Labor rights violations continue to rise domestically, 227 disputes resolved, says STUM

Yangon, July 11 Labor rights violations continue to rise in garment factories within Yangon Region, and the Federation of Trade Unions Myanmar (STUM) has released a report stating that 227 disputes have been resolved to protect workers' rights and ensure justice. From January to the end of June 2026, labor rights violations have continued to increase, and 227 labor rights disputes have been resolved. Of these, 171 cases were successfully resolved through negotiation and judicial channels, while 56 cases are still under process. The main disputes involve wage disputes, wrongful termination, violations of labor laws, breaches of EC contracts, and breaches of bilateral agreements, accounting for over 85 percent of the total disputes in the Garment Industry. "Labor rights violations are also occurring in factories in Shwepyitha, Hlaingthaya, Insein, and other townships. The main issue is that cases filed with the Department of Labor under the SAC are not being investigated. When they are not resolved, subsequent dismissals occur. When workers are dismissed, they suffer losses," a labor activist told Khit Thit Media. It is reported that the highest number of labor disputes occurred in Nay Shwe Win Co., Ltd, Bontech Manufacturing Co., Ltd, Li Da Garment Myanmar Co., Ltd, Costec International Co., Ltd, and True Green City Co., Ltd factories. Furthermore, STUM has pointed out that labor rights violations exist within the supply chains of international brands such as Terranova, Calliope, FB Sister, Reserved, Vizwell, Sinsay, LC Waikiki, and DeFacto. STUM has announced that through its legal and paralegal interventions, it has been able to claim a total of 1,941,845,752 Kyats in compensation for the workers. Similarly, on July 10, it was reported that Bontech Manufacturing Co., Ltd, located at Plot No. 87/88, Patta Yar Road, Thadukhan Industrial Zone, Shwepyitha Township, dismissed a labor union leader working in the Cutting department due to an incident where the worker mistakenly pressed or bumped into a machine. STUM stated that this worker was dismissed on the pretext of finding fault, as they had led the wage demand protest on June 24. Although a bilateral agreement was signed between the employer and workers on June 29, the employer violated the terms of the EC contract signed with the workers in the workplace on June 30. Despite filing a complaint with the Shwepyitha Labor Office, no resolution has been provided up to the time of the dismissal of the labor union leader. STUM has pointed out that Bontech factory had previously dismissed a union treasurer, and the Shwepyitha Department of Labor has not yet resolved that case to completion. It is understood that the currently dismissed individual is a member of the factory labor union's Executive Committee (EC) and also an executive member of the Shwepyitha Township Garment Workers Association. STUM has announced that Bontech factory is currently manufacturing garments for international brands but has not responded to or resolved complaints regarding labor rights violations.