Despite efforts by many factories within Bestseller’s supply chain to voluntarily raise wages, the absence of a statutory increase continues to exert pressure on workers’ livelihoods across the sector. Credit: BESTSELLER.

The group emphasises the necessity for a revised minimum wage that aligns with the living expenses of workers, a concern that has intensified since the previous adjustment to the wage baseline in 2018.

EuroCham Myanmar points out that the current inadequate minimum wage is at the root of several issues, including low pay, workplace conflicts, high employee turnover, labour migration, and the loss of specialised skills, all of which counteract productivity improvements seen in recent years.

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Additionally, a wage system that compels workers to depend on overtime and “attendance bonuses” to afford basic needs hinders their ability to fully exercise their legal rights to annual and sick leave, adversely affecting their well-being.

The “persistently low minimum wage” also poses a considerable risk to the reputation of brands that source from Myanmar, which in turn becomes a business risk for the nation’s export-driven apparel manufacturers.

Bestseller labour rights manager Claus Aabling said: “We recognise that an increase in the minimum wage is essential to promote fair working conditions and strengthen the overall resilience of the garment sector in Myanmar.”

The fashion company has been proactive in addressing wage concerns through continuous dialogue with workers, trade unions, and labour rights organisations in Myanmar.

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Despite efforts by many factories within Bestseller’s supply chain to voluntarily raise wages, the absence of a statutory increase continues to exert pressure on workers’ livelihoods across the sector.

“Low wages are a systemic challenge that cannot be solved by one actor alone. Therefore, we believe that speaking up is an important part of our responsibility as a sourcing brand. We support EuroCham Myanmar’s call for a review of the minimum wage and recognise that an increase in the minimum wage is essential to promote fair working conditions and strengthening the overall resilience of the garment sector in Myanmar,” Claus Aabling added.

Bestseller, which started sourcing in Myanmar from 2014, claims to strengthen human rights due diligence in the country in accordance with international standards and OECD guidelines for responsible business conduct.

The company asserts its commitment to promoting decent wages by engaging with suppliers and supporting initiatives focused on workers.

In February this year, global union federation IndustriALL called for action against Myanmar’s ruling military authority’s attack on workers’ rights and independent trade unions. An industry expert told Just Style it is important to maintain a dialogue with any union organisations that can still help with human rights due diligence.

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