A/HRC/43/59 or has been entrusted with prominent public functions. The Special Rapporteur calls on the Government to continue its efforts to ensure transparent, consistent and enforceable reporting requirements for extractive companies in line with the Initiative’s standards. 34. The Special Rapporteur is concerned by information received about a draft law on petroleum that appears to be flawed in several key areas. The draft law reportedly does not address the conflict of interest inherent in the dual role of the State-owned company, Myanma Oil and Gas Enterprise, as both a commercial partner and regulator, which is inconsistent with plans for reform of the State-owned enterprises under the Myanmar Sustainable Development Plan. The draft law also fails to include provisions on disclosure of information that are aligned with the obligations of Myanmar under the Extractive Industries Transparency Initiative, which would seriously undermine efforts to improve transparency and accountability. Moreover, it does not address the contentious issue of revenue sharing, which risks exacerbating the grievances of those in Rakhine State. Rakhine has received a significant proportion of foreign investment in Myanmar in recent years, mainly due to its offshore oil and gas reserves. However, poverty in Rakhine remains far higher than the national average. It is essential to peace that an effective system of revenue sharing be established. Additionally, the Special Rapporteur emphasizes that under the International Covenant on Economic, Social and Cultural Rights, the Government is obliged to guarantee that rights recognized by the Covenant are exercised without discrimination. Furthermore, substantive equality should be advanced through economic policies, budget allocations and resource distribution. 4. Garment factories 35. The Special Rapporteur has received reports concerning seven labour strike leaders and a labour rights activist facing charges under section 19 of the Peaceful Assembly and Peaceful Procession Law for their role in a strike at Myanmar Knitting Factory in Pathein, Ayeyarwady Region, in August 2019. The strike was called after workers were reportedly paid less than minimum wage and refused leave and bathroom breaks. Some also reported verbal abuse and sexual harassment by their employers. In February, five labour rights activists were fined under that Law regarding a protest of 400 workers they led to the Yangon Regional Government offices in November 2019. As national garment exports are increasing and there are reported plans for construction of many more garment factories around the country, the Special Rapporteur stresses the importance of strengthening labour governance and protections in Myanmar through a consultative and tripartite process. 36. Under the International Covenant on Economic, Social and Cultural Rights, the Government has an obligation to ensure the right to just and favourable conditions of work. This involves fair and equal remuneration, safe and healthy conditions, equal opportunities, and rest, reasonable limitation of working hours and periodic and public holidays with pay. Myanmar has also ratified several International Labour Organization (ILO) conventions, and in December 2019 parliament endorsed ratification of ILO Minimum Age Convention, 1973 (No. 138). Workers should be trained on their rights, and the Government must protect the rights to freedom of association and assembly, and work with employers’ associations and unions to empower workers and improve working conditions. Efforts should also continue for the eradication of forced labour and the worst forms of child labour. Foreign and domestic companies must ensure that human rights are respected throughout their supply chains, in line with the Guiding Principles on Business and Human Rights: Implementing the United Nations “Protect, Respect and Remedy” Framework. 5. Due diligence 37. Given the human rights issues that relate to the business environment in Myanmar, the Special Rapporteur emphasizes the importance of all business enterprises undertaking heightened human rights due diligence. It is through effective and ongoing due diligence that business enterprises translate the responsibility to respect human rights, in line with the Guiding Principles on Business and Human Rights, into everyday practice. 38. Due diligence processes should include identifying and assessing actual or potential human rights impacts, including undertaking conflict analysis; taking appropriate action to cease or prevent such impacts and using leverage to mitigate remaining adverse impacts; 8