Representatives of employers and employees are at loggerheads over a proposed increase in the minimum wage in Myanmar, one of the lowest-cost sourcing alternatives to China. Employers object that the proposed increase to $3.53 (€2.95) a day from March onwards is far too high, imposing a heavy burden that will affect international competition, while unions see the 33 percent increase as too low. The proposal, which has been made by the country's government, would affect all factories with 10 or more workers, including those that operate in the shoe and apparel sectors. The proposal followed a review of wage rates, GDP and inflation rates in neighboring countries, plus a survey of experts, employers and employees. The increase proposed by the government is lower than anticipated by industry analysts and observers, as several unions had been advocating for 55 percent pay increase. Myanmar, which is establishing itself as a hub for the production of clothing and footwear, first set a minimum wage for workers in 2015 at $2.86 per day. Labor negotiations were reportedly instigated by H&M, which uses 13 contract factories in the country.