The latest, sketchy reports from the area indicate that the dust is settling on the bitter labor dispute that led thousands of workers to go on a huge strike for more than ten days last month at a couple of factories run by Yuen Yuen, the world's largest shoe manufacturer, in Guangdong Province.
Strikers began to return to work at Yuen Yuen's big Goabu factory in Dongguan on or around April 25 after the company promised to adjust its social security payments from May 1, and to raise its monthly living allowance by 230 yuan renmimbi (€27-$37). Reportedly, the company reacted to an official document issued by China's Human Resources and Social Security Office, but warned workers that those who would not go back to their jobs may be fired if they are absent for three days.
Adidas said that its production at Yue Yuen's factory in Dongguan was again fully operational on April 25. Herbert Hainer, chief executive of the Adidas Group, told reporters earlier this week that it had moved the production of some models to other Yue Yuen factories, and that the strike has had no material effect on his company.
There has been no word from other major contractors such as Nike or Timberland on the effect of the strike. According to a report, some 15,000 workers at an older Yue Yuen plant in Dongguan that makes shoes for Nike were still on strike on April 25, but it's not sure whether it was in fact a lockout.
Yuen Yuen said that the strike has caused it direct losses of about $27 million and that the new concessions made to its workers will cost it $31 million this year.
As reported in the last issue, the biggest known industrial strike in China in recent memory began after the factory's workers began to stage street demonstrations on April 5 to ask for a settlement of social security payments. The unrest escalated into a fully-fledged strike, with workers demanding a wage increase of 30 percent and better representation through the labor unions.
