"As we are paying a rate of 125 kyats an hour, their salary is at least 65,900 kyats a month and we will not meet their demand for a minimum wage," Daw Aye Aye Mon from the Myanmar Li Kyant Footwear Factory in the industrial zone at Hlaing Tharyar Township told Mizzima on June 10.

Documents released by the factory showed that the minimum monthly salary of K65,900 includes overtime and allowances.

Daw Aye Aye Mon, who works in the administrative office at the Chinese-owned factory, said management was only prepared to pay a maximum K8,000 monthly allowance to workers based on their level of skill and length of service and provide some other benefits.

She was speaking after negotiations held between management and the workers at the Hlaing Tharyar Labour Office on June 10 failed to resolve the dispute.

Daw Aye Aye Mon said the strike had shut down the factory, which opened last December.

The K30,000 monthly minimum wage is one of 16 demands made by the workers. They also want all employees to be regarded as permanent staff, an increase in a food allowance from K10,500 to K25,000 a month and a monthly bonus of between K15,000 and K25,000 depending on levels of skill.

Other demands include a daily K500 travel allowance for employees who do not use transport provided by the factory.

As well as the maximum K8,000 monthly allowance for highly skilled workers, the factory has offered to reduce the minimum number of hours worked each day from 10 to eight and to provide a total of 16 days leave a year for workers with at least 12 month's service.

Further negotiations were due to take place between management and the workers at the township administration office on June 12.

One of the striking workers, Ma Nilar Tun, said a basic minimum wage was essential for financial security. "If we have to take a day off because we are ill, we will not be paid," she said.