Skip to main content
Home

User Menu

  • Perspective
  • Log in

Main menu

  • Home
  • About ETI
    • Our members
      • Previous members
    • What we do
      • Resolving violations
    • Why we exist
      • ETI's origins
    • Our impact on workers
    • Accountability
    • Funding
    • Our strategy
    • Our team
      • ETI Board members
    • Contact
  • ETI Base Code
    • 1. Employment is freely chosen
    • 2. Freedom of association
    • 3. Working conditions are safe and hygienic
    • 4. Child labour shall not be used
    • 5. Living wages are paid
    • 6. Working hours are not excessive
    • 7. No discrimination is practiced
    • 8. Regular employment is provided
    • 9. No harsh or inhumane treatment is allowed
  • Programmes
  • Join ETI
    • How to apply
    • What members sign up to
    • The business case
  • Training
    • All courses
    • Essentials of ethical trade series
    • Human rights due diligence series
    • China series
    • ETI trainers
    • Bespoke training
  • Resources
    • Newsletters
    • Useful links
  • Issues
    • Union rights at work
    • COVID-19
    • Modern slavery
      • Modern slavery and transparency standards
      • Modern slavery initiatives
      • Modern slavery resources
      • Modern slavery evaluation framework
    • Due diligence
      • ETI’s work on human rights due diligence
        • ETI’s work in Pakistan
        • Pakistan, labour rights resources
      • Resources on human rights due diligence
    • Public procurement & responsible business
    • Company purchasing practices
      • Working conditions in the Leicester garment industry
    • Grievance mechanisms & remedy
    • Gender equity
      • Gender equality - initiatives
      • Gender equality - international standards
      • Gender equality - resources
    • A living wage for workers
      • Living wage initiatives
      • Living wage resources
      • Living wage standards
      • Wages and purchasing theories
    • Business and human rights in India
    • Child labour
    • Homeworkers
    • Migrant workers
    • HIV at work
    • Ethical trade and fairtrade
  • Blog
  • Events
    • Ethical Insights series

Breadcrumb

  1. Home
  2. Blog

ETI supports calls for new Myanmar minimum wage to apply to garment sector

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
  • 15 July 2015
Photo: ILO/Areeluck Phankhian

ETI and its members support international calls for Myanmar’s new minimum wage to be applied countrywide. We have articulated this stance in a letter to the Myanmar government, urging it to resist the request for an exemption from the country’s garment manufacturers.

Our letter was sent on behalf of ETI member companies that are currently sourcing from Myanmar, or considering investing in the country, and wish to see garment sector growth being underpinned by the provision of decent employment for Myanmar workers.

On 29 June, Myanmar’s government announced a new minimum wage of 3,600 Kyat (approx $3.21/day), following a year of consultation with unions and employers. This proposed rate represents a compromise between what industry groups were calling for ($2,500 Kyat) and unions ($4,000 Kyat) were calling for. Last Thursday, Myanmar’s garment factory owners unanimously voted against the proposed minimum wage, which has been broadly welcomed by trade unions.

We wish to counter the claims of Myanmar’s garment manufacturers and employers associations that higher wages will dissuade foreign investors. A minimum wage that has been negotiated by all parties will attract rather than deter international companies from buying garments from Myanmar, particularly companies such as ETI members that have committed to upholding international labour rights standards in their global supply chains.

If Myanmar’s garment industry wage levels are lower than other industries, the sector will not be able to retain the skilled labour force it needs to play its part in driving economic growth. Decent working conditions and stable industrial relations are also key conditions that would allow our member companies to build long-term trade relations with Myanmar. An exemption would mean garment workers being unfairly denied a wage that meets their basic needs, and could lead to work stoppages and industrial unrest – conditions that are far more likely to see international brands reconsider their investment in Myanmar than payment of a national minimum wage. 

ETI Director Peter McAllister said, “While Myanmar presents particular challenges to companies to trade responsibly, there are opportunities to avoid many of the pitfalls seen in other sourcing countries. We urge Myanmar’s government to take a firm stance to help improve conditions - it is vital to ensure that the first ever minimum wage level doesn't lock workers from one sector into poverty.”

Comments

ETI's blog covers issues at the intersection of business, news and ethical trade. We welcome a range of insights and opinions from our guest bloggers, though don't necessarily agree with everything they say.

Stay up to date

Stay up to date with the latest from ETI via the following channels:
  • Email
  • Twitter
  • LinkedIn
  • Facebook
  • Blog RSS

Related content

  • Managing across cultures
  • Cambodia, Myanmar and the EU's 'Everything But Arms' trade deal
  • Cambodia crackdowns, Rohingya crisis: where business meets human rights
  • CSR risk in Chinese-invested overseas textile and apparel enterprises
  • Myanmar: country briefing
  • Responding to the human rights crisis in Myanmar

Get the latest

Subscribe to our email newsletters and stay up to speed on ethical trade.
Subscribe

ETI elsewhere

  • Twitter
  • LinkedIn
  • Facebook
  • YouTube

Footer

  • Accessibility
  • Contact
  • FAQ
  • Jobs at ETI
  • Press resources
  • Privacy
  • Modern slavery statement
Other ETIs: Norway, Denmark
Ethical Trading Initiative | Registered No. 3578127