The workers at Ching Luh plant, in southern Long An province, went on strike Monday (31 Mar). They want a 20% bump to their US$59 average monthly salaries along with better lunches at the company cafeteria, said Nguyen Van Thua, an official with the province’s trade union.The plant has been making sneakers since 2002 and employs about 21,000 workers, most of them young rural women. The company is paying the workers 14% more than minimum wage, but soaring inflation is eroding their earnings, Thua said.”The company has followed the Vietnamese laws in paying their workers, but given the fact that consumer prices are soaring day by day, the workers have had troubles with their daily expenses,” Thua said.
employers in Vietnam
Nike officials did not immediately respond to questions about the strike.
Ching Luh plant is one of 10 factories that contract with Nike to produce sneakers in Vietnam.
Consumer prices in Vietnam are 19% higher than they were a year ago, according to government figures. Hanoi responded in January by increasing the minimum wage foreign-owned companies are required to pay by roughly 13%.
As inflation has picked up in recent years, strikes have become more common, with workers demanding higher pay and better working conditions. (AP)
From the BBC
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.