China: Workers strike at Jiangsu's Baoyi Shoe Factory over closure plans and inadequate compensation package
要約
Date Reported: 2023年12月7日
場所: 中国
企業
Pou Chen Group - Employer , Lai Yih Footwear - Employer , Converse (part of Nike) - Buyer関連
Total individuals affected: Number unknown
移住者・移民労働者: ( Number unknown - 中国 - Sector unknown , Gender not reported , Documented migrants )課題
Access to Non-Judicial Remedy , Dismissal回答
Response sought: Yes, by Journalist
External link to response: (Find out more)
取られた措置: Converse and Nike did not respond to the journalists. No contacts could be found for Baoyi.
情報源のタイプ: News outlet
[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.