NEWS

Xin Rui Garment Workers Voice Serious Concerns Over Unlawful Factory Closure

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By Min Ni Kyaw - Oct 03, 2025

#Letter

We, the workers of Xin Rui Garment Factory in Shwe Lin Ban Industrial Zone, Hlaingtharyar Township, are urgently raising concerns regarding the factory’s planned closure on October 8, and the possibility that we will not receive our full entitlements under labor law.

We are especially alarmed by management’s attempt to reduce legally owed severance payments, particularly for long-serving staff, in direct violation of the law. We strongly oppose these efforts.

According to the current offer from factory management, workers with 4 to 5 years of service will only be paid MMK 350,000 (three hundred fifty thousand kyats) in severance.

“For those of us who have worked for many years, we are legally entitled to more than MMK 2 million. Even regular staff, depending on their years of service, should receive at least MMK 700,000 to MMK 1.5 million,” one worker said.

Likewise, supervisors and assistant supervisors have only been offered MMK 500,000 (five hundred thousand kyats), an amount far below what we are rightfully entitled to.

We have also learned that no prior notice of the factory’s closure was given to the foreign brand representatives involved, raising further questions about the legality and transparency of this decision.

According to labour law, all permanent staff must be compensated in full based on their last basic salary and years of service when a factory is closed. Those being laid off are also entitled to their pro-rated wages and outstanding entitlements, including daily wages.

We, the workers, further report that factory officials and worker representatives particularly factory manager Daw Zin Mar Lwin have colluded with foreign owners to suppress our rights and execute wage cuts, turning a blind eye to our legal entitlements.

Additionally, Win Thu Htet, the supervisor from the Finishing section, who is currently serving as a workers’ leader, is being accused of acting in his own interest rather than on behalf of the workforce. During the current negotiations, it appears they are assisting the factory to secure favorable outcomes rather than ensuring workers receive their full rights.

Daw Zin Mar Lwin is also reportedly involved in confirming dismissals and authorizing wage and entitlement cuts during termination procedures.

“We’ve also heard that the company is planning to relocate to the Tawwin factory. No matter where they go, if this current site is being closed, they must pay all legal severance in full. But the factory is clearly violating the law and ignoring our voices,” workers said.

With the closure date set for October 8 and the Thadingyut holidays approaching, we are deeply concerned that there may not be enough time to resolve this fairly. We are running out of time.

Therefore, through Myanmar Labour News, we urgently call on the relevant authorities including the foreign brand representatives and the Factory and General Labour Laws Inspection Department (FGLLID) to immediately intervene at Xin Rui Garment Factory and ensure that all workers receive their full legal severance as mandated by law.

 


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