Last summer, Gap raised eyebrows when it became the first American apparel company to publicly sign a contract in Myanmar since President Barack Obama eased sanctions. At the time, Gap said, “The apparel industry will play a key role in helping to fuel the economic prosperity of the country.”
But if garment-factory bosses get their way, comparatively little of that newfound wealth will flow to workers.
The Myanmar Garment Manufacturers Association, representing about 350 factories, says the government’s proposed wage is too high and will force employers out of business. It wants its own industry-specific rate of about $2 a day instead.
Starting pay in factories currently hovers around $1 a day.
The newly arrived Western companies, especially Gap and H&M, have trumpeted their support for improved working conditions, voicing concerns over issues such as forced labor, unfair overtime demands and unpermitted subcontracting, while backing the idea of a national minimum wage. In 2013, Burmese officials first announced plans to set a minimum wage, organizing a tripartite commission with representatives of employers, trade unions and the government to come up with a figure. Now that those talks have finally produced a number, Western brands are keeping quiet.
When asked by International Business Times for their views on the proposed rate and the opposition from subcontractors, both Gap and H&M distanced themselves from factory-owner demands to create a two-tier pay system, but declined to endorse the $3.25 rate that’s on the table.
Myanmar attracts foreign apparel companies -- many of them from China and South Korea, but increasingly from the U.S. and Europe -- for one main reason, Vogt says. It’s very cheap. “When you look at labor costs in Vietnam, Cambodia, Bangladesh, they’re all extremely low, but much higher relatively,” he says. “They’re going for the low wages and least difficult regulatory environment.”
more
In Myanmar, Garment Factories That Source Popular Brand-Name Clothing Retailers Aim To Defeat A 40-Cent Hourly Minimum Wage#
But if garment-factory bosses get their way, comparatively little of that newfound wealth will flow to workers.
The Myanmar Garment Manufacturers Association, representing about 350 factories, says the government’s proposed wage is too high and will force employers out of business. It wants its own industry-specific rate of about $2 a day instead.
Starting pay in factories currently hovers around $1 a day.
The newly arrived Western companies, especially Gap and H&M, have trumpeted their support for improved working conditions, voicing concerns over issues such as forced labor, unfair overtime demands and unpermitted subcontracting, while backing the idea of a national minimum wage. In 2013, Burmese officials first announced plans to set a minimum wage, organizing a tripartite commission with representatives of employers, trade unions and the government to come up with a figure. Now that those talks have finally produced a number, Western brands are keeping quiet.
When asked by International Business Times for their views on the proposed rate and the opposition from subcontractors, both Gap and H&M distanced themselves from factory-owner demands to create a two-tier pay system, but declined to endorse the $3.25 rate that’s on the table.
Myanmar attracts foreign apparel companies -- many of them from China and South Korea, but increasingly from the U.S. and Europe -- for one main reason, Vogt says. It’s very cheap. “When you look at labor costs in Vietnam, Cambodia, Bangladesh, they’re all extremely low, but much higher relatively,” he says. “They’re going for the low wages and least difficult regulatory environment.”
more
In Myanmar, Garment Factories That Source Popular Brand-Name Clothing Retailers Aim To Defeat A 40-Cent Hourly Minimum Wage#
