Another strike at Yue Yuen

China
Published:  18 March, 2015

Yue Yuen Industrial Holdings, the world's largest sports shoe maker, said on March 18 that thousands of workers at a factory in the south of the country have gone on strike following changes to production processes.

About 4,000-5,000 staff at Yue Yuen, which supplies footwear for Nike and Adidas, were protesting at facilities that produce shoes for international brands, said Jerry Shum, the firm's Hong Kong-based investor relations director.

The company was in control of the situation and expected it to be resolved in a few days, Shum said. He said the strike, by workers representing about 2-3% of Yue Yuen's staff in China, had no impact on Yue Yuen's production schedule so far.

Last year, tens of thousands of workers at Yue Yuen, which has a market value of $6.5 billion, called off a strike after the footwear maker pledged to meet some of their demands for better benefits.

Major manufacturers have been shifting some of their production away from China to other Asian countries, such as Vietnam and Indonesia, as labour and production costs in the country escalate.

Yue Yuen said the reorganisation of its production process was being driven by the economic environment and it was trying to offer more options to cost-sensitive customers.

Source: Reuters