Yue Yuen workers go on strike at Zhuhai plant

PUBLISHED : Wednesday, 23 July, 2014, 1:33am
UPDATED : Wednesday, 23 July, 2014, 1:33am

Yue Yuen Industrial Holdings, which makes shoes for clients including Adidas and Nike, said employees halted work at its factory in Zhuhai for social welfare-related issues.

The strike started on Monday, but "everything is back to normal", said company spokesman Jerry Shum.

The workers were unhappy about the slower processing of the post-payment applications for the social insurance contributions, and some believed in rumours, according to Shum.

"At this point, all the misunderstanding has been resolved," he said.

This week's strike is the second work stoppage for the shoemaker this year, after employees at its factory in Dongguan, staged a week-long protest in April over social security payments and salaries.

The mainland operations of Wal-Mart Stores, International Business Machines Corp, PepsiCo have all been idled by labour protests this year as more workers demand better rights.

Production at Yue Yuen's Dongguan factory resumed after the government ordered the company to rectify benefit payments to workers who have demanded more pay and employer contributions to social-security accounts.

The production stoppage in April cost Yue Yuen about US$27 million in direct costs, including lost profits and additional air freight costs, the company said.

Settlement for the dispute would increase employee costs by about US$31 million this year, it said.

Shares of Yue Yuen closed 0.39 per cent lower at HK$25.65 yesterday.