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16 Sep 2022

Myanmar Labour News

Myanmar: Garment worker reportedly dismissed & denied severance pay after factory blacklisted for late repayment of loan

See all tags Allegations

" 1 female employee was fired without reason for borrowing money from a loan company. He wants to get compensation", 16 September 2022

"The production and office managers asked me if I would quit on my own or...they would let me [go]. If I quit on my own, I could [work] at another factory. If I didn't quit on my own, I would [be blacklisted with...a photo in the labor office. I had to sign because there were difficulties," said the worker who quit his job.

A worker at the KingSrich Myanmar Garment Factory said that the company notified the factory where the...worker was employed...of a loan of 300,000 kyats from a loan company, and that the reputation of the factory had declined.

The factory...opened in Shwe Pytha Township Industrial Zone 2, [supplies] H&M[.] The worker who was fired said that he is working on brands such as M&S, and he is facing difficulties because he has not received any compensation until today...

"About 5 months ago, the loan bank called the factory and argued about the late repayment of the loan. The factory is not responsible and the factory has to be blacklisted...

After two days of delay in repaying the loan, the company that provided the loan contacted the worker's factory to inform them that they were forced to quit their jobs due to an argument, saying that it would be difficult to repay the loan again.

"I didn't want to leave my job, and I had to quit because of their threats. They said that if I left of my own accord, I would be able to work outside, so I was scared and had to sign," said the worker who quit.

He said that after he had to quit his job, it was difficult to find a job and it was difficult to get a loan. He said that he wants to receive 25 lakh severance pay for a total of 5 salaries including 4 years of service...

The official of H&M...has been contacted regarding the claim for compensation according to the law for the dismissal...

"...In my heart, I have decided that we will continue until we get the compensation. Every time the workers are violated, they have no rights..."

[Translation via Google Translate]