[Intl-tobacco] BAT VASTLY EXAGGERATES BURMA WAGES

[Robert Weissman]

Media Release from Burma Campaign UK
Embargoed 00.01 Thursday 8 May 2003
BAT VASTLY EXAGGERATES BURMA WAGES

The Burma Campaign UK today condemned British American Tobacco (BAT) for
giving out misleading information that exaggerated the level of the
poverty wages paid to its factory workers in Burma by 86 percent.

When challenged by the Burma Campaign UK to verify the wages paid, BAT
issued figures claiming that its lowest paid workers could earn a total
of =A330 per month (Kyat 52,941). The Burma Campaign UK has now forced BAT
to confess that it had inflated the figures by over 86 per cent and that
the actual amount is =A316.10 (Kt 28,074) per month. Even then employees
would have to work 24 hours overtime per week to earn what would only be
sufficient to feed their families, but not to meet any other living
costs. Sadly for these workers David Wilson from BAT's Asia Pacific
office has informed the Burma Campaign UK that "with the current
economic crisis [in Burma] we have been forced to curtail the use of
overtime."

Also questionable is BAT's system of calculating payment which includes
a meal benefit that is more than the basic salary. By calling such
payments 'benefits' and 'allowances' rather than including them as part
of the basic salary, it would appear that BAT has given itself the
option to withdraw these payments in particular circumstances.
Deputy Chairman of BAT Ken Clarke MP has also disputed claims by the
Burma Campaign UK that basic salaries for the lowest paid factory
workers in Burma are around 23p a day. In December Mr Clarke wrote to
Vera Baird MP, Chair of the All Party Parliamentary Group on Burma
saying that "the lowest paid factory worker earns almost six times more"
than this. Mr Clarke has wittingly or unwittingly misled the Chair of
the Parliamentary Group on Burma.

"BAT often claim the reason they are staying in Burma is that they don't
want to make their factory workers redundant", said John Jackson,
Director of Burma Campaign UK. "These salaries reveal one of the real
reasons they want to stay in Burma - cheap labour."

The Burma Campaign warned that regardless of what BAT paid its workers,
its

campaign would continue. "While we are unhappy that BAT misinformed us
about how much they pay their workers, a key issue is how much they pay
the dictatorship", says John Jackson. "BAT refuse to say how much they
pay the generals, but our estimates are that they have paid them 16
million dollars in taxes alone. This has to stop. We want BAT to give
its workers an extremely generous redundancy package and get the hell
out of there."

BAT has come under increasing pressure regarding its factory in Burma -
which is a joint venture with the military dictatorship. Its AGM last
month was dominated by questions about its close relationship with the
regime.

For more information contact John Jackson, Director on 020 7281 7377,
mobile 07961 357 391, or Mark Farmaner, Media Officer, on 020 7281 7377,
mobile 07941 239 640.

NOTES TO EDITORS

BAT misinformation on salaries

Original figures for average monthly salary of lowest paid factory
worker sent by Brendan Brady - BAT's Director of Corporate and
Regulatory Affairs:

- salary: 7,878 kyat
- overtime:30,000 kyat
- shift allowance3,850 kyat
- meal benefit9,900 kyat
- bonus1,313 kyat
Total52,941 kyat

We questioned the overtime figure (kt 30,000), saying that workers on a
six day week, working 44 hours per week, and doing 4 hours overtime per
day on double the rate, could not earn that amount of overtime. They
would have to work around 21 hours per day, 6 days a week to earn   kt
30,000. After meeting BAT staff, they said that the figures were correct
and that they would send the 'maths' to us to clarify things.

David Wilson - Area Corporate and Regulatory Affairs Manager
Asia-Pacific, sent us 'clarification' - But all of the figures (for
salary, shift allowance, meal benefit etc) were the same as Brady's
except for the overtime figure, which plummeted from Kt 30,000 to Kt
5,133 per month. Mr Wilson also said that the gross average monthly
figure for the lowest paid worker totalled Kt 28,074 compared to Mr
Brady's figure of  Kt 52,941.
BAT salary for lowest paid workers in pence

BAT exchange rate: =A31 =3D Kyat 1,764.7

Basic monthly salaryKyat  7,878 =3D =A34.46 (17p per day)*
Salary with benefits (no overtime)Kyat  22,941 =3D =A312.99 (49p per day)
Monthly with benefits and overtime Kyat 28,074 =3D =A315.90 (61p per day)

* based on 26 working days per month

The cost of living in RangoonAccording to a British Embassy 2002
Household survey, the average size of a family in Rangoon of 5.4 has an
average monthly income of 57,816 Kyat - A lot higher than the country
average, due to the higher concentration of wealthy people. Family
expenditure to cover monthly food and basic living costs was 42,132
Kyat. (Covering only food was 28,000 Kyat)--

Mark Farmaner
Media and Campaigns Officer
Burma Campaign UK
Bickerton House
25/27 Bickerton Road
London
N19 5JT

Mobile: 0794 123 9640
Tel: 00 44 (0)207 281 7377
Fax: 00 44 (0)207 272 3559
E-mail mark.farmaner@burmacampaign.org.uk
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