Myanmar’s garment industry is seen as synonymous with low wages, long working hours and sub-standard working conditions. But it is difficult to negotiate higher wages when factories are being squeezed by their multinational brand customers. So, unions must look beyond minimum wages and push for a new wage fixing mechanism that takes account of the way that brands contract with suppliers and the prices they pay.

To achieve a living wage there is a need for higher wages to be set across the entire industry in order to prevent individual factories and brands from negotiating lower prices based on lower wages. The minimum wage right now does not take into account other wage-related factors like working hours, skills training and productivity. There is a need for a system that lifts standards across the market and enables workers to enforce their own agreements.

In addition the country should ease entry restrictions for foreign firms, undertake active investment promotion in garments through complementary reforms in finance and trade policy, expand training to tackle the shortage of high-level skilled manpower, and engage with buying firms, especially global retail or apparel corporations.

Many owners view the minimum wage – which is the second lowest in the region after Bangladesh – as a maximum price rather than a floor price. They prefer paying the minimum wage rather than a living wage.