The Myanmar Garment Manufacturers Association (MGMA) has issued a statement expressing regret over the International Labour Organization (ILO)'s decision, as around 700,000 workers are employed in Myanmar’s Cut-Make-Pack (CMP) sector.  

From June 2 to 13, during the 113th International Labour Conference, the ILO decided to apply Article 33 of its Constitution to Myanmar, imposing monitoring measures. The MGMA stated that it deeply regrets this decision, given the heavy reliance of Myanmar’s CMP sector on a large workforce.  

The CMP sector includes garment manufacturing, bag production, footwear manufacturing, and electrical appliance assembly.  

These industries operate under the CMP outsourcing system, where international brands supply raw materials and necessary components to CMP factories. The factories then manufacture the products and export the finished goods back to the respective countries as directed by the clients.  

The MGMA noted that CMP factories receive only about 10% of the total trade value as processing fees. The sector employs approximately 700,000 workers directly, with an additional two times that number working in related industries. Around four times that number of family members depend on these workers’ incomes.  

The MGMA has 532 member factories, with about 60% exporting to the European Union market, 20% to Japan, and the remaining 20% to other markets. International brands only outsource work to CMP factories that strictly adhere to their prescribed codes of conduct and ethical guidelines.  

Labour-intensive CMP factories and workshops in Myanmar follow the ethical guidelines implemented by the MGMA. Additionally, the MGMA stated that it will cooperate with the ILO, employers, workers, and government representatives regarding the measures recommended under Article 33.