Some major global brands back Myanmar's minimum wage proposal

Some major global brands have voiced support for the Myanmar government's proposed minimum daily wage proposal, saying that a guaranteed pay rate would help promote investment in the country's garment industry and raise the living standard of its workers, an official report said Thursday.

The support was expressed in their letters sent to the Ministry of Labor, Employment and Social Security and the National Committee on Minimum Wage by the Ethical Trading Initiative and the Fair Labor Association comprising companies exploring investment in Myanmar.

The global brand groups lauded the government for undertaking a transparent mechanism for setting the minimum wage in line with the International Labor Organization (ILO) conventions.

The companies group disagreed the suggestions made by trade associations that a higher minimum wage will discourage international investment, arguing that it is based on a false premise.

Myanmar's National Minimum Wage Committee proposed on June 29 a negotiable minimum 8-hour daily wage of 3,600 kyats (about 3.27 U. S.dollars) for all workers in the country after conclusion of one year's coordination between the government, employers and labor representatives.

The committee, comprising ministerial representatives, employers and labor organizations also invited feedback from the public on its recommended minimum daily wage for workers, setting a deadline for July 13 for the feedback submission to be further forwarded to the parliament for final adoption.

While up to five workers' federations and one trade union agreed on the government-set rate, Myanmar's garment entrepreneurs voted against the proposed rate which is to be raised from 2,500 kyats offered, warning that if the government rate is finally adopted, then their factories will be forced to close down in September.

According to the Garment Entrepreneurs' Association, more than 30 factories with foreign investment in Yangon expressed their intent to shut down in September if the proposed minimum wages take effect on Sept. 1.

The intended closure of the 30 factories may lead to more than 70,000 people jobless, the association further warned.

The government's minimum wage committee claimed that it has received more than 160 objections from factory owners in Yangon following the proposed minimum wage designation.