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The workers at Ching Luh plant in southern Long An province went on strike on Monday. They want a 20% bump to their $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.
Nike officials did not immediately respond to questions about the strike.
Leaping costs
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.
- Sapa-AP
