Cargo Business Newswire

Monday, April 21, 2014

China union to mediate shoe factory strike involving 40,000 workers

More than 40,000 Chinese workers went on strike this week against the world's largest manufacturer of athletic shoes, which supplies companies such as Adidas and Nike. A government trade union said it would mediate the labor conflict.

Production was shut down at Yue Yuen Industrial after workers rejected a company proposal. The workers have been striking since April 5, demanding that the Taiwanese-owned company make social security contributions as required by Chinese law and meet other demands.

Police arrested around 20 workers Friday after 1,000 Yue Yuen employees demonstrated around the factory complex, according to Zhang Zhiru, an advocate for the workers.

In a statement issued Thursday, the company said it would make social security payments only if the workers would agree to retroactively pay their own required contributions into the fund. The statement said those who refused to return to work on Thursday would be punished, but did not give details.

While urging the strikers to act rationally, the Guangdong Federation of Trade Unions said it was "taking a clear-cut stand" that the workers' rights must be protected. The government trade union said it had instructed its municipal agency in the city of Dongguan, where the factory is located, to mediate.

For more of the Global Post story: globalpost.com