Thousands of Garment Workers Laid Off Following Closure of Pathein Factories
By Network Media Group
Thursday, December 28, 2023
Thousands of workers have lost their jobs as three garment factories, unable to generate a profit due to declining sales and irregular access to electricity, were finally forced to shutter their operations in Pathein, a town situated in Irrawaddy Region. The factories closed during the first and third weeks of December, resulting in the layoff of about 3,000 workers.
“They provided us with three months’ severance pay before closing. Labourers do not receive social welfare benefits from the labour ministry,” a man told NMG. Although the three-month salary helps, workers expressed concerns about finding new jobs with rampant unemployment affecting the region.
After the military coup caused political instability, the garment industry stopped receiving orders from abroad, according to a member of the Pathein Industrial Zone Monitoring Committee. Simultaneously, he explained that power became inconsistent, forcing owners to rely on diesel-powered generators, which increased operational costs. The regime also started increasing taxes and other fees for ‘regional development’ schemes. After a while, fuel prices dramatically increased and also became difficult to find at times. “Factories can’t buy the necessary basic materials, creating problems maintaining production,” the man added.
Haubo Times, He Shan, and North Shore factories, all run by Chinese businessmen and located in the Kinmalin Kyun Industrial Zone in Ward 13, have shut down. However, the man said that Hakers, Dong Long, and Myanmar Knitting garment factories continue operating in Pathein because they still have orders but suspected these companies will also have to close soon.
Over 25,000 workers from Pathein, Tha Poung, Kangyidaung, and Ngaputaw townships work in the town’s Kinmalin Kyun and Pathein Port Industrial Zone, according to the government’s labour department. In the Irrawaddy Region, there are three additional industrial zones: Hinthada, Myaung Mya, and Ma-U Pin.
The junta failed to implement the Mee Lin Chai liquefied natural gas (LNG) project in 2023. The project located on Shwe Thaung Yan Beach, initiated under the National League for Democracy government, would have provided a capacity of 1,390 MW when completed. Thirty-five percent of its generated power was pegged for the Irrawaddy Region, with the remainder to be sent to Yangon through the national grid.
