Yue Yuen Industrial on Thursday offered to make disputed social-insurance payments to settle a four-day strike, according to a report in the Wall Street Journal.
As reported, the strike is reportedly over benefits, particularly the alleged failure of Yue Yuen to pay full social security and housing fund contributions. Yue Yuen makes footwwear for Nike, Adidas, Reebok, Asics, New Balance, Under Armour, Converse, Salomon, Timberland and others.
Executives didn't say how much the payments would cost. An independent labor group estimated if they involve back payments, they could total 100 million-200 million yuan ($16 million-$32 million).
“The basic principle is that today we've promised our employees to make a delayed payment to social insurance and the housing fund,” George Liu, executive director of Yue Yuen Industrial, told The Wall Street Journal. “The move will affect a large number of employees, so we'll have to work with local government agencies to work out the details, and that takes time.”
It was unclear how many workers joined the strike, but Hong Kong-listed Yue Yuen employs more than 40,000 workers at its Dongguan facilities.
The Wall Street Journal article is here.