UPDATE: CHINA: Adidas supplier in Government discussions over strike
Adidas has said it is closely monitoring the Yue Yuen shoe factory strike in China and that the supplier is in talks with the country's Government in a bid to address worker's concerns.
The German sporting goods giant is one of a number of companies, including Nike, that Yue Yuen, one of the world's largest shoe manufacturers, produces for.
It is understood around 40,000 workers downed tools at seven Yue Yuen factories earlier this week, with around 3,000 taking part in a protest over social security payments. An improved offer for social security benefits is said to have been rejected on Tuesday, prolonging the strike further.
It is the second strike by the workers this month, and according to China Labor Watch (CLW), is "likely one of the largest Chinese worker strikes in recent history".
A spokesperson for Adidas confirmed to just-style that a strike had taken place yesterday (16 April), at Pou Chen Group's Yue Yuen factory, located in Dongguan, in central Guangdong province.
"Workers expressed their concerns about social insurance related issues. We are closely monitoring the situation and we can confirm that our supplier Pou Chen Group is in discussion with the local government to seek ways to address the concerns expressed by the workers."
A spokesperson for Nike told just-style it was also "aware of and concerned" by the events at the Yue Yuen factory in Guangdong.
"We're continuing to monitor the dialogue between factory management and the workers, as well as production at the factory," the spokesperson added.
Nike’s retail sales in China decreased in 2013 for the first time since the company entered China, as a result of sluggish macroeconomic growth and shrinking consumption. The company is now suffering ...
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