Vietnam's anti-China riots prompt Taiwanese to think twice

Want China Times, Staff Reporter 2014-06-28

A Taiwanese-owned factory plant was vandalized during
 rioting in Vietnam in May, though escaped being burned to the
 ground as happened in a number of cases. (File photo/
Chiu Tsung-hao)

Last month's anti-China protests in Vietnam have caused Taiwanese businesses who were considering relocating their factories from mainland China to the Southeast Asian country to take advantage of cheaper labor to think again, our sister paper Want Daily reported on June 26.

Rising production costs have pushed many Taiwanese entrepreneurs to start moving their mainland China operations to Southeastern Asian countries such as Vietnam and Indonesia. But last month's riots, which the Vietnamese government has considered to be legitimate protests which got out of hand has shown them a warning sign.

The unrest began on May 11, when local protesters objecting to a Chinese oil platform operating off the Paracel Islands in the South China Sea, controlled by China but also claimed by Vietnam, turned their anger on Chinese companies, factories and plants, including those owned by Taiwanese entrepreneurs, in many cases burning them to the ground.　

Some Taiwanese businesses have already done well from relocating production to Vietnam and the trend had been expected to continue. Pou Chen Group, the world's leading show manufacturer, for example, has been heavily reliant on its plants in Indonesia and Vietnam.

ILO Prepares Building Safety Guidelines for Indonesian Garment Factories

Jakarta Globe, Erwida Maulia, May 28, 2013

Workers set up a tent as they demand for better pay in front of a garment factory
in Tangerang, Banten, in this April 10, 2013 file photo. (JG Photo/Fajrin Raharjo)

The Indonesian office of the International Labor Organization on Tuesday said it was preparing new infrastructure safety assessment guidelines for Indonesian garment factories in the wake of a building collapse in Bangladesh that killed over 1,100 people.

The ILO said it was drafting the new infrastructure assessment criteria under its Better Work Indonesia program, and would use it to appeal to Indonesian garment makers to ensure the safety of their factories.

“In a country that is prone to earthquakes and other natural disasters, it is imperative that employers ensure their buildings are structurally sound by regularly making sure that their buildings are in line with government regulations,” BWI program manager Simon Field said in a press statement on Tuesday.

BWI senior enterprise adviser Muhammad Anis Nugroho said that Indonesia already has comprehensive regulations on building safety, but admitted that implementation was always an issue.

“A public works minister regulation on this [building safety], for example, is quite detailed — there should be regular inspections, and so on,” Anis said. “But it uses phrases only experts on the matter can comprehend.”

The new ILO guidelines, Anis said, are expected to help factories comply with the existing regulations by translating the technical terms into “practicable” guidelines.

He said that it was still unclear how well the government has followed its own regulations.

However, he added, companies should want to improve the safety of their work environments following the collapse of the eight-story building that housed five garment factories in Bangladesh, dubbed the world’s worst garment industry disaster.

“We will involve the government in the creation of the guidelines,” Anis said. “In the end, we want this to help the government carry out inspections.”

Indonesia earned $12.5 billion from textile exports last year. The figure is expected to increase to $13.5 billion this year, with the United States and Europe remaining the country’s main markets.

In comparison, Bangladesh, the world’s second largest apparel exporter after China, records $20 billion annually from textile exports.

Nike agrees to just pay it in Indonesian workers' compensation deal

Deutsche Welle, 12 January 2012 

The workers will receive around $1 million

US sports apparel giant Nike has agreed a compensation deal with workers at a subsidiary factory in Indonesia for over half a million hours in unpaid overtime. The workers' union says the fight has "only just begun."

A subsidiary of sportswear maker Nike has agreed to pay compensation to around 4,500 factory workers in Indonesia for over half a million hours in unpaid overtime.

An Indonesian trade union representing the employees from the PT Nikomas shoe plant in Banten province said Nike had agreed to pay $1 million following 11 months of negotiations.

The money will be distributed to the workers by early next month.

"The decisive actions taken by PT Nikomas Gemilang IY plant clearly demonstrate how seriously they are taking the allegations of workplace misconduct," Nike said in a statement. "Nike commends the factory on their action plan and efforts to correct inadequacies in current policies designed to protect the rights of workers."

Union chairman Bambang Wirahyoso said he hoped the case would set a precedent in a country where factory employees often work seven day weeks without overtime or proper benefits.

"This has the potential to send shockwaves through the Indonesian labor movement," Wirahyoso said in a statement, adding that his union was gearing up to fight for other workers. "We have only just begun."

Author: Darren Mara

Editor: Anne Thomas