Burma

4,000 Workers Go on Strike in Rangoon

By BA KAUNG Saturday, March 6, 2010

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In the latest escalation of labor tensions in Burma, around 4,000 factory workers at an industrial estate on the outskirts of Rangoon staged a sit-in on Saturday to demand better pay, according to sources in the area.

Workers at two garment factories in South Dagon Township's No. 2 Industrial Zone began their strike at around 8 am, the sources said.

Workers in Rangoon's Hlaing Tharyar Industrial Zone stage a sit-in in
February. (Source: www.niknayman-niknayman.co.cc)

“When the workers got out of the company bus this morning, they refused to enter the factory compound,” said an eyewitness, adding that riot police arrived at the scene soon after the strike began.

The factories are owned by a company called SGI.

“The factory owner said he would comply with the workers' demands, but he forced them to go home,” said another person who witnessed this latest mass action by Burmese workers.

In recent months, workers employed by factories in Burma's commercial capital have shown growing dissatisfaction with stagnant wages, as inflation continues to erode the value of their earnings, most of which are spent on the purchase of basic commodities.

Meanwhile, there were also reports that several thousand factory workers in Shwepyithar Township, on the western outskirts of Rangoon, also staged a sit-in on Friday to demand higher wages and better working conditions.

Labor Ministry representatives were involved in negotiations between the workers and the factory management, the reports said.

According to a senior official from the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), the unrest is related to recent pay hikes for government employees. Public servants' monthly salaries were raised by a flat rate of 20,000 kyat ($20) in January.

The UMFCCI senior official said that the wages of garment factory workers are significantly lower than that of workers in Cambodia and Vietnam.

“The basic monthly salary of workers here is US $30-50, while workers in Cambodia and Vietnam are earning at least $120 a month,” he said.

COMMENTS (5)

Moe Aung Wrote:

15/03/2010

Burma is a perfect example of authoritarian control of both politics and economy NOT working for the public, in stark contrast with Singapore where it works well within a capitalist framework (its only natural advantage being a major seaport unlike Burma's seemingly limitless natural resources, a much bigger land mass and population). The two, politics and economy, drive each other, not strictly one-way.

It is also a good example of capitalist exploitation in its latest stage of globalization being manipulated to its sole advantage by a military dictatorship that has not only greatly distorted the markets and the normal laws of supply and demand in the economy, but chosen to turn itself into a recalcitrant international pariah politically.

So caveat emptor applies here more than elsewhere. And just how do you make the leopard change its spots for all the good will in the world?

plan B Wrote:

11/03/2010

For those who ever doubt economy-driven politics, here is a perfect example. The more economically meaningful activity, the more headache for SPDC and its stooges. These stooges can not afford to lock out workers with already ridiculously low wages as stated above.
There are private sectors willing to provide employment at a fair wage waiting.
That itself can be a nightmare for the regime.

plan B Wrote:

10/03/2010

Thank you Derek for laying the blame where actually belong.
Just a comment about "made in Myanmar" boycott.
Essentially all exported products are already labeled "Made in XXXX" Where the product usually China is reexported at a tidy profit even at a reasonable below market price.
So Does the sanction hurt the common citizenry more?
Let the sanction proponents and die hard anti junta punishing organization and government speak out.
Yes that include Ba Kaung and Irrawaddy.
Ironic to mention Vietnam and Cambodia. Thoroughly unrepentant anti US still evidence from their display in Ho Chi Minh city, are better off due to normalization of relation ship by US.
As for Myanmar, has US been in anyway being harmed other than proven to be a sponsor of failed persistent bullying acts that hurt the citizenry above?
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Billy Mackenzie Wrote:

07/03/2010

The garment company owners also did not got much profits, as the cost of running own generators, with high fuel prices, plus, the rent for factory from generals ,as most good location are taken by the generals , and they cannot get contract unless they hire their factory.

Most of all, Than Shwe and Maung Aye are ripping off the main income. The factory owners got their payment after , say one consignment, in papers, quoted their amount in FEC . They have to go and exchange that in foreign exchange center ( FEC center ). There are about 20 center in that building on the Bo-ta-doung street. Two are run by Than Shwe and Maung Aye families.

They have to exchange at that two center ONLY. There they exchnage...HALF of the amount in market rate...and HALF at 450 kyats, gov; fixed rate.

So they are not earning all of their contract.... Than Shwe , Kyaing Kyaing and Mg Aye are so UTTERLY GREEDY, they are so so rich and still, throttling the poor people throat ...such an UGLY people

Derek Tonkin Wrote:

06/03/2010

The Asian garment trade generally has been badly hit in recent years by excess capacity. In the case of Burma, sanctions have made the situation very much worse. Markets have shrunk and those in the US have been taken over by competitors. In the EU, GSP is denied and any garment with a "Made in Myanmar" label attracts a boycott. As machinery, yarn and most accessories have to be imported, the only income Burma enjoys is the added value from local labour, once operating expenses, utilities and debt servicing have taken their share. As a result, there is precious little profit, if any, for the owners. The factories affected seem to be foreign-invested JVs better able to survive the recession, but mainly because they can be more ruthless in cutting costs. No easy answer, if the money isn't there.