Myanmar: Over 500 workers allegedly owed unpaid compensation following factory closure
Date Reported: 3 Jul 2021
CompaniesDishang Kenny (Dishang Group) - Supplier , Bestseller - Reported buyer , Inditex - Reported buyer , Kiabi - Buyer , ONLY (part of Bestseller) - Reported buyer , Zara (part of Inditex) - Reported buyer
Total individuals affected: 570Workers: ( 570 - Location unknown , Clothing & textile , Gender not reported )
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: Dishang Kenny (Dishang Group) allegedly supplied to BESTSELLER, Inditex and KIABI. All brands provided a response to a request for comment from the Resource Centre. BESTSELLER and Inditex stated that they did not source from the factory.
Source type: Social Media
"Dishang Kenny Garment Factory closes but no legal compensation", 3 July 2021
...Dishang Kenny garment factory [has] closed, but no compensation has been paid, according to workers. The plant, which employs around 570 people, closed on April 3 without prior notice.
Wages for March were paid on the last day of the plant's opening...The workers said they did not comment on the layoffs, but said they would not be allowed to work during the period of suspension, even though they were required to pay a negotiated salary.
Most of the workers have been forced to return home due to political unrest and food shortages during the suspension. Workers want to contact the employer for compensation according to [the law] but it is difficult, according to the workers.
The union leaders said that although a basic union had been formed at the factory, there was no pre-negotiation on the closure of the factory due to weak links between the employers and the union.
Taking advantage of the political situation, the factory officials closed the factory without prior notice, and workers were suffering from non-payment of interim wages and long-term compensation.
[Translation via Google Translate]