MICS-TUSF threatens Heineken Myanmar boycott over alleged labour exploitation and systematic contract denials

Mizzima

The Myanmar Industry Craft Service-Trade Unions Federation (MICS-TUsF) is moving to launch a widespread boycott of Heineken Myanmar products following an investigation into the Hmawbi-based brewery that uncovered evidence of workers being denied permanent contracts, forced to work without rest days, and subjected to unstable six-month employment cycles through third-party agencies.

In February, the MICS-TUsF) investigated the factory and found that workers were being exploited, barred from securing permanent contracts through employment agencies for six months, and required to work without days off.

Following the intervention of the European Chamber of Commerce in Myanmar (EuroCham), discussions were held on February 11, but the company failed to provide a positive response.

Thet Hnin Aung, General Secretary of the MICS-TUsF, said Heineken was shirking its responsibilities by refusing to recognize the workers as its employees and instead classifying them as agency workers. He also criticized the company’s cooperation with the military-appointed Ministry, saying the imposed fine appeared to be merely for show rather than a genuine effort to resolve the issue.

“Heineken is still denying that these workers are its employees, claiming instead that they are agency workers. This is not only a violation of the law but also a superficial solution in collaboration with the military council’s Ministry of Labor,” Thet Hnin Aung told Mizzima.

Although Heineken paid 24 days’ compensation for six months of unpaid leave as ordered by the junta, it was merely a show of compliance rather than a solution to the underlying problem, Thet Hnin Aung added.

“We have received complaints from more than 200 workers, while the factory employs around 500 in total. However, workers are dismissed every six months, leaving them without job stability. At present, the more than 200 workers who reported the issue have not received compensation; only those who file complaints individually are compensated, and the exact number remains unclear. That is why I say there is no transparency,” Thet Hnin Aung said.

Mizzima has learned that factory workers were previously fined 30,000 kyats for missing a single day of work but are now required to sign a pledge and face dismissal after two days of absence.

The MICS-TUsF has accused Heineken of failing to comply with international business ethics, including OECD guidelines and ILO standards, and has reported the alleged violations to the company’s headquarters in the Netherlands.

If Heineken fails to carry out an impartial investigation and transparency remains lacking, the MICS-TUsF has warned it will issue reports and is prepared to take action against Heineken products.

The Heineken Myanmar factory has not yet issued an official response to the allegations.