Some factories consider lay-off after new minimum wage set

After the government set the basic wage at Ks 3,600 (US$3) per day, some factories have considered redundancy, reports say.

Myo Aung, the permanent secretary of labour ministry, said that the officials are in talks with the factory owners to know the reason behind the possible redundancy.

“We’re trying to know what makes the factory owners to consider so – whether they really find difficulty with the new minimum wage,” said Myo Aung.

The committee from the labour ministry set the minimum wage which is, by any comparison, the lowest daily rate in the world on June 29. The Korean and Chinese business owners threatened they would shut down the factories and refused to pay Ks 3,600 a day.

Some local factory owners from the garment and commodity sectors also gave thumbs-down to new salary rate.

The labour society has confronted the factory owners and demanded to talk in a legal manner. Aung Lin, the chairperson of the Myanmar Trade Unions Federation, said that the compensation should be given to the fired workers if there are lay-offs.

“It becomes harder each day for labourers to cope with the rising living expenses. The factory owners stated in the proposal letters that they would give salaries equivalent to $100 but did not keep their words. There is no one to check the factory owners, too,” said Aung Lin.

He added that the practical methods are needed to help improve the lives of the manual workers.

The minimum wage will be affective on September 1 and those who do not obey the law will be prosecuted.