Yue Yuen extends its benefit scheme to all Chinese factories
08/08/2014
In a statement to the Hong Kong Stock exchange, the manufacturer – which was dogged by strikes in April – said: “The group has reviewed its employee benefits policy in China following the Gaobu Factory incident. After such review, the board has decided to raise contributions for employees of the group's other factories in China, excluding the Gaobu Factory."
Owned by Taiwanese conglomerate Pou Chen, Yue Yuen cited staff retention and recruitment as the main reasons, “so as to ensure the group's normal business operation under the increasingly competitive labour market conditions in China”.
The board estimates a provision of $53 million will be made to the scheme, which will impact first-half results, published in mid-August.
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