18 February 2019

Strike at Dongguan footwear plant may affect Nike orders

Workers at a large Dongguan-based footwear company, which is a major supplier of Nike and Adidas, went on strike over social security contributions and other labor disputes, threatening to disrupt the factory’s production schedule, China Business News reported Wednesday.

They said the factory, a subsidiary of Pou Chen Group which has 40,000 workers, was not making enough social security payments for them and they found some of their employment contracts were invalid.

The workers are also demanding higher salaries and better benefits, the newspaper said. 

The dispute has been ongoing since early April, with workers reportedly rejecting a compromise offer from management.

If the strike drags on, the factory’s production schedule to fill export orders for Nike and Adidas, among other clients, may be affected, an insider was quoted as saying. The local government has intervened in the dispute, the source added.

Due to increasing labor costs, Pou Chen Group has been moving its production lines in Guangdong province to Southeast Asian countries. In 2012, it cut 51 production lines, or 20 percent of the total, in mainland China, the report said.

– Contact HKEJ at [email protected]


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