Proposed K3600 minimum wage draws mixed response from workers, employers
Garment workers and small businesses have given a mixed reaction to a proposal to set the national minimum daily wage at K3600 (US$3.20), with employers saying they will continue to campaign against it.
The National Committee on the Minimum Wage – which includes ministries, employers and labour organisations – thrashed out a long-awaited agreement on June 24, settling on K3600 a day, according to participants, although the figure has not yet been officially announced.
All sides have two months to respond to the proposal before the issue goes to parliament, which first passed a law calling for a minimum wage in 2013.
The garment sector was one of the areas where debate was fiercest, with employers calling for a minimum wage as low as K2500 while workers demanded K4000.
Daw Htay Htay Aye, managing director of Thiri Sandar Garment and General trading company and senior member of the Myanmar Garment Manufacturers Association, said she could not afford to pay the proposed rate and had hoped for K2500 as the MGMA had discussed.
“We are preparing our response as this is still in the negotiating stage. The minimum wage is not decided yet and when it comes out we will consider whether we can live with it or not,” she said.
Ko Kyaw Lwin Oo, a union leader at the E-land Myanmar garment factory, told The Myanmar Times that most of its factory workers had agreed with K3600, despite pressing for the higher amount.
“We agreed these wages. It is fair for us because those wages are for an eight-hour day, and it is not much below our demand for K4000,” he said.
Ma Win Theingi, a worker at Yes One garment factory, said she was willing to take the deal, even though she did not fully accept it.
“We have to negotiate with owners for more pay for more production, because the owners will want more production if they have to pay proper wages according to the agreement,” she said.
But Tai Yi factory worker Ma Yin Aye said the amount was not enough, and she plans to register her objection to the committee. “We are planning to complain right now,” she said.
Ma Sander, a member of the Federation of Trade Unions-Myanmar, said she agreed with the proposal but believed it might cause problems at first for employers and workers.
She said trade unions were taking on a more active role. This would become apparent as employers and workers negotiated higher wages for more productivity, she said. “If the owners pay more, I can promise that we will work hard for output as well,” she added.
Ko Zaw Gyi, a producer of handmade candies, said he was willing to pay his workers the minimum wage but voiced concern about the fixing of overtime rates. His workers currently put in at least 12 hours a day for a basic salary of K80,000 a month. Any higher costs would have to be passed on to the consumer, he said.
Views from outside Yangon appeared to be positive.
U Khin Kyuu, owner of Zabudate rubber plantation in Hpa-an, said that Kayin State rubber plantations were paying at least K4000 and up to K7000 a day in wages. Owners who paid less were having trouble finding workers, he said.
Ko Zin Min Tun, an agricultural commodities trader in Pakokku township in Magwe Region, said brokers in his sector could afford the proposed rate, which does not differ much from current wage levels. “We welcome these agreements on wages,” he said.
(Quote from Myanmar times online website on 26 June 2015)