Former PepsiCo Myanmar Employee Sues for Unfair Dismissal, Defamation

Thoung Han, a former electrical department team leader at a Myanmar bottling plant owned by Lotte MGS Beverages, the operator of PepsiCo's Myanmar business, is suing the company for unfair dismissal and defamation. Han is seeking over 10 million kyat (US$4,770) in damages, alleging verbal abuse by a boss and being fired for taking a brief lunch break he needed due to his diabetes.

Why this matters: This case highlights the ongoing labor issues and alleged unfair practices at the Myanmar bottling plant, which could have implications for worker rights and corporate responsibility in the country's challenging business environment. The outcome of this lawsuit could set a precedent for labor disputes in Myanmar and influence the way multinational corporations operate in the country.

According to Han, his boss swore at him and said, "You're not allowed to have lunch ... you don't have respect." His dismissal letter stated he was responsible for an accident that Han claims had nothing to do with his department. The Solidarity Trade Union Myanmar says dozens have been fired from Lotte's plants, often on baseless grounds, with employees complaining of management intimidation and failure to make proper severance payments.

Over the past two years, 20 people have approached the union about lack of compensation after being fired from the factory. In 2023, the Myanmar Labor Society received seven reports of suspected labor violations at the plant. Nine dismissed employees, including Han, and a legal adviser were also threatened by unidentified men who warned them to drop the case, saying, "You have to stop the negotiations and not continue the case, because it is attacking the brand name and company. If anything happens to you if you continue, we're not responsible."

Lotte MGS head of human resources Hein Htet Aung declined to comment on specific complaints, citing the legal case. He stated the company wants to address concerns and is confident the facts will be established in the proceedings. PepsiCo had returned to Myanmar in 2012 after leaving in 1997, as part of the country's economic and political reforms. However, hopes for democracy and growth were shattered by a 2021 military coup.

The case highlights ongoing labor issues and alleged unfair practices at the Myanmar bottling plant since PepsiCo's return to the country. As the legal proceedings unfold, the outcome could have implications for worker rights and corporate responsibility in Myanmar's challenging business environment.

Key Takeaways

• Former PepsiCo Myanmar employee sues for unfair dismissal and defamation.
• Employee alleges verbal abuse and firing for taking a lunch break due to diabetes.
• Case highlights ongoing labor issues and unfair practices at Myanmar bottling plant.
• Outcome could set precedent for labor disputes in Myanmar and impact corporate responsibility.
• Dozens of employees have been fired from Lotte's plants, often on baseless grounds.