Webb 1 Gillian Webb Emily Dibble 10:00 Class Period 23 April 2014

Yue Yuen Industrial Holdings Ltd Strike in China In current conditions, there is a big debate amongst pay and other things pertaining to each and every individuals happiness. We are living in a time where we seek individual benefits and rewards to emphasize our personality and growth in this world. It wouldnt be long before the employees of Yue Yuen Industrial Holdings Ltd would fight back- due to poor pay, little to no benefits and the right to choose a union. Workers at the plant owned by the world's largest maker of sneakers, Yue Yuen earn as little as $1.67 an hour making shoes that can sell for up to 100 times as much in the United States. (Worsening China, NBC News) Can you imagine getting paid $1.67 an hour for a company that turns around and turns your hard work into a huge profit amongst several wealthy industries? These workers must not make enough money for a steady living, yet they work for a company that is swimming in profit. Workers throughout China are demanding not just higher wages but better social insurance as they face the prospect of supporting a rapidly aging population. (Worsening China, NBC News) These employees know that they have aging to face in the near future, which requires insurance for doctors visits, and only adds to the amount of money they need to live a decent life. All of these things have built up over time- to create a goal for these people to do their best to achieve.

Webb 2 There was an estimate of 30,000 workers on strike on April 22nd, all due to the efforts of these employees in getting their benefits and pay in alignment. This dispute began on April 15th in Dongguan, China. These workers were fighting for their rights and have pressed forward even into this past week. The response from Yue Yuen was basic, We'll pay what is in the regulations, there should not be any concern on that," Yue Yuen spokesman George Liu told Reuters. (Worsening China, NBC News) Eventually the workers were offered back pay of social security and some help with housing, but they rejected that offer and demanded for a 30% pay raise and a choice of who represents their workplace. The denying of these offers could later turn into regret, or so some think. Workers may end up with a take-home salary almost unchanged or maybe even lower than before, Xiang said. (Yue Yuen Drops, Bloomberg.com) According to Bloomberg, the workers raised their demands as the strike continued. The strikers expanded demands after an initial dispute over contributions to government-mandated social security and housing benefits for workers. (Yue Yuen Drops, Bloomberg.com) They wouldnt end without some sort of self-satisfaction and their end goal met. Apparently this small difference affected Yue Yuen already, as it caused the companys stock to decline after committing to raising the pay of its employees. Yue Yuen fell 5 percent, the most since July 2013, to close at HK$24.80, extending the stocks decline this year to 4.3 percent. The Hang Seng Index has lost 2.5 percent in 2014. (Yue Yuen Drops, Bloomberg.com) Things arent looking great for them.

Webb 3 The on-off work stoppage at Yue Yuen Industrial (Holdings) Ltd.'s massive factory complex in southern China, which employs more than 40,000 workers, has stretched into the second week as both sides have failed to reach an agreement. (No Solution in Sight, ABC News) This dispute had a big impact on production with Yue Yuen and has definitely affected them negatively and will continue to do so until an official decision can be made. Not only would it affect Yue Yuen negatively to have less workers and to pull more money from their pockets for their workers, but the workers would also have to make up for their missed social security payments. "As far as I know, none of the workers around me would like to accept the offer," Cui said. "Some have worked there for more than 10 years, and in this case, they need to pay like 20,000 to 30,000 yuan (to make up the missed social security payments). It is too hard for the workers." (No Solution in Sight, ABC News) This is an interesting side of the argument, because it shows that the workers are in trouble if they do happen to get that pay raise that theyre heavily fighting for. On top of the riots going on and the vague decision to help the employees from Yue Yuen, there were also issues with the police being involved. Dozens of workers were taken away by police last week, the official Xinhua News Agency reported April 17, without saying why the workers were taken. (Yue Yuen Drops, Bloomberg.com) This posed different issues as to where they took these people, and why. What began as a fight for freedom and rights, ended in a poorly met goal for the protestors and less workers for the company.

Webb 4 In my opinion, these employees are standing up for themselves, which is smart, plus they finally came to the realization that they deserve better which seems to have taken a while. This relates to class because we talked a ton about whats moral. When it comes to moral responsibility, I feel like you need to know your boundaries on what way you will allow yourself to be treated. The reason why I feel like this current event relates to moral responsibility is the fact that these Chinese workers are getting paid little to nothing to fulfill a job that is part of a huge industry that makes a ton of money. I imagine their lives to be very unfulfilling with those wages and I am not surprised to hear that they are struggling with paying their taxes since they seriously make nothing (just shy of maybe $400 a month). Moral responsibility comes into this equation because they have to make the decision, is it my moral responsibility to keep my mouth shut and not try and rebel against the way this employer treats me? They also have to check with themselves and see if they are fulfilling their lives to their own, personal moral responsibility. Not only do the employees fit into this, its also the employer (Yue Yuen) that has a moral responsibility here. They should rethink if they are being fair to their employees and if what they are paying them is acceptable morally. If they feel like this wage is not morally acceptable, then it is most likely against the law, or most employers probably pay a higher amount. They will save themselves from getting into trouble with the law later if they can figure out a solution right now. As you can see, the issue in China has a ton to do with moral responsibility between the employer and employee. Not only that, it also fits in with racism in our society today.

Webb 5 In class we discussed racism and its affect on everyone currently. There are so many misunderstandings and assumptions having to do with race, so much that we often dont even realize what others are going through. Also when it comes to different countries, we may just assume that they have it the same as us but they could be going through a lot more. I think this relates to these people in China because we may often assume that those in China are smart and since they have all the best technology, then they are better off and are not living in suffering. When in reality, they are suffering and they are being forced to work for little to no money and be put in horrible working environments. Many people use the Chinese workers to their advantage and dont realize how unfair and racist it truly is. Even their own people can be considered racist for enslaving so many workersbut I see it as being mostly American companies such as ,Nike and Adidas, that are really taking advantage of their skill. Hopefully a decision can be made between the two sides and it will be moral and just, as well as respectful to the Chinese. What is going on is wrong on all accounts and these people deserve to be given the hard-earned income that they work for. The companies involved also dont deserve to go out of business- but with a fair agreement, I believe everyone should be happy in the long run.

Webb 6 Works Cited

Jamieson, Alastair. Worsening China Factory Strike Threatens Adidas, Nike Sneakers NBC News. NBC News. N.p., 23 Apr. 2014. Web. 23 Apr. 2014. Lin, Liza. Yue Yuen Drops Most in 9 Months as Strike Disrupts Output. Bloomberg.com. Bloomberg, 22 Apr. 2014. Web. 23 Apr. 2014. Tang, Didi, and Kelvin K. Chan. No Solution in Sight for China Shoe Factor Strike. ABC News. ABC News Network, 22 Apr. 2014. Web. 23 Apr. 2014.