Sportswear firm Adidas AG is shifting some orders from a factory in south China amid country's biggest labour strikes, underlining a rising challenge for firms doing business in China where an increasingly savvy workforce is pushing harder for its rights.
Thousands of workers at a factory in Dongguan in the Pearl River Delta run by Hong Kong-listed Yue Yuen Industrial Holdings , the world's largest shoe maker, have been on strike for more than 10 days demanding improved social insurance payments, better pay and fairer contracts.
"In order to minimize the impact on our operations, we are currently reallocating some of the future orders originally allocated to Yue Yuen Dongguan to other suppliers," a China-based Adidas spokeswoman said in emailed comments to Reuters.
Adidas has no plans to sever ties with the Dongguan-based plant, and the majority of any new supply would come from within China, the spokeswoman added.
"China is, and will continue to be, a strategic sourcing country for us."- he said.