Seduno (Myanmar) Fashion Co in Hlaing Tharyar Industrial Zone of Myanmar that recently announced it was facing difficulty keeping the business running because of failure in production, postponements in exports, an increase in operating costs, and day-to-day wage costs. The unit with over 400 workers has now closed down.
According to workers the management did not give them advanced notice that it was ending operation. Ma Khin Pa Pa Hlaing, one of the workers, mentioned that some of them had not received compensation yet and the factory did not compensate all workers because of work experience.
He further added few workers returned to their villages after the closure because they could not pay the rent for the factory dormitory. Additional factories might shut down in the future as the government has not created more job opportunities so far and does not care about labour issue says U Tun Tun Naing, joint secretary of the Cooperating Committee of Trade Unions.
Since the government fixed the minimum wage at K4800 (US$3.40) a day, businesses cautioned they might close because they could not afford the new wage due to a slowdown in the economy and low demand in international market.
