Myanmar garment industry after 2012 : trade and industrialrelations in Yangon industrial zone

Abstract

Myanmar, recent reformed in political and economic has the competitive advantage of cheap labor especially in labor intensive garment sector which started in 1989 together with the country's policy of open market oriented economy. Garment sector attracted foreign companies to invest in Myanmar and became one of the major export sector employed millions of workers after the enactment of Foreign Investment Law in November 1988. In 2003, United State of America (US) blocked exports from Myanmar due to bad record of human rights and democracy. Since then, the industry began to get effect of sanctions gradually in particular falling export and unemployment. In 2012, after transforming Myanmar towards democratic country by 2010 election, US released its imported ban on Myanmar-made products. The European Union (EU) reinstated the generalized specific preference (GSP). This study look at the situation of Myanmar Garment Industry after sanction released in 2012 within the concept of industrial relations about how the government shape the political economy of the export oriented economy in accordance with the political opportunities like GSP, how labor unions protect labor rights and how employers perform to improve garment trade and to understand the situation of trade and industrial relations in industrial zone focus on the Hlaing Thar Yar industrial zone where most of the garment factories situated. This thesis shows the development of labor organization who are working towards increasing trade and improving labor rights in Myanmar. It also sees the corporation of government in negotiating between employees and employers by rules of law and legitimacy aspect towards good industrial relations practice.