factory operates until 12:00 midnight.

Regarding wages: 4,800 MMK basic wage + 2,000 MMK subsidy + 4,200 MMK factory snack fee = 11,000 MMK daily wage; 50,000 MMK attendance bonus for sewing lines; 30,000 MMK monthly regular bonus for other machine operators; 1,200 MMK overtime wage; 800 MMK overtime snack fee. Additionally, there is a "grade bonus" which is paid separately outside of the payslip.

Grade bonuses are paid as follows: A+ = 120,000 MMK, A = 90,000 MMK, B, C, depending on performance grading. A single day's absence will affect the grade bonus level (A+, A, B, C).

In terms of payment, the factory pays workers in various categories. They provide the full amount of 4,800 MMK basic wage + 2,000 MMK support fee + 4,200 MMK factory snack fee to make a total of 11,000 MMK. Overtime pay is split into 1,200 MMK per hour + 800 MMK for overtime snack fee, instead of 2,000 MMK per hour. Wages are structured in various ways so that deductions can be made from different angles. Grade bonuses are also not shown on the payslip but given separately. Nevertheless, this is the regular salary structure that workers receive with each payroll.

Now, in September 2025, the manager informed workers that due to a lack of orders, workers will be temporarily laid off. They said only 5,800 MMK will be given as basic wage and that the rest will not be paid.

There are 17 lines. Currently, about 3 lines and other machine operators have already been shut down. Among the workers being laid off, those with lower grade bonuses are being sent home first. It’s not that the workers are unable to work. When workers take time off due to health, religious or funeral reasons, the factory deducts their regular bonus, basic wage, and grade bonus. But this current situation is the employer not being able to provide work. As such, the employer must negotiate.

It is not fair to simply accept whatever they are willing to pay if the employer is unable to provide work. Workers are willing and able to work.

It is not acceptable for the factory to say they will only pay as much as they want. We do not know when the factory will reopen after this closure. What we’ve heard is that they are doing the same as before, temporarily closing and then gradually laying off workers until complete closure. Many rumors are going around. It is also not easy to apply for jobs at other factories. Workers cannot meet ends with the 5,800 MMK that they are offering. Therefore, since the employer is the one unable to provide work, we request that they continue to pay the full 11,000 MMK basic wage, regular bonuses, and grade bonuses during the closure period.

The workers' demands are:

  1. Pay the 11,000 MMK daily wage, regular bonuses, and grade bonuses if the factory is temporarily closed, .
  2. Post an official announcement with the exact reopening date if the closure is temporary.
  3. Carry out procedures in accordance with labour law if the factory is to close permanently.
  4. Do not reduce grade bonuses based on a single day's absence.

CHI MEI INTERNATIONAL COMPANY LIMITED Workers

 


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