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Myanmar garment workers urge global brands to denounce coup - yahoo

As international sanctions were dropped in the mid-2010s when Myanmar began shifting toward democracy after decades of military rule and started to set some labor standards, Western brands looking to diversify their sourcing were attracted to the country's cheap labor. 

Broad sanctions now would cripple that burgeoning clothing industry, which has been growing rapidly in recent years before the coronavirus pandemic cut orders and eliminated jobs.

Comprehensive sanctions could wreck the livelihoods of more than 600,000 garment workers, but some union leaders say they would rather see massive layoffs than endure military oppression.

The garment industry plays a key role in Myanmar’s economy, particularly the export sector. Roughly a third of Myanmar's total merchandising exports come from textiles and apparel, worth US$4.59 billion in 2018. That's up from 9 per cent, or US$900 million, in 2012 as international sanctions were dropped, according to the latest data from the European Chamber of Commerce in Myanmar.

Myanmar’s apparel exports mostly go to the European Union, Japan and South Korea because of favourable trade agreements. The US accounts for 5.5 per cent of Myanmar's exports, with clothing, footwear and luggage representing the bulk of that, according to garment trade expert Sheng Lu.

But Myanmar still accounts for a tiny share — less than 0.1 per cent — in US and European Union fashion companies’ total sourcing networks. And there are plenty of other alternatives for brands.

Despite this, many are taking a wait-and-see stance when it comes to any long-term decisions. Experts note it’s not easy to shift products to a different country, nor is it easy to return to Myanmar once companies leave. 

Furthermore, some argue Western companies play a role in reducing poverty by giving workers in Myanmar opportunities to earn an income while also helping to improve labor standards there.

Factory working conditions were already poor before the February coup, but the labor unions had made some inroads and gave workers hope. And while the National League for Democracy, the party that was ousted in the takeover, wasn’t proactively protecting unions, it didn’t persecute or crack down on them, says Andrew Tillett-Saks, a labour organiser in Southeast Asia who previously was based in Myanmar.

Nearly 70 per cent of the garment factories in Myanmar are owned by foreigners, according to the European Chamber of Commerce in Myanmar, and a good chunk of them are Chinese-owned. International brands using the factories don’t directly hire the workers, often depending on a web of contractors and sub-contractors to produce goods for them.

But companies have “an enormous amount of influence in the industry", Tillett-Saks said. “They hold all the power over the supplier."//CNA