NIKE production in Vietnam complicates
One of the largest footwear producing groups in the world POU CHEN, of Taiwanese origin, with 8 industrial plants in Vietnam and 130,000 employees, saw its production interrupted during the first fortnight of January 2022, due to the strike arranged by its workers, in protest against the cuts imposed on the TET bonuses (Lunar New Year), similar to the Christmas bonus, which they collect annually in February.
In previous years, workers received 2.2 months of salary per year per TET, in 2021 they received 1.87 and in 2022 it decreased to 1.5 months of salary.
The causes of the cut in the TET bonds, according to the company, were due to the difficulties in the company's productions and businesses, derived from the fourth wave of Covid-19, which paralyzed manufacturing activity from July 12th to September 30th, 2021. Only on October 5th were productions resumed, but at 60% capacity.
The situation directly affected the supply of footwear for the NIKE brand, POU CHEN's main client, which also produces for ADIDAS, ASICS, NEW BALANCE, TIMBERLAND and SALOMON.
Nguyen Huu Nguyen, chairman of the People's Committee of Bien Hòa, capital of Dong Nai province, said that the unions are trying to negotiate with the POU CHEN board of directors to increase the TET bonus.
For their part, company representatives argued that “employees must share the difficulties, because Covid-19 has caused factories to suspend operations for months”.
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