Adidas is shifting some production away from Yue Yuen's factory in Dongguan, China, where a strike has lasted 9 days. Adidas said in a statement released to media outlets, “In order to minimize the impact on our operations, we are currently reallocating some of the future orders originally allocated to Yue Yuen Dongguan to other suppliers.”
The statement added that Adidas “has a highly flexible supply chain in place,” she said.
Nike has said it's continuing to monitor the situation. Nike and Adidas are the main clients for the Dongguan factory.
Yue Yuen offered to add a monthly living allowance of 230 yuan ($37) at its factories in southern China starting May 1, Liu said on April 21. It also agreed to bring forward to next month a social-security benefit plan originally scheduled for 2015. Yue Yuen employs more than 40,000 workers at its Dongguan facility.
The Wall Street Journal story is here.
