Mizzima

Solidarity of Trade Union Myanmar (STUM) issued a press release which says that over 2,000 workers were unemployed after two garment factories in Watayar industrial zone, Shwepyithar Township, Yangon Region were closed.

These two factories are GTIG and Gysan owned by Chinese nationals running with over 1,000 workers each in Watayar industrial zone in Shwepyithar Township. These two factories were manufacturing apparel for the UK-based Primark brand.

A spokesperson for STUM explained that the workers were informed in mid-February about the imminent closure of the factories as Primark Company would leave Myanmar and then the workers were paid compensations on 28 February for ceasing their employment and then they closed their businesses.

Moreover, trade unions negotiated with these two factories for giving priority to the former workers for employment if these two factories were not permanently closed but temporarily and then Gysan agreed and signed on the agreement but GTIG had not yet agreed to it, this STUM official added.

Primark is a well-known UK-based brand and it announced in 2022 that they would stop their business in Myanmar. Primark gave manufacturing orders to these two garment factories owned by the Chinese nationals on a CMP basis.

According to the data released by the Ministry of Labour, currently 505 garment factories, 48 shoe making factories, eight wig factories and other factories totaling 177 are running their businesses in Myanmar.

It is learned from the labour activists that some factories were getting fewer orders so that they would likely close their businesses soon.

The investments in CMP factories reportedly came from China, Thailand, South Korea, Japan and Taiwan.