By Hsu Latt Phyu - Sep 11, 2025
Incidents of wage deductions during the month of August have left workers underpaid at Myanmar LNY CAPS Co., Ltd (Cap Factory 1), according to worker reports.
Some of the affected workers raised the issue through an interpreter to the factory manager. While the factory did recalculate and return some wages, the amounts were incomplete. As a result, workers have reached out to the Industrial Workers’ Federation of Myanmar (IWFM) requesting full recalculation of the deducted wages.
The factory, which employs over 800 workers, is located near the BOC bus stop, Shwe Than Lwin Industrial Zone, Hlaingtharyar Township, Yangon Region. It manufactures caps for brands including 47 CLEAN UP, FITCAP, OTTO, and CAPAMERICA. The factory is owned by a Chinese national.
Working hours are from 8:00 AM to 6:30 PM, but recently workers have been called for overtime until 12:00 AM. Additionally, despite weekends being official rest days, workers are required to work overtime on Saturdays and Sundays as well.
“The latest we worked was until 6:30 PM under the previous manager. But ever since the new manager arrived, we’re being called to work until midnight and even on Sundays with no rest,” said one worker.
According to the factory’s wage structure, workers receive a daily wage and subsidy totaling 6,800 kyats, an attendance bonus of 50,000 kyats, and skill bonuses of 30,000 kyats (A), 20,000 kyats (B), and 10,000 kyats (C), with an additional seniority bonus of 20,000 kyats. Overtime is calculated at 2,000 kyats per hour.
However, if a worker is absent for one day, 10,000 kyats is deducted from the attendance bonus; for two days, 20,000 kyats; and for three days, 50,000 kyats. If workers are assigned to sew a new style, they receive 10,800 kyats as a subsidy, while sewing existing styles only earns them 2,700 kyats currently.
“We received over 100,000 to 200,000 kyats less than usual when August wages were issued. Some of us were not satisfied and refused to work on Saturday and Sunday. We returned to work on Monday. When we approached the manager through an interpreter, one of the workers who asked was demoted. Others were given 36,000 kyats and told ‘take it or leave it’. On other lines, workers received up to 50,000 kyats based on percentages. But for those who asked in person, it was only 36,000, and they said the same — take it or leave it,” explained one worker.
Workers said that beyond the wage discrepancies, those who directly raised concerns were treated differently, with unfair wage cuts. They are now demanding that all withheld wages be recalculated and paid in full.
Additionally, they are calling on the factory to fully repay all reduced wages, avoid excessive overtime demands and end discriminatory treatment toward workers.
