Nike workers receive 50% wage increase

12/03/2008

Workers in a factory in southern China who make footwear for Nike have been given a big increase in their salaries.

According to an article in the Financial Times, produced after a tour of the site by Nike executives, the average wage in the Dongguan factory—run by Hong Kong-based Yue Yuen Industrial and owned by Yue Yuen’s parent company, Pou Chen Group of Taiwan—is now around $210 a month. The average footwear worker's monthly wage in the area is $135.

There are 27,000 people working at the site, producing 14 million pairs of Nike shoes a year.

Hannah Jones, Nike’s vice-president for corporate social responsibility, made the point that Nike wanted production of its goods to rely less on overtime. Lean manufacturing will be the key to efficient operations at the plant.

The company has said that it wants to introduce a similar set-up at all 185 Chinese factories that make product for it at the moment.