China has ordered owners of a huge Taiwan-backed shoe factory to address striking workers’ grievances about unpaid social security, an official said yesterday.
Thousands of employees at a factory owned by Yue Yuen Industrial (Holdings) Ltd (裕元工業), which calls itself the world’s largest branded footwear maker, in Dongguan City have been on strike since Monday last week, although some have returned to work, according to a labor rights group.
The Chinese Communist Party fears an independent labor movement could threaten its grip on power, so it only allows one government-linked trade union.
However, activists say government officials have been more sympathetic to individual grievances against factories, especially those funded by foreign companies or investors from Hong Kong or Taiwan. Yue Yuen is a company owned by a Taiwanese family.
A Chinese Ministry of Human Resources and Social Security official said the government was aware of the Yue Yuen issue and Dongguan officials had ordered the company to rectify the situation.
“According to our preliminary investigation, the Dongguan Yue Yuen shoe factory really has the problem of not strictly submitting social security payments,” ministry spokesman Li Zhong (李忠) told a news conference in Beijing, according to a transcript posted online.
“The Dongguan City social security bureau... has ordered the enterprise to carry out rectification in accordance with the law by April 25,” he said, adding the ministry would seek to protect the legal rights of workers.
ACTIVIST FREED
Meanwhile, a Chinese labor activist has been freed after being detained for more than two days by security agents whom he says tried to convince him not to make contact with workers involved in the Yue Yuen labor strike.
Zhang Zhiru’s (張治儒) brief detention underscores nervousness among officials about the strike. A colleague of Zhang’s at the Shenzhen Chunfeng Labor Dispute Service Center, which he runs, was detained separately on Tuesday and has not been released, Zhang said by telephone yesterday.
Labor activists say the strike is one of China’s biggest since market reforms started in the late 1970s. It is already starting to have ripple effects on businesses.
Zhang had been working with other activists and lawyers to help workers at Yue Yuen organize and press their demands regarding social insurance payments. He visited the Dongguan site on Monday after an attempt last week was thwarted by security agents.
Speaking from the southern city of Shenzhen, next to Dongguan, Zhang said domestic security agents summoned him to a meeting on Tuesday and asked him to promise he would not make contact with the workers.
He refused and was taken to what the agents said was a “vacation area” in the suburbs of nearby Guangzhou, where they confiscated his mobile phone, confined him to a room and barred him from making outside contact, he said.
‘FUN TRIP’
They tried to convince him to write a statement that he was “safe and on a trip for fun with friends,” but he refused. He was allowed a telephone call to his wife on Wednesday afternoon.
Late on Thursday morning, he was driven back to Shenzhen, where he lives, and released. Zhang said he was again told not to make contact with the striking workers.
“They said this would be going against the work of the government,” which he was told was trying to facilitate an arrangement to end the strike.
“But, definitely, if the workers have a need or if they have some questions and come to us we will still give them opinions and suggestions, telling them how they can better protect their interests,” Zhang said.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new