HONG KONG, April 17 Yue Yuen Industrial
(Holdings) Ltd, which makes sports shoes for Nike
and Adidas, said it will change employee
benefit payments for workers at a Guangdong factory after the
employees went on strike.
The move, which is also in line with local government
policies, may have a material adverse effect on its financial
performance, the company said in a filing.
Thousands of Yue Yuen workers have been on strike for nearly
two weeks, in one of the largest strikes in China amid signs of
increased labour activism as the economy slows. The factory
employs some 60,000 workers.
Yue Yuen said it had decided to adjust social insurance and
housing subsidies that will take effect from May 1. The workers
at the factory have demanded improved social insurance payments,
a pay rise and more equitable contracts.
Yue Yuen Chairman Lu Chin Chu added that the company will
continue to review its employee benefits policy. It gave no
The number of strikes in China so far this year is up by
close to a third - the biggest surge in protests since the
global financial crisis, according to one labour group - as
businesses cut costs and foreign companies restructure or close
operations in response to slowing growth in the world's
(Reporting by Donny Kwok; Editing by Edwina Gibbs)