NEWS

Laos-Based Factory Manufacturing NEW ERA, Authentic Brands Breaches Contracts and Demands Illegal Compensation

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By Min Ni Kyaw - Apr 30, 2025

Workers report that ALPILAO INTERNATIONAL Co., Ltd, a garment factory based in Laos, manufacturing brands like NEW ERA and Authentic, is violating the terms of employment contracts and unlawfully demanding compensation. The workers were recruited through Myanmar-based agency AR HTAN Co., Ltd under contracts offering a monthly salary of USD 220, according to the Industrial Workers Federation of Myanmar (IWFM).

“The contract said we would be paid USD 220 and could return after one year without having to pay any compensation. Now, they are demanding USD 1,000 in compensation when we ask to return after working for over a year. That’s around 45 lakhs kyats. On top of that, they haven’t paid our last month’s salary or the 10-day wage balance,” said one worker.

Workers who requested to return home due to health issues are also being denied the right to leave. Many are stuck in dormitories, unable to either work or return to Myanmar. The factory has not checked in on their health conditions and is demanding unreasonable compensation, leaving Myanmar workers in a difficult position.

“They demand more than 600 caps per day from a line of 30 people. They say they’ll cut our pay if we don’t meet the quota. During recruitment, we were told the working hours would be until 7 p.m. with two hours of overtime included. That was in the contract. But now they make us work until 10 p.m. We’re required to make up those lost hours on Sundays if there’s a power outage at the factory,” workers added.

Although the factory provides a daily meal allowance of 50,000 Lao Kip, workers say they do not receive it on Sundays or holidays.

ALPILAO INTERNATIONAL Co., Ltd is a Chinese national-owned factory employing over 700 workers. It is currently operating in Vientiane, the capital of Laos, according to the workers.


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