What Resulted in Adidas’s Transform to Southeast Asia

This also can be seen from the increasingly serious of the recent "shortage of migrant workers". As for front-line workers, they were very lack. The new generation workforces are unwilling to work in labor-intensive plants or OEM plants due to their higher and higher expectation to wage and life, so it can be seen as well from this. It is also an evident thing that Fox Conn begin to hire workers widely and uninterruptedly. As for resting places for settling of Adidas, Cambodia or Thailand of Asia are possibilities. We can learn from the recent break of Adidas Cambodia "sweatshop" scandal away from happening.By report, licensed merchandises should be produced aiming to the London Olympic Games, and garment factory workers in Cambodian are the sole people group who can earn fifteen dollars weekly from Adidas. Weekly, workers have to go to work six days, and they are going to work ten hours per day for maximum. It was said by these workers that the condition where they worked was severe. The salary per month is 61 dollars supposing they work six days a weekly and work eight hours per day, what's more, there will be five dollars for the payment of health insurance. But it was recently responded by Adidas that the salary per month for its Burma factory workers was 130 dollars (about 828 Yuan RMB) . In contrast, the average wage monthly in Suzhou plant will be no less than 3000 Yuan, which is 3.6 times higher than workers in Burma.As a matter of fact, Adidas was not the only one who has aware of China's rise on labor costs and its compress on earning spaces. As early as in March 2009, the world's number one sports brand Nike also shut down the sole owner of footwear production facilities in Taicang factory. It transferred its footwear production business that was managed by the Winterthur Group to Winterthur's factories in other parts of Asia. These large multinationals, however, all reserve for skills and are not going to retreat totally without reservation. For example, Adidas emphasized just shut down the affiliated factories, and will not close the OEM factories. Hainer said that although they reduced the proportion of production in China, the number of OEM production in China absolutely will not decline, and they will not close any markets in China.As a matter of fact, this meant to shift the workforce costs' rising stress to OEM businesses in the locality. Because there was no need for Adidas to take the labor costs into account, what required it to do was to provide foundry factories with orders. For the sake of taking orders into consideration, just OEM plants will show the appearance of profits squeeze. What's more, other transnational corporations usually took this practice as well. It was reviewed by the First Agricultural Economy that there is an increase on labor costs in China, which can be explained by the emigration of some transnational corporations, such as Adidas and Nike. Normal 0 7.8 Å 0 2 false false false MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:nh<; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-parent:""; mso-padding-alt:0cm 5.4pt 0cm 5.4pt; mso-para-margin:0cm; mso-para-margin-bottom:.0001pt; mso-pagination:widow-orphan; font-size:10.0pt; font-family:"Times New Roman"; mso-fareast-font-family:"Times New Roman"; mso-ansi-language:#0400; mso-fareast-language:#0400; mso-bidi-language:#0400;}

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