Labour Strike Stall Manufacturing at Shenzen Plant

Published By : 17 Jun 2015 | Published By : QYRESEARCH

Shenzen Artigas Clothing & Leatherware Co. Ltd., is witnessing a strike called by the workers over a relocation plan in the southern Chinese city. The factory supplies to Japan’s Fast Retailing, the owner of the clothing brand, Uniqlo. According to the reports, hundreds of workers have joined the strike from June 8 over a relocation plan. Alexandra Chan, the project officer of Students and Scholars against Corporate Misbehaviour (SACOM) revealed that the workers are also demanding to re-hire some of the dismissed employees. 

Shenzen Artigas Clothing is part of Lever Style Inc., the Hong Kong based garment supplier to some of the leading global brands such as Calvin Klein and Armani Exchange. The last couple of years have witnessed Lever Style shifting its manufacturing base from China to Vietnam. The management of Shenzen factory as well as officials from Lever Style including the chairman and CEO Stanley Szeto, have declined to comment on the issue. Shenzen Artigas Clothing is facing second such labour strike by factory workers. It had witnessed a strike by the workers in December last year.

It has been observed that the increase in production and labour costs in the Chinese mainland has led manufacturers to shift their production bases to inland or to other South Asian countries such as Indonesia and Vietnam. In March this year, sports shoe manufacturer Yue Yuen Industrial Holdings in South China faced labour strike owing to the changes in production bases. According to Chan from SACOM, around 900 workers have stalled work in June this year. A labour rights group in Shenzen revealed that many of the workers have left the factory after the December strike. The labour rights group, which declined to be identified, further said it is helping the workers to negotiate. 
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