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The impact of the military coup on Myanmar's clothing industry is fatal

Threats and job losses persist, health status of imprisoned trade unionist critical

After it became quieter in the meantime in the reporting of the situation in Myanmar, atrocities of the military once again shape the headlines. The textile workers in particular are suffering from the continuing uncertain situation. Trade unions are calling for economic sanctions against the country and the military, which has now also led to the repositioning of some multi-stakeholder initiatives and brands. Human rights organizations, meanwhile, are calling for the release of the sick imprisoned trade unionist Myo Aye.

Resistance to the tyranny of the military is reaching a new level. Opposition leader Duwa Lashi called for a ‘revolution against the rule of the military terrorists’ in early September in order to ‘forcibly expel the dictatorship from Myanmar’. In many regions of the country there were fights between the army and the insurgents. In the village of Myin Thar in the west of the country, at least ten fighters of the village militia were murdered by the military, houses were burned down by the military here and in other regions of the country. Myanmar's counter-government, the National Unity Government (NUG), has largely formed from the former deputies under de facto head of government Aung San Suu Kyi, and from the resistance movement CDM (Civil Disobedience Movement). The situation points to an ‘escalating civil war’, according to UN High Commissioner for Human Rights Michelle Bachelet, who accuses the military of war crimes and crimes against humanity.

Clothing industry suffers immensely

Since February, we have regularly reported on the dramatic impact of the coup on workers and trade unionists in Myanmar's textile and clothing industry. This includes, in particular, the arrest of the unionist Myo Aye, who is known to us personally, in April. Myo Aye suffers from diabetes and kidney disease. We are currently receiving news that her health is deteriorating and that her doctor's visits are being denied. Like others, more than 3,000 workers, she was arrested by the military junta without any concrete accusation. Women are helpless in prison at the mercy of military personnel and their acts of violence.

More than 700 factories have been forced to close due to the political crisis and the coronavirus pandemic. Nay Lin Aung, deputy secretary of the Myanmar Federation of Trade Unions, reports that more than 100,000 garment workers are already unemployed and this number could increase by another 200,000 by the end of this year. Regulated monthly incomes are no longer guaranteed, and factories that have not yet stopped working pay wages well below the previous minimum wage.

Trade unions call for isolation of the military

Khaing Zar Aung, trade union president of the Industrial Workers’ Federation of Myanmar (IWFM), with whom FEMNET is in contact, regularly reports on the situation in the factories. Workers are threatened with arrest if they continue to share information with the union leaders who have joined the CDM. A worker reports how superiors exert pressure: Meetings are convened at which instructions from the factory management are sent to the women, such as the threat to inform the military immediately about knowledge of contacts with trade unionists. Violations in the workplace are no longer reported, and there is too much fear of being arrested.

Due to the continuing catastrophic situation in the country, trade unions in Myanmar demanded comprehensive economic sanctions against the country and isolation of the military regime by the international community as early as August. This is also the case with the global trade union federation IndustriAll, which supported this demand with an emergency resolution. Governments are also urged to put pressure on multinational companies and global brands to cease their business relations with Myanmar.

MSI’s and brands reposition themselves

Multi-stakeholder initiatives also want to reassess the situation in Myanmar, such as fair wear. In an update on Myanmar, it was announced that, together with the multistakeholder board, it would provide the best possible advice to brands in this complex situation based on their assessment of the current situation. Fair Wear stakeholder surveys aim to clarify the extent to which companies can continue to conduct responsible business in Myanmar in accordance with the UN Guiding Principles on Business and Human Rights. In addition, the initiative aims to find out what impact the decision of the brands to continue to engage or withdraw has on the garment workers and what considerations should be made in the event of an individual or collective withdrawal from Myanmar. It will also explore how a responsible exit could be shaped.

Similarly, the Ethical Trade Initiative (ETI) calls on its member companies to reassess business relations with Myanmar. The initiative is also considering a responsible withdrawal. This raises the question of whether it is possible to continue trade responsibly and to continue to offer employment to workers, or whether this is more damaging to workers' rights and undermines a restoration of democracy.

Control group of the Textile Alliance disagrees on assessment of the situation

The Alliance for Sustainable Textiles also publishes a statement on how to deal with the situation in Myanmar. Every purchasing company must decide in the context of an intensive due diligence whether a responsible continuation of business relationships is possible. This view is supported by the steering committee representatives from the business community and the federal government. On the other hand, representatives from trade unions and NGOs, including FEMNET, are in favour of withdrawing from Myanmar. In our view, this is the only remaining measure to minimise the risk of further human rights violations in the supply chains. We therefore call, in line with the call of international trade unions, for all companies to withdraw from Myanmar and make this withdrawal as responsible as possible, while respecting their due diligence obligations. Individual brands have already taken this path: For example, Danish retailer Bestseller (Jack & Jones, Only, Vero Moda) announced at the end of August that it would no longer place orders in Myanmar.

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