Myanmar: Workers demand compensation for factory relocation
Summary
Date Reported: 2 Mar 2024
Location: Myanmar
Companies
Reebok (part of Authentic Brands Group) - Buyer , New Way Shoe - Supplier , adidas - Reported buyerAffected
Total individuals affected: Number unknown
Workers: ( Number unknown - Location unknown , Footwear , Gender not reported )Issues
Wage TheftResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: New Way Shoes allegedly supplies to or will supply to adidas and Reebok; adidas provided a response to a request for comment from the Resource Centre, stating it has no plans to source from the factory. Authentic brands (for Reebok) did not respond.
Source type: News outlet
Summary
Date Reported: 2 Mar 2024
Location: Myanmar
Companies
Reebok (part of Authentic Brands Group) - Buyer , New Way Shoe - Supplier , adidas - Reported buyerAffected
Total individuals affected: 30
Workers: ( 30 - Location unknown , Footwear , Gender not reported )Issues
Denial of permanent contracts , Wage TheftResponse
Response sought: Yes, by BHRRC
Story containing response: (Find out more)
Action taken: New Way Shoes allegedly supplies to or will supply to adidas and Reebok; adidas provided a response to a request for comment from the Resource Centre, stating it has no plans to source from the factory. Authentic brands (for Reebok) did not respond.
Source type: News outlet
"If the factory is moved, the workers demand compensation for those who cannot accompany them", 2 March 2024
It is reported that the...New Way shoe factory [will be relocated]...and the workers said that they would like to demand compensation for the workers who are unable to work at the relocated location.
...the factory manager said that...it will be opened in Hlaing Tharay Industrial Zone 4 in March, so those who can work can join and those who can't, the factory manager said that they cannot pay any compensation.
"There was a change of employer in the factory in 2023. The workers didn't know that the employer had changed until...the factory displacement issue. In 2023, they said they would not move to the factory again. Now they said they will not pay compensation to those who can't come...," said the worker...
He said that until last February, some day laborers were forced to work for 3 to 8 months, but they did not appoint confirmed employees, did not receive benefits, and fired 30 of them without compensation.
The factory...will start sewing adidas brand shoes in the east of 2024, and is currently sewing Reebok brand shoes, with around 400 workers.
The workers said that despite the formation of the trade union organization and the workplace coordination committee, they are currently unable to negotiate and resolve the situation.
According to the workers' demand, if the factory is moved, the workers who cannot accompany them should be compensated according to their seniority. Workers who can accompany the original place, original position to be taken...
[Translation via Google Translate]