The Deepening Labor Crisis and Myanmar Election A Myanmar Commentary by Su Latt Phyu*

Myanmar’s workforce currently faces severe challenges across both domestic and foreign sectors. These struggles are defined by wage theft, undignified working conditions, excessive overtime pressure, and the precarious plight of migrant workers. Central to this crisis is the military regime’s activation of the People’s Military Service Law – commonly known as the Conscription Law – in early 2024. This move has created a pervasive climate of fear, particularly among youth who face the threat of forced conscription. These overlapping pressures – wage exploitation, forced labor and the looming threat of the draft – reflect a systemic violation of the rights of Myanmar’s working people, a crisis the upcoming “sham election” is poised to deepen rather than resolve.

On June 5, 2025, the International Labour Organization (ILO) unanimously decided to invoke Article 33 against the military regime of the State Adminsitration Council (SAC: subsequently State Security and Peace Commission [SSPC]). This is the most severe action the ILO can take, a measure previously used against Myanmar only under a previous milirary regime headed by Sen-Gen. Than Shwe in 2000.

Article 33 is the key constitutional provision of the ILO, enabling it to take action against member states that violate fundamental labor provisions and refuse cooperation after multiple warnings, serving as a penalty to apply international pressure. This time, the decision was driven by five key violations, primarily the denial of freedom of association regarding labor rights and the use of the military service law to restrict and recruit workers through forced conscription. Furthermore, the military regime continues to engage in violence through the arrest of trade unionists and the oppression of civil society, while simultaneously blocking humanitarian access following the March 2025 earthquake and the displacement caused by ongoing armed conflict.

Imposing sanctions under Article 33 carries serious potential consequences. It could lead to the suspension of technical and humanitarian aid, and diplomatic support from UN agencies. Further actions might include designating the military regime as a terrorist entity and prosecuting perpetrators in international courts. Economically, too, sanctions could prompt international businesses currently invested in Myanmar to withdraw, deter new foreign investment, halt certain foreign imports, and significantly harm the miitary regime's finances and diplomatic standing. 

Workers in Yangon’s industrial zones are enduring severe, long-term economic losses driven by a stark disparity between basic salaries and the actual cost of living. Although the minimum daily wage was legally increased to MMK 7,800 (equivalent to US$ 1.95 with market exchange rate) for an eight-hour workday effective 1 October 2025, this is often presented as a base wage of only MMK 4,800 plus a daily allowance of MMK 3,000. Crucially, this MMK 3,000 daily allowance does not apply to small businesses with fewer than 10 employees. Despite this adjustment, compliance remains largely unverified, casting doubt on whether workplaces are actually providing workers with their full financial entitlements.

This economic instability is compounded by a prevailing culture of exploitative and demeaning labor practices, as recently reported by Myanmar Labour News and its partners. Workers face systemic wage theft and financial coercion, including forced monetary collections under the guise of "homage fees" for superiors, arbitrary cuts to bonuses, and salary deductions based on alleged errors in production counts. Management frequently utilizes administrative tactics to reduce pay, such as forcing workers into demotions or transfers to justify salary cuts, engaging in wage discrimination and denying leave entitlements. These financial penalties are often accompanied by forced labor, including unpaid overtime and mandatory Sunday work without compensation.

The desperation is vividly expressed by a 28-year-old male factory worker, who responded to a question about the ILO decision:

"Commodity prices have risen, and since you can't leave the country, getting a job inside has become extremely difficult. If that happens... people will do whatever they feel like doing. They will commit robberies, they will steal. But if they don't do things like that, their livelihoods will never be manageable. If this situation could be resolved, we would want it to be resolved. We wish for that. The fact that this has been going on since 2021, for about five years, is a complete nightmare. As for me, I want this to end as soon as possible."

Beyond financial abuses, the crisis has fueled a rise in child labor. Youths under 18 and children under 16 are being illegally recruited, compelled to contribute to household income due to the economic situation, leading to a worrying loss of educational opportunities. Despite facing unlawful terminations and rights violations, the necessary mechanisms to resolve these disputes are effectively missing, leaving workers without appropriate recourse.

The unauthorized collection of personal data has become a weapon for recruitment. Industrial Zone Management Committees have been directed to compile worker lists – including household registries – for the Department of Labor. Workers fear this surveillance is being used to target them for conscription, a fear compounded by reports of SAC-SSPC troops conducting "guest registration" checks in neighborhoods and stopping workers during commutes to forcibly recruit them. Amidst this insecurity, deep political discrimination is evident: while ordinary workers are targeted, reports suggest that employees of private banks and crony companies are receiving deferments.

The working population is also increasingly overburdened by an unofficial tax system. Workers must pay “guest registration” fees at their places of residence, ward recommendation fees to submit for employment, and conscription exemption fees to authorities to avoid forced recruitment. This economic strain creates a cycle of poverty. The grassroots populations are struggling, most just to keep up with meals and housing costs, desperately trying to pay debts and keep pace with soaring commodity prices. In this situation, anxiety is the only condition growing, forcing people to focus all their energy solely on solving the immediate livelihood crisis. They must calculate and consume food based strictly on income, sacrificing nutrition. As a result, the majority of workers suffer from malnutrition, sleep deprivation and severe mental trauma caused by constant anxiety. Simultaneously, the labor shortage is intensifying as youths escape the country to avoid the draft. 

Driven by constant surveillance and the threat of conscription, many workers feel forced to flee, only to trade domestic risks for the severe challenges of migration. Workers attempting to leave face high broker fees, arrests and life-threatening risks, with thousands arrested after paying exorbitant sums to reach Thailand or Malaysia. Even abroad, workers on official labor exchange programs face a trap: the military regime attempts to recall them for service through new employment contract clauses requiring a return after two years. This is sometimes enforced by compelling workers to prove their location via video call. Disturbingly, undocumented workers deported from Thailand are reportedly being recruited into the Myanmar army immediately upon their return.

Despite the SAC-SSPC Labor Minister’s claims that unions can form freely, the reality is one of suppression. Union leaders are conscripted, members are arrested or imprisoned, and many are forced into hiding, weakening the strength of the labor movement.

In factories, Workplace Coordinating Committees (WCC) are formed to resolve disputes between employers and employees, while Code of Conduct (COC) staff are appointed to ensure legal compliance. However, the system is broken. Workers are suffering because WCC members are often appointed directly by the employer rather than elected. Employers frequently use bribery or coercion to influence these members to act beyond the law. At the same time, COC staff themselves are committing ethical violations against the workers they are meant to protect.

Furthermore, civil society actors who previously facilitated the tripartite mechanism (Employer, Worker, Government) have been banned, blocking transparency. Shortly after the SAC’s 2021 coup, the regime blacklisted most labor support organizations. A prominent recent example is the case of Daw Myo Myo Aye, leader of the Solidarity Trade Union of Myanmar (STUM). Although she was released this year in October, she continues to face charges. Her arrest in July drew widespread condemnation from international human rights organizations. Meanwhile, other members of the STUM, as well as many other activists, remain in detention.

The severe labor crisis and its systemic rights violations are not isolated, but rather symptoms of the SAC-SSPC’s broader attempt to consolidate power. The military regime’s final, desperate attempt to legitimize its control is the upcoming forced election.

To summarize these circumstances, the regime, without a genuine mandate, has been using extrajudicial force to resist and fight for over four years. Through a top-down oppressive mechanism, the ruling generals instill fear in the public, attempting to secure the wealth and prolonged authoritarian rule of the minority elite that holds power. This is clearly visible in the desperate attempt by the junta to go ahead with a forced election and returning power to a civilian government of its molding.

A study of the political landscape surrounding industrial workers reveals that the upcoming election is fraught with violence rather than opportunity. Unlike the general elections in 2015 or 2020, public interest is non-existent, driven by a prevailing sentiment that the result is predetermined to prolong military rule. Many revolutionary forces have called for a public boycott. The Office of the High Commissioner for Human Rights (OHCHR) has warned that the election will likely "deepen repression and instability," noting that holding a vote in an atmosphere of fear – where refusing to vote is dangerous, but voting is seen as treason by resistance groups – puts civilians in the crossfire.

Security concerns and strict regulations further stifle the atmosphere. Candidates in Yangon fear for their safety, pivoting to online-only campaigns, while the Election Commission has banned mass gatherings. Financial barriers also pose a major hurdle, as skyrocketing election costs make it nearly impossible for smaller parties to compete. Finally, mass disenfranchisement looms large: the existence of 3.6 million internally displaced persons (IDPs) suggests that millions will be unable to vote even if they wish to, although it is highly unlikely given the public sentiment against the election organized by the junta. The sheer scale of this human displacement exposes the deep political crisis the country is undergoing.

As the election lacks legitimacy and is held under abnormal conditions, it will not resolve the labor crisis. Legally and politically, the military regime’s administration will likely continue, meaning labor laws will remain unenforced, independent unions will remain banned, and the conscription law will continue to drive youth out of the country. Economically, without international recognition, sanctions will persist; foreign investors may leave, leading to higher unemployment. Additionally, factories will face rising costs due to inflation, likely resulting in further wage cuts. Finally, the incoming self-declared government may tighten control over migration, pushing more people into illegal, dangerous channels.

The ILO's Article 33 action serves as a major warning bell, signaling increased isolation for Myanmar’s economy. Simultaneously, the military regime’s election is proceeding amidst public apathy, insecurity and high costs. When combined, these factors suggest that the post-election period will not bring stability. Instead, political volatility and economic hardship will continue to foster an environment where labor rights are systematically violated. "The military council is treating the people like puppets, playing with them however they want and boxing them in to maintain their power. The answer is already clear: nothing will change until they step down. The people are hoping for this issue to conclude quickly and to achieve peace swiftly. Everyone is focused on the downfall of the military council, and that's the only hope left," said a worker living in Yangon.

* Su Latt Phyu is an independent journalist and writer who monitors and reports on the labor rights situation in Myanmar.