Myanmar: SYSMM Apparel garment factory will not pay workers full compensation after factory closure, workers report
Summary
Date Reported: 12 Oct 2023
Location: Myanmar
Companies
LPP Spółka Akcyjna - Buyer , Sinsay (part of LPP S.A.) - Buyer , SYSMM Apparel Manufacturing - Supplier , Inditex - Reported buyer , Bershka (part of Inditex) - Reported buyer , Stradivarius (part of Inditex) - Reported buyer , Mohito (part of LPP S.A.) - BuyerAffected
Total individuals affected: 600
Workers: ( 600 - Location unknown , Clothing & textile , Gender not reported )Issues
Wage TheftResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: SYSMM allegedly supplies to Inditex for its brands Stradivarius and Bershka, and LPP S.A for its brands Mohito and Sinsay; both brands provided a response to a request for comment from the Resource Centre. Inditex stated that it does not source from the factory.
Source type: News outlet
"Sudden closure of a factory in Shwe Pyi Thar without the notice by refusing", 12 October 2023
labourers said that the officials of the SYSMM APPAREL Garment Factory in Shwe Pyi Thar Industrial Zone suddenly announced that they would close the factory on the evening of October 5th after paying [workers] wages[,] and said that they would pay damages according to the law...
[On] September 6, the labourers... were [told that the factory] would pay compensation according to the law as they are closing, but they will not pay the notice wages.
“We thought we are also going to get the notice fees, as they said they will pay in accordance with the law. Its not easy for us to get another job after a sudden closure...it is the start of a month and...we have some debts too,” said a female labourer.
The factory announced that they will hire some [workers] as day labourers to finish the unfinish[ed] tasks and [workers] also said that the labourers from final QR and packing departments are still working.
SYSMM APPAREL Manufacturing Co.; Ltd factory [is] located in Pan Pae Khaung Mauk Khet Road, Shwe Pyi Thar Industrial Zone 4, Shwe Pyi Thar Township, Yangon with more than 600 labours and due to the closure of the factory, more than 400 have been laid off. There were more than 100 left as day labourerers and the factory is known for manufacturing [for] European brands such as Sinsay...and Fox & Bunny.