A strike at a Nike factory in Vietnam closed down the plant last week after a pay dispute led to a walkout by as many as 20,000 workers.


Workers at the Taiwanese-owned factory went on strike last Monday at the Ching Luh factory in southern Long An province to demand a monthly pay raise of 8 euros (US$12.4), saying they needed better pay to cope with spiraling inflation.  On Tuesday, management agreed to increase their wages by 4 euros ($6.2) a month and provide free lunches to employees in a settlement. About 17,000 workers at the plant reported for work Wednesday, but a brawl broke out following a spat between a former worker and a security guard, causing the factory to shut down.


Nguyen Van Thua, an official with Long An provincial trade union, told the Associated Press that many workers did not agree with the deal, insisting on monthly raises of 8 euros ($12). The plant remained closed Thursday for the safety of workers and equipment.


Nike said the factory would be closed until management is confident that all workers support the negotiated settlement. It could not be learned if the factory reopened by press time on Friday.