News about Our Work - 05 February 2017 Far from fair: Clothing industry of Myanmar Amsterdam. After years of sanctions, trade with Myanmar (formerly Burma) is flourishing again. Low wages and favourable economic conditions are attracting garment production to Myanmar. Numerous European brands, including well-known brands such as H&M, C&A and Primark, are taking part in this race to the bottom. in a new report (PDF file of the English summary) detailing the miserable working conditions: Low salaries, massive overtime and child labour are therefore no exception. In the expansion of industry, land rights were also disregarded. SOMO employee Maartje Theuws: “Clothing brands should think twice about whether they really want to produce in Myanmar. The risk of labour rights violations is very high. Companies should make an accurate analysis of all potential problems. Together with their suppliers, they need to identify and manage the risks before placing orders there. However, our research shows that companies do not.” Clothing industry on the rise Myanmar is so attractive to the apparel industry because it is cheap – due to low wages and favourable business conditions. Under pressure from clothing brands, Chinese and Korean factory owners have also relocated their production to Myanmar. This downward spiral is causing unhealthy competition between the producing countries in the region. Twelve factories, 400 employees Together with the local NGOs ‘Action Labor Rights (ALR)’ and ‘Labour Rights Defenders and Promoters (LRDP)’, SOMO examined 12 export-oriented factories, eight of which belong to foreign investors, and interviewed 400 workers. In addition, SOMO has spoken with the purchasing companies, initiatives to improve working conditions, factory owners, employee representatives, as well as with local and international trade unions and NGOs. The results of the study were presented to the companies examined before publication. Many did not react in the first place. Others acknowledged many of the problems, but did not show convincing ways to solve them. Poor working conditions Workers in the clothing industry are moving to cities in search of employment opportunities from impoverished areas. There they often live in slums without access to electricity or running water. The statutory minimum wage is only 2.48 euros per day. To make money, they rely on overtime, often up to eleven hours a day. During high hours, they are forced to work unpaid overtime. In addition, it often happens that salaries are withheld when employees are unable to work due to illness. Even under 15-year-old girls find a job. These are all serious violations of international labour laws. Workers have little opportunity to file complaints and get legal assistance, as there are few independent trade unions operating in Myanmar. The political and socio-economic situation in Myanmar remains volatile. Armed conflicts continue in parts of the country. Entire villages were expelled from their land without collusion or adequate compensation to make way for industrial areas and special economic zones. Maartje Theuws: “The rule of law in Myanmar is not sufficiently upheld. The army still has a great influence. In addition, civil society organisations and trade unions have only been allowed to operate in the country since 2012. The clothing industry is largely uncontrolled. The question is justified as to whether the time is ripe for foreign investment in Myanmar.” For more information: Complete study "The Myanmar Dilemma" (English, PDF file) Summary of the study (English, PDF file) Questions about the study and contact to SOMO, Netherlands: Jenny Pannenbecker This email address is being protected from spambots. You need JavaScript enabled to view it. Contact Germany: Dr. Gisela Burckhardt (FEMNET and Campaign for Clean Clothes, Germany)This email address is being protected from spambots. You need JavaScript enabled to view it., Tel.: 0152-01774080 Maik Pflaum (Christian Initiative Romero and Campaign for Clean Clothes, Germany)This email address is being protected from spambots. You need JavaScript enabled to view it., Tel.: 0911 – 214 2345 and 0151-206 544 30 On 8 and 9 February 2017 in Paris Discussions with OECD representatives instead.
