Reports have surfaced that allege workers at the Myanmar Pouchen factory in Yangon, which produces clothing for adidas, had been striking over working conditions and pay.
Myanmar Now said that rising commodity prices had led to 400 workers at the factory striking after a request for a pay increase from MMK4,800 per day ($2.30) resulted in them being given MMK10,000 in gift cards. This amounts to less than $4.75.
The Pou Chen factory employs 7,800 workers. 29 workers were reportedly dismissed following the strike.
Myanmar Now reports officials from Myanmar Pou Chen notified the local military authorities of the protest on the afternoon of the same day it began, prompting the arrival of ten soldiers and police officers in four army vehicles.
In an email to Just Style, a spokesperson for Adidas, commented regarding the reports on Myanmar Pou Chen: “Adidas has objected strongly to these dismissals, which are in breach of our Workplace Standards and our long-standing commitment to upholding workers’ freedom of association.
“We are investigating the lawfulness of the supplier’s actions and we have called on Pou Chen to immediately reinstate the dismissed workers.”
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataLast month, M&S announced it was working on a responsible exit from Myanmar on concerns over the continued human rights violations following a military coup.
Marks & Spencer (M&S) said in its statement: “Findings from the Myanmar Enhanced Due Diligence Sectoral Assessment demonstrate that it is impossible for the group’s Global Sourcing Principles to be upheld.
The report titled: ‘Riding out the storm: Organizational resilience of trade unions and civil society organizations following the military takeover in Myanmar’ highlights how the targeted persecution of trade unions and CSOs, including arbitrary arrests, detentions, acts of violence, raids on homes and offices, seizure of equipment, threatening phone calls, interrogations and surveillance, have substantially limited their ability to operate.
Following this the Ethical Trade Initiative (ETI) encouraged garment brands and retailers sourcing from Myanmar to reassess their presence in the country as actioning and trusting factory audits was proving difficult.
It saw Primark announce its exit from the market.