Rangoon (Mizzima) – Compensation negotiations between the owner of the Lin Htet wool factory and workers who demanded more severance pay were successful on Thursday, according to MP U Kyaw of Thingangyun Township. Problems between the owner and workers started on July 23.
According to the agreement, workers who have one to three months’ service will receive one month’s salary as compensation; workers with three months to one year will receive two months’ compensation; workers with one to three years will receive three months’ compensation; and workers with more than three years will receive five months’ compensation.
The factory will pay about 300 workers compensation no later than August 3, sources said.
Officials from the Ministry of Labour, MP U Kyaw and 13 workers negotiated the payment package. The owner announced that the factory was officially closed on July 26.
