Job loss – Side effect of increased minimum wage in Maynmar

From September 1, garment workers in Myanmar industry were supposed to get new higher minimum wage of K3600 but many of them have lost their job as garment factory have shut. Though just one factory has so far closed, but more than 1,000 workers have lost their job which includes almost 200 employees at a garment factory in Hlaing Tharyar Industrial Zone – Ministry of Labour has confirmed this.

“We are trying the best we can to quickly create more jobs for those laid off workers,” said U Aung Htey Win, Deputy Director General of the Labour Ministry. Ma Myat San Win, Director of UMH Garment Factory at Shwe Pyi Thar Industrial Zone, where more than 400 labourers have been dismissed, said “We cannot continue operating the garment business with these runaway costs. Therefore, we have had to lay off the workers and give compensation.”