December 13, 2017

Master Sports factory’s dispute settled as workers receive salaries, compensation

Staff of Master Sports Factory pay salary to workers at the factory in Hlinethaya Industrial Zone.—Photo: Aye Min Soe
Staff of Master Sports Factory pay salary to workers at the factory in Hlinethaya Industrial Zone.—Photo: Aye Min Soe

Yangon, 17 Oct— Authorities gave salaries and compensation to over 750 workers on Friday who lost jobs after the Master Sports shoe factory where they were working shut down in June, settling the dispute between Korean employer and Myanmar workers.
The authorities paid the salaries and compensation stipulated by labour laws to 757 workers one day after the winner of the auction who bought all movable property inside the factory put the payment into the Myanma Economic Bank.
According to the estimation calculated by the ministry, the salary for June and total compensation for 757 workers for closure of the factory guaranteed by the law is amounted to over K214 million.
The materials inside the Master Sports Factory, which has been closed after the Korean owner of the shoe factory returned to South Korea without paying salaries and compensation to more than 750 Myanmar workers, fetched more than K280 million at an auction on 9 October, according to the Ministry of Labour, Employment and Social Security.
The remaining money will be given to the owner of the factory after being extracted for some costs including maintenance of the property inside the factory, according to the department.
A total of 13,133 items inside the factory were auctioned through the competitive bidding system.
Yangon Region Labour Tribunal Board made the decision last month that the factory owner must pay the salary for June to 757 workers as well as compensation stipulated by labour laws for closing the factory without giving prior notice.
The Factories and General Labour Law Inspection Department urged the South Korean embassy to bring back factory owner Jeong Hae Un to settle the issue.
The ministry filed a lawsuit against Master Sports Factory on July 25 as it failed to pay the salaries for June and compensation to the workers after closing the facility on June 26, failing to comply with the regulations of the law.
Regarding the closure of the factory, which opened a year ago in the Hlinethaya Industrial Zone, Master Sports Myanmar Co Ltd issued an announcement at the beginning of July, saying the factory was experiencing financial problems due to the production of low-quality products that were not marketable, adding that agreements with potential buyers had to be revoked.—By Aye Min Soe

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