We were closely monitoring the situation at the production site from the beginning. In order to minimise the impact on our operations, we reallocated some of the future orders originally allocated to Yue Yuen Dongguan to other suppliers. But we never intended to pull out of the Yue Yuen factory in Dongguan and we have no plans to do so.
And here is why we need an international labour movement, if companies can minimise the impact of a strike, what leverage do workers have to negotiate?
It is our understanding that the insurance contributions which YY had been providing, together with corresponding deductions from the workers, were in accordance with an agreement which they had reached with the Dongguan authorities and the local social insurance bureau.
Read corruption here. The letter fails to mention that the same local authorities used riot police against the protesting workers and incarcerated labour rights activists.
YY has now committed to achieve full compliance with the national requirements by May 1st 2014
Yay! The strike ended last week, additional to the contribution in the insurance funds, workers also got a pay raise and other benefits.