Myanmar is gaining reputation as a viable sourcing country, and has taken steps like establishing a minimum wage, but hurdles remain. The new nationwide minimum wage was imposed in June. But garment factory owners have been fighting the increase saying it would cripple the sector and some facilities would face closure. Factory owners are seeking lower wage increase.

The minimum wage level, even if it’s imposed, has to be done uniformly across all industries. If garment industry wage levels are lower than other industry levels, there may be problems in attracting and retaining skilled labor force. There is a need for freedom of association, which should lead to dialogue between employer and worker representatives to get issues settled constructively and will allow for the right to organize and collective bargaining to continue.

When violence is used by public or private sector security forces to curtail workers’ peaceful protests, this is likely to be more of a deterrent to companies considering sourcing from Myanmar than the strikes themselves, and will have a significant negative impact on Myanmar’s reputation.

If worker representatives are detained or dismissed for striking, that doesn’t bode well for Myanmar’s reputation either—and investors will take note.