Strike hits Vietnam Nike Factory

This must be quite a large factory with 20,000 workers! There is no mention in the article whether the workers are unionised. Perhaps there are unions connected to the Communist Party but I really don't know. The wages seem very low but they would have to looked at in terms of costs in Vietnam and average wages. The article mentions that the existing wages are above the minimum.


Strike hits Nike Vietnam factory
More than 20,000 workers at a factory in Vietnam that makes shoes for Nike have gone on strike demanding higher pay to cope with rising inflation.

The average monthly salary at the Taiwanese-owned plant is about $59 (£30), 14% more than the minimum wage.

The workers, who produce about 12% of the 75 million pairs of shoes made for Nike in Vietnam a year, want a 20% pay rise and better canteen lunches.

Strikes in Vietnam are becoming more common as living costs have surged.

Last November, workers at a South-Korean-owned Nike factory in Vietnam walked out in a similar pay dispute.

Nike spokesman Chris Helzer said: "We recognize the impact that rising inflation has had on the people of Vietnam, and hope the situation will be resolved quickly and amicably."

Inflation currently stands at about 9.2% after rising 10% last year.

The strike affects the Ching Luh plant in the southern part of the country. It is one of 10 factories in Vietnam that produces footwear for US athletics giant Nike.

Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/7324242.stm

Published: 2008/04/01 11:01:16 GMT

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