Thousands of workers at a Singapore-owned plant in Shanghai have gone on strike to protest against a plan to move the factory, a labour rights group said yesterday.
About 6,000 workers at the Flextronics plant walked out on Monday, and vowed to continue the action until they are paid compensation after the firm said it would shift output to a plant in nearby Suzhou city, New York-based China Labour Watch said.
The Shanghai factory could not be immediately reached for comment yesterday.
Flextronics Technology (Shanghai), which was set up in late 2001, makes printing devices and electronic components, according to Jiading district, where the plant is located.
The local government told Flextronics in July it had decided to redevelop Jiading and turn the area into "Jiading New City" and asked Flextronics to move its operations there to Wuzhong district in Suzhou within a year from November.
The company is offering employees the option of relocating to Wuzhong or being laid off with compensation. It informed the employees of the decision last week and this led to the strike.
A company spokesman said yesterday that the situation was under control and some workers had come to work, though she could not say how many returned.
The firm has operations in several cities in China, with facilities in another district of Shanghai and two in Suzhou, according to the company's website.
The mainland was hit by a wave of strikes late last year, as employees protested over low salaries, wage cuts and poor conditions after companies announced cutbacks due to the global economic slowdown.
Additional reporting by Louise Ho