Adidas Closes Their Chinese Plant As Workers Demand A Raise

By: RayAug. 1st, 2012more from Ray

Chinese workers at Adidas’ wholly owned plant are shocked. The German company is closing its doors forever and sub contracting their assembly out to other Chinese factories.

The workers suspect this is due to them demanding more pay. According to China dot org workers were paid $1100 yuan a month, or $175 dollars a month in 2010. They received a raise of 400-600 yuan a month after 2010.

This raise brought their pay up from a mere $175 dollars a month to $266 dollars a month. It equals a weekly raise from $43 dollars to $66 dollars.

Adidas, in their financial statement provided by Bloomberg, had almost a billion EURO cash on hand. This is equal to over a billion dollars cash on hand when converting the currency.

In 2011 Adidas total revenue was $13 billion EURO, or $16 billion dollars. Year over year since 2008 their total revenue has grown from 10 billion to the current 13 billion EURO.

In their quarterly report as of March 31st 2012, Adidas made 3 billion euro in sales and a net income of 289 million.

So explain to me, how paying someone in China $66 dollars a week is going to kill your company. This just screams greed all over it!

Image: The China Times

Adidas Closes Their Chinese Plant As Workers Demand A Raise was written by Ray for PoliticusUSA.

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13 Responses to Adidas Closes Their Chinese Plant As Workers Demand A Raise

Reynardine

Aug. 1st, 2012 at 6:39 pm

It is also known as keeping uppity workers in their place, because if the Morlocks ever get to emerge from their holes, they might eat the Eloi, mightn’t they?
What do you think? 0 0
jjm

Aug. 1st, 2012 at 6:40 pm

OOoops. Where will the outsourcers send the factories to next? I’m thinking ???
What do you think? 0 0
- kimbutgar
  
  Aug. 1st, 2012 at 8:19 pm
  
  Back to the US if rmoney and the republicans take over both houses and eliminate minimum wages. The tea baggers who work 2 or 3 jobs will take that 4th job because they are hardworking Amerikans!!!!
  What do you think? 0 0
  - Sherry Burrows
    
    Aug. 1st, 2012 at 9:40 pm
    
    No, the plan is to bring the factories back to the US alright. Now that the President is offering tax credits to companies who bring jobs back to the US, you’ll see a lot of factories opening up. What you won’t see—or be told by the corporate media—is that said factories will be sited within the barbed wire of private, for-profit prisons, where they will be staffed by true slave laborers, inmates who can be forced, at gunpoint, to work 18 hour days for FREE, while the CCA or GEO, the companies that own them, lock, stock, and body, make a fortune. This is why America will NEVER end the drug war. It is too profitable to a few powerful interests. It is also why minor drug crimes that wouldn’t ever be illegal in any other country have mandatory decades-long sentences in many states. It’s the same thing as anything else: Follow the money. However, expect to see huge amounts of fanfare for any company that brings jobs back to America, with them getting huge tax breaks and many public kudos. Believe me when I say that you will NEVER learn from TV, radio, or major newspapers that the “jobs” will only be open to those who are already, quite literally, slaves. When slavery was outlawed, there is a phrase within the amendment that reads that nobody can be held against his will as a slave “except for convicted criminals adjudicated to hard labor or penitentiary incarceration.” Ergo, slavery most certainly does still exist, and it has the public’s support, thanks to the corporate media’s sensationalization of heinous crimes and silence regarding the fact that the vast, vast, vast majority of prison inmates are non-violent, minor drug offenders. Oh yeah, and the additional fact that the vast majority are also poor and people of color, either black, Latino, or Native American.
    What do you think? 0 0
    - John
      
      Aug. 1st, 2012 at 11:14 pm
      
      Hate to break the news to you but the GOP beat that bill down. The bill was to stop paying companies to move and start moving them to bring jobs back. The Tepublicans voted it down and it failed. Just one more reason that the GOP will sink the whole country to make sure that the corporations have a free reign.
      What do you think? 0 0
- Jolly Roger
  
  Aug. 1st, 2012 at 10:17 pm
  
  Burma. They’ll be mighty complacent in Burma, or ELSE.
  What do you think? 0 0
Shiva (Moderator)

Aug. 1st, 2012 at 7:05 pm

The cost of Adidas in the US is prohibitive. Not worth buying. They make the shoes for pennys and sell them for a pound.

Stop buying them
What do you think? 0 0
- Reynardine
  
  Aug. 1st, 2012 at 7:45 pm
  
  All the tennies and running shoes I’ve bought in recent years have run on second-hand roads. They’re already broken in, and the slavedrivers don’t get a profit the second time round (Federico Fellini size: 8 1/2)
  What do you think? 0 0
  - Shiva (Moderator)
    
    Aug. 1st, 2012 at 7:52 pm
    
    Funny mine are 8 1/2 as well. Both feet
    What do you think? 0 0
A Walkaway

Aug. 2nd, 2012 at 11:18 am

In studying poverty, we discussed how the companies move their factories from place to place, seeking employees who will work for starvation wages and tolerate hellhole conditions. As soon as the employees demand better treatment, they’re gone. Even the factories are structured to be moved with relative ease. (China has a significant suicide problem because employees are committing suicide over their situation and treatment.)

Needless to say, I have a very low opinion of corporations, especially the multinational ones.

I’d also mention that we’ve already had slavery conditions on American “soil”. The “Guest Worker” programs often entail slave labor conditions with no freedom for the employees. It may be against the law, but it’s happening.
What do you think? 0 0
Inez

Aug. 2nd, 2012 at 11:28 pm

Can’t imagine why anyone working in China want a decent wage! Hopefully, the next group of potential workers will feel the same way and refuse to work for slave wages. Time for Unions.
What do you think? 0 0
Sam Reeves

Aug. 3rd, 2012 at 12:06 am

Give it ten years and all the major players will have opened up factories in India instead of China. It’s already happening now anyway.

China’s days as the world factory are numbered. India will also be far more conducive to international business practice than China ever was.
What do you think? 0 0
Gary Vaughn

Aug. 3rd, 2012 at 4:21 am

I recently read an article that said Brazil had the youngest fittest work force, I thought that was odd. Then not 3 days later, I hear Romney talking up a big trade deal with Brazil if he gets office. So I guess we know where the next round of outsourcing will go, young people willing to work for peanuts. I guess they didn’t learn from India’s power grid failure that it takes money to build a strong infrastructure. I would love to see how much it cost business’ that had call centers there when the lights went off for a few days.
What do you think? 0 0