Yangon clothes factory blames closure on rising operating costs

A garment factory with over 400 workers has closed in Yangon due to rising operational cost, a company statement said.

Seduno (Myanmar) Fashion Co Ltd in Hlaing Tharyar Industrial Zone announced on Saturday it was facing difficulty keeping the business running because of a decline in production, delays in exporting their products and a hike in operating costs, including the new minimum daily wage.

‘’The factory could not continue running, so it was shut down on Sunday, but it will pay compensation to the workers,” it said.

The workers said the company management did not give them advanced notice that it was ceasing operation.

Ma Khin Pa Pa Hlaing, one of the workers, said some of them had not received compensation yet and the factory did not compensate all workers because of work experience.

“Most of workers are females. They would be jobless and could not find another job. It’s hard to find new job now in the garment industry,” she said.

Ma Khin Pa Pa Hlaing said some of the workers returned to their villages after the closure because they could not pay the rent for the factory dormitory.

U Tun Tun Naing, joint secretary of the Cooperating Committee of Trade Unions, expressed concern that more factories might shut down in the future.

“The government has not created more job opportunities so far and does not care about the labour issue,” he said.

I believe we will see double the number of jobless next year,” he added.

Since the government fixed the minimum wage at K4800 (US$3.40) a day, businesses warned they might close because they could not afford the new wage due to a slowdown in the economy and low demand in the international market.

Source : Myanmar Times

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