NEWS

Handa 2 Factory Dispute – 14,000 Kyat Garment Fee Deduction and Unresolved Worker Demands

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Myo Thein
Mar 12, 2026


(News Story)

Workers have been staging a collective demand action since March 6 at Handa 2 Yangon Garment Co., Ltd., a factory owned by Chinese nationals located in Shwe Lin Ban Industrial Zone in Hlaingtharyar Township, Yangon Region. The protest will reach its seventh day tomorrow.

Around 1,500 workers are participating in the demands out of approximately 3,000 workers employed at the factory.

A notable aspect of the Handa 2 factory dispute is that the factory is a member of the “MADE” group, which is required to follow European Union standards. In reality, however, workers report facing numerous violations of workplace rights.

Why the Protest Began

The main cause of the conflict stems from the employer demanding unfair production targets and deducting workers’ wages without valid reasons.

The factory has been demanding between 400 and 700 garments per hour  for a production line consisting of 30 workers, placing significant pressure on workers. Despite working under these intense conditions, the 14,000-kyat garment fee that was supposed to be paid when the production target was met was entirely deducted by the factory during wage payment, citing various reasons. As a result, workers suffered serious losses after their wages were cut despite working under heavy pressure.

The demands first began on Friday (March 6), initiated by workers from Line 2 among the factory’s three production line departments.

Demands and Current Situation

At the beginning of the protest, workers presented ten demands, including a wage increase (a daily wage of 12,500 kyat and a monthly attendance bonus of 60,000 kyat), fair payment of overtime wages, and reduced workloads for pregnant workers.

Although the workers’ demands were in accordance with labour laws, the employer’s response was severe. The factory dismissed 21 leading workers from the protest, accusing them of “inciting unrest.”

Instead of negotiating the demands raised by workers, the factory posted dismissal notices for the 21 worker leaders on March 10 and barred them from entering the factory on March 11.

Such actions by a factory that is a member of the MADE group raise serious questions.

The dismissed worker leaders were reinstated by the factory on March 11 as this constituted a violation by the employer.

However, reinstating the 21 leaders only resolved part of the issue. The workers’ main demands regarding wages and workplace conditions remain unresolved to this day.

Relevant labour authorities have been attempting to mediate the protest, but the factory’s lack of concessions has prolonged the dispute.

The workers’ protest demanding wage increases and fair workplace conditions remains tense, leaving more than 3,000 factory workers facing uncertainty about their livelihoods.

The factory produces garments for Japan-based Itochu Retail Link Corporation, and although it claims to operate according to international ethical standards, it remains to be seen how it will address the ongoing worker demands.

 


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