Thread In Struggle: Myanmar’s Garment Workers Under Siege – Analysis

By Dr. Htet Khaing Min

The combined impact of economic hardship and forced military conscription on garment workers in Myanmar and their struggles reflect systemic exploitation in the global fashion industry. 

Key Takeaways:

1. Myanmar’s garment workers endure severe exploitation, compounded by the military junta’s suppression of unions, inflation, and forced conscription.
2. The withdrawal of major fashion brands, citing ethical concerns, further destabilized the industry, leading to increased child labor and unsafe working conditions.
3. Addressing the crisis requires global advocacy, corporate responsibility, humanitarian aid, and targeted sanctions to restore worker rights and economic stability. 

A recent commentary in Fulcrum by ISEAS illustrates the arduous conditions female workers face in Myanmar’s garment industry. Imagine a woman in her thirties rushing to a garment factory in Myanmar before the clock strikes 8 a.m. She knows even a minute’s delay will mean a deduction from her already meager daily wage of 6,800 kyats (≆ 1.5 $)—a sum that includes unpaid overtime. She works tirelessly from morning until 8 p.m., and her short lunch break is spent in crowded factory lanes or on the floor if she’s late to claim a spot. Holidays offer no reprieve; her boss pressures her to meet impossible targets, warning of grudges or job loss.

Her family’s financial strain forces her 13-year-old sister to abandon school and work alongside her, who was hidden by the company during inspections. Meanwhile, the looming threat of military conscription drives her brother overseas, leaving her as the sole provider. She endures harassment from a male supervisor, unable to speak out for fear of losing her job in a system devoid of unions.

This story might sound hypothetical, but it mirrors the grim realities faced by Myanmar’s garment workers, caught in a web of exploitation, inflation, and systemic abuse. This article delves into the factors crushing these workers under oppression.

1. Background of Myanmar Garment industry

Before scrutinizing the harsh realities of worker oppression, it’s essential to understand the broader landscape of Myanmar’s garment industry first.

Ahead of the COVID-19 pandemic, Myanmar’s garment sector was a key pillar of economic growth, supporting approximately 500,000 workers and accounting for 23% of all manufacturing jobs. Many workers, predominantly women, relied on these jobs to sustain their families, with 86% sending significant portions of their earnings back to rural areas. This financial redistribution was a lifeline for vulnerable communities.

However, the sector’s promise has faltered under political turmoil. The February 2021 military coup, followed by steep inflation, import restrictions, and power outages, has disrupted operations. An estimated 150,000 jobs were lost during the first wave of COVID-19 alone, and by the end of 2020, over 100 garment factories had closed. Post-coup, the industry has seen additional factory closures and job losses, further imperiling workers’ livelihoods.

Amid this crisis, the demand for greater productivity has intensified. Many factories now demand double the productivity, forcing employees to work 10-hour days, often without weekends off, while wages remain stagnant or decline in real terms with inflation.

2. Jeopardizing Factors

To fully comprehend the plight of Myanmar’s garment workers, let’s examine the role of major fashion brands, the impact of conscription, inflation, and the lack of union protection.

2.1. Exodus of Foreign Companies

Myanmar’s garment industry, once a global manufacturing hub due to its low labor costs and trade preferences, particularly with the European Union and the United States, has faced significant setbacks since the military coup in 2021. In 2022, exports from this sector reached $7.6 billion, with over half of the revenue stemming from EU markets. However, the junta’s political turmoil and oppressive policies have driven several major brands, including Marks & Spencer, Uniqlo, and Inditex (Zara’s parent company), to exit the market.

These companies, guided by ethical disengagement frameworks developed with organizations like IndustriALL Global Union, cited escalating labor rights violations and operational risks as reasons for their withdrawal. Meanwhile, some brands, such as Adidas, have continued operations under stricter due diligence policies, though allegations of worker exploitation persist.

The Myanmar Garment Manufacturers Association reported that by December 2023, 298 member factories had ceased operations. This marks an increase of 52 closures compared to the previous year, with the share of non-operational factories rising to 36% from 31% in December 2022.

Foreign companies face mounting challenges in Myanmar, including new currency regulations that force exporters to exchange 75% of their earnings at unfavorable rates, rampant inflation, and frequent blackouts. Meanwhile, inspectors like IndustriALL and the Fair Wear Foundation flagged over 556 cases of human rights violations in factories linked to international brands by mid-2024. This growing exodus underscores the ethical and operational minefield that Myanmar’s garment sector has become.

2.2. The Impact of Conscription Law

Furthermore, introducing a new conscription law in 2024 has intensified the challenges faced by Myanmar’s workforce, particularly in the garment sector. Under the law, all men aged 18 to 35 and women aged 18 to 27 are eligible for military service, with the junta asserting that women will not be drafted for the time being. However, the broader impact of forced enlistment is already being felt across the workforce.

Factory workers, especially those from factories supplying international brands, have been drafted, disrupting production and creating widespread instability. A growing labor shortage has emerged in urban areas like Yangon, forcing some factories to increase daily wages to retain skilled workers. However, these efforts fall short of addressing years of wage stagnation.

The conscription law has also sparked fears of forced recruitment in industrial zones, with mass resignations and employers being pressured to provide personal details of their workforce. This has led to an increase in child labor as factories turn to underage workers to fill gaps, subjecting them to long hours and exploitation.

2.3. The Inflationary Pressures

In response to post-conscription labor shortages, some factories in Myanmar increased wages by 20–30% between 2020 and 2024. However, these modest raises have failed to compensate for years of declining real wages, especially when contrasted with the staggering 160% increase in the cost of a common diet during the same period. This disparity leaves garment workers struggling to meet basic needs, forcing many former workers into dangerous informal jobs, including sex work, to survive.

Fueled by excessive money printing and widespread distrust of the kyat, inflation has pushed living costs to unsustainable levels. Economist Jared Bissinger estimates that if wages had kept pace with skyrocketing inflation, the minimum daily wage would be 12,000 kyats instead of the current 6,800 kyats—insufficient to feed a family.

Concurrently, international brands exiting Myanmar due to ethical concerns exacerbate the economic strain, reducing foreign investment and destabilizing the currency. Skilled workers, facing bleak prospects, are fleeing the country, leaving factories reliant on underqualified and child labor to fill the gaps. Even modest wage increases in 2024, driven by labor shortages, fail to address the years of declining real incomes, further entrenching cycles of poverty and economic instability.

2.4 Suppression of Labor Unions

Since the 2021 coup, labor rights in Myanmar have plummeted to their lowest point, with the military junta systematically dismantling unions, banning collective organizing, and harassing labor leaders. This suppression leaves workers without any platform to advocate for fair wages or improved working conditions. The lack of union representation has exacerbated the exploitation of garment workers, who now face forced overtime, illegal dismissals, and wage theft without recourse.

Women comprise most garment workers and are particularly vulnerable in this union-free environment, lacking alternative income sources or support systems. The junta’s crackdown on unions is part of a broader strategy to eliminate labor mobilization, as it sees organizing as a political threat to its authoritarian regime.

The absence of unions also blinds international brands to the ground realities in factories, preventing them from addressing labor abuses. Organizations like IndustriALL have brought attention to this crisis through the complaints of the OECD (Organization for Economic Cooperation and Development), urging global companies to uphold ethical supply chain practices. In the interim, the European Union, Myanmar’s largest garment export market, is reevaluating its “Everything But Arms” trade preferences, which, if revoked, could economically pressure the junta but risk further destabilizing the garment sector and its workers.

3. A Path Forward

Addressing these challenges in Myanmar’s garment industry requires coordinated efforts from multiple stakeholders. Given the situation’s urgency, immediate action (described below) is needed to protect the garment worker’s rights.

• Corporate Responsibility: Brands operating in Myanmar must prioritizeworkers’ welfare, ensuring fair wages, safe conditions, and freedom of association. Companies that choose to disengage must do so responsibly, minimizing worker harm. 
• International Advocacy: Labor rights organizations and governments must support rebuilding unions and advocate for reinstating workers’ rights. Diplomatic efforts should focus on pressuring the junta to lift restrictions on labor organizing.
• Humanitarian Aid: Displaced workers and their families need financial and material support to navigate the economic crisis. This assistance can help mitigate the impact of job losses and conscription.
• Sanctions and Diplomacy: Targeted sanctions against the junta’s economic lifelines, coupled with diplomatic initiatives to restore democracy, can weakenthe regime’s grip on power.

The plight of Myanmar’s garment workers demands urgent attention from the National Unity Government (NUG). As the people’s government, the NUG’s Ministry of Labour must intensify efforts to combat human rights abuses and hold accountable those exploiting worker rights by presenting the ongoing situation in UN meetings and ILO hearings. Strengthened collaboration with international labor organizations is essential to pressure global brands to adhere to ethical disengagement strategies. Such measures are crucial to curtail the military government’s financial gains from foreign investments and to protect the dignity and welfare of Myanmar’s workers.

Conclusion

After analyzing the predicament of Myanmar’s garment workers it paints a grim picture of intersecting crises that have left them trapped and voiceless. Yet, their resilience in the face of such adversity is both inspiring and heartbreaking. These women and underage workers continue to endure, striving to keep their hopes alive despite relentless challenges. 

The responsibility to act falls on those who claim to be governments, corporations, and global citizens who champion human rights and workers’ welfare. Every moment of inaction dims the future of these workers. The international community must hold the military regime accountable, prioritize ethical labor practices, and ensure that Myanmar’s economic recovery is built on justice and dignity. Only then can the garment sector become a source of empowerment, paving the way for a more equitable and sustainable future. 

• About the year: Dr. Htet Khaing Min, a medical doctor, is a Junior Research Fellow at the Sustainability Lab of the Shwetaungthagathu Reform Initiative Centre (SRIc). He recently led Remote Health Projects, focusing on Community Health Worker programs in the border regions of Naga and Karen States.
• Source: This article was published at The Sabai Times