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Article

20 Jul 2015

Author:
Cole Stangler, International Business Times

Intl. brands speak against factories demands of two-tier pay system, but decline to endorse US$3.2 rate - Intl. Business Times report

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"In Myanmar, Garment Factories That Source Popular Brand-Name Clothing Retailers Aim To Defeat A 40-Cent Hourly Minimum Wage", 17 July 2015

Factories in Myanmar that supply major Western clothing companies are fighting a government proposal to set the country’s first-ever minimum wage at roughly $3.25 a day. At the same time, the brands...-Gap...and H&M...among others -have declined to say where they stand on the proposed rate...The Myanmar Garment Manufacturers Association...says the government’s proposed wage is too high and will force employers out of business...“In terms of the membership, they’re all saying they can’t afford to pay it.”...[This] contrasts...with the repeated public assurances of brands that say they are committed to improving labor standards in Myanmar...Western companies, especially Gap and H&M, have trumpeted their support for improved working conditions, voicing concerns over issues such as forced labor, unfair overtime demands and unpermitted subcontracting, while backing the idea of a national minimum wage...When asked by International Business Times for their views on the proposed rate and the opposition from subcontractors, both Gap and H&M distanced themselves from factory-owner demands to create a two-tier pay system, but declined to endorse the $3.25 rate...Jeffrey Vogt [of the International Trade Union Confederation] says all foreign retailers should endorse at least the proposed wage, if not a higher rate backed by trade unions. “They definitely have a responsibility to speak out for a higher wage, a livable wage for workers,”...Irene Pietropaoli, a researcher with the Business and Human Rights Resource Centre...says there’s no question Gap and H&M could influence the wage debate if they felt so inclined. Since Burmese authorities are so committed to attracting foreign investment, they tend to listen closely when high-profile companies sound off on the business environment. At the very least, she says, Western brands could encourage factories they source from not to fight the government proposal.

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