Myo Thein
An official from the Industrial Workers Federation of Myanmar (IWFM) said that RHEA WORKSHOP (a character toy factory) has been deducting money from workers’ wages under the label of income tax without providing any form of documentation or proof to the workers.
“The factory deducts money claiming it is income tax, but we don’t see them explaining anything about this tax to workers. They only ask whether workers have children, whether they are married, or whether they have parents. They do not explain what the deduction is for or how much is being deducted. And workers do not receive any receipts or proof showing that this tax has been paid,” the official said.
A worker said that the deductions labeled as tax have been ongoing for about six months, with 5,000 kyats deducted from single workers and 4,000 kyats from married workers directly from their wages.
“I understand that you are supposed to pay less tax if you have parents, a spouse, or children. But now everyone is being deducted the same amount. We also do not receive any proof that these deducted taxes are actually being paid to the relevant department,” a female worker said.
There are around 1,000 workers in the factory, and nearly all of them have been subjected to these deductions, workers said. Workers also said that apart from medical leave, the factory does not grant other legally mandated leave or leave entitlements although the factory claims the deductions are ordered from higher authorities.
“Except for medical leave, the factory does not grant any other types of leave. Even if you call to request leave, the factory marks it as absence. Not only do they deduct wages, but they also do not pay the daily wage for Sundays and force workers to sign warning letters,” a worker said.
In addition, workers said that those who return home without working overtime on Saturdays are not paid their Sunday wages, and that supervisors and line leaders verbally abuse workers while demanding production targets.
“Even if workers do not want to work overtime, the factory still calls them in and forces them to sign. Their daily wage and attendance bonuses are deducted, and they are called into meetings and scolded if they don’t work overtime. Supervisors shout and verbally abuse workers if targets are not met. These actions violate the EC contract,” a worker said.
Workers also said that although the factory does not approve leave, there is no clinic, nurse, or emergency medicine available at the workplace, and that they are unable to obtain gate passes. They added that financial penalties are imposed if workers clock in late using the attendance machine.
“They only issue gate passes at 11:30 a.m. If that happens, 20,000 kyats are deducted from the attendance bonus. You cannot clock in early even if you arrive early. If you clock in late, deductions of 40,000, 30,000, or 20,000 kyats are imposed,” a worker said.
Although working hours officially start at 7:30 a.m., workers said they are required to enter the workplace at 7:20 a.m., which prevents them from eating breakfast and leads to health problems.
“Some workers cannot even eat light meals, and health issues are not taken care of. We cannot even drink water properly, and there is not enough water available. We don’t know whether the attendance card records properly when we arrive late. Deductions are imposed if the card fails to record or if we accidentally clock in early,” workers said.
RHEA WORKSHOP, a character toy factory, is located on Mya Sabal Road, Mya Sein Yaung Industrial Zone, Hlaingtharyar Township, Yangon. It is a joint venture textile company involving Taiwanese and Korean partners.
