Premier Coffee factory pays back overtime, lawsuit dismissed
A LAWSUIT against the Hlaing Tharyar township Premier Coffee factory was dismissed yesterday because the owner paid back overtime wages to his 321 workers, according to a Ministry of Labour official.
“The coffee factory paid back all the money owed to its workers according to the labour law,” said U Chit Paw, deputy director of the ministry’s Factories and General Labour Laws Department.
The company applied for the lawsuit to be dismissed and the department did not object.
In June, more than 300 daily wage workers demanded overtime wages for work they had done on weekends over the previous nine months. Nine months prior, new labour laws, updating the 1951 laws, had come into effect.
Initially, the factory owner refused to pay the overtime wages to daily workers because they were not sure of the law.
Owners said they would pay up if they got a clear explanation of these laws from the government.
On June 28, in response to the company dragging its feet, the township’s Factories and General Labour Laws Department sued the Premier Coffee factory officials.
From July 11 to 14, factory owners handed over the required K57.8 million to all 321 daily wage workers, according to U Chit Paw.
“All the workers on daily wages are satisfied as they got back the overtime pay they are entitled to according to the labour laws,” said U Naing Win, former union chair of the Premier factory who was recently fired. “We helped them exercise their rights.”
The back wages covered hours worked on Saturday afternoons and Sundays, which are identified as overtime periods under the updated labor laws.
Any employer who violates the labour law can be sentenced to three months in prison and required to pay a fine of at least K2 million.
The spokesperson from the Premier Coffee Company declined to comment when The Myanmar Times called her yesterday.
Yangon vendors give out samples of Premier Coffee.