Nike may withdraw production from China
The sports brand Nike, led by Mark Parker, is considering phasing out production from China due to major strikes at its supplying plant. In early April, thousands of shoe factory workers staged one of the largest protests against working conditions at Yue Yuen Industrial Holdings, which is listed on the Hong Kong Stock Exchange and has a total value of $ 5,6 billion. The company produces shoes for Nike Inc, Adidas and others. international brands.
“So far we are not breaking off relations, but we are pretty close to that and could have done it,” Parker said at Boston College.
He added that Nike is in close contact with Yue Yuen and staff to find out if working conditions violate the standards set by Nike, but the company has not yet taken a definite position. Parker noted that Nike has a broad manufacturing base in China, which makes it relatively easy to move production.
As a reminder, Yue Yuen workers went on strike in the southern city of Dongguan on April 14. Activists said it was one of the largest workers' strikes since market reforms began in the late 1970s.
The workers are unhappy that the company hasn't spent on their social security. By the end of the month, about 80% of employees had returned to work, Yue Yuen reports.
Sports brand Nike, led by Mark Parker, is considering withdrawing production from China due to major strikes in ...
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