[Updated] Adidas Sourcing From Vietnam Factory That’s On Strike

The Adidas Gazelle
The Adidas Gazelle
Courtesy image.

Workers at the Vietnam footwear manufacturing factory for Adidas and other brands  have reached an agreement with the government and ended their weeklong strike today.

What we reported Monday

Adidas Group has confirmed it is one of the brands sourcing from a Vietnam factory that is currently experiencing a five-day strike involving thousands of workers. 

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“We can confirm that a strike is taking place at Pou Chen Group’s factory, Pou Yuen, located in Vietnam,” Adidas said in a statement. “Workers expressed their concerns about new social-insurance legislation that should be in effect across Vietnam in 2016.”

According to reports from Reuters, Poe Yuen employs upwards of 80,000 workers — hundreds of whom gathered peacefully inside and outside the factory.

“We are monitoring the situation and are in close contact with our partner, Pou Chen,” Adidas said. “Pou Chen Group is in discussions with the local government to seek ways to address the concerns expressed by the workers.”

Pou Yen’s parent company, Pou Chen Group, is the largest branded athletic- and casual-footwear manufacturer in the world, according to its website, and has manufactured shoes for major international brands such as Nike, Reebok, Asics, New Balance, Puma, Converse and Timberland.

But Brian Strong, a spokesman for Nike North America, told FN that Nike does not source from the strike-stricken Vietnam factory.

“Nike and Converse do not source from the contract factories affected by the strike, and there has been no impact on Nike or Converse production at contract factories in Vietnam,” Strong said. “We are aware of the situation and will continue to monitor it.”

Pou Yen is controlled by China-based Yue Yuen Industrial (Holdings) Ltd., a subsidiary of Pou Chen.