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Yue Yuen Industrial Holdings Ltd said it would make a preliminary provision of some $37 million towards an employee benefit program at its Gaobu factory in southern China as part of an agreement that resolved the recent major strike.
In late April, Yue Yuen had a labour dispute that stopped some of its production last month and it said that it would cost it nearly $60 million initially. Workers walked out in early April from the plant in the Dongguan, Guangdong province, largely over what they said were insufficient social-insurance and housing payments. They returned toward the end of the month after Yue Yuen agreed to meet some of their demands for better social benefits.