By Min Ni Kyaw - Jan 03, 2024
According to labor activists, some garment factories have closed in December 2023. The Myanmar Garment Industry Association announced that more than 540 garment factories were operating in the country in last February.
"There are closures in Pathein. In Yangon, there are only three closures in Shwe Pyi Thar and one in Hlaing Thar Yar Industrial Zone,” those who are working on labor issues said.
DVB news reported that 3 garment factories in Pathein were closed, and nearly 3,000 workers lost their jobs. It is known that the three factories in Shwe Pyi Thar Industrial Zone are 2 garment factories and 1 shoe factory and the factory from Hlaing Thar Yar is a garment factory.
A worker who worked at the closed factory said that the closure was due to low orders, power outages in closed factories, imbalance cost-effective to operate with gasoline.
"Managers say things like that. We are off for 3 or 4 days if the factory can’t operate due to lack of oil. The electricity also goes out every now and then. Since we have to sew while waiting for the order, it is not benefiting as much. Order fabrics are not coming anymore. Compensation is now due on the 1st day of the month." said the worker.
According to people close to the garment industry, factories are closing due to lack of basic needs such as electricity, lack of orders and weak investments. Among the closures of garment factories in Yangon, there are factories that do not comply with the law to ensure that workers are not suffered, said the labor activists.
"Factories in Shwe Pyi Thar paid compensation and closed. I am not sure if it's temporary. It is not in accordance with the law. According to the law, compensation must be paid according to the last salary. Now they pay according to the basic salary. 5800 or 4,800 kyats and so on for damages," he said.
As the materials come from the border areas, due to the current situation, there is a shortage of factory supplies and there are currently temporarily closed factories.
"Recently, I have heard about the closing of the factory. The closed factory is not much in number yet. I can't predict the future. Now there are less orders for tailors. As the garment materials cannot enter from the northern route, there are also temporary factory closures. There are many workers who go back without overtime. I think that there is a less chance for many factories to be closed,” said a labor activist.
In Myanmar's garment sector, China and Hong Kong invest the most at 61 percent, while the domestic sector is in second place with 15 percent, according to the Garment Association.
Photo - GTIG Garment Factory which was closed in February 2023
