Myanmar: Subcontracted workers at risk of becoming unemployed as parent company fails to pay factories
Summary
Date Reported: 23 Oct 2023
Location: Myanmar
Companies
Sam Clothing - Supplier , Inditex - Buyer , LC Waikiki - Former buyer , New Look , Zara (part of Inditex) - BuyerAffected
Total individuals affected: 500
Workers: ( 500 - Location unknown , Clothing & textile , Gender not reported )Issues
Wage TheftResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Sam Clothing allegedly supplies to Inditex (for its ZARA brand), LC Waikiki and New Look; All brands provided a response to a request for comment from the Resource Centre. LC Waikiki stated it sourced from the factory in 2023, but will not be used in the future. New Look stated it had ceased operations with the factory in May 2023.
Source type: News outlet
"Sub factories are closing as mother factories do not pay and workers are on the margin to become unemployed", 23 October 2023
A worker told Myanmar Labor News that they are on the [verge of] becom[ing] unemployed as the Sam Clothing (Myanmar) garment factory from East Dagon Industrial Zone, Yangon, which mainly manufactures [for] the ZARA brand [and] hires some small factories to sub-manufacture [clothes for] the LCW casual brand but does not pay.
"It's been more than 3 months since they appointed [us] to manufacture the clothes. For the first two months, the owner had to find money from somewhere else...For this month, he said that he will pay by selling the machines." said a factory worker.
Sam Clothing (Myanmar) is located in the east of Dagon University Gate, East Dagon Industrial Zone, Yangon...
One of the managers of the small garment factory said that there are a total of 6 sub-factories that do not receive payment from Sam Clothing (Myanmar) currently and around 500 workers are facing a situation of unemployment...
Also, a sub-factory worker said that they have to work 2 days all [day and night] at Sam Clothing (Myanmar) factory for [the] LCW...brand...but there were no wages for those days...
An administrative employee said that when the contract between Sam Clothing (Myanmar) and the small factories was signed, it was stipulated that the payment must be made within 15 days after the garment was deposited, but now it has been almost 3 months and it has not been paid yet.
They went to Sam Clothing (Myanmar) factory to negotiate about wages, but they did not let them...enter the factory and the factory officer and manager said to speak only with the boss from China...
"At the factory, the bosses and leaders are consulting [on] sell[ing] the machines [to] pay the workers. But without those machines, the factory will have to close. So, the workers will become unemployed. During this period, employment is rare. We are worried that the families will be in trouble," said one of the workers.
The workers of some sub-garment factories went to...Sam Clothing (Myanmar) factory to protest about the wages, but...it has not been paid...the workers said...