Last updated on August 3rd, 2012 at 11:14 am
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.
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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
