Continuing a recent trend of labor strikes at foreign enterprises in the country, more than a thousand workers in Shanghai went on strike after their Hi-P Electronics factory announced suddenly that it was moving. Workers told China Enterprise News they were striking because they hadn’t been warned of the move or offered fair compensation.
The report names Hi-P as a supplier to both Apple (NASDAQ:AAPL) and HP (NYSE:HPQ), but it also quotes an Apple rep in Shanghai as saying that she isn’t familiar with the company, and that it is likely a minor supplier. Apple does not publicly name its suppliers.
The Hi-P factory move is a reflection of a number of issues that are affecting small and mid-range factories across China. The economic troubles in the West, coupled with rising materials and labor prices in China, have made it tougher for these companies to do business.
As China transitions to a consumer economy, tech companies like Apple may be forced to look to new locations and companies to supply parts and manufacturing for their devices.
[China Enterprise News via Sina Tech]