Observation (CEACR) - adopted 2006, published 96th ILC session (2007)

The Committee notes the Government’s report. It notes, in particular, that by Notification No. 60/2006 of 24 March 2006, the Ministry of Finance and Revenue has increased the minimum wage rate for public employees to 15,000 kyats (approximately US$18.75) per month whereas the minimum wages applicable to the traditional rice-milling and the cigar- and cheroot-rolling industries remain unchanged at the level established more than ten years ago, that is 100 kyats (approximately US$0.13) per day or 3,000 kyats (approximately US$3.75) per month. The Government makes also reference to a survey conducted in 105 factories, mainly in the garment, wood and fish processing industries, showing that the minimum wage rates practiced in these enterprises are higher than the minimum wages applicable in the public sector.

Article 1, paragraph 1, and Article 3, paragraph 2(2), of the Convention. The Committee notes the Government’s indication that the possible establishment of new minimum wages councils will be considered after the new Constitution is promulgated. It recalls, in this regard, that the Government has been reporting for a number of years that the extension of the minimum wage-fixing machinery to other industries such as the printing, oil-milling and garment industries is under consideration. In addition, the Government has been indicating that the minimum wage rates applicable to the rice-milling and the cigar- and cheroot-rolling industries are no longer in line with market wages and need to be adjusted. The Committee is concerned about the absence of any concrete progress in either direction and draws once more the Government’s attention to the fact that the application of a minimum wage system may only serve a meaningful purpose if it allows for the periodic review and adjustment of minimum wage rates in a manner that permits low-paid workers to satisfy their basic needs and enjoy a decent standard of living. Otherwise, minimum wages lose their purchasing power and eventually become irrelevant. The Committee urges therefore the Government to take the necessary measures to ensure that the scope and level of minimum wage rates are such as to permit them to fulfil their role as tools of social protection and poverty reduction.

Article 5 and Part V of the report form. The Committee notes that according to the latest statistical information provided by the Government, concerning the number of establishments subject to minimum wage orders and the number of workers covered, in 2005-06 there were 4,061 enterprises employing 7,873 workers in the rice-milling industry and 548 enterprises employing 2,966 workers in the cigar- and cheroot-rolling industry. The Committee requests the Government to continue to provide up to date information concerning the application of the Convention in practice, in particular the minimum wage rates currently in force in the above industries, any comparative statistics of the evolution of economic indicators, such as the inflation rate in recent years and of minimum wage levels over the same period, extracts from official reports and relevant studies, data on inspection visits and the results obtained in matters covered by the Convention, etc.