[Unofficial Translation Provided by the Resource Centre]

The Baoyi Shoe Factory in Yangzhou, Jiangsu province, part of a joint venture between Taiwan's Pou Chen Group and Lai Yih Group and an OEM for Converse, announced its closure and relocation to Southeast Asia. This move threatens the livelihoods of numerous middle- and senior-aged employees. On November 29, a sudden notice revealed plans to terminate employee contracts by year-end without detailing compensation, sparking worker strikes for fair settlement.

Responding to the protests, Baoyi offered the legal minimum compensation, "N+1" (a month's salary for each year worked, plus one month), deemed insufficient by the workforce, leading to continued strikes. Additionally, the factory's strategic wage reductions ahead of the closure would further minimize severance payments, exacerbating worker grievances.

Critics argue Baoyi's closure, attributed to order shortages, lacks substantiation, especially given Baocheng's dominant market position. The move is part of a broader trend of shifting production to regions with cheaper labor costs, such as Vietnam and Indonesia, and planned expansions to India. This strategy, while legal under certain conditions, often skirts obligations towards workers, highlighting a systemic issue of multinational corporations exploiting legal loopholes to minimize labor costs, with Baoyi's situation reflecting a larger pattern of contentious factory closures and relocations impacting worker rights and compensation.