NEWS

Workers Facing Hardships Due to Wage Deductions and Forced Overtime Under a Debt-Based Recruitment System

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By Ma Ma - Feb 02, 2025

Workers at Huay Ren Garment Factory, which was established by Chinese investors from Ruili, told MLN that although they were recruited under a debt-based employment system, their wages were being reduced, labour fees were being unfairly deducted, and rights were being violated.

The factory operates with a workforce of over 250 employees and manufacture the KIDS brand.

The factory has only been in operation for over seven months, and there is no trade union established.

“Myanmar workers are being recruited under a debt-based system. Once they start working, the employer transfers workers they dislike to another factory if they still have unpaid debts. Those who have repaid their debts are dismissed and sent back to Myanmar. The wages for workers here are significantly lower compared to other factories. Workers are also being given extremely unrealistic production targets. Even though there are only about 20 workers per production line, they are required to sew 2,000 pieces per hour. We are forced to work unpaid overtime, both early in the morning and late at night, until the production quota is reached if we fail to meet the target. We are also made to work unpaid overtime on Sundays,” said a factory worker.

Workers are required to live within the factory compound and are not allowed to leave. The factory has no dedicated cleaning staff, so workers are forced to handle cleaning duties themselves.

There are two assistant supervisors assigned to ensure production targets are met, and they are reported to be constantly yelling, insulting, and speaking harshly to the workers.

“We are being randomly dismissed through a lottery system right now. The employer recruited workers through Myanmar’s labour offices. But even though the wages are unfairly low, the labour office in Myanmar told workers that they would negotiate, making it seem like they were resolving the issue. In reality, they have done nothing to help the us, even as we are being unfairly dismissed,” said another worker.

Currently, factory workers have sought assistance from the Industrial Workers Federation of Myanmar (IWFM) to address these injustices.

Workers are demanding that the employer set reasonable production targets, stop dismissing workers through a lottery system, prevent assistant supervisors from yelling and insulting workers, stop forcing workers to clean the factory, and pay fair overtime wages instead of forcing unpaid work during early hours, late nights, and Sundays.

 


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