Yue Yuen counts the cost of strike action

29/04/2014
Footwear manufacturer Yue Yuen has said 80% of the workforce at its factory in Gaobu, near Dongguan in southern China, has returned to work following industrial action.

Strike action started on April 15 at the factory, which employs 45,000, over pay. Yue Yuen, which is a supplier to Nike, adidas, Reebok, New Balance, Puma, Under Armour, Converse, Merrell, Asics and many other brands, has said the incident has cost it approximately $27 million because of interruptions to production and air freight costs to meet delivery deadlines.

It has agreed to pay Gaobu workers an additional living allowance of around $35 per month each.