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Viewing cable 06RANGOON924, WORKERS STRIKE FOR HIGHER PAY

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Reference ID Created Released Classification Origin
06RANGOON924 2006-07-05 06:46 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Rangoon
VZCZCXRO8855
RR RUEHCHI RUEHDT RUEHHM
DE RUEHGO #0924/01 1860646
ZNR UUUUU ZZH
R 050646Z JUL 06
FM AMEMBASSY RANGOON
TO RUEHC/SECSTATE WASHDC 4767
INFO RUEHZS/ASSOCIATION OF SOUTHEAST ASIAN NATIONS
RUEHBJ/AMEMBASSY BEIJING 0985
RUEHBY/AMEMBASSY CANBERRA 9757
RUEHKA/AMEMBASSY DHAKA 4223
RUEHLO/AMEMBASSY LONDON 1679
RUEHNE/AMEMBASSY NEW DELHI 3407
RUEHUL/AMEMBASSY SEOUL 6854
RUEHKO/AMEMBASSY TOKYO 4469
RUEATRS/DEPT OF TREASURY WASHDC
UNCLAS SECTION 01 OF 02 RANGOON 000924 
 
SIPDIS 
 
STATE FOR EAP/MLS 
TREASURY FOR OASIA: AJEWELL 
 
SENSITIVE 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PGOV BM
SUBJECT: WORKERS STRIKE FOR HIGHER PAY 
 
 
1. (SBU) Summary: Although Burmese law prohibits strikes, many worker 
successfully staged strikes for wage increases in 2005 and 2006.  Lab 
and management peacefully resolved most strikes, and GOB officials 
intervened in some cases to press for resolution.  As long as the 
strikes stay apolitical, the GOB remains in the background.  This sma 
opening does not mean, however, that Burmese workers have other right 
Rather, it merely reflects pragmatism.  End summary. 
 
Legal Framework 
--------------- 
2. (U) Labor strikes are illegal in Burma.  On September 18, 1988, th 
regime issued an order that bans the opening of strike centers and 
prohibits workers from blocking roads or demonstrating.  In July 2004 
the government mandated the formation of the Workers' Supervision 
Committees (WSC) at factories with over 100 workers.  According to th 
regulation, if the factory WRC cannot resolve an issue, the Township 
WRC takes over responsibility, and workers must stay on the job 
throughout all disputes. 
 
3. (SBU) Rising prices in 2005, the sudden public sector salary 
increase in April 2006, and the steep price rise that followed led 
workers at many private sector factories to demand wage increases.  T 
new minimum wage is K.15,000 ($11.50 at market exchange rate) per mon 
for public sector workers, and private sector workers demanded the sa 
wage rate.  According to owners, factory workers rely heavily on 
overtime earnings.  While GOB regulations establish overtime rates, 
owners can get around the regulations. 
 
Most Strikes Resolved Without Government Interference 
--------------------------------------------- --------- 
4. (SBU) Workers staged a number of strikes in 2005 and 2006, and, in 
most cases, won wage increases.  Many strikes occurred at private 
garment factories located in industrial zones, and at Korean/GOB join 
venture factories.  Labor and management resolved most of the strikes 
peacefully without official involvement, such as the strikes at 
privately owned Inn Lay Shoe Factory and X-Square Footwear Factory in 
November 2005.  Although they agreed to increase wages, factory owner 
told us their already thin margins leave little room for higher 
production costs, and some said they might close their operations. 
According to a worker contact, a few factory owners retaliated agains 
strike organizers.  He knew at least seventeen workers whom employers 
fired for leading strikes. 
 
5. (SBU) Private sector workers receive higher wages than government 
factory workers because they have no pension plan or retirement bonus 
and must be more productive than government workers.  One owner of a 
large garment factory claimed that about 70% of private garment 
factories experienced strikes after the public sector wage increase, 
which they resolved without official interference.  Just after the 
government salary increase, he resolved a strike in his factory by 
raising daily wages from K.100 to K.200.  A Labor Law inspection 
officer from Yangon Division helped to mediate.  With allowances, his 
workers now earn about K.25,000 per month (approximately $20/month). 
 
But Authorities Impose Limits 
----------------------------- 
6. (SBU) A journalist contact told us that township and police 
authorities came to inspect a strike at a Korean-owned garment factor 
in May, and then stationed police officers on site to control the 
situation.  Worker representatives met the authorities but were unabl 
to gain agreement for increased wages.  The international labor 
federation, ICFTU, reports that at another factory, the Rangoon 
commander demanded that strikers go home and threatened them with 
arrest.  In that case, the workers did not win an increase, and polic 
released four imprisoned strikers once they promised not to engage in 
labor actions again. 
 
7. (SBU) On June 7, police arrested three youths at Rangoon Central 
Railway Station for distributing pamphlets to railway workers.  The 
pamphlets called for an 8-hour working day, K.1000 minimum daily wage 
regulation of overtime wages, treatment for injuries at the workplace 
and permission to form a labor union in memory of the Great General 
Workers Strike of June 6, 1974.  Sources close to the station workers 
told us that after the pamphlet was distributed on June 6, authoritie 
interrogated and arrested many workers at industrial zones around 
Rangoon to discourage any support for labor unions. 
 
8. (SBU) Comment:  These strikes are not coordinated, but rather 
individual actions by workers trying to make ends meet in the face of 
rising prices.  While most do not take on a political dimension, the 
 
RANGOON 00000924  002 OF 002 
 
 
GOB observes these actions closely, and will not get actively involve 
except to encourage employers to meet the workers' requests, reducing 
the chance for spreading unrest.  The GOB intervenes quickly, however 
when actions enter the political sphere, such as a call for labor 
rights, or when it could become more contentious.  Within these narro 
bounds, striking is one of the few rights Burmese can exercise.  Thes 
rights, however, do not extend to protection from retaliation by 
affected owners.  Burmese authorities likely permit this small openin 
for workers as a safety valve to avoid wider protests and to prevent 
the complete shutdown of factories generating export revenues.  End 
comment.