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Strike ends at Adidas and Nike supplier in China

A strike at a Chinese factory that manufactures footwear for Nike and Adidas has ended as workers have been awarded additional benefits payments.

Workers at the Yue Yuen factory in Dongguan, in Guangdong province in southern China, went on strike on April 14 over unfair pay and benefits, but all 45,000 employees have now returned to work.

Production resumed after China’s human resources minister ordered the factory to increase wages and employer contributions to social-security accounts.

A spokesman from the ministry said the factory didn’t “truthfully report” social-security payments it was making for employees and had been underpaying contributions.

The stoppage cost Yue Yuen $27m (£16m) including lost profit and additional air travel costs. The settlement will raise employee costs by $31m (£18.4m) this year, according to reports from Bloomberg.

On April 21, the strike spread to another Yue Yuen factory in Jiangxi province in southern China. It is not known if this strike has also ended. The Dongguan complex, which is operated by the Taiwan-based Pou Chen Group, produces footwear for 20 brands including Reebok and Nike. The Jiangxi factory mainly manufactures shoes for Adidas.

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